CMA
CMA CONNECTICUT
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1994
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. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CMA Connecticut
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1994, CMA Connecticut
Municipal Money Fund paid shareholders a net annualized yield of
2.15%*. As of September 30, 1994, the Fund's 7-day yield was 2.64%.
The Environment
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the July--
September period. In addition, the weakness of the US dollar in
foreign exchange markets caused intermittent stock and bond market
declines during the period. While the immediate concerns regarding
the US dollar had diminished by late July, the possibility of
continued tightening by the Federal Reserve Board persisted for most
of the period. However, a lower-than-expected rate of growth
reported for the US economy during the second calendar quarter
allayed inflationary concerns to some degree, despite the fifth
increase this year in short-term interest rates made by the central
bank in mid-August. Inflationary expectations surfaced again with
the announcement of significant upward revision in industrial
production and capacity utilization for the May--July period. When
the central bank did not raise short-term interest rates at the late
September Federal Open Market Committee meeting, financial markets
rallied on the expectation that the US economy was not overheating
and therefore significant further monetary policy tightening would
not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home sales
may have peaked. Inflation remains subdued at the retail level. In
the industrial sector, the sharp increase in manufacturing
production in August was largely the result of a strong increase in
motor vehicle assemblies, which may level off in the weeks ahead. On
balance, it appears that the growth in US industry is progressing at
a steady, modest rate.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Despite evidence of a moderating trend in the US economy, Chairman
Greenspan indicated in his July Humphrey-Hawkins testimony that the
central bank would prefer to err on the side of too much monetary
tightening rather than too little. In the weeks ahead, investors
will continue to assess economic data and inflationary trends in
order to gauge whether further increases in short-term interest
rates are imminent. Continued indications of moderate and
sustainable levels of economic growth would be positive for the US
capital markets.
<PAGE>
Investment Outlook and Strategy
During the six-month period ended September 30, 1994, the US economy
continued to surprise the marketplace with its resiliency.
Manufacturing provided a strong catalyst for growth, and continued
strength in housing and automobile sales provided the impetus for
the Federal Reserve Board to continue the restrictive monetary
policy it initiated in February. This was accomplished by raising
the Federal Funds rate in April by 25 basis points (0.25%) to 3.75%.
More aggressive increases of 50 basis points followed in May and
August, pushing the Federal Funds rate to its current level of
4.75%. In addition, the Federal Reserve Board raised the discount
rate by 50 basis points in both May and August. The yield on the one-
year US Treasury bill rose approximately 155 basis points to 5.95%
by September 30, 1994.
During the six-month period ended September 30, 1994, preliminary
operating results for Connecticut's fiscal year 1994 indicated that
the State continues to recover, albeit slowly, from the difficult
fiscal legacy of the last recession. Preliminary reports from the
State comptroller show that the general fund produced a surplus at
year-end of $141 million, while its cumulative deficit position was
reduced to $384 million, down from a deficit position of $504
million the year before. Budget adjustments for fiscal 1995 are
relatively modest so far. During this period, Moody's Investors
Service, Inc. confirmed the State's Aa-rating on its $5.8 billion in
outstanding long-term debt, citing the State's exceptional wealth
and resources as well as its continued fiscal responsibility. While
debt levels are still high at 9.4% of personal income in the State,
the level is still manageable. The new tax structure created at the
start of fiscal 1992, which imposed a personal income tax and
reduced the sales tax rate, has helped restore fiscal balance by
reducing the budget's economic vulnerability and substantially
increasing revenues.
New issuance of short-term Connecticut debt totaled $209 million in
the six-month period ended September 30, 1994, an increase from the
$106.1 million in short-term debt brought to market during the
previous six-month period. The maturity of CMA Connecticut Municipal
Money Fund has ranged from 52 days to 89 days. We reduced the Fund's
maturity from 89 days in mid-September to 70 days at the end of
September because of the possibility of additional Federal Reserve
Board intervention.
CMA Connecticut Municipal Money Fund is currently fully invested in
securities with the highest rating issued by Moody's Investors
Service, Inc. and Standard & Poor's Corp., or their equivalent.
Diversification and credit quality remain paramount in importance to
the Fund, and we will continue to closely monitor the everchanging
marketplace.
<PAGE>
In Conclusion
We thank you for your support of CMA Connecticut Municipal Money
Fund, and we look forward to serving your investment needs in the
future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
September 25, 1994
Portfolio Abbreviations for CMA Connecticut Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UPDATES Unit Price Demand Adjustable Tax-Exempt
Securities
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut--$ 1,075 Bristol, Connecticut, BAN, 3.72% due 5/18/1995 $ 1,075
82.5% 12,300 Connecticut State Development Authority, Health Care Revenue Bonds
(Independent Living Project), VRDN, 3.60% due 7/01/2015 (a) 12,301
5,420 Connecticut State Development Authority, IDA, Revenue Bonds (Sealectro
Corporation Project), 4.05% due 12/01/1997 5,420
Connecticut State Development Authority, PCR, Refunding (Connecticut
Light & Power Co. Project), VRDN (a):
7,900 Series A, 3.70% due 9/01/2028 7,900
4,100 Series B, 3.85% due 9/01/2028 4,100
4,400 Connecticut State Development Authority, PCR, Refunding (Western
Massachusetts Electric Co.), VRDN, Series A, 3.60% due 9/01/2028 (a) 4,400
2,650 Connecticut State Development Authority Revenue Bonds (Jewish Community
Center Project), VRDN, 3% due 9/01/2017 (a) 2,651
Connecticut State Development Authority Revenue Bonds (Solid Waste--Exeter
Project), VRDN, AMT (a):
3,000 Series A, 3.75% due 12/01/2019 3,000
400 Series C, 3.75% due 12/01/2019 400
6,200 Connecticut State Economic Recovery Notes, VRDN, Series B, 3.70% due
6/01/1996 (a) 6,200
Connecticut State GO:
700 Series B, 5.50% due 5/15/1995 707
500 Series D, 6.10% due 11/15/1994 501
Connecticut State Health and Educational Facilities Authority
Revenue Bonds (a):
1,400 (Kent School), VRDN, Series A, 3.25% due 7/01/2023 1,400
5,250 (Windham Community Memorial Hospital), CP, UPDATES, 3.10% due
10/11/1994 5,250
3,815 (Yale--New Haven Hospital), VRDN, Series E, 3.70% due 6/01/1995 3,815
Connecticut State Health and Educational Facilities Authority Revenue
Bonds (Yale University), CP:
5,075 Series L, 3.20% due 11/28/1994 5,075
4,600 Series M, 2.80% due 10/14/1994 4,600
5,450 Series N, 3.20% due 11/10/1994 5,450
1,450 Series O, 3.20% due 11/10/1994 1,450
5,000 Series P, 3.20% due 11/10/1994 5,000
Connecticut State HFA (Housing Mortgage Finance Program):
1,975 Series A, 3.30% due 5/15/1995 1,973
1,800 Series D, CP, AMT, 3.20% due 10/25/1994 1,800
6,265 Series D, CP, AMT, 3.20% due 11/10/1994 6,265
4,100 Series D, CP, AMT, 3.35% due 11/28/1994 4,100
5,600 Series D, CP, AMT, 3.60% due 12/07/1994 5,600
8,775 Sub-Series D-2, 3.65% due 5/15/1995 8,775
13,000 Sub-Series G-1, 3.55% due 5/15/1995 13,000
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut Connecticut State Special Assessment Unemployment Compensation,
(concluded) Advanced Fund Revenue Bonds:
$ 5,000 Series A, 3.60% due 5/15/1995 $ 4,995
16,900 Series B, VRDN, 3.55% due 11/01/2001 (a) 16,900
9,800 Series C, 3.85% due 7/01/1995 9,798
26,350 Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure), Second Lien, VRDN, Series 1, 3.75% due 12/01/2010 (a) 26,350
Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure), Series A:
450 6.60% due 2/01/1995 455
1,000 4.75% due 4/01/1995 1,008
4,810 Connecticut State Tender Option, GO, 3.45% due 11/16/1994 4,810
9,000 East Haven, Connecticut, BAN, UT, 3.34% due 3/15/1995 9,001
1,000 Hartford, Connecticut, GO, UT, 6.50% due 6/15/1995 1,019
455 Meriden, Connecticut, GO, UT, 6.40% due 1/15/1995 460
310 Norwalk, Connecticut, Refunding Bonds, Second Series, UT, 3.10%
due 1/15/1995 311
600 Redding, Connecticut, BAN, 2.98% due 10/26/1994 601
3,975 Stafford, Connecticut, BAN, UT, 2.87% due 10/26/1994 3,974
1,900 Stamford, Connecticut, BAN, 3.07% due 3/22/1995 1,899
1,830 Winchester, Connecticut, BAN, 3.50% due 11/10/1994 1,831
Puerto Rico-- 9,000 Puerto Rico Commonwealth, Government Development Bank,
16.5% Revenue Refunding Bonds, VRDN, 3.55% due 12/01/2015 (a) 9,000
5,000 Puerto Rico Commonwealth, Highway and Transportation Authority,
Highway Revenue Bonds, VRDN, Series X, 3.25% due 7/01/1999 (a) 5,000
3,530 Puerto Rico Housing Finance Corporation, Medical Revenue Bonds, VRDN,
3.30% due 10/01/2011 (a) 3,529
Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities, Financing Authority Revenue Bonds:
1,000 (Anna G. Mendez Educational Project), 2.85% due 11/09/1994 1,000
5,500 (Anna G. Mendez Educational Project), CP, 3% due 11/07/1994 5,500
1,500 (Merck & Co. Inc. Project), VRDN, Series A, 2.70% due 12/01/1994 (a) 1,500
2,250 (Reynolds Metals Co. Project), VRDN, 4% due 9/01/1995 (a) 2,250
2,500 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control Facilities Financing Authority, CP, 3.15% due 11/07/1994 2,500
11,000 Puerto Rico Maritime Shipping Authority, CP, 2.95% due 11/08/1994 11,000
Total Investments (Cost--$246,899*)-- 99.0% 246,899
Other Assets Less Liabilities--1.0% 2,455
--------
Net Assets--100.0% $249,354
========
<FN>
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rates shown are the interest rates in effect at September 30, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1994
<S> <C>
Assets:
Investments, at value (identified cost--$246,898,718) (Note 1a) $246,898,718
Cash 212,811
Receivables:
Interest $ 1,436,377
Securities sold 1,000,690 2,437,067
------------
Deferred organization expenses (Note 1d) 15,524
Prepaid registration fees and other assets (Note 1d) 2,207
------------
Total assets 249,566,327
------------
Liabilities:
Payables:
Investment adviser (Note 2) 103,301
Distributor (Note 2) 61,859 165,160
------------
Accrued expenses and other liabilities 47,572
------------
Total liabilities 212,732
------------
Net Assets $249,353,595
============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 24,949,855
Paid-in capital in excess of par 224,548,690
Undistributed investment income--net 5,813
Accumulated realized capital losses--net (Note 4) (150,763)
------------
Net Assets--Equivalent to $1.00 per share based on 249,498,545 shares of
beneficial interest outstanding $249,353,595
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 3,578,720
Expenses:
Investment advisory fees (Note 2) $ 625,337
Distribution fees (Note 2) 155,178
Professional fees 21,374
Transfer agent fees (Note 2) 17,897
Accounting services (Note 2) 17,717
Custodian fees 12,800
Registration fees (Note 1d) 11,761
Printing and shareholder reports 9,884
Amortization of organization expenses (Note 1d) 3,591
Pricing fees 3,222
Trustees' fees and expenses 1,647
Other 2,690
-----------
Total expenses 883,098
-------------
Investment income--net 2,695,622
Realized Loss on Investments--Net (Note 1c) (31,150)
-------------
Net Increase in Net Assets Resulting from Operations $ 2,664,472
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the Year
Months Ended Ended
Sept. 30, March 31,
Increase (Decrease) in Net Assets: 1994 1994
<S> <C> <C>
Operations:
Investment income--net $ 2,695,622 $ 4,135,741
Realized loss on investments--net (31,150) (18,319)
------------ ------------
Net increase in net assets resulting from operations 2,664,472 4,117,422
------------ ------------
Dividends to Shareholders (Note 1e):
Investment income--net (2,690,092) (4,132,578)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (2,690,092) (4,132,578)
------------ ------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 433,374,809 850,975,709
Net asset value of shares issued to shareholders in reinvestment of dividends (Note 1e) 2,689,884 4,132,548
------------ ------------
436,064,693 855,108,257
Cost of shares redeemed (436,723,007) (836,486,718)
------------ ------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (658,314) 18,621,539
------------ ------------
Net Assets:
Total increase (decrease) in net assets (683,934) 18,606,383
Beginning of period 250,037,529 231,431,146
------------ ------------
End of period* $249,353,595 $250,037,529
============ ============
<FN>
*Undistributed investment income--net $ 5,813 $ 283
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
For the Period
The following per share data and ratios have been derived Six Months April 29,
from information provided in the financial statements. Ended 1991++ to
Sept. 30, For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1994 1994 1993 1992
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- ---------
Investment income--net .01 .02 .02 .03
--------- --------- --------- ---------
Total from investment operations .01 .02 .02 .03
--------- --------- --------- ---------
Less dividends:
Investment income--net (.01) (.02) (.02) (.03)
--------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= =========
Total Investment Return 2.15%* 1.77% 2.20% 3.56%*
========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .58%* .58% .51% .28%*
========= ========= ========= =========
Expenses, net of reimbursement .71%* .70% .63% .41%*
========= ========= ========= =========
Expenses .71%* .70% .73% .81%*
========= ========= ========= =========
Investment income--net 2.16%* 1.76% 2.17% 3.46%*
========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 249,354 $ 250,038 $ 231,431 $ 197,895
========= ========= ========= =========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Connecticut 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 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) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien 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.
<PAGE>
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. ("ML & Co."). The limited partners
are ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also
an indirect wholly-owned subsidiary of ML & Co.
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.
The most restrictive annual expense limitation requires that the
adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Investment Adviser during any year which will cause
such expenses to exceed the pro rata expense limitation at the time
of such payment.
CMA CONNECTICUT 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 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.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
<PAGE>
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, FAMI, PSI, MLPF&S, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased 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 and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1994, the Fund had a net capital loss carryforward of
approximately $120,000, of which $80,000 expires in 2000, $30,000
expires in 2001 and $10,000 expires in 2002. This amount will be
available to offset like amounts of any future taxable gains.
CMA Connecticut 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
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
<PAGE>
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
