CMA
CMA OHIO
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1998
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. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. 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. Statements and other information herein are as dated and are
subject to change.
CMA Ohio
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, 1998, CMA Ohio
Municipal Money Fund paid shareholders a net annualized yield of
3.05%.* As of September 30, 1998, the Fund's 7-day yield was 3.25%.
Economic Environment
Although the state of Ohio's economy expanded during the six-month
period ended September 30, 1998, its performance lagged the national
average. Manufacturing jobs were created at a steady pace despite a
decrease in overall employment growth. However, as the effects of a
global slowdown began to filter into the domestic economy,
manufacturing activity began to slow. During the period, Ohio
exports to Asian countries fell by one-third, but were offset
somewhat by improved demand from Europe, Mexico and Canada. The
steel industry fared well from a robust construction market combined
with an increase in auto production as General Motors returned to
full operations after its factory workers ended their strike. Single-
family residential construction continued at a rapid pace throughout
the state, while commercial construction was also very strong.
During fiscal year 1998, the state of Ohio managed to record higher-
than-expected revenues despite signs of slowing in its economic
activity. Tax revenue collections finished fiscal year 1998 at
$737.7 million or 5.5% above estimates. This compares to $1.2
billion or 9.4% above the previous fiscal year. Personal income
taxes were the biggest contributors to the fiscal year results,
exceeding estimates by $567 million or 10.1%. In addition, General
Revenue Fund disbursements in aggregate were below estimates by
nearly $655 million for the 1998 fiscal year. This combination of
higher-than-expected revenues and lower-than-expected spending led
to an unobligated ending fund balance of $1.1 billion in the General
Revenue Fund.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
For the first three months of fiscal year 1999, the state recorded
total revenues of $4.0 billion, which represented a 4.3% gain over
the same three-month period a year ago, although slightly below
budget estimates. These positive fiscal results continued to allow
the state to bypass borrowing in the short-term municipal market to
finance daily operations. In addition, the various Ohio
municipalities have also benefited from the state's positive
economic performance, allowing them to maintain moderate borrowing
levels which amounted to $613 million for the six-month period.
Investment Strategy
We began the six-month period ended September 30, 1998 by employing
a neutral approach to the market. The municipal yield curve remained
fairly flat to slightly inverted throughout the first three months
of the period. The Fund maintained an average portfolio maturity in
the 45-day range. We took advantage of variable rate demand note
(VRDN) security yield levels, while selectively purchasing longer-
dated municipal notes that were attractively priced for
diversification purposes. As the second half of the period unfolded,
our focus on the technical considerations in investing in the
municipal market was replaced with a focus toward the fundamental
aspects of the market. This shift in focus was in part because of
the crises in the Asian region and Russia.
As the turmoil in Asia continued, new crises began to appear in both
Russia and Latin America, which unsettled the world's stock markets
and created a rally in US Treasury securities as investors searched
for a safe haven. Although the municipal note market was slow in
reacting to such events, a combination of historically high values
relative to US Treasury securities and a reduction in municipal note
issuance created from strong domestic economic conditions caused
rates on one-year municipal notes to fall approximately 50 basis
points (0.50%). We shifted the Fund's investment strategy to a more
aggressive approach by increasing its average life to the 60-day
range. The adjustment in the Fund's average life was accomplished
through increased purchases of longer-dated municipal notes, while
reducing its percentage of VRDN security holdings. As investors
reacted to the turbulent world financial markets, US Treasury yields
declined as much as 100 basis points in anticipation of the
September Federal Open Market Committee meeting on September 29,
1998. In a much anticipated move, the Federal Reserve Board reduced
the Federal Funds rate by 25 basis points to 5.25%, and then lowered
rates by another 25 basis points in October. Overall, the Fund was
well situated to take advantage of the various interest rate
movements on the yield curve throughout the period.
Looking ahead, we expect to maintain an aggressive investment
approach by positioning the Fund for the possibility of further
reductions in interest rates by the Federal Reserve Board. We also
expect to balance the Fund's portfolio by taking advantage of VRDN
securities as year-end pressures on remarketing agents typically
force the municipal yield curve to invert. At times, we will look to
purchase additional amounts of longer-dated municipal notes when
issuance is available. However, as long as economic conditions
remain strong, we continue to expect a reduced amount of short-term
note issuance by various Ohio municipalities. We will continue to
closely monitor credit quality while seeking to offer an attractive
tax-exempt yield to our shareholders.
In Conclusion
We thank you for your support of CMA Ohio Municipal Money Fund, and
we look forward to serving your investment needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Kevin A. Schiatta)
Kevin A. Schiatta
Vice President and Portfolio Manager
November 10, 1998
Portfolio Abbreviations for CMA Ohio Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio--100.2% $ 890 Allen County, Ohio, IDR (Nickles Bakery Ohio Project), VRDN, 4.125% due
1/02/2003 (a) $ 890
3,500 Ashtabula County, Ohio, Hospital Facilities Revenue Bonds (Ashtabula
County Medical Center Project), VRDN, 4.05% due 12/01/2007 (a) 3,500
2,025 Ashtabula County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 4.15%
due 6/01/2005 (a) 2,025
315 Brooklyn Heights, Ohio, IDR (ATC Nymold Inc.), VRDN, AMT, 4.15% due
2/01/2002 (a) 315
Butler County, Ohio, BAN:
2,000 4.25% due 10/22/1998 2,000
3,700 4.10% due 8/05/1999 3,712
3,200 Cadiz, Ohio, BAN, 4.25% due 12/17/1998 3,203
Canal Winchester, Ohio, BAN:
1,000 4.30% due 1/12/1999 1,001
4,000 4.18% due 5/26/1999 4,008
1,605 Canfield, Ohio, Local School District, BAN, UT, 3.85% due 9/30/1999 1,611
1,400 Canton, Ohio, BAN, 3% due 7/15/1999 1,400
1,015 Canton, Ohio, IDR (Accu Plate Project), VRDN, 4.20% due 3/01/2017 (a) 1,015
3,490 Cincinnati and Hamilton County, Ohio, Port Authority, Economic Development
Revenue Bonds (Berthesda One Ltd.), 3.75% due 8/01/1999 3,490
7,000 Cincinnati, Ohio, City School District, BAN, UT, 4% due 9/16/1999 7,032
1,400 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT, Series A,
4.20% due 9/01/2005 (a) 1,400
9,000 Cleveland, Ohio, Airport System Revenue Refunding Bonds, VRDN, AMT,
Series D, 4.15% due 1/01/2027 (a) 9,000
8,000 Clinton County, Ohio, Hospital Revenue Bonds (Ohio Hospital Cap Inc.), VRDN,
4.05% due 6/01/2028 (a) 8,000
2,620 Columbiana County, Ohio, IDR (The Hall China Project), VRDN, AMT, 4.15% due
1/01/2007 (a) 2,620
4,900 Cuyahoga County, Ohio, Health Care Facilities Revenue Bonds (Catholic
Charities Facilities), VRDN, 4.05% due 7/01/2012 (a) 4,900
Cuyahoga County, Ohio, IDR, VRDN (a):
915 (Athens Pastries Inc. Project), AMT, 4.20% due 6/03/2009 915
5,155 (Cleveland E Excel Ltd.), AMT, 4.15% due 3/01/2019 5,155
595 (Erieview Metal Treating Project), AMT, 4.20% due 5/05/2010 595
2,290 Refunding (Curtiss Wright Project), 4.05% due 12/01/2008 2,290
3,060 Refunding (Parma Care Center, Inc.), 4.20% due 12/01/2011 3,060
940 Refunding (Pleasant Lake Association Project), 4.05% due 5/01/2011 940
3,400 (Suburban Pavilion Inc. Project), AMT, 4.25% due 10/02/2006 3,400
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 4,000 Eagle Tax-Exempt Trust, Cleveland, Ohio, VRDN, Class A, 3.60% due
(continued) 1/01/2021 (a) $ 4,000
10,800 Eagle Tax-Exempt Trust, Custodial Receipts, VRDN, 4.07% due
7/01/2015 (a) 10,800
Erie County, Ohio, IDR, VRDN (a):
500 (Brighton Manor Company Project), AMT, 4.15% due 11/01/2016 500
1,470 Refunding (Huron Health Care Center Project), 4.05% due 8/01/2007 1,470
1,870 Fayette County, Ohio, BAN, 4.10% due 8/25/1999 1,875
1,100 Fort Recovery, Ohio, Local School District, BAN, UT, 4.23% due 11/24/1998 1,101
1,000 Franklin County, Ohio, Hospital Revenue Bonds (Lutheran Senior City Inc.
Project), VRDN, 4% due 5/01/2015 (a) 1,000
2,870 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds
(US Health Corp. Project), VRDN, Series A, 4% due 12/01/2021 (a) 2,870
Franklin County, Ohio, IDR, VRDN (a):
1,325 (GWS Building Association Ltd.), 3.75% due 11/01/1998 1,325
2,500 Refunding (Heekin Can Inc. Project), AMT, 4.20% due 5/01/2007 2,500
3,000 Franklin County, Ohio, M/F Housing Revenue Bonds (Colonial Courts Project),
VRDN, AMT, 4.20% due 12/01/2024 (a) 3,000
2,800 Fulton County, Ohio, IDR (Gilders Business Holdings Project), VRDN, AMT, 4.15%
due 4/01/2007 (a) 2,800
1,135 Geauga County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 4.15% due
6/01/2005 (a) 1,135
1,000 Greene County, Ohio, IDR (FC Ltd./AFC Stamping), VRDN, AMT, 4.20% due
9/01/2016 (a) 1,000
4,320 Hamilton County, Ohio, BAN, 3.75% due 6/11/1999 4,320
446 Hamilton County, Ohio, Economic Development Revenue Bonds (Cincinnati
Performing Arts), VRDN, 4% due 6/15/2005 (a) 446
3,000 Hamilton County, Ohio, M/F Housing Revenue Bonds (Pleasant Run Apartment
Projects), VRDN, AMT, 4.15% due 11/01/2028 (a) 3,000
10,000 Hamilton County, Ohio, MSTR, VRDN, Series 55, Class A, 3.80% due
11/04/1998 (a) 10,000
1,160 Huber Heights, Ohio, IDR (Lasermike Inc. Project), VRDN, AMT, 3.88% due
12/01/2014 (a) 1,160
1,000 Lancaster, Ohio, BAN, 4.25% due 11/18/1998 1,000
1,150 Lebanon, Ohio, BAN, 3.91% due 9/02/1999 1,153
Lorain County, Ohio, BAN:
700 3.75% due 9/16/1999 702
4,574 3.75% due 9/16/1999 4,585
6,000 Lorain County, Ohio, Hospital Revenue Refunding Bonds (Catholic
Healthcare), Series A, CP, 3.50% due 11/10/1998 6,000
3,060 Lorain County, Ohio, IDR (DGR Investment Ltd.), VRDN, AMT, 4.20% due
12/01/2012 (a) 3,060
2,820 Lucas County, Ohio, Economic Development Revenue Bonds (Hammill
Manufacturing Co. Project), VRDN, AMT, 4.05% due 5/01/2010 (a) 2,820
200 Lucas County, Ohio, Hospital Revenue Bonds (Sunshine Children's Home
Project), VRDN, 4.05% due 12/01/2007 (a) 200
4,480 Lucas County, Ohio, IDR (Reichert Stamping Co. Project), VRDN, 4.15% due
7/15/2006 (a) 4,480
6,000 Lucas County, Ohio, M/F Housing Revenue Bonds (Virginia Lake Apartments
Project), AMT, 3.80% due 11/27/1998 6,000
3,450 Mahoning County, Ohio, Healthcare Facilities Revenue Bonds (Shepherd
Valley Lutheran Project), VRDN, Series A, 4.05% due 9/01/2022 (a) 3,450
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 5,000 Marion County, Ohio, BAN, 4.10% due 11/23/1998 $ 5,002
(continued) 130 Marion County, Ohio, Hospital Improvement Revenue Bonds (Pooled Lease
Program), VRDN, 4.05% due 5/01/2019 (a) 130
1,860 Marion County, Ohio, IDR (Mid-Ohio Packaging Company Project), VRDN,
AMT, 4.15% due 11/01/2015 (a) 1,860
1,125 Marysville, Ohio, BAN, 3.91% due 4/15/1999 1,127
9,300 Mason, Ohio, Economic Development Revenue Bonds (Cedar Village Project),
VRDN, 3.97% due 12/01/2017 (a) 9,300
2,780 Mentor, Ohio, IDR (Metcor Partnership/Tridelt), VRDN, AMT, 4.15% due
12/01/2008 (a) 2,780
6,300 Montgomery County, Ohio, Hospital Revenue Bonds (Miami Valley Hospital),
CP, Series 98-B, 3.45% due 11/18/1998 6,300
2,370 Montgomery County, Ohio, IDR (Citywide Development Corp. Project), VRDN,
AMT, 4.15% due 12/01/2013 (a) 2,370
590 Montgomery County, Ohio, IDR (Town Centers Ltd. Partnership Project), AMT,
3.95% due 11/15/1998 590
1,615 Moraine, Ohio, IDR, Refunding (Gray America Corporation Project), VRDN,
AMT, 4.15% due 12/01/2001 (a) 1,615
450 Mount Gilead, Ohio, BAN, 4% due 11/05/1998 450
1,790 Obetz, Ohio, IDR (HFI Inc. Project), VRDN, AMT, 4.15% due 10/01/2003 (a) 1,790
7,000 Ohio School District, COP, TAN, Series B, 4.05% due 6/30/1999 7,023
8,045 Ohio State Air Quality Development Authority, Environmental Improvement
Revenue Refunding Bonds (USX Project), 3.60% due 12/03/1998 8,045
7,500 Ohio State Air Quality Development Authority Revenue Bonds, CP, Series B,
3.60% due 12/14/1998 7,500
Ohio State Air Quality Development Authority, Revenue Bonds, VRDN (a):
1,900 Series A, 4.15% due 12/01/2015 1,900
5,100 Series B, 4.15% due 12/01/2015 5,100
Ohio State Air Quality Development, Revenue Refunding Bonds (Cincinnati
Gas & Electric), VRDN (a):
400 Series A, 4.05% due 9/01/2030 400
700 Series B, 4.10% due 9/01/2030 700
Ohio State Higher Educational Facilities, Commission Revenue Bonds, VRDN (a):
4,555 (Facilities Pooled Financing), 4.05% due 12/01/2016 4,555
2,615 (Mount Vernon), 4.05% due 9/01/2009 2,615
2,825 Ohio State, IDR, Refunding (General Motors Corp. Project), VRDN, 4% due
9/01/2001 (a) 2,825
11,000 Ohio State Solid Waste Revenue Bonds (BP Exploration & Oil Project), VRDN,
AMT, 4.25% due 2/01/2033 (a) 11,000
3,700 Ohio State Turnpike Commission Revenue Bonds, MSTR, VRDN, Series SGA-60,
4.05% due 2/15/2026 (a)(b) 3,700
2,120 Ohio State University, General Receipts, VRDN, 3.90% due 12/01/2027 (a) 2,120
9,000 Ohio State Water Development Authority, Environmental Improvement Revenue
Bonds (Mead Corp. Project), VRDN, AMT, 4.25% due 3/01/2023 (a) 9,000
3,000 Ohio State Water Development Authority, Solid Waste Disposal Revenue Bonds
(American Steel & Wire Corp.), VRDN, 4.15% due 9/01/2025 (a) 3,000
3,600 Ontario, Ohio, BAN, 4.20% due 12/23/1998 3,602
10,000 Ontario, Ohio, Local School District, BAN, UT, 4.375% due 10/07/1998 10,001
5,000 Ottawa County, Ohio, BAN, 4% due 8/06/1999 5,013
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 200 Paulding County, Ohio, IDR, Refunding (Countrymark Cooperative Inc.
(continued) Project), VRDN, 4.05% due 3/01/1999 (a) $ 200
5,400 Paulding County, Ohio, Solid Waste Disposal Revenue Bonds (Lafarge Corp.
Project), VRDN, AMT, 4% due 8/01/2026 (a) 5,400
3,000 Pickerington, Ohio, Local School District, BAN, UT, 3.70% due 1/22/1999 3,003
Portage County, Ohio, IDR, VRDN, AMT (a):
8,750 (Commercial Turf Products Ltd. Project), 4.10% due 5/01/2022 8,750
1,545 (NCSP L.P. Project), 4.15% due 7/01/2014 1,545
2,585 (PM Property One, Ltd.), 4.15% due 11/01/2012 2,585
2,020 Refunding (John E. Susong Project), Series A, 4.20% due 5/02/2011 2,020
1,335 Refunding (John E. Susong Project), Series B, 4.20% due 5/02/2016 1,335
1,000 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings,
Inc.), VRDN, 4.05% due 12/01/2010 (a) 1,000
1,390 Rock Hill, Ohio, Local School District, BAN, UT, 4.15% due 4/15/1999 1,395
1,250 Ross County, Ohio, Hospital Revenue Bonds (Medical Center Hospital
Project), VRDN, 4% due 12/01/2020 (a) 1,250
900 Salem, Ohio, BAN, 4.125% due 5/28/1999 902
Sandusky County, Ohio, IDR, VRDN (a):
1,300 (Brighton Manor Co. Project), AMT, 4.15% due 12/01/2016 1,300
1,755 (Crown Battery Manufacturing Co.), AMT, 4.20% due 8/06/2003 1,755
2,955 (Louis G. Freeman Co. Project), AMT, 4.20% due 7/01/2017 2,955
3,935 (Magnesium Refining Technologies Inc. Project), Series A, 4.20%
due 9/01/2007 3,935
1,970 Seneca County, Ohio, Health Care Facilities Revenue Bonds (Good Shepherd
Home Project), VRDN, 4.05% due 10/01/2017 (a) 1,970
235 Solon, Ohio, IDR (Tameran Project), VRDN, AMT, 4.20% due 11/01/2004 (a) 235
Stark County, Ohio, IDR, VRDN, AMT (a):
2,160 (Superior Dairy Inc. Project), 4.15% due 5/01/2003 2,160
1,280 (Wilkof-Morris Project), 4.20% due 1/01/2010 1,280
1,580 Streetsboro, Ohio, BAN, 4.15% due 10/09/1998 1,580
2,005 Strongsville, Ohio, IDR (E&E Properties/Dupli System Project), VRDN,
4.15% due 2/01/2010 (a) 2,005
7,500 Summit County, Ohio, BAN, Series A, 4.50% due 6/03/1999 7,536
200 Summit County, Ohio, Hospital Facilities Revenue Bonds (Cuyahoga Falls
General Hospital), VRDN, Series B, 4.05% due 7/01/1999 (a) 200
Summit County, Ohio, IDR:
820 (Ohio Camshaft Project), 3.90% due 10/01/1998 820
855 (Texler Inc. Project), AMT, 3.80% due 11/01/1998 855
Summit County, Ohio, VRDN, IDR (a):
1,220 (Ace Precision Industries Inc. Project), AMT, 4.15% due 7/01/2014 1,220
1,510 (Austin Printing Co. Inc. Project), AMT, 4.15% due 8/01/2006 1,510
340 (Forest Manufacturing Project), 4.10% due 11/01/2001 340
650 (Hardcoating Project), 4.15% due 7/01/2002 650
1,065 (Sigma Properties Project), 4.20% due 6/01/2008 1,065
1,000 (Steffen Bookbinders Project), 4.15% due 11/01/2004 1,000
400 (Struktol Project), AMT, Series A, 4.15% due 6/01/2002 400
1,640 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corp. Project),
AMT, 3.90% due 12/01/1998 1,640
1,225 Trumbull County, Ohio, BAN, 4.90% due 5/28/1999 1,232
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $1,900 Trumbull County, Ohio, IDR (ATD Corp. Project), VRDN, AMT, 5.25% due
(concluded) 8/01/2010 (a) $ 1,900
2,500 Union County, Ohio, IDR (Union Aggregates Co. Project), VRDN, AMT,
4.20% due 11/01/2006 (a) 2,500
1,180 Valley View, Ohio, IDR (Porter Development Project), VRDN, AMT,
4.15% due 5/01/2016 (a) 1,180
1,485 Valley View, Ohio, IDR, Refunding and Improvement Bonds (Sweet Valley
Dillon), VRDN, AMT, 4.15% due 4/01/2011 (a) 1,485
1,980 Warren County, Ohio, IDR (Kardol Quality Products Project), VRDN, AMT,
4.20% due 12/01/2014 (a) 1,980
2,260 Willoughby, Ohio, IDR (Malish Brush & Specialty), VRDN, AMT, 4.15% due
6/01/2009 (a) 2,260
2,720 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 4.80% due 12/01/1998 2,720
Wood County, Ohio, IDR, VRDN, AMT (a):
1,115 (B&B Box Co. Project), 4.15% due 3/01/2011 1,115
940 (Centaur Tool & Die Inc. Project), 4.15% due 8/01/2010 940
1,410 Woodster, Ohio, IDR (Litco International Inc. Project), VRDN, AMT,
4.15% due 5/01/2010 (a) 1,410
2,350 Wynford, Ohio, Local School District, BAN, UT, 3.95% due 4/15/1999 2,356
2,820 Zanesville--Muskingum County, Ohio, Port Authority, IDR (B.E. Products
Inc. Project), VRDN, AMT, 4.15% due 9/01/2004 (a) 2,820
Total Investments (Cost--$376,336*)--100.2% 376,336
Liabilities in Excess of Other Assets--(0.2%) (595)
----------
Net Assets--100.0% $ 375,741
==========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
September 30, 1998.
(b)MBIA Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1998
<S> <C> <C>
Assets:
Investments, at value (identified cost--$376,335,798) (Note 1a) $ 376,335,798
Cash 137,309
Receivables:
Interest $ 2,571,997
Securities sold 145 2,572,142
---------------
Prepaid registration fees and other assets (Note 1d) 10,377
---------------
Total assets 379,055,626
---------------
Liabilities:
Payables:
Securities purchased 3,006,170
Investment adviser (Note 2) 160,925
Distributor (Note 2) 92,431 3,259,526
---------------
Accrued expenses and other liabilities 55,548
---------------
Total liabilities 3,315,074
---------------
Net Assets $ 375,740,552
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 37,577,211
Paid-in capital in excess of par 338,194,895
Accumulated realized capital losses--net (Note 4) (31,554)
---------------
Net Assets--Equivalent to $1.00 per share based on 375,772,107 shares of
beneficial interest outstanding $ 375,740,552
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 7,032,163
Expenses:
Investment advisory fees (Note 2) $ 945,453
Distribution fees (Note 2) 234,787
Accounting services (Note 2) 29,040
Transfer agent fees (Note 2) 28,483
Professional fees 25,420
Registration fees (Note 1d) 20,766
Custodian fees 14,582
Printing and shareholder reports 9,092
Pricing fees 7,202
Trustees' fees and expenses 1,267
Other 1,818
---------------
Total expenses 1,317,910
---------------
Investment income--net 5,714,253
---------------
Net Increase in Net Assets Resulting from Operations $ 5,714,253
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO 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: 1998 1998
<S> <C> <C>
Operations:
Investment income--net $ 5,714,253 $ 11,028,240
--------------- ---------------
Net increase in net assets resulting from operations 5,714,253 11,028,240
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (5,714,253) (11,028,240)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (5,714,253) (11,028,240)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 745,807,199 1,402,701,781
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 5,714,424 11,028,169
--------------- ---------------
751,521,623 1,413,729,950
Cost of shares redeemed (770,495,615) (1,346,188,447)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (18,973,992) 67,541,503
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (18,973,992) 67,541,503
Beginning of period 394,714,544 327,173,041
--------------- ---------------
End of period $ 375,740,552 $ 394,714,544
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO 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: 1998 1998 1997 1996 1995
<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
--------- --------- --------- --------- ---------
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 3.05%* 3.15% 3.00% 3.26% 2.65%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses .70%* .70% .71% .73% .74%
========= ========= ========= ========= =========
Investment income--net 3.02%* 3.09% 2.94% 3.21% 2.64%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 375,741 $ 394,715 $ 327,173 $ 282,187 $ 237,655
========= ========= ========= ========= =========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA OHIO MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Ohio 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. 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 back-up 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: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
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 Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% 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.
CMA OHIO MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1998, the Fund had a net capital loss carryforward of
approximately $32,000, of which $23,000 expires in 2000, $5,000
expires in 2001 and $4,000 expires in 2002. This amount will be
available to offset like amounts of any future taxable gains.
CMA OHIO MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--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
Gerald M. Richard--Treasurer
Robert Harris--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*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
