CMA MICHIGAN
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1997
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. Statements and other information herein are as
dated and are subject to change.
CMA Michigan
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16056 -- 9/97
[RECYCLE LOGO]
Printed on post-consumer recycled paper
[FUND LOGO]
[MERRILL LYNCH BULL LOGO]
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1997, CMA Michigan
Municipal Money Fund paid shareholders a net annualized yield of
3.09%*. As of September 30, 1997, the Fund's 7-day yield was 3.24%.
Economic Environment and
Investment Strategy
The state of Michigan's economy continued to improve during the six
months ended September 30, 1997, benefiting from enhanced
productivity, a competitive dollar and little increase in prices of
goods and services. In addition, Michigan's unemployment rate for
August fell to 3.7% as plants reopened after summer breaks and service
and construction companies created more jobs. This seasonally adjusted
3.7% is the lowest unemployment rate in Michigan since the Michigan
Employment Security Agency began using seasonal adjustments in 1970.
The state's retailers also reported an impressive rebound in July and
August, producing some of the best numbers of the year. For example,
52% of the state's retailers reported increased year-to-year sales for
the month of July. According to the Michigan Retail Index, this was
the strongest monthly showing of 1997 and a 7% increase from June's
Index. Looking ahead, retailers' July projections for the next three
months also rose, with 69% of retailers expecting increased sales
during late summer and fall versus 64% in June. US automobile sales
also rose 4.9% in August, boosted by hefty incentives from car
dealers. Moreover, Detroit recently ranked first among US city
exporters. During the past few years, the city has benefited
significantly from trade flows between Mexico, Canada and the United
States brought on by the North American Free Trade Agreement. Finally,
the Michigan Jobs Commission announced in September that it has
created a new unit to support the state's 11 tax-exempt Renaissance
Zones. In June, Governor John Engler announced a compilation of 28
projects that have already been committed to invest over $128 million
to continue to revive these economically distressed areas.
During the six-month period ended September 30, 1997, the Federal
Reserve Board held monetary policy steady in response to a continuing
stream of favorable inflationary data. However, periods of strong
consumer spending kept the US Treasury market somewhat volatile with
the yield on the benchmark 30-year Treasury bond trading between 6.30%
- -- 7.18%. Nonetheless, conditions affecting short-term municipal bonds
were quite different. For a majority of the six-month period, yields
on one-year fixed-rate notes remained in a much narrower range,
trading between 3.80% -- 3.90%. Furthermore, during most of the period
yields on variable rate demand obligations considerably outperformed
those on fixed-rate issues. The factors contributing to this were an
abundance of new variable rate products coming to market along with
net outflows from tax-exempt money market funds. For example, during
the first half of the six-month period, yields on variable rate
products averaged approximately 20 basis points (0.20%) above the
yields on one-year fixed-rate notes. Thus, when appropriate, we
continued to increase the Fund's concentration in variable rate demand
notes to seek to take advantage of the spread as compared to fixed-
rate notes.
As the second half of the period began, traditional fixed-rate supply
drove up yields on short-term notes to more attractive levels versus
their variable counterparts, providing us with a long-awaited
opportunity to extend the Fund's maturity. We took advantage of this
opportunity in response to the opinion that monetary policy would stay
on hold through year-end and that yields on notes purchased during
this time would outperform variable rate issues over the next six
months. The Fund, which had an average portfolio maturity in the 30-
day range by early to mid-July, ended the period in the 55-day range.
During the six-month period ended September 30, 1997, the state of
Michigan's issuance totaled $863.3 million. Finally, 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 support of CMA Michigan Municipal Money Fund,
and we look forward to serving your investment needs in the months and
years ahead.
Sincerely,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/DARRIN J. SANFILLIPPO
Darrin J. SanFillippo
Vice President and Portfolio Manager
November 3, 1997
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after
all expenses.
<TABLE>
<CAPTION>
CMA Michigan Municipal Money Fund
Schedule of Investments as of September 30, 1997 (in Thousands)
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
Michigan -- $1,375 Battle Creek, Michigan, Housing Corporation, Housing Revenue Bonds
95.0% (Georgetown Estates Project), VRDN, Series 1997-A, 4.20% due 2/01/2027 (a) $1,375
4,300 Bay City, Michigan, School District, State Aid Notes, 3.73% due 11/25/1997 4,301
945 Bedford Township, Michigan, Economic Development Corporation Revenue
Bonds, VRDN, 4.25% due 3/01/2010 (a) 945
4,500 Beecher, Michigan, Community School District, State Aid Notes, 4.125% due
6/30/1998 4,506
4,500 Berrien County, Michigan, Economic Development Corporation, Economic
Development Revenue Bonds (Arlington Corporation Project), VRDN, AMT,
4.26% due 9/01/2016 (a) 4,500
4,000 Chelsea, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (Silver Maples of Chelsea), VRDN, 4.20% due 5/15/2028 (a) 4,000
3,000 Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Bonds, CP, Series B, 3.75% due 10/16/1997 3,000
40 Delta Township, Michigan, Economic Development Corporation, IDR, Refunding
(Schottenstein Stores), VRDN, 4.10% due 12/01/1997 (a) 40
Detroit, Michigan, Water Supply System Revenue Bonds, MSTR, VRDN (a)(c):
3,500 Series SG-64, 4.20% due 7/01/2025 3,500
2,000 Series SGB-6, 4.25% due 7/01/2025 2,000
2,000 Eagle Tax-Exempt Trust, Custodial Receipts, Michigan, S/F Housing, VRDN,
Series B-90, 3.80% due 12/01/1997 (a) 2,000
1,255 Farmington Hills, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Brookfield Building Association), VRDN,
4.10% due 11/01/2010 (a) 1,255
3,000 Fenton, Michigan, Area Public Schools, State Aid Notes, 4.25% due 6/30/1998 3,007
2,200 Flint, Michigan, Economic Development Corporation, Economic Development
Revenue Bonds (Plastics Research), VRDN, AMT, 4.05% due 9/01/2004 (a) 2,200
9,000 Garden City, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(Garden City Hospital Obligation), VRDN, Series A, 4.15% due 9/01/2026 (a) 9,000
4,500 Garden City, Michigan, School District, State Aid Notes, UT, 4.70% due 4/01/1998 4,515
3,400 Genesee County, Michigan, Economic Development Corporation, Limited
Obligation, Economic Development Revenue Bonds (MM & E Inc. Project), VRDN,
4.05% due 7/01/2005 (a) 3,400
2,300 Georgetown Charter Township, Michigan, IDR, Limited Obligation (J & F Steel
Corporation), VRDN, AMT, 4.25% due 2/01/2009 (a) 2,300
3,325 Grand Rapids, Michigan, Economic Development Corporation, Economic
Development Revenue Refunding Bonds (Amway Hotel Corporation Project),
VRDN, Series B, 4.15% due 8/01/2017 (a) 3,325
555 Grand Rapids, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (Calder), VRDN, Series A, 4.15% due 10/01/2011 (a) 555
1,000 Grand Rapids, Michigan, Economic Development Corporation Revenue Bonds
(Amway/Grand Plaza Hotel, Facility #1), VRDN, 4.15% due 12/01/2006 (a) 1,000
2,560 Grand Rapids, Michigan, IDR, Refunding (Etheridge Company Project), VRDN,
AMT, 4.20% due 7/01/2009 (a) 2,560
700 Grand Rapids, Michigan, Water Supply System, Revenue Refunding Bonds, VRDN,
4% due 1/01/2020 (a)(b) 700
445 Grosse Pointe, Michigan, Public Library, TAN, 4.28% due 4/03/1998 446
3,700 Kent Hospital Finance Authority, Michigan, Hospital Facilities Revenue Bonds
(Butterworth Hospital), ACES, Series A, 4.10% due 1/15/2020 (a) 3,700
970 Lenawee County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (The Wyatt Project), VRDN, 4.25% due 5/01/2002 (a) 970
1,000 Marquette County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Pioneer Laboratories), VRDN, Series B, 4% due
6/01/2012 (a) 1,000
450 Melvindale, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (North American Steel Project), VRDN, 4.15% due
6/01/1998 (a) 450
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Bonds (Davenport Collateral Business Project), VRDN, 4.20% due 3/01/2027 (a) 1,000
Michigan Municipal Bond Authority Revenue Notes:
3,500 RAN, Series C, 4.50% due 9/18/1998 3,520
1,750 Series A, 4.75% due 5/01/1998 1,758
18,500 Series B, 4.50% due 7/02/1998 18,591
2,000 Series D, 5% due 9/18/1998 2,011
21,000 Michigan State Building Authority Revenue Notes, CP, Series 1, 3.70% due
10/09/1997 21,000
1,000 Michigan State Building Authority Revenue Bonds, Series II, 5.60% due 10/01/1997 1,000
Michigan State, HDA, Limited Obligation Revenue Bonds:
4,000 (Bloomfield), TEAMS, CP, 3.90% due 10/17/1997 4,000
1,200 (Laurel Valley), TEAMS, 4% due 12/01/2007 (a) 1,200
4,000 (Sand Creek Apartments, Phase 1 Project), VRDN, AMT, 4.25% due
1/01/2029 (a) 4,000
2,000 (Woodland Meadows Apartments Project), VRDN, AMT, 4.20% due
3/01/2013 (a) 2,000
7,000 Michigan State, HDA, M/F Housing Revenue Bonds, CP, AMT, Series A, 3.70% due
12/11/1997 7,000
4,500 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, VRDN, Series B,
4.10% due 4/01/2019 (a) 4,500
Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN (a):
7,500 (AVL North America Inc. Project), 4.05% due 4/01/2011 7,500
900 (Adaptive Manufacturing L.L.C. Project), AMT, 4.40% due 8/01/2016 900
945 (Akemi Inc. Project), AMT, 4.40% due 3/01/2021 945
1,600 (Applied Textiles Inc. Project), AMT, 4.25% due 7/01/2008 1,600
475 (BBPV Project), AMT, Series A-2, 4.20% due 1/01/2014 475
1,430 (BCM&N Project), AMT, 4.20% due 6/01/2020 1,430
2,800 (Baron Drawn Steel), IDR, AMT, 4.25% due 12/01/2006 2,800
2,500 (Cincinnati Milacron Inc. Project), AMT, 4.25% due 4/15/2005 2,500
3,400 (Dott Industries Inc. Project), AMT, 4.05% due 6/01/2001 3,400
1,500 (Gollin Block & Supply Company), AMT, 4% due 7/01/2012 1,500
1,345 (Hercules Drawn Steel Project), AMT, 4.25% due 8/01/2006 1,345
1,500 (Inalfa-Hollandia Inc. Project), AMT, 4.40% due 5/01/2016 1,500
2,000 (Ingersoll CM System Inc. Project), AMT, 4.05% due 12/01/2011 2,000
230 (Kay Screen Printing Inc.), AMT, Series A, 4.30% due 1/01/1999 230
3,165 (Monarch Hydraulics Inc. Project), AMT, 4.25% due 7/01/2016 3,165
2,000 (Norbert Industries Inc. Project), AMT, UT, 4% due 4/01/2006 2,000
960 (Nuvar Properties L.L.C. Project), AMT, 4.25% due 7/01/2026 960
2,300 (Park Realty L.L.C.), AMT, Series A, 4.25% due 9/01/2026 2,300
1,285 (Perfection Steel Inc. Project), AMT, 4.25% due 3/01/2002 1,285
4,850 Refunding (Lake Shore Inc.), AMT, 4.25% due 11/01/2019 4,850
440 Refunding (Park Village Pines Project), 4.15% due 5/01/2006 440
6,285 (Riverwalk Properties L.L.C. Project), AMT, 4.40% due 8/01/2021 6,285
450 Series C-4, 4.20% due 1/01/2014 450
1,250 (TEI Investments L.L.C. Project), AMT, 4.40% due 2/01/2022 1,250
4,425 (Temperance Enterprises Company), AMT, 4.25% due 8/01/2011 4,425
1,540 (Tom Miller Inc. Project), AMT, 4.20% due 12/01/2009 1,540
2,700 (Universal Tube, Inc. Project), AMT, 4.05% due 8/01/2011 2,700
450 (Whitehall Industries), AMT, Series A-6, 4.20% due 1/01/2009 450
Michigan State Strategic Fund, PCR, Refunding, VRDN, Series A (a):
4,300 (Consumer's Power Project), 4% due 4/15/2018 4,300
6,700 (General Motors Corporation Project), 4.20% due 4/01/2008 6,700
11,300 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds (Grayling
Generating Project), VRDN, AMT, 4.20% due 1/01/2014 (a) 11,300
7,500 Michigan State Trunk Line, FLOATS, VRDN, Series SG-44, 4.20% due
11/15/2024 (a)(b) 7,500
2,000 Muskegon County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Baker College), VRDN, 4.20% due 12/01/2021 (a) 2,000
2,200 Niles, Michigan, Community Schools, State Aid Notes, 4.10% due 5/28/1998 2,203
2,000 Oscoda, Michigan, Area Schools District, State Aid Notes, 4.25% due 5/11/1998 2,004
185 Sterling Heights, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Sterling Shopping Center), VRDN, 4.05%
due 12/01/2010 (a) 185
University of Michigan, University Revenue Bonds, VRDN, Series A (a):
3,200 (Medical Service Plan), 4% due 12/01/2027 3,200
6,900 Refunding (Hospital), 4% due 12/01/2019 6,900
7,100 Wayne Charter County, Michigan, Airport Revenue Refunding Bonds (Detroit
Metropolitan County), VRDN, AMT, Series A, 4.20% due 12/01/2016 (a) 7,100
5,000 Wyandotte, Michigan, Electric Revenue Refunding Bonds, 7.875% due
10/01/1997 (d)(e) 5,100
900 Wyoming, Michigan, Economic Development Corporation, Revenue Refunding
Bonds (Family One Inc. Project), VRDN, AMT, 4.25% due 11/01/2019 (a) 900
-----------
Puerto Rico -- 7,000 Puerto Rico Commonwealth Government Development Bank, CP, 3.50%
4.4% due 10/06/1997 7,000
5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN,
Series SGA-43, 3.90% due 7/01/2022 (a)(c) 5,000
-----------
Total Investments (Cost -- $273,747*) -- 99.4% 273,747
Other Assets Less Liabilities -- 0.6% 1,660
-----------
Net Assets -- 100.0% $275,407
===========
(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, 1997.
(b) FGIC Insured.
(c) MBIA Insured.
(d) Prerefunded.
(e) AMBAC Insured.
* Cost for Federal income tax purposes.
<CAPTION>
Portfolio Abbreviations for CMA Michigan Municipal Money Fund
<S> <C> <C> <C>
ACESSM Adjustable Convertible Extendable Securities PCR Pollution Control Revenue Bonds
AMT Alternative Minimum Tax (subject to) RAN Revenue Anticipation Notes
CP Commercial Paper S/F Single-Family
FLOATS Floating Rate Securities TAN Tax Anticipation Notes
HDA Housing Development Authority TEAMS Tax-Exempt Adjustable Municipal Securities
IDR Industrial Development Revenue Bonds UT Unlimited Tax
M/F Multi-Family VRDN Variable Rate Demand Notes
MSTR Municipal Securities Trust Receipts
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Michigan Municipal Money Fund
Statement of Assets and Liabilities as of September 30, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost -- $273,747,152) (Note 1a) $273,747,152
Cash 93,186
Receivables:
Interest $1,787,658
Securities sold 21,892 1,809,550
--------------
Prepaid registration fees and other assets (Note 1d) 10,408
--------------
Total assets 275,660,296
--------------
Liabilities:
Payables:
Investment adviser (Note 2) 122,663
Distributor (Note 2) 65,142 187,805
--------------
Accrued expenses and other liabilities 65,589
--------------
Total liabilities 253,394
--------------
Net Assets $275,406,902
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $27,556,228
Paid-in capital in excess of par 248,006,050
Accumulated realized capital losses -- net (Note 4) (155,376)
--------------
Net Assets -- Equivalent to $1.00 per share based on 275,562,278 shares of
beneficial interest outstanding $275,406,902
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Michigan Municipal Money Fund
Statement of Operations for the Six Months Ended September 30, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $5,246,306
Expenses:
Investment advisory fees (Note 2) $689,981
Distribution fees (Note 2) 169,068
Transfer agent fees (Note 2) 28,325
Accounting services (Note 2) 25,897
Professional fees 24,625
Registration fees (Note 1d) 19,488
Custodian fees 13,234
Printing and shareholder reports 5,629
Pricing fees 3,874
Trustees' fees and expenses 1,147
Other 1,705
--------------
Total expenses 982,973
--------------
Investment income -- net 4,263,333
Realized Loss on Investments -- Net (Note 1c) (5,035)
--------------
Net Increase in Net Assets Resulting from Operations $4,258,298
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Michigan Municipal Money Fund
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Sept. 30, 1997 March 31, 1997
<S> <C> <C>
Operations:
Investment income -- net $4,263,333 $7,159,379
Realized loss on investments -- net (5,035) (18,304)
-------------- --------------
Net increase in net assets resulting from operations 4,258,298 7,141,075
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income -- net (4,263,333) (7,159,379)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (4,263,333) (7,159,379)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 693,810,149 1,149,598,981
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 4,263,469 7,159,224
-------------- --------------
698,073,618 1,156,758,205
Cost of shares redeemed (695,631,016) (1,131,314,536)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 2,442,602 25,443,669
-------------- --------------
Net Assets:
Total increase in net assets 2,437,567 25,425,365
Beginning of period 272,969,335 247,543,970
-------------- --------------
End of period $275,406,902 $272,969,335
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Michigan Municipal Money Fund
Financial Highlights
For the
Six
The following per share data and ratios have been Months
derived from information provided in the financial Ended
statements. Sept. 30, For the Year Ended March 31,
1997 1997 1996 1995 1994
Increase (Decrease) in Net Asset Value:
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
--------- --------- --------- --------- ---------
Investment income -- net .02 .03 .03 .03 .02
--------- --------- --------- --------- ---------
Total from investment operations .02 .03 .03 .03 .02
--------- --------- --------- --------- ---------
Less dividends from investment income -- net (.02) (.03) (.03) (.03) (.02)
--------- --------- --------- --------- ---------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
========= ========= ========= ========= =========
Total Investment Return 3.09%* 2.90% 3.12% 2.57% 1.81%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses .71%* .72% .73% .73% .72%
========= ========= ========= ========= =========
Investment income -- net 3.09%* 2.84% 3.05% 2.54% 1.79%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $275,407 $272,969 $247,544 $220,171 $236,435
========= ========= ========= ========= =========
* Annualized.
See Notes to Financial Statements.
</TABLE>
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. These unaudited financial
statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments -- Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be the
next coupon date on which the interest rate is to be adjusted. In the
case of a floating rate instrument, the remaining maturity is the
demand notice payment period.
(b) Income taxes -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income -- Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Prepaid registration fees -- Prepaid registration fees are charged
to expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares
dividends daily and reinvests daily such dividends (net of non-
resident alien tax and back-up withholding tax withheld) in additional
fund shares at net asset value. Dividends are declared from the total
of net investment income, excluding discounts earned other than
original issue discounts. Net realized capital gains, if any, are
normally distributed annually after deducting prior years' loss
carryforward. The Fund may distribute capital gains more frequently
than annually in order to maintain the Fund's net asset value at $1.00
per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary
of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited
partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the annual
rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares of
the Fund and for providing direct personal services to shareholders.
The distribution fee is not compensation for the administrative and
operational services rendered to the Fund by MLPF&S in processing
share orders and administering shareholder accounts.
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, 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, 1997, the Fund had a net
capital loss carryforward of approximately $149,000, of which $62,000
expires in 2001, $4,000 expires in 2002, $50,000 expires in 2003 and
$33,000 expires in 2005. This amount will be available to offset like
amounts of any future taxable gains.
CMA Michigan
Municipal Money Fund
Officers and Trustees
Arthur Zeikel -- President and Trustee
Ronald W. Forbes -- Trustee
Cynthia A. Montgomery -- Trustee
Charles C. Reilly -- Trustee
Kevin A. Ryan -- Trustee
Richard R. West -- Trustee
Terry K. Glenn -- Executive Vice President
Vincent R. Giordano -- Senior Vice President
Edward J. Andrews -- Vice President
Donald C. Burke -- Vice President
Peter J. Hayes -- Vice President
Kenneth A. Jacob -- Vice President
Steven T. Lewis -- Vice President
Darrin J. SanFillippo -- Vice President
Kevin A. Schiatta -- Vice President
Helen Marie Sheehan -- Vice President
Gerald M. Richard -- Treasurer
Robert Harris -- Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
