CMA
CMA MICHIGAN
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
MERRILL LYNCH BULL LOGO
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
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
<PAGE>
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].
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 Michigan
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA Michigan Municipal Money Fund
paid shareholders a net annualized yield of 2.57%*. As of March 31,
1995, the Fund's 7-day yield was 3.32%.
The Environment
During the six months ended March 31, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
(GDP) was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new
home sales and durable goods orders registered thus far in 1995 have
led investors to anticipate that the economy is losing enough
momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
<PAGE>
However, as US stock and bond markets have risen on more positive
economic news, the value of the US dollar reached new lows relative
to the yen and the Deutschemark. Persistent trade deficits and
exports of capital from the United States have kept the US currency
in a decade-long decline relative to the Japanese and German
currencies. Over the longer term, since the United States has the
highest productivity among industrialized nations and among the
lowest labor costs, demand for US dollar-denominated assets may
improve. However, a reduction of the still-widening US trade deficit
may be necessary before the US dollar appreciates substantially
relative to the yen and the Deutschemark.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and
well-contained inflationary pressures would provide further
assurance that the peak in interest rates is behind us. On the other
hand, indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
Investment Outlook & Strategy
Interest rates on short-term securities finished the six-month
period ended March 31, 1995 higher than they were at the outset of
the period, although they experienced a good deal of volatility
during that time. The restrictive monetary policy that the Federal
Reserve Board initiated in February 1994 was maintained in the
six-month period ended March 31, 1995. On November 15, 1994, the
Federal Reserve Board made its most aggressive move of the cycle by
hiking both the Federal Funds rate and the discount rate 75 basis
points (0.75%) to 5.50% and 4.75%, respectively.
The Federal Reserve Board followed this move with a 50 basis point
hike on February 1, 1995, making it the seventh move of the cycle
and doubling the Federal Funds rate to its current level of 6.00%.
The first half of the six-month period ended March 31, 1995 was
characterized by rising short-term interest rates as investors drove
rates up in anticipation of additional Federal Reserve Board
actions. However, the larger-than-expected increase in the Federal
Funds rate in November 1994 caused investors to believe that the
Federal Reserve Board would achieve the elusive soft landing of the
US economy, thus setting the stage for a rally in US financial
markets which drove interest rates sharply lower. For instance,
interest rates on six-month US Treasury bills rose nearly 110 basis
points by the beginning of December 1994 from their October 1, 1994
levels only to fall approximately 50 basis points by March 31, 1995
for a net increase of approximately 60 basis points.
<PAGE>
During the period ended March 31, 1995, the State of Michigan's
strong economic growth led to a change in the State's rating outlook
on outstanding general obligation debt from negative to stable. This
revision reflects the State's record of containing costs, improved
financial operations and strengthened operating balances. For
example, the balance in the State's budget stabilization fund has
approached $1 billion and is expected to reach $1.2 billion, or
almost 7% of revenues, by the end of fiscal 1995. Additionally, this
surplus reflects the fact that the fiscal requirements at the state
level under the recently passed school finance reform plan are
manageable, and should not require any significant budget cuts next
year.
As anticipated, year-end economic statistics began to reveal the
strong performance the State of Michigan experienced during 1994. In
terms of economic growth, income and employment gains, 1994 was
Michigan's best year since 1988. For instance, the State's motor
vehicle production grew 25% over the prior year's pace. This
contributed to a vastly improved employment picture, with total
employment rising 3.6% and unemployment hovering around a 25-year
low of 4.6%. Furthermore, one of the most overlooked factors in
Michigan's recovery was the influence of exports. In 1994, Michigan
passed New York and Washington to become the country's third-largest
exporting state behind California and Texas. As a result of the
State's prospering economy, tax revenues have exceeded the
State-mandated cap by as much as $362 million. By State law, the
surplus must be returned to taxpayers either in the form of refunds
or a tax cut.
For the six-month period ended March 31, 1995, Michigan's short-term
issuance totaled $673.2 million. A majority of the issuance was $500
million State of Michigan general obligation notes which received
Moody's Investors Service, Inc.'s highest note rating of MIG1 and
will be used to address temporary imbalances between the timing of
expenditures and the receipt of revenues. A State resolution
requires the treasurer to set aside 100% of undedicated revenues
beginning August 15, until full debt service is met.
As a result of the anticipated reduction of supply in the short-term
tax-exempt market over the next three months along with the growing
opinion that the Federal Reserve Board is nearing the end of its
interest rate hikes, we extended the Fund's average maturity to the
45-day range by March 31, 1995. Although the Fund started the
six-month period in the 60-day range, we allowed the average
portfolio maturity to decrease to the 25-day range which it
maintained until the interest rate environment proved to be less
volatile. Diversification and credit quality remain paramount in
importance to the Fund, and we will continue to closely monitor the
everchanging market place.
<PAGE>
We thank you for your support of CMA Michigan 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
May 1, 1995
Portfolio Abbreviations for CMA Michigan Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
M/F Multi-Family
RAN Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan-- $ 1,100 Bedford Township, Michigan, Economic Development Corp. Revenue
96.8% Bonds (Tech Steel Inc., Project), VRDN, 4.45% due 3/01/2010 (a) $ 1,100
6,600 Bruce Township, Michigan, Hospital Finance Authority, Health Care
System Revenue Bonds (Sisters Charity-Saint Joseph's), VRDN, Series A,
4% due 5/01/2018 (a) 6,600
1,000 Clinton Township, Michigan, Economic Development Corporation, Health
Care System Revenue Bonds (Sisters Charity-Saint Joseph's), VRDN, 4%
due 5/01/2013 (a) 1,000
Cornell Township, Michigan, Economic Development Corp., IDR, CP,
Refunding (Mead-Escambia Paper Co.):
2,100 4.10% due 4/04/1995 2,100
1,140 4.20% due 4/24/1995 1,140
1,000 4.10% due 5/10/1995 1,000
1,300 4.05% due 5/15/1995 1,300
5,060 Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Bonds (Mead-Escambia Paper Co.), CP, Series B,
4.05% due 4/03/1995 5,060
1,700 Detroit, Michigan, Downtown Development Authority, Revenue Refunding
Bonds (Millender Center Project), VRDN, 4.25% due 12/01/2010 (a) 1,700
2,300 Detroit, Michigan, Tax Increment Finance Authority, Democratic Tax
Increment Revenue Bonds (Central Industrial Park Project), VRDN, 4.05%
due 10/01/2010 (a) 2,300
500 Detroit, Michigan, Tax Increment Finance Authority, Increment Reserve
Fund Revenue Bonds (Central Industrial Park Project), VRDN, 4.05% due
10/01/2010 (a) 500
4,000 Detroit, Michigan, Water Supply System Revenue Bonds, VRDN, 4.25% due
7/01/2013 (a) 4,000
3,600 East Detroit, Michigan, School District State Aid, 3.50% due 4/04/1995 3,600
3,300 Georgetown Charter Township, Michigan, IDR, Limited Obligation (J & F
Steel Corp.), VRDN, AMT, 4.30% due 2/01/2009 (a) 3,300
1,200 Grand Rapids, Michigan, Economic Development Corp., Economic Development
Revenue Refunding Bonds (Amway Hotel Corp. Project), VRDN, Series B,
4.20% due 8/01/2017 (a) 1,200
2,000 Grand Rapids, Michigan, IDR, Refunding (Etheridge Company Project),
VRDN, AMT, 4.30% due 7/01/2009 (a) 2,000
6,700 Grand Rapids, Michigan, Water Supply System Revenue Refunding Bonds,
VRDN, 4.30% due 1/01/2020 (a) 6,700
1,750 Melvindale, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (North American Steel Project),
VRDN, 4.20% due 6/01/1998 (a) 1,750
Michigan Higher Education Student Loan Authority Revenue Bonds, VRDN,
AMT (a):
1,000 Refunding, Series XII-B, 4.25% due 10/01/2013 1,000
500 Series XII-D, 4.25% due 10/01/2015 500
2,000 Series XII-F, 4.25% due 10/01/2020 2,000
20,250 Michigan Municipal Bond Authority, RAN, Series B, 4.75% due 7/20/1995 20,294
7,500 Michigan State Building Authority Revenue Bonds, CP, Series 1, 4.10%
due 4/27/1995 7,500
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995(CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan $22,500 Michigan State GO Notes, 5% due 9/29/1995 $ 22,604
(concluded) 9,100 Michigan State Hospital Finance Authority Revenue Bonds (Providence
Hospital), VRDN, 4.25% due 11/01/2014 (a) 9,100
Michigan State Housing Development Authority, Limited Obligation
Revenue Bonds:
4,000 (Bloomfield), CP, Series 1, 4.25% due 5/19/1995 4,000
3,500 (Laurel Valley), VRDN, 4.10% due 12/01/2007 (a) 3,500
3,400 (Pine Ridge), VRDN, 4.10% due 10/01/2007 (a) 3,400
4,800 (Shoal Creek), VRDN, 4.10% due 10/01/2007 (a) 4,800
Michigan State Housing Development Authority, M/F Housing Revenue
Bonds, CP, AMT, Series A:
9,595 4.20% due 4/04/1995 9,595
1,000 4.15% due 4/11/1995 1,000
10,595 4.20% due 4/24/1995 10,595
1,700 4.20% due 4/25/1995 1,700
5,225 4.25% due 5/10/1995 5,225
4,500 Michigan State School Loan Notes, GO, Series B, 4.25% due 4/11/1995 4,500
2,000 Michigan State Strategic Fund, IDR (Norcer Manufacturing Project),
VRDN, 4% due 12/01/2000 (a) 2,000
3,200 Michigan State Strategic Fund, Limited Obligation, IDR (Baron Drawn
Steel), VRDN, AMT, 4.50% due 12/01/2006 (a) 3,200
10,000 Michigan State Strategic Fund, Limited Obligation Revenue Bonds,
CP (Dow Chemical Co. Project), AMT, 4.20% due 4/03/1995 10,000
Michigan State Strategic Fund, Limited Obligation Revenue Bonds,
VRDN (a):
3,000 (Midbrook Products Inc. Project), AMT, 4.30% due 10/01/2014 3,000
2,000 (Miller Inc. Project), AMT, 4.25% due 12/01/2009 2,000
8,800 Refunding (Consumers Power Company Project), Series A, 4.25% due
6/15/2010 8,800
4,850 Refunding (Lake Shore Inc.), AMT, 4.45% due 11/01/2019 4,850
640 Refunding (Park Village Pines Project), 4.20% due 5/01/2006 640
10,000 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(Grayling Generating Project), VRDN, AMT, 4.25% due 1/01/2014 (a) 10,000
Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(S. D. Warren Company), CP:
1,000 Series A, 3.85% due 5/09/1995 1,000
1,000 Series B, 3.75% due 4/03/1995 1,000
1,000 Series C, 3.75% due 4/03/1995 1,000
7,100 Monroe County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Detroit Edison), VRDN, Series CC,
4.25% due 10/01/2024 (a) 7,100
800 University of Michigan, University Hospital Revenue Refunding Bonds,
VRDN, Series A, 4.20% due 12/01/2019 (a) 800
<PAGE>
Puerto Rico-- Puerto Rico Commonwealth Government Development Bank Revenue Bonds:
2.5% 5,000 CP, 3.75% due 5/01/1995 5,000
600 Refunding, VRDN, 4.10% due 12/01/2015 (a) 600
Total Investments (Cost--$218,653*)-- 99.3% 218,653
Other Assets Less Liabilities--0.7% 1,518
--------
Net Assets--100.0% $220,171
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1995.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$218,653,090) (Note 1a) $ 218,653,090
Cash 149,574
Interest receivable 1,577,163
Deferred organization expenses (Note 1d) 7,670
Prepaid registration fees and other assets (Note 1d) 2,685
-------------
Total assets 220,390,182
-------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 96,303
Distributor (Note 2) 72,652 168,955
-------------
Accrued expenses and other liabilities 50,557
-------------
Total liabilities 219,512
-------------
Net Assets $ 220,170,670
=============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 22,028,873
Paid-in capital in excess of par 198,259,857
Accumulated realized capital losses--net (Note 4) (118,060)
-------------
Net Assets--Equivalent to $1.00 per share based on 220,288,731 shares of
beneficial interest outstanding $ 220,170,670
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 7,308,100
Expenses:
Investment advisory fees (Note 2) $ 1,117,988
Distribution fees (Note 2) 277,622
Transfer agent fees (Note 2) 52,817
Professional fees 47,923
Registration fees (Note 1d) 34,798
Accounting services (Note 2) 33,121
Printing and shareholder reports 21,503
Custodian fees 20,941
Pricing fees 7,296
Amortization of organization expenses (Note 1d) 7,124
Trustees' fees and expenses 3,082
Other 5,598
-------------
Total expenses 1,629,813
-------------
Investment income--net 5,678,287
Realized Loss on Investments--Net (Note 1c) (50,049)
-------------
Net Increase in Net Assets Resulting from Operations $ 5,628,238
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CAM MICIGAN MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 5,678,287 $ 3,826,822
Realized loss on investments--net (50,049) (7,009)
------------- -------------
Net increase in net assets resulting from operations 5,628,238 3,819,813
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (5,678,287) (3,824,891)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (5,678,287) (3,824,891)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 929,669,029 959,801,295
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 5,678,120 3,824,978
------------- -------------
935,347,149 963,626,273
Cost of shares redeemed (951,561,384) (927,386,005)
------------- -------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (16,214,235) 36,240,268
------------- -------------
Net Assets:
Total increase (decrease) in net assets (16,264,284) 36,235,190
Beginning of year 236,434,954 200,199,764
------------- -------------
End of year $ 220,170,670 $ 236,434,954
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA MICHIGAN MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived April 29,
from information provided in the financial statements. 1991++ to
For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1995 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 .03 .02 .02 .03
Total from investment operations .03 .02 .02 .03
-------- -------- -------- --------
Less dividends from investment income--net (.03) (.02) (.02) (.03)
-------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Investment Return 2.57% 1.81% 2.24% 3.62%*
======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .60% .60% .53% .42%*
======== ======== ======== ========
Expenses, net of reimbursement .73% .72% .65% .54%*
======== ======== ======== ========
Expenses .73% .72% .74% .80%*
======== ======== ======== ========
Investment income--net 2.54% 1.79% 2.22% 3.53%*
======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $220,171 $236,435 $200,200 $194,433
======== ======== ======== ========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Michigan 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" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("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 any year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
CMA MICHIGAN 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, PSI, MLPF&S, 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, 1995, the Fund had a net capital loss carryforward of
approximately $118,000, of which $64,000 expires in 2001, $4,000
expires in 2002 and $50,000 expires in 2003. This amount will be
available to offset like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA MICHIGAN MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Michigan 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 Michigan
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 1995, 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 the
three-year period then ended and the period April 29, 1991
(commencement of operations) to March 31, 1992. 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.
<PAGE>
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, 1995 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 Michigan Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1995, 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
April 28, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Michigan Municipal Money Fund of CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 1995 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed during the
Fund's taxable year ended March 31, 1995.
Please retain this information for your records.
