CMA
CMA OHIO
MUNICIPAL MONEY FUND
Annual Report
March 31, 1999
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 Ohio
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1999, CMA Ohio Municipal Money Fund
paid shareholders a net annualized yield of 2.85%.* As of March 31,
1999, the Fund's 7-day yield was 2.48%.
Economic Environment
Overall, the state of Ohio experienced a moderate pace of economic
expansion during the six-month period ended March 31, 1999. However,
the state's largest metropolitan areas around Cleveland, Columbus
and Cincinnati witnessed far stronger economic conditions. Although
Ohio has been experiencing weakening labor force growth, the state's
seasonally adjusted unemployment rate fell to about 4%, slightly
below the national average. Ohio's employers were hard pressed to
expand payrolls, but wages were not accelerating since job security
continued to suppress wage pressures. The state's manufacturing
industry sustained declining production levels as new orders fell
off. This reduction in production levels impacted capital spending
plans of some major manufacturers.
Increases in the financial services industry as well as the housing
industry offset the decline in the manufacturing industry. The
housing industry continued to enjoy the positive dynamics of low
interest rates, high consumer confidence levels and high personal
income levels.
During the six-month period ended March 31, 1999, the expansion of
Ohio's economy continued to maintain a moderate pace and the total
revenue stream remained favorable. For the first nine months of the
fiscal year ended March 31, 1999, the state's total revenues were at
$13 billion, which exceeded the comparable period last year by 3%,
and was equal to budget estimates. The state also maintained a
strong rainy day fund which could be used in periods of economic
slowdown. The positive economic growth also continued to translate
into favorable financial conditions among the various Ohio
municipalities. Overall, these financial results allowed the state
to avoid borrowing in the short-term municipal market to finance
daily operations as well as reduce the borrowing needs of the
various Ohio municipalities.
[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 three months ended January 31, 1999, the short-term
municipal issuance amounted to a moderate $788 million.
Investment Stategy
CMA Ohio Municipal Money Fund began the six-month period employing
an aggressive approach to the market. The Fund's average life began
the period in the 60-day range. Despite an unsettled global
financial environment, especially in Latin America, the domestic
economy continued to weather these external factors and generate
economic growth that trended above estimates. The Federal Reserve
Board continued to balance its interest rate policy between
cushioning the domestic financial system from unsettling world
events while maintaining the current economic expansion. The Fund
was well situated as the Federal Reserve Board continued to reduce
the Federal Funds rate two more times to 4.75% with the last
reduction coming at the November Federal Open Market Committee
meeting. We began to reduce purchases of short-term municipal notes
while increasing the percentage of variable rate demand notes (VRDN)
during the first half of the period. At this point, we looked to
take advantage of the anticipated spike in VRDN yields created from
year-end pressures on the various remarketing agents.
As January began, we adjusted the Fund's investment strategy by
increasing the purchase of short-term municipal notes and tax-exempt
commercial paper (TECP) while reducing its holdings of VRDNs. This
strategy benefited the Fund as it increased the average life to the
70-day range and positioned the Fund in a way to limit the effects
of any sudden decline in VRDN yields created from the seasonal
supply imbalance which typically occurs in the first quarter of the
year. As the domestic economy continued to generate strong economic
statistics and world financial events stabilized, the Federal
Reserve Board left short-term interest rates unchanged for the
remainder of the period. These developments caused investors to
rethink their interest rate outlook and forced one-year US Treasury
bills to rise from a low in the 3.95% range and end the period in
the 4.70% range. This rise in US Treasury yields did little to
change the yield of equivalent one-year municipal securities through
February as seasonal supply imbalances kept these rates in check.
However, a combination of these imbalances easing and the various
fund groups preparing for a period of tax-related redemptions
allowed yields on one-year municipal notes to increase from the
2.90% range to the 3.15% range. We allowed the Fund's average life
to decline and end the period in the 45-day range as supply
imbalances kept municipal note yields artificially low for the
majority of the period.
Overall, the Fund performed above the average of similar municipal
funds during the year ended March 31, 1999. We accomplished this by
finding a balance in the Fund's strategy between the domestic
interest rate changes and the various supply imbalances that
effected the municipal market. The strategies employed allowed us to
offer an attractive yield to shareholders throughout the year.
As the domestic economy continues to exhibit remarkable strength and
the global environment stabilizes, this should allow the Federal
Reserve Board some latitude in avoiding any further interest rate
reductions. As the upcoming months unfold, we will continue to
monitor the changing economic conditions and adjust the Fund's
investment strategy accordingly. The Fund will begin the period with
a higher percentage of VRDNs as we prepare to meet the anticipated
tax-related redemptions. As the redemptions ease, we will look for
opportunities in the longer-dated municipal notes and TECP market to
maintain an average life with a neutral position as well as provide
a stable fund yield to shareholders. However, with Ohio exhibiting
strong economic conditions, it is anticipated that municipal
issuance will continue to be reduced. 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 months and
years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Kevin A. Schiatta)
Kevin A. Schiatta
Vice President and Portfolio Manager
May 14, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on CMA Ohio Municipal Money Fund's
Board of Trustees. We are pleased to announce that Terry K. Glenn
has been elected President and Trustee of the Fund. Mr. Glenn has
held the position of Executive Vice President of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in
wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Trustees.
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
GO General Obligation Bonds
HFA Housing Finance Agency
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
TAN Tax Anticipation Notes
VRDN Variable Rate Demand Notes
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio--99.0% $ 440 Allen County, Ohio, IDR (Nickles Bakery Ohio Project), VRDN, AMT, 3.875%
due 1/02/2003 (c) $ 440
3,300 Ashtabula County, Ohio, Hospital Facilities Revenue Bonds (Ashtabula County
Medical Center Project), VRDN, 3.10% due 12/01/2007 (c) 3,300
1,875 Ashtabula County, Ohio, IDR (Neff-Perkins Company Project), VRDN, AMT, 3.20%
due 6/01/2005 (c) 1,875
5,775 Bowling Green, Ohio, GO, BAN, 3.40% due 9/09/1999 5,783
235 Brooklyn Heights, Ohio, IDR (ATC Nymold Inc.), VRDN, AMT, 3.20% due
2/01/2002 (c) 235
Butler County, Ohio, GO, BAN:
2,000 3.55% due 10/21/1999 2,004
3,700 (Union Centre), 4.10% due 8/05/1999 3,705
Canal Winchester, Ohio, GO, BAN:
4,000 4.18% due 5/26/1999 4,002
1,000 3.85% due 7/15/1999 1,002
1,605 Canfield, Ohio, Local School District, GO, BAN, 3.85% due 9/30/1999 1,608
1,400 Canton, Ohio, GO, BAN, Refunding, 3% due 7/15/1999 1,400
975 Canton, Ohio, IDR (Accu Plate Project), VRDN, AMT, 3.20% due 3/01/2017 (c) 975
3,490 Cincinnati and Hamilton County, Ohio, Port Authority, Economic Development
Revenue Bonds (Bethesda One Ltd.), 3.75% due 8/01/1999 3,490
7,000 Cincinnati, Ohio, City School District, GO, BAN, 4% due 9/16/1999 7,016
1,400 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT, Series A,
3.25% due 9/01/2005 (c) 1,400
9,000 Cleveland, Ohio, Airport System Revenue Bonds, VRDN, AMT, Series D, 3.10%
due 1/01/2027 (c) 9,000
15,040 Cleveland, Ohio, City School District, Tender Option Certificates, Series BTP-246,
3% due 7/29/1999 15,040
2,125 Cleveland, Ohio, State University Revenue Bonds (General Receipts), BAN,
Series A, 3.80% due 8/16/1999 2,131
8,000 Clinton County, Ohio, Hospital Revenue Bonds (Ohio Hospital Capital Inc.),
VRDN, 3.10% due 6/01/2028 (c) 8,000
2,490 Columbiana County, Ohio, IDR (The Hall China Corp. Project), VRDN, AMT,
3.25% due 1/01/2007 (c) 2,490
4,900 Cuyahoga County, Ohio, Health Care Facilities Revenue Bonds (Catholic Charities
Facilities), VRDN, 3.20% due 7/01/2012 (c) 4,900
Cuyahoga County, Ohio, IDR, VRDN (c):
845 (Athens Pastries Inc. Project), AMT, 3.20% due 6/03/2009 845
5,025 (Cleveland E Excel Ltd.), AMT, 3.20% due 3/01/2019 5,025
560 (Erieview Metal Treating Project), 3.20% due 5/05/2010 560
2,220 Refunding (Curtiss Wright Project), 3.15% due 12/01/2008 2,220
3,060 Refunding (Parma Care Center, Inc.), AMT, 3.10% due 12/01/2011 3,030
920 Refunding (Pleasant Lake Association Project), 3.10% due 5/04/2011 920
3,100 (Suburban Pavilion Inc. Project), AMT, 4.25% due 10/02/2006 3,100
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 4,000 Eagle Tax-Exempt Trust, Cleveland, Ohio, Water Works, VRDN, Series 983501,
(continued) 3.11% due 1/01/2021 (c) $ 4,000
Eagle Tax-Exempt Trust, Ohio State Water Authority (Ohio Edison), VRDN (c):
15,000 Series 953501, 3.06% due 7/01/2015 15,000
5,800 Series 953502, 3.06% due 7/01/2015 5,800
4,000 East Cleveland, Ohio, City School District, GO, BAN, 3.875% due 4/27/1999 4,002
2,174 Edgewood, Ohio, City School District, GO, BAN, 3.80% due 6/30/1999 2,178
Erie County, Ohio, IDR, VRDN (c):
500 (Brighton Manor Company Project), AMT, 3.20% due 11/01/2016 500
1,470 Refunding (Huron Health Care Center Project), 3.10% due 8/01/2007 1,470
1,870 Fayette County, Ohio, BAN, 4.10% due 8/25/1999 1,872
1,000 Franklin County, Ohio, Hospital Revenue Bonds (Lutheran Senior City Inc.
Project), VRDN, 3.05% due 5/01/2015 (c) 1,000
2,835 Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds
(US Health Corp.), VRDN, Series A, 3.05% due 12/01/2021 (c) 2,835
1,255 Franklin County, Ohio, IDR (GSW Building Association Limited Partnership),
3.25% due 5/01/1999 1,255
2,500 Franklin County, Ohio, IDR, Refunding (Heekin Can Inc. Project), VRDN, 3.25%
due 5/01/2007 (c) 2,500
3,000 Franklin County, Ohio, M/F Housing Revenue Bonds (Colonial Courts Project),
VRDN, AMT, 3.15% due 12/01/2024 (c) 3,000
2,700 Fulton County, Ohio, IDR (Gilders Business Holdings Project), VRDN, AMT, 3.25%
due 4/01/2007 (c) 2,700
3,000 Gahanna-Jefferson City School District, Ohio, BAN, 4% due 4/15/1999 3,001
1,000 Geauga County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 3.20% due
6/01/2005 (c) 1,000
970 Greene County, Ohio, IDR (FC Ltd./AFC Stamping), VRDN, AMT, 3.20% due
9/01/2016 (c) 970
446 Hamilton County, Ohio, Economic Development Revenue Bonds (Cincinnati
Performing Arts), VRDN, 3.10% due 6/15/2005 (c) 446
2,955 Hamilton County, Ohio, M/F Housing Revenue Bonds (Pleasant Run Apartments
Project), VRDN, AMT, 3.20% due 11/01/2028 (c) 2,955
4,320 Hamilton, Ohio, GO, BAN, 3.75% due 6/11/1999 4,320
2,000 Highland Heights, Ohio, BAN, 3.44% due 11/18/1999 2,003
1,105 Huber Heights, Ohio, IDR (Lasermike Inc. Project), VRDN, AMT, 3.20% due
12/01/2014 (c) 1,105
3,400 Lakewood, Ohio, Local School District, BAN, 4% due 4/15/1999 3,401
900 Lancaster, Ohio, GO, BAN, 3.50% due 11/16/1999 902
1,150 Lebanon, Ohio, GO, BAN, 3.91% due 9/02/1999 1,151
3,000 Licking Valley, Ohio, Local School District, BAN, 3.75% due 4/15/1999 3,001
Lorain County, Ohio, BAN:
4,574 3.75% due 9/16/1999 4,579
700 3.75% due 9/16/1999 701
Lorain County, Ohio, Hospital Revenue Refunding Bonds (Catholic Healthcare
Partners Inc.), CP, Series A:
6,100 2.75% due 5/03/1999 6,100
6,000 2.80% due 5/03/1999 6,000
2,960 Lorain County, Ohio, IDR (DGR Investment Ltd.), VRDN, AMT, 3.20% due
12/01/2012 (c) 2,960
Lucas County, Ohio, Economic Development Revenue Bonds, AMT:
2,725 (Cross Country Inns--Maumee Project), VRDN, 3.15% due 5/01/2010 (c) 2,725
1,370 (Hammill Manufacturing Co. Project), 3.65% due 6/01/1999 1,370
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 200 Lucas County, Ohio, Hospital Revenue Bonds (Sunshine Children's Home
(continued) Project), VRDN, 3.15% due 12/01/2007 (c) $ 200
4,245 Lucas County, Ohio, IDR (Reichert Stamping Co. Project), VRDN, AMT, 3.25%
due 7/15/2006 (c) 4,245
2,310 Lucas County, Ohio, Metropolitan Sewer and Water District Improvement Notes,
GO, 3.625% due 10/20/1999 2,314
3,450 Mahoning County, Ohio, Healthcare Facilities Revenue Bonds (Shepherd Valley
Lutheran Project), VRDN, Series A, 3.10% due 9/01/2022 (c) 3,450
4,000 Marion County, Ohio, GO, BAN, 3.47% due 11/23/1999 4,006
130 Marion County, Ohio, Hospital Improvement Revenue Bonds (Pooled Lease
Program), VRDN, 3.10% due 5/01/2019 (c) 130
1,775 Marion County, Ohio, IDR (Mid-Ohio Packaging Company Project), VRDN, AMT,
3.25% due 11/01/2015 (c) 1,775
1,125 Marysville, Ohio, GO, BAN, 3.91% due 4/15/1999 1,125
2,500 Marysville, Ohio, Village School District, BAN, 3.685% due 6/30/1999 2,503
8,900 Mason, Ohio, Economic Development Revenue Bonds (Cedar Village Project),
VRDN, 3.05% due 12/01/2017 (c) 8,900
2,580 Mentor, Ohio, IDR (Metcor Partnership/Tridelt), VRDN, AMT, 3.20% due
12/01/2008 (c) 2,580
Montgomery County, Ohio, IDR:
2,265 (Citywide Development Corporation Project), VRDN, AMT, 3.20% due
12/01/2013 (c) 2,265
570 (Town Centers Limited Partnership Project), 3.20% due 5/15/1999 570
1,250 Moraine, Ohio, IDR, Refunding (Gray America Corporation Project), VRDN, AMT,
3.20% due 12/01/2001 (c) 1,250
1,530 Obetz, Ohio, IDR (HFI Inc. Project), VRDN, AMT, 3.20% due 10/01/2003 (c) 1,530
2,500 Ohio, HFA, Residential Mortgage Revenue Bonds, AMT, Series A-2, 3.05% due
9/01/1999 (b) 2,500
7,000 Ohio School Districts, Cash Flow Borrowing Program, COP, TAN, Series B, 4.05%
due 6/30/1999 7,008
8,045 Ohio State Air Quality Development Authority and Environmental Improvement
Revenue Refunding Bonds (USX Project), 3% due 6/01/1999 8,045
7,500 Ohio State Air Quality Development Authority Revenue Bonds (Duquesne Light
Co. Project), CP, Series B, 3.15% due 4/27/1999 7,500
5,300 Ohio State Environmental Improvement Revenue Bonds (Ohio Water
Development--Mead Corp. Project), VRDN, AMT, 3.15% due 3/01/2023 (c) 5,300
Ohio State Higher Educational Facilities Commission Revenue Bonds, VRDN (c):
4,255 (Facilities Pooled Financing), 3.10% due 12/01/2016 4,255
2,615 (Mount Vernon), 3.15% due 9/01/2009 2,615
2,825 Ohio State, IDR, Refunding (General Motors Corporation Project), VRDN, 3%
due 9/01/2001 (c) 2,825
13,500 Ohio State Solid Waste Revenue Bonds (BP Exploration & Oil Project), VRDN,
AMT, 3.05% due 2/01/2033 (c) 13,500
3,700 Ohio State Turnpike Commission, Revenue Bonds, MSTR, VRDN, Series SGA-60,
3.09% due 2/15/2026 (a)(c) 3,700
2,120 Ohio State University, General Receipts, VRDN, 2.85% due 12/01/2027 (c) 2,120
3,000 Ohio State Water Development Authority, Solid Waste Disposal Revenue Bonds
(American Steel & Wire Corp.), VRDN, AMT, 3.15% due 9/01/2025 (c) 3,000
4,000 Ontario, Ohio, BAN, 3.65% due 11/24/1999 4,008
5,000 Ottawa County, Ohio, BAN, 4% due 8/06/1999 5,005
1,890 Painesville, Ohio, BAN, 3.55% due 12/15/1999 1,893
5,400 Paulding County, Ohio, Solid Waste Disposal Revenue Bonds (Lafarge
Corporation Project), VRDN, AMT, 2.95% due 8/01/2026 (c) 5,400
4,850 Perrysburg, Ohio, Village School District, GO, BAN, 3.78% due 6/14/1999 4,856
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio Portage County, Ohio, Industrial Revenue Bonds, VRDN (c):
(continued) $ 8,750 (Commercial Turf Products Ltd. Project), AMT, 3.20% due 5/01/2022 $ 8,750
1,545 (NCSP LP Project), AMT, 3.20% due 7/01/2014 1,545
2,465 (PM Property One, Ltd.), AMT, 3.20% due 11/01/2012 2,465
1,970 Refunding (John E. Susong Project), Series A, 3.20% due 5/02/2011 1,970
1,295 Refunding (John E. Susong Project), Series B, 3.20% due 5/02/2016 1,295
835 Portage County, Ohio, Sewer District Improvement Notes, 3.40% due 12/02/1999 836
2,572 Powell Village, Ohio, BAN, 3.65% due 4/15/1999 2,572
1,000 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings,
Inc.), VRDN, 3.10% due 12/01/2010 (c) 1,000
1,390 Rock Hill, Ohio, Local School District, GO, BAN, 4.15% due 4/15/1999 1,390
1,220 Ross County, Ohio, Hospital Revenue Bonds (Medical Center Hospital Project),
VRDN, 3.05% due 12/01/2020 (c) 1,220
900 Salem, Ohio, BAN, 4.125% due 5/28/1999 900
Sandusky County, Ohio, IDR, VRDN, AMT (c):
1,300 (Brighton Manor Co. Project), 3.20% due 12/01/2016 1,300
1,585 (Crown Battery Manufacturing Co.), 3.20% due 8/06/2003 1,585
2,860 (Louis G. Freeman Co. Project), 3.20% due 7/01/2017 2,860
3,710 (Magnesium Refining Technologies Inc. Project), Series A, 3.20% due
9/01/2007 3,710
1,935 Seneca County, Ohio, Health Care Facilities Revenue Bonds (Good Shepherd
Home Project), VRDN, 3.15% due 10/01/2017 (c) 1,935
235 Solon, Ohio, IDR (Tameran Project), VRDN, AMT, 3.20% due 11/01/2004 (c) 235
2,500 Southwest Licking, Ohio, Local School District, GO, BAN, 3.75% due 6/15/1999 2,503
Stark County, Ohio, IDR, VRDN, AMT (c):
1,970 (Superior Dairy Inc. Project), 3.20% due 5/01/2003 1,970
1,245 (Wilkof--Morris Project), 3.20% due 1/01/2010 1,245
1,945 Strongsville, Ohio, IDR (E&E Properties/Dupli System Project), VRDN, AMT,
3.25% due 2/01/2010 (c) 1,945
7,500 Summit County, Ohio, GO, BAN, Series A, 4.50% due 6/03/1999 7,509
200 Summit County, Ohio, Hospital Facilities Revenue Bonds (Cuyahoga Falls
General Hospital), VRDN, Series B, 3.10% due 7/01/1999 (c) 200
Summit County, Ohio, IDR:
730 (Ohio Camshaft Project), 3.75% due 4/01/1999 730
855 (Texler Inc. Project), AMT, 3.55% due 5/01/1999 855
Summit County, Ohio, IDR, VRDN, AMT (c):
1,190 (Ace Precision Industries Inc. Project), 3.25% due 7/01/2014 1,190
1,425 (Austin Printing Co. Inc. Project), 3.25% due 8/01/2006 1,425
280 (Forest Manufacturing Project), 3.20% due 11/01/2001 280
580 (Hardcoating Project), 3.25% due 7/01/2002 580
1,065 (Sigma Properties Project), 3.20% due 6/01/2008 1,065
900 (Steffen Bookbinders Project), 3.25% due 11/01/2004 900
350 (Struktol Project), Series A, 3.20% due 6/01/2002 350
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 1,640 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corp. Project),
(concluded) 3.20% due 6/01/1999 $ 1,640
1,225 Trumbull County, Ohio, BAN, 4.90% due 5/28/1999 1,227
1,835 Trumbull County, Ohio, IDR (ATD Corporation Project), VRDN, AMT, 5.25% due
8/01/2010 (c) 1,855
2,500 Union County, Ohio, IDR (Union Aggregates Company Project), VRDN, AMT,
3.25% due 11/01/2006 (c) 2,500
1,145 Valley View, Ohio, IDR (Porter Development Project), VRDN, AMT, 3.25% due
5/01/2016 (c) 1,145
1,455 Valley View, Ohio, IDR, Refunding and Improvement Bonds (Sweet Valley Dillon),
VRDN, 3.20% due 4/01/2011 (c) 1,455
2,500 Wadsworth, Ohio, City School District, BAN, 3.47% due 8/10/1999 2,504
1,880 Warren County, Ohio, IDR (Kardol Quality Products Project), VRDN, 3.25% due
12/01/2014 (c) 1,880
2,185 Willoughby, Ohio, IDR (Malish Brush & Specialty), VRDN, AMT, 3.20% due
6/01/2009 (c) 2,185
2,720 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 4.50% due 6/01/1999 2,720
Wood County, Ohio, IDR, VRDN, AMT (c):
1,075 (B & B Box Co. Project), 3.25% due 3/01/2011 1,075
880 (Centaur Tool & Die Inc. Project), 3.25% due 8/01/2010 880
1,410 Wooster, Ohio, IDR (Litco International Inc. Project), VRDN, AMT, 3.25% due
5/01/2010 (c) 1,410
2,350 Wynford, Ohio, Local School District, GO, BAN, 3.95% due 4/15/1999 2,350
2,585 Zanesville-Muskingum County, Ohio, Port Authority, IDR (B.E. Products Inc.
Project), VRDN, AMT, 3.20% due 9/01/2004 (c) 2,585
Total Investments (Cost--$398,397*)--99.0% 398,397
Other Assets Less Liabilities--1.0% 3,973
----------
Net Assets--100.0% $ 402,370
==========
<FN>
(a)MBIA Insured.
(b)GNMA Collateralized.
(c)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1999.
*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 MARCH 31, 1999
<S> <C> <C>
Assets:
Investments, at value (identified cost--$398,397,447) (Note 1a) $ 398,397,447
Cash 55,303
Receivables:
Interest $ 3,882,680
Securities sold 30,092 3,912,772
---------------
Prepaid registration fees and other assets (Note 1d) 387,366
---------------
Total assets 402,752,888
---------------
Liabilities:
Payables:
Investment adviser (Note 2) 184,045
Distributor (Note 2) 125,220 309,265
---------------
Accrued expenses and other liabilities 74,084
---------------
Total liabilities 383,349
---------------
Net Assets $ 402,369,539
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 40,240,109
Paid-in capital in excess of par 362,160,985
Accumulated realized capital losses--net (Note 4) (31,555)
---------------
Net Assets--Equivalent to $1.00 per share based on 402,401,094 shares of
beneficial interest outstanding $ 402,369,539
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1999
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 13,737,644
Expenses:
Investment advisory fees (Note 2) $ 1,960,327
Distribution fees (Note 2) 484,767
Accounting services (Note 2) 83,806
Transfer agent fees (Note 2) 63,095
Professional fees 54,713
Registration fees (Note 1d) 44,704
Custodian fees 32,439
Printing and shareholder reports 21,717
Pricing fees 14,515
Trustees' fees and expenses 2,688
Other 4,345
---------------
Total expenses 2,767,116
---------------
Investment income--net 10,970,528
---------------
Net Increase in Net Assets Resulting from Operations $ 10,970,528
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
March 31,
Increase (Decrease) in Net Assets: 1999 1998
<S> <C> <C>
Operations:
Investment income--net $ 10,970,528 $ 11,028,240
--------------- ---------------
Net increase in net assets resulting from operations 10,970,528 11,028,240
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (10,970,528) (11,028,240)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (10,970,528) (11,028,240)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,465,357,026 1,402,701,781
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 10,970,775 11,028,169
--------------- ---------------
1,476,327,801 1,413,729,950
Cost of shares redeemed (1,468,672,806) (1,346,188,447)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 7,654,995 67,541,503
--------------- ---------------
Net Assets:
Total increase in net assets 7,654,995 67,541,503
Beginning of year 394,714,544 327,173,041
--------------- ---------------
End of year $ 402,369,539 $ 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
from information provided in the financial statements.
For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
<C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ----------- ---------- ---------- ----------
Investment income--net .03 .03 .03 .03 .03
Realized gain (loss) on investments--net -- -- -- -- --++
---------- ----------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .03 .03
---------- ----------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.03)
---------- ----------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.85% 3.15% 3.00% 3.26% 2.65%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .71% .70% .71% .73% .74%
========== ========== ========== ========== ==========
Investment income--net 2.80% 3.09% 2.94% 3.21% 2.64%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $ 402,370 $ 394,715 $ 327,173 $ 282,187 $ 237,655
========== ========== ========== ========== ==========
<FN>
++Amount is less than $.01 per share.
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. The Fund's financial statements
are prepared in accordance with generally accepted accounting
principles which may require the use of management accruals and
estimates. 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.
CMA OHIO 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 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.
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, 1999, 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.
<AUDIT-REPORT>
CMA OHIO MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Ohio Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of CMA Ohio
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 1999, the related statements of operations for the year
then ended and changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of
the years in the five-year period then ended. These financial
statements and the financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at March
31, 1999 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA Ohio Municipal Money Fund as of March 31, 1999, the results of
its operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 19, 1999
</AUDIT-REPORT>
CMA OHIO MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Ohio Municipal Money Fund of CMA Multi-State Municipal Series Trust
during its taxable year ended March 31, 1999 qualify as tax-exempt
interest dividends for Federal Income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
CMA OHIO 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
Richard R. West--Trustee
Arthur Zeikel--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
Robert Harris--Secretary
Gerald M. Richard, Treasurer of CMA Ohio Municipal Money Fund has
recently retired. His colleagues at Merrill Lynch Asset Management,
L.P. join the Fund's Board of Trustees in wishing Mr. Richard well
in his retirement.
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].
