CMA
CMA NORTH CAROLINA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1995
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.
<PAGE>
CMA North Carolina
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1995, CMA North
Carolina Municipal Money Fund paid shareholders a net annualized
yield of 3.29%*. As of September 30, 1995, the Fund's 7-day yield
was 3.31%.
The Environment
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economy has resumed a moderate growth
trend. Gross domestic product growth for the three months ended June
30 was revised to show that the economy expanded at a 1.1% pace,
rather than the 0.5% rate that was originally reported. The
employment report for August exceeded consensus expectations,
although most of the new jobs created were in the service sector,
reflecting the ongoing sluggishness in manufacturing. However,
durable goods orders rebounded somewhat in August, supported by
stronger automobile sales. Reflecting the trend of renewed economic
growth--and continued containment of inflationary pressures--the
Federal Reserve Board signaled no shift in monetary policy following
its September meeting.
<PAGE>
One of the major developments during the latter part of the period
under review was the strengthening of the US dollar relative to the
yen and the Deutschemark. Improving interest rate differentials
favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to
bolster the dollar in foreign exchange markets. Other factors that
appear to be improving the US dollar's outlook in the near term are
a pick-up in capital flows to the United States and the prospect of
increased capital outflows from Japan. However, it remains to be
seen if the US dollar's strengthening trend can continue without
significant improvements in the US budget and trade deficits.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Investment Outlook and Strategy
Short-term interest rates continued to fall relatively unabated
during the six-month period ended September 30, 1995 as they have
since late 1994. Economic data releases indicated that the severely
restrictive monetary policy undertaken by the Federal Reserve Board
in 1994 had moderated the growth of the US economy. Additionally,
the news on inflation continued to be overwhelmingly favorable which
provided the backdrop for a falling interest rate environment.
Investors began to anticipate that the Federal Reserve Board would
eventually have to begin cutting interest rates to avoid the
possibility of a recession in the US economy. In fact, on July 6,
1995, the Federal Reserve Board cut its key interest rate by 25
basis points to 5.75% confirming that an economic switch had
occurred and signaling a change in monetary policy from a
restrictive to a more neutral stance. This series of events provided
the impetus for the shape of the yield curve to become flatter over
the course of the six month period. For instance, while yields on
three-month US Treasury bills fell approximately 45 basis points for
the period, the yield on one-year US Treasury bills dropped nearly
95 basis points during the same period.
<PAGE>
The North Carolina economy continues to show positive long-term and
short-term trends with household income growing more rapidly than
the national average. The State, which ranked 43 in median family
income in 1980, now ranks 36. Traditionally dependent on
manufacturing and agriculture, North Carolina continues to diversify
into the trade and service sectors. In addition, employment growth
is above the national pace, and the August unemployment rate of 4.6%
is still significantly below the national August rate of 5.6%. The
State continues to attract new business, with two major companies
announcing the relocation of their corporate headquarters in August.
Additionally, Goodyear Tire & Rubber Company announced plans to
build a major manufacturing facility in Statesville, North Carolina.
Moreover, North Carolina's government projects a surplus of $77
million in the upcoming fiscal year because of a boost in revenue
collections. About $45 million of the expected revenue will be set
aside for non-recurring expenditures of capital projects. The
remaining $32 million will be appropriated in the general budget.
Furthermore, State legislators approved the largest tax cut in State
history by cutting levies on personal income and repealing the
intangibles tax on stocks and bonds to save taxpayers over $365
million. Finally, according to key lawmakers the State's corporate
income tax rollback, which was slated for a reduction from 7.75% to
7%, will be put on hold until the next session.
During the first half of the six-month period ended September 30,
1995, we pursued a relatively short average portfolio maturity in
the 35-day range to take advantage of the flat yield curve in the
short-term municipal market. For example, yields on variable rate
demand obligations were equal to or higher than those of one-year
fixed-rate North Carolina notes. As the Federal Reserve Board's bias
turned towards an easing of monetary policy in July, we extended the
Fund's average portfolio maturity to the 55- day range by September
30, 1995. We accomplished this by extending the Fund's commercial
paper holdings along with the purchase of fixed-rate notes at
attractive levels because of increased short-term supply during
August and September. During the six months ended September 30,
1995, North Carolina's short-term issuance was $78.5 million, an
increase from the $43.1 million issued during the previous six-month
period. Diversification and credit quality remain paramount to the
Fund, and we will continue to closely monitor the everchanging
marketplace.
In Conclusion
We thank you for your continued support of CMA North Carolina
Municipal Money Fund, and we look forward to serving your investment
needs in the future.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. San Fillippo)
Darrin J. San Fillippo
Portfolio Manager
October 31, 1995
We are pleased to announce that Darrin J. San Fillippo is
responsible for the day-to-day management of CMA North Carolina
Municipal Money Fund. Mr. San Fillippo has been employed by Merrill
Lynch Asset Management, L.P. since 1988, becoming Assistant Vice
President in the Tax-Exempt Bond Department in 1995.
Portfolio Abbreviations for CMA North Carolina Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North $ 1,000 Beaufort County, North Carolina, Industrial Facilities and Pollution
Carolina--81.3% Control Financing Authority Revenue Bonds (Texasgulf, Inc. Project),
VRDN, 4.65% due 12/01/2000 (a) $ 1,000
2,068 Bladen County, North Carolina, BAN (Water District), UT, 3.59% due
4/24/1996 2,069
3,000 Carteret County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, IDR (Texasgulf, Inc. Project), VRDN,
4.65% due 10/01/2005 (a) 3,000
8,985 Charlotte, North Carolina, Refunding, GO, UT, 4.20% due 2/01/1996 9,000
1,430 Craven County, North Carolina, BAN, UT, 3.63% due 6/05/1996 1,431
Craven County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds (Cravenwood Energy Project),
VRDN, AMT (a):
600 Series A, 4.55% due 5/01/2011 600
7,500 Series B, 4.55% due 5/01/2011 7,500
3,600 Series C, 4.55% due 5/01/2011 3,600
Cumberland County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority, Revenue Refunding Bonds (Monsanto Co.
Project), VRDN (a):
1,715 4.20% due 6/01/2012 1,715
600 4.20% due 10/01/2014 600
2,925 Durham County, North Carolina, BAN, UT, Series A, 3.90% due 2/21/1996 2,929
Durham County, North Carolina, Public Improvement Bonds, VRDN, UT (a):
1,000 4.30% due 5/01/2009 1,000
2,800 4.30% due 2/01/2010 2,800
1,000 4.30% due 5/01/2010 1,000
1,000 4.30% due 5/01/2011 1,000
1,800 Durham, North Carolina, Water and Sewer Utility System Revenue Bonds,
VRDN, 4.40% due 12/01/2015 (a) 1,800
2,800 Gaston County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds (Mount Holly Enterprises/
Queens G.P. Inc.), VRDN, AMT, 4.60% due 5/01/2004 (a) 2,800
Granville County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds, VRDN, AMT (a):
4,000 (Mayville Metal Production Project), 4.20% due 5/23/2020 4,000
2,375 (Tuscarora Plastics, Inc. Project), 4.60% due 12/01/2001 2,375
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina $ 500 Greene County, North Carolina, Industrial Facilities and Pollution Control
(continued) Financing Authority, IDA, Revenue Bonds (Federal Paper Board Company, Inc.
Project), VRDN, AMT, 4.45% due 11/01/2009 (a) $ 500
Greensboro, North Carolina, Public Improvement Bonds, VRDN, Series B (a):
1,400 4.30% due 4/01/2007 1,400
1,450 4.30% due 4/01/2008 1,450
1,950 4.30% due 4/01/2013 1,950
7,415 Halifax County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Exempt Facilities-Westmoreland), VRDN,
4.60% due 12/01/2019 (a) 7,415
2,700 Haywood County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, Solid Waste Disposal Revenue Refunding Bonds
(Champion International Corporation Project), VRDN, 4.35% due 3/01/2020 (a) 2,700
Iredell County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds:
4,000 (Purina Mills Inc. Project), VRDN, AMT, 4.35% due 7/01/2020 (a) 4,000
8,300 (Rubbermaid Specialty Products, Inc.), 4.25% due 6/01/1996 8,300
3,700 Lenoir County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (West Co. Nebraska, Inc. Project), VRDN,
4.30% due 10/01/2005 (a) 3,700
9,100 Lincoln County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Hof Textiles Inc. Project), VRDN, AMT,
4.40% due 10/01/2011 (a) 9,100
Mecklenberg County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds, VRDN (a):
2,000 (Edgecomb Metals Company Project), 4.525% due 12/01/2009 2,000
1,000 (Flawa Corporation Project), AMT, 4.15% due 12/01/2008 1,000
1,055 New Hanover County, North Carolina, Industrial Facilities and Pollution
Control Financing Authority Revenue Bonds (Interroll Corp. Project),
VRDN, 4.60% due 11/01/2003 (a) 1,055
North Carolina Eastern Municipal Power Agency, Power System Revenue
Bonds, Series B, CP:
2,000 3.75% due 10/19/1995 2,000
7,000 3.85% due 10/20/1995 7,000
19,385 3.75% due 12/04/1995 19,385
3,600 3.70% due 1/03/1996 3,600
7,400 3.75% due 1/11/1996 7,400
North Carolina Educational Facilities Finance Agency Revenue Bonds,
VRDN (a):
3,900 (Duke University Project), Series A, 4.35% due 12/01/2017 3,900
1,500 (Duke University Project), Series A, 4.35% due 6/01/2027 1,500
4,300 (Duke University Project), Series B, 4.35% due 12/01/2021 4,300
2,700 (Wake Forest University Project), 3.95% due 1/01/2009 2,700
North Carolina Medical Care Commission, Hospital Revenue Bonds, VRDN (a):
1,400 (Carol Woods Project), 4.50% due 4/01/2021 1,400
3,300 (Duke University Hospital), Series B, 4.35% due 6/01/2015 3,300
2,130 (Duke University Hospital), Series D, 4.35% due 6/01/2015 2,130
200 Refunding (Moses H. Cone Memorial Hospital Project), 4.40% due 10/01/2023 200
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
North Carolina North Carolina Municipal Power Agency, Electric Revenue Bonds
(concluded) (No. 1 Catawba) (b):
$13,500 8.50% due 1/01/1996 $ 13,920
2,500 8.75% due 1/01/1996 2,581
2,500 Series A, 9.375% due 1/01/1996 2,606
2,000 Series A, 9.625% due 1/01/1996 2,086
2,543 Northwestern Wayne Sanitation District, North Carolina, BAN, UT, 4% due
12/06/1995 2,544
1,000 Piedmont Triad Airport Authority, North Carolina, Special Facility
Revenue Bonds (Purpos-Cessna Aircraft Company Project), VRDN, AMT, 4.60%
due 10/01/2012 (a) 1,000
2,795 Pitt County, North Carolina, Revenue Bonds (Pitt County Memorial Hospital),
4% due 12/01/1995 2,798
700 Rowan County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Reynolds Metals Company Project),
4% due 12/01/1995 700
2,800 University of North Carolina, Chapel Hill, School of Medicine and
Ambulatory Care Clinic Revenue Bonds, VRDN, 4.50% due 10/01/2002 (a) 2,800
4,500 Wake County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Carolina Power and Light Company
Project), VRDN, Series C, 4.50% due 10/01/2015 (a) 4,500
2,000 Wayne County, North Carolina, Industrial Facilities and Pollution Control
Finance Authority, Revenue Refunding Bonds (General Signal), VRDN, 4.45%
due 12/01/2000 (a) 2,000
1,400 Wilson County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority, IDR (North Carolina Chip Co. Project), VRDN, 4.60% due
1/01/2000 (a) 1,400
1,350 Winston-Salem, North Carolina, Urban Redevelopment Mortgage Revenue
Refunding Bonds (Summit Square Garden Apartments), CP, 3.65% due
12/13/1995 (a) 1,350
6,000 Winston-Salem, North Carolina, Water and Sewer System Revenue Bonds, CP,
3.65% due 12/13/1995 6,000
<PAGE>
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank, Revenue Bonds, CP:
20.8% 20,000 3.60% due 10/02/1995 20,000
13,700 3.80% due 11/01/1995 13,700
5,000 3.70% due 12/11/1995 5,000
5,500 3.70% due 12/12/1995 5,500
7,000 3.70% due 12/13/1995 7,000
Total Investments (Cost--$251,089*)-- 102.1% 251,089
Liabilities in Excess of Other Assets--(2.1%) (5,273)
--------
Net Assets--100.0% $245,816
========
<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, 1995.
(b)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$251,089,475) (Note 1a) $ 251,089,475
Cash 52,881
Interest receivable 1,363,763
Deferred organization expenses (Note 1d) 9,362
Prepaid registration fees and other assets (Note 1d) 14,095
-------------
Total assets 252,529,576
-------------
Liabilities:
Payables:
Securities purchased $ 6,495,526
Investment adviser (Note 2) 81,612
Distributor (Note 2) 67,547
Beneficial interest redeemed 1,154 6,645,839
-------------
Accrued expenses and other liabilities 67,591
-------------
Total liabilities 6,713,430
-------------
Net Assets $ 245,816,146
=============
<PAGE>
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 24,584,466
Paid-in capital in excess of par 221,260,194
Accumulated realized capital losses--net (Note 4) (28,514)
-------------
Net Assets--Equivalent to $1.00 per share based on 245,844,660 shares of
beneficial interest outstanding $ 245,816,146
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 5,207,359
Expenses:
Investment advisory fees (Note 2) $ 666,041
Distribution fees (Note 2) 165,695
Transfer agent fees (Note 2) 41,978
Accounting services (Note 2) 30,088
Registration fees (Note 1d) 27,787
Professional fees 25,893
Custodian fees 13,983
Printing and shareholder reports 13,693
Pricing fees 4,639
Amortization of organization expenses (Note 1d) 4,090
Trustees' fees and expenses 1,678
Other 2,753
-------------
Total expenses before reimbursement 998,318
Reimbursement of expenses (Note 2) (133,208)
-------------
Total expenses after reimbursement 865,110
-------------
Investment income--net 4,342,249
-------------
Net Increase in Net Assets Resulting from Operations $ 4,342,249
=============
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Sept. 30, 1995 March 31, 1995
<S> <C> <C>
Operations:
Investment income--net $ 4,342,249 $ 7,592,481
Realized loss on investments--net -- (13,460)
------------- -------------
Net increase in net assets resulting from operations 4,342,249 7,579,021
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (4,342,249) (7,592,405)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (4,342,249) (7,592,405)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 444,469,782 924,263,338
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 4,340,334 7,592,507
------------- -------------
448,810,116 931,855,845
Cost of shares redeemed (481,697,948) (946,590,315)
------------- -------------
Net decrease in net assets derived from beneficial interest transactions (32,887,832) (14,734,470)
------------- -------------
Net Assets:
Total decrease in net assets (32,887,832) (14,747,854)
Beginning of period 278,703,978 293,451,832
------------- -------------
End of period $ 245,816,146 $ 278,703,978
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the For the
Six Period
The following per share data and ratios have been derived Months May 28,
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: 1995 1995 1994 1993 1992
<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 .02 .02 .03
-------- -------- -------- -------- --------
Total from investment operations .02 .03 .02 .02 .03
-------- -------- -------- -------- --------
Less dividends from investment income--net (.02) (.03) (.02) (.02) (.03)
-------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 3.29%* 2.61% 1.85% 2.25% 3.49%*
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .53%* .50% .48% .45% .33%*
======== ======== ======== ======== ========
Expenses, net of reimbursement .65%* .62% .61% .57% .45%*
======== ======== ======== ======== ========
Expenses .75%* .72% .71% .73% .83%*
======== ======== ======== ======== ========
Investment income--net 3.26%* 2.58% 1.84% 2.20% 3.25%*
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $245,816 $278,704 $293,452 $235,384 $221,060
======== ======== ======== ======== ========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NORTH CAROLINA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA North Carolina 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) 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 and distributions 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" or "Adviser"). 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.
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 Adviser during the year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment. For the six months ended September 30, 1995, FAM
earned fees of $666,041, of which $133,208 was voluntarily waived.
CMA NORTH CAROLINA 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.
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLPF&S, MLFDS, 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, 1995, the Fund had a net capital loss carryforward of
approximately $28,000, of which $5,000 expires in 2001, $10,000
expires in 2002, and $13,000 expires in 2003. This amount will be
available to offset like amounts of any future taxable gains.
CMA NORTH CAROLINA
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
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Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch 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].
