CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 2000
MERRILL LYNCH BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. An
investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Fund. Past performance results shown in this report should not be
considered a representation of future performance, which will
fluctuate. Statements and other information herein are as dated and
are subject to change.
CMA Pennsylvania
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
To Our Shareholders:
For the six-month period ended September 30, 2000, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
3.60%*. As of September 30, 2000, the Fund's 7-day yield was 3.90%.
Economic Environment
During the six-month period ended September 30, 2000, the
commonwealth of Pennsylvania's economy continued to grow despite
some moderation. For example, although the region's September
Business Outlook Survey general activity index declined slightly
from that of the previous month, manufacturing continues to grow and
the survey's forward-looking index has improved three out of the
last four months. The forward-looking index, which reflects
manufacturers' expectations for growth over the next six months,
increased from 7.0 in July to 24.7 in August. In addition,
indicators reflecting business forecast for new orders and shipments
showed similar increases in August. After experiencing significant
employment losses during the past two years, the commonwealth's
manufacturing industry is showing signs of renewed strength. This
has been largely attributable to the pickup in overseas demand,
specifically from Asian economies. Going forward, we expect this
trend to continue even in the face of higher interest rates and a
general slowdown in the commonwealth's other industries.
Consequently, overall manufacturing employment has stabilized after
falling at a peak 2% annual rate in May 1999.
In general, the commonwealth's labor market continues to be tight,
reporting shortages of skilled workers in nearly all industries and
although employment growth has lagged the nation, virtually zero
labor force growth has kept the unemployment rate low. The
unemployment rate for Pennsylvania was reported at 4.0% for the
month of August. This strength in the commonwealth's labor market
has helped per-capita income to remain solid and personal
bankruptcies continue to decline. Moreover, the commonwealth
continues to create a larger share of higher paying jobs, supporting
solid growth in median household income. According to the Bureau of
Labor Statistics Occupational Employment Survey, approximately 34%
of all new positions created in 1999 were professional, managerial
and technical in nature, compared to 31% the year before. In
contrast, only 39% of new jobs in 1999 were low paying jobs compared
to 44% in 1998.
Although overall residential permits are still running above last
year's levels, the commonwealth's housing industry is expected to
weaken somewhat as a result of higher interest rates. For instance,
single family permits are significantly below last year's levels and
existing home sales are off by more than 10% across the
commonwealth. In May, Governor Tom Ridge signed into law the largest
tax cut in the commonwealth's history, totaling nearly $775 million.
This cut will include a decrease in the inheritance tax totaling $78
million, cuts and phaseouts of the capital stock and franchising tax
totaling $303 million and up to a $100 property tax rebate for an
estimated 3.3 million homeowners.
Investment Strategy
CMA Pennsylvania Municipal Money Fund began the six-month period
ended September 30, 2000 with a relatively bearish position. This
was because variable rate demand products traditionally out-perform
fixed rate products in April and May as a result of outflows during
tax time. Nonetheless, we anticipated moving the Fund to a more
neutral stance by June given our opinion that tighter monetary
policy, which was causing US equity markets to weaken, would soon
have a negative impact on the domestic economy. It was also the case
that the lack of short-term tax-exempt issuance and traditional cash
inflows in early June and July caused variable rate products to
underperform fixed rate products. Conversely, as the period began a
number of economic indicators, including strong retail sales and
housing activity, reflected a still-healthy US economy, while the
nation's unemployment rate dropped to 3.9% in April. Thus, we
delayed the Fund's extension in response to these factors.
On May 16, 2000, the Federal Reserve Board tightened monetary policy
by increasing the Federal Funds rate 50 basis points (0.50%) from
6.00% to 6.50%. Given this significant tightening of monetary
policy, we then looked to move to the more neutral position
anticipated at the beginning of the period. As we entered the second
half of the period, an increasing portion of the economic data began
to reflect a domestic economy that was softening. For example, in
both July and August the change in non-farm payrolls was
significantly weaker than expected, decreasing 108,000 and
increasing only 53,000, respectively. The battered equity indexes
also had trouble rebounding from their lows as the Dow Jones
Industrial Average fell more than 5% while the NASDAQ Composite
Index lost almost 15% of its value. Inflation also stayed in check
as both the consumer and producer price indexes recorded negative
values during the month of August.
Given this backdrop for the domestic economy, we believe that a
moderate slowdown could be at hand. Thus, during the remainder of
the period we continued to move to a slightly more aggressive
position when prudent. We accomplished this primarily in July and
August when the traditional increase in fixed rate issuance provides
an opportunity to lock in attractive yields. For the six-month
period ended September 30, 2000, the commonwealth of Pennsylvania's
issuance totaled $396.6 million. This strategy allowed the Fund to
perform above average relative to its peer group during the period,
as measured by IBC's Money Fund Report.
In Conclusion
We thank you for your support of CMA Pennsylvania Municipal Money
Fund, and we look forward to serving your investment needs in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
October 27, 2000
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
ACES SM Adjustable Convertible Extendible Securities
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of September 30, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania-- $15,879 ABN Amro, Munitops Certificates Trust, Series 1999-16, 4.60% due
99.5% 10/11/2000 (b) $ 15,879
Allegheny County, Pennsylvania, Hospital Development Authority,
Hospital Revenue Bonds (South Hills Health System):
4,300 4.30% due 4/01/2001 4,300
8,000 Series A, 5.50% due 6/01/2001 8,040
Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (Presbyterian University Hospital), ACES (e):
4,020 Series B-1, 5.55% due 3/01/2018 4,020
985 Series B-2, 5.55% due 3/01/2018 985
3,000 Series B-3, 5.55% due 3/01/2018 3,000
3,610 Allegheny County, Pennsylvania, IDA Revenue Bonds (The Bradley Center),
VRDN, Series A, 5.55% due 11/01/2014 (e) 3,610
9,935 Allegheny County, Pennsylvania, IDA Revenue Refunding Bonds (Commercial
Development--Parkway Center Project), VRDN, Series A, 5.50% due
5/01/2009 (e) 9,935
10,400 Beaver County, Pennsylvania, IDA, Environmental Improvement Recreation
Revenue Bonds (BASF Corporation Project), VRDN, AMT, 5.55% due
9/01/2032 (e) 10,400
2,625 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN,
5.60% due 12/03/2007 (e) 2,625
Beaver County, Pennsylvania, IDA, PCR, Refunding:
4,000 (Atlantic Richfield Project), VRDN, 5.55% due 12/01/2020 (e) 4,000
10,000 (Duquesne Light Company), CP, Series E, 4.15% due 12/15/2000 (a) 10,000
5,925 Bedford County, Pennsylvania, IDA, Revenue Bonds (Defiance Metal Products),
VRDN, 5.60% due 2/01/2011 (e) 5,925
1,610 Berks County, Pennsylvania, IDA, IDR (Valley Forge Flag Company, Inc. Project),
VRDN, AMT, Series A, 5.55% due 9/01/2006 (e) 1,610
1,125 Boyertown, Pennsylvania, Area School District, TRAN, 5.30% due 6/29/2001 1,129
1,920 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, 5.65% due 9/01/2012 (e) 1,920
1,230 Central Bucks, Pennsylvania, School District, GO, Refunding, Series B, 4.75%
due 2/01/2001 (d) 1,231
21,615 Clipper Tax Exempt, COP, VRDN, AMT, Series 1999-6, 5.62% due 5/14/2002 (e) 21,615
1,580 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT,
Series A, 5.60% due 11/01/2017 (e) 1,580
1,500 Dauphin County, Pennsylvania, General Authority Revenue Bonds,
Series NNN1, 5% due 6/01/2001 (a) 1,500
4,640 Dauphin County, Pennsylvania, General Authority Revenue Refunding Bonds
(School District Pooled Financing Program II), VRDN, 4.35% due
9/01/2032 (a)(e) 4,640
4,590 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System
Project), VRDN, AMT, 5.60% due 1/01/2014 (e) 4,590
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of September 30, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania $ 2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener
(continued) University Inc.), VRDN, 5.50% due 7/01/2014 (e) $ 2,000
5,900 Eagle Tax-Exempt Trust, Pennsylvania, HFA, VRDN, Series 94C,
Class 3801, 4.24% due 7/01/2025 (e) 5,900
Eagle Tax-Exempt Trust, Pennsylvania, VRDN (e):
4,300 Series 94, Class 3803, 4.44% due 5/01/2008 4,300
5,940 Series 96C, Class 3801, 4.44% due 5/01/2014 5,940
East Hempfield Township, Pennsylvania, IDA, Revenue Bonds, VRDN (e):
10,000 (Menomite Home Project), 4.24% due 6/01/2025 10,000
3,040 (Steckel Printing Inc.), AMT, 5.55% due 2/01/2013 3,040
Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (e):
7,315 5.40% due 12/01/2028 (c) 7,315
5,000 Series D, 5.60% due 3/01/2024 5,000
9,300 Sub-Series A-9, 5.65% due 3/01/2024 9,300
2,870 Erie County, Pennsylvania, Industrial Development (Reed Manufacturing Corp.
Project), VRDN, 5.60% due 6/01/2006 (e) 2,870
6,180 Fayette County, Pennsylvania, IDA, IDR (Dynamic Materials Corp. Project),
VRDN, 5.70% due 9/01/2013 (e) 6,180
3,940 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing
Facilities-Kyowa America), VRDN, AMT, Series D, 5.60% due 7/01/2014 (e) 3,940
5,625 Grove City, Pennsylvania, Area Hospital Authority, Health Care Facility
Revenue Bonds (John XXIII Home Project), VRDN, 5.60% due 2/01/2030 (e) 5,625
2,300 Harbor Creek, Pennsylvania, School District, GO, 4.75% due 7/01/2001 2,302
24,500 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project),
VRDN, AMT, Series A, 5.65% due 6/01/2027 (e) 24,500
2,845 Jeannette, Pennsylvania, Health Service Authority, Hospital Revenue Bonds
(Jeannette District Memorial Hospital), VRDN, Series B, 5.50% due
11/01/2018 (e) 2,845
6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 4.24% due
9/15/2020 (e) 6,390
3,500 Lancaster County, Pennsylvania, GO, VRDN, 5.60% due 5/01/2030 (d)(e) 3,500
1,330 Lancaster, Pennsylvania, IDA, Revenue Bonds (Kalas Manufacturing Inc.
Project), VRDN, AMT, Series B, 5.65% due 10/01/2004 (e) 1,330
5,600 Lebanon County, Pennsylvania, Health Facilities Authority, Health Center
Revenue Refunding Bonds (United Church Of Christ Project), VRDN, 5.62% due
4/01/2024 (e) 5,600
2,500 Manheim Boro, Pennsylvania, Water and Sewer Revenue Bonds, 6.85% due
9/01/2001 (b)(f) 2,556
3,700 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel
Enterprises Project), VRDN, AMT, Series A, 5.60% due 9/01/2013 (e) 3,700
385 Montgomery County, Pennsylvania, GO, VRDN, 5.40% due 11/15/2001 (e) 385
3,500 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Jadko Project),
VRDN, AMT, Series A, 5.60% due 6/01/2020 (e) 3,500
3,500 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds
(Commercial Development-Valley Forge Plaza), VRDN, 5.40% due
12/01/2013 (e) 3,500
3,285 Moon, Pennsylvania, IDA, Commercial Development (One Thorn Run Center
Project), VRDN, Series A, 5.50% due 11/01/2015 (e) 3,285
Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (e):
3,170 (Manufacturing Facilities-MCS Industries Inc.), 5.55% due 6/01/2012 3,170
3,800 (Reale Association Project), 5.55% due 4/01/2012 3,800
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of September 30, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania Pennsylvania Economic Development Financing Authority, Economic
(continued) Development Revenue Bonds, VRDN (e):
$ 4,400 AMT, Series D-7, 5.60% due 8/01/2022 $ 4,400
1,400 AMT, Series F-5, 5.60% due 12/01/2006 1,400
2,400 (Gutchess Hardwoods Inc. Project), Series B, 4.50% due 4/01/2005 2,400
840 (Wendt Dunning Co. Project), 5.65% due 9/01/2010 840
Pennsylvania Economic Development Financing Authority Revenue Bonds,
VRDN, AMT (e):
2,750 (HFH Realty Associates LP), Series F2, 4.40% due 8/01/2021 2,750
4,200 (Topcraft Precision Molder), Series F1, 4.35% due 8/01/2015 4,200
8,900 (Wengers Feed Mill), Series F3, 4.30% due 8/01/2020 8,900
Pennsylvania Energy Development Authority Revenue Bonds, VRDN, AMT (e):
4,795 (B&W Ebensburg Project), 5.50% due 12/01/2011 4,795
14,000 (Piney Creek), Series A, 5.50% due 12/01/2011 14,000
900 (Piney Creek), Series C, 5.50% due 12/01/2011 900
1,500 Pennsylvania State, GO, Refunding, Second Series, 5.50% due 7/01/2001 1,513
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN, AMT (e):
3,100 Series A, 5.75% due 1/01/2018 (a) 3,100
16,000 Series A, 5.70% due 3/01/2027 16,000
25,800 Series C, 5.75% due 7/01/2018 25,800
3,200 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Pennsylvania College of Optometry), VRDN,
5.40% due 3/01/2026 (e) 3,200
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds:
2,700 (Association of Independent Colleges and Universities- MercyHurst
College), CP, Series E-1, 4.50% due 11/01/2000 2,702
3,250 (Association of Independent Colleges and Universities), Series D-5,
4.35% due 5/01/2001 3,250
1,600 (Laffayette College Notes), CP, 4.50% due 11/29/2000 1,602
700 Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding
Bonds (Carnegie Mellon University), VRDN, Series D, 5.60% due 11/01/2030 (e) 700
2,520 Philadelphia, Pennsylvania, Authority for Industrial Development, IDR (David
Michael & Co. Inc.), VRDN, AMT, 5.65% due 10/01/2006 (e) 2,520
Philadelphia, Pennsylvania, Gas Works Revenue Bonds, CP, Series C:
15,200 4.25% due 12/07/2000 15,200
7,000 4.20% due 12/12/2000 7,000
4,290 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Health System Revenue Refunding Bonds (Jefferson Health System),
Series A, 5% due 5/15/2001 (a) 4,308
28,000 Philadelphia, Pennsylvania, TRAN, Series A, 5% due 6/29/2001 28,122
11,900 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding
Bonds (Northeastern Power Company), VRDN, AMT, Series B, 5.45% due
12/01/2022 (e) 11,900
4,000 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Hospital
Facilities Revenue Refunding Bonds (Mercy Health System), Series B,
5.25% due 1/01/2001 (b) 4,007
3,700 Somerset County, Pennsylvania, Hospital Authority Revenue Bonds (Somerset
Community Hospital Project), Series A, 4.30% due 3/01/2001 3,700
2,880 Somerset County, Pennsylvania, IDA, Revenue Bonds (Welding & Steel Project),
VRDN, AMT, 5.60% due 3/01/2015 (e) 2,880
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of September 30, 2000 (concluded) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania $12,000 Temple University of the Commonwealth System of Higher Education,
(concluded) Pennsylvania, University Funding Obligation Revenue Refunding Bonds,
5% due 5/10/2001 $ 12,053
4,000 University of Pittsburgh, Pennsylvania, The Commonwealth System of Higher
Education (Pittsburgh Asset Notes-Panthers), 5.20% due 5/23/2001 4,014
University of Pittsburgh, Pennsylvania, The Commonwealth System of Higher
Education Revenue Refunding Bonds (University Capital Project), VRDN,
Series A (e):
4,600 4.10% due 9/15/2004 4,600
14,400 5.25% due 9/15/2029 14,400
4,100 Venango, Pennsylvania, IDA, Revenue Bonds (Scrubgrass Generating Company
Project), CP, AMT, 4.30% due 10/25/2000 4,100
Venango, Pennsylvania, IDA, Revenue Refunding Bonds (Scrubgrass Generating
Company Project), CP, AMT:
16,500 Series A, 4.50% due 10/25/2000 16,500
4,650 Series B, 4.30% due 10/25/2000 4,650
2,500 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer
Products), VRDN, AMT, 5.60% due 12/01/2006 (e) 2,500
6,000 York County, Pennsylvania, Hospital Authority Revenue Refunding Bonds
(York Hospital), 7% due 1/01/2001 (a)(f) 6,156
1,650 York County, Pennsylvania, IDA, EDR (Fypon Limited Project), VRDN, AMT,
4.35% due 4/01/2015 (e) 1,650
Puerto Rico-- 1,350 Puerto Rico Commonwealth, Highway and Transportation Authority,
0.2% Transportation Revenue Refunding Bonds, VRDN, Series A, 4.50% due
7/01/2028 (a)(e) 1,350
Total Investments (Cost--$518,369*)--99.7% 518,369
Other Assets Less Liabilities--0.3% 1,342
----------
Net Assets--100.0% $ 519,711
==========
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FSA Insured.
(d)FGIC Insured.
(e)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at September 30, 2000.
(f)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Statement of Assets and Liabilities as of September 30, 2000
<S> <C> <C>
Assets:
Investments, at value (identified cost--$518,368,720) $ 518,368,720
Cash 25,056
Receivables:
Interest $ 3,192,469
Securities sold 830 3,193,299
---------------
Prepaid registration fees and other assets 36,685
---------------
Total assets 521,623,760
---------------
Liabilities:
Payables:
Securities purchased 1,232,246
Investment adviser 204,249
Distributor 135,831
Capital shares redeemed 434
Dividends to shareholders 142 1,572,902
---------------
Accrued expenses and other liabilities 339,704
---------------
Total liabilities 1,912,606
---------------
Net Assets $ 519,711,154
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 51,981,664
Paid-in capital in excess of par 467,834,649
Accumulated realized capital losses--net (105,159)
---------------
Net Assets--Equivalent to $1.00 per share based on 519,816,638 shares of
beneficial interest outstanding $ 519,711,154
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Statement of Operations for the Six Months Ended September 30, 2000
<S> <C> <C>
Investment Income:
Interest and amortization of premium and discount earned $ 11,629,426
Expenses:
Investment advisory fees $ 1,338,739
Distribution fees 337,688
Accounting services 46,038
Transfer agent fees 41,038
Professional fees 26,768
Custodian fees 21,007
Printing and shareholder reports 12,260
Registration fees 8,721
Pricing fees 4,478
Trustees' fees and expenses 1,640
Other 3,857
---------------
Total expenses 1,842,234
---------------
Investment income--net 9,787,192
Realized Loss on Investments--Net (33,951)
---------------
Net Increase in Net Assets Resulting from Operations $ 9,753,241
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Statements of Changes in Net Assets
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2000 2000
<S> <C> <C>
Operations:
Investment income--net $ 9,787,192 $ 14,542,714
Realized loss on investments--net (33,951) (16,884)
-------------- --------------
Net increase in net assets resulting from operations 9,753,241 14,525,830
-------------- --------------
Dividends to Shareholders:
Investment income--net (9,787,192) (14,542,714)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (9,787,192) (14,542,714)
-------------- --------------
Beneficial Interest Transactions:
Net proceeds from sale of shares 1,085,762,538 2,275,723,704
Value of shares issued to shareholders in reinvestment of dividends 9,787,058 14,542,700
-------------- --------------
1,095,549,596 2,290,266,404
Cost of shares redeemed (1,114,981,233) (2,279,913,158)
-------------- --------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (19,431,637) 10,353,246
-------------- --------------
Net Assets:
Total increase (decrease) in net assets (19,465,588) 10,336,362
Beginning of period 539,176,742 528,840,380
-------------- --------------
End of period $ 519,711,154 $ 539,176,742
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Financial Highlights
<CAPTION>
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
September 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 2000 2000 1999 1998 1997
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- --------- --------- ---------
Investment income--net .02 .03 .03 .03 .03
Realized loss on investments--net --++ --++ --++ --++ --++
---------- --------- --------- --------- ---------
Total from investment operations .02 .03 .03 .03 .03
---------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.03) (.03) (.03) (.03)
---------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 3.60%* 2.81% 2.77% 3.08% 2.92%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .68%* .69% .70% .70% .71%
========== ========== ========== ========== ==========
Investment income--net 3.64%* 2.78% 2.71% 3.03% 2.86%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $ 519,711 $ 539,177 $ 528,840 $ 443,012 $ 428,896
========== ========== ========== ========== ==========
*Annualized.
++Amount is less than $.01 per share.
See Notes to Financial Statements.
</TABLE>
CMA Pennsylvania Municipal Money Fund
Notes to Financial Statements
1. Significant Accounting Policies:
CMA Pennsylvania Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The Fund's
financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America, which
may require the use of management accruals and estimates. These
unaudited financial statements reflect all adjustments, which are,
in the opinion of management, necessary to a fair statement of the
results for the interim period presented. All such adjustments are
of a normal, recurring nature. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and backup withholding tax withheld) in
additional fund shares at net asset value. Dividends are declared
from the total of net investment income, excluding discounts earned
other than original issue discounts. Net realized capital gains, if
any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more
frequently than annually in order to maintain the Fund's net asset
value at $1.00 per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: .50%
of the first $500 million of average daily net assets; .425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and .375% of average daily net assets in excess of $1
billion.
CMA Pennsylvania Municipal Money Fund
Notes to Financial Statements (concluded)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S")
receives a distribution fee from the Fund at the end of each month
at the annual rate of .125% of average daily net assets of the Fund.
The distribution fee is to compensate MLPF&S financial consultants
and other directly involved branch office personnel for selling
shares of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the
periods corresponds to the amounts included in the Statements of
Changes in Net Assets for net proceeds from sale of shares, value of
shares reinvested and cost of shares, redeemed, respectively, since
shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 2000, the Fund had a net capital loss carryforward of
approximately $71,000, of which $13,000 expires in 2002, $11,000
expires in 2003, $22,000 expires in 2006, $4,000 expires in 2007 and
$21,000 expires in 2008. This amount will be available to offset
like amounts of any future taxable gains.
CMA Pennsylvania Municipal Money Fund
Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Roscoe S. Suddarth--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Edward D. Zinbarg--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Steven T. Lewis--Vice President
Darrin J. SanFillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Donald C. Burke--Vice President and
Treasurer
Phillip Gillespie--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
