[LOGO] CMA(R)
CMA MICHIGAN
MUNICIPAL MONEY FUND
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Annual Report
[GRAPHIC OMITTED]
March 31, 1999
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[LOGO] Merrill Lynch
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TO OUR SHAREHOLDERS:
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For the year ended March 31, 1999, CMA Michigan Municipal Money Fund paid
shareholders a net annualized yield of 2.78%.* As of March 31, 1999, the Fund's
7-day yield was 2.41%.
Economic Environment
The state of Michigan enjoyed another banner year in terms of employment in
1998. This was evident as the state reported its annual average unemployment
rate of 3.8% for the year ended December 31, 1998. The 3.8% rate was four-tenths
of a percentage point lower than the average for 1997 and the seventh
consecutive annual decrease. This led to a healthy Michigan consumer environment
as reflected in a solid 1998 holiday shopping season. Consequently, the Michigan
Retailers Association's annual survey stated that 62% of state retailers
reported sales gains over last year with increases averaging 8.2%. Moreover, for
a second time, Michigan was recognized as the number one location in the country
for businesses. This acknowledgement came in the December 1998 issue of Plants,
Sites and Parks. The ranking was attributed to the state's efforts to cut taxes
and remove burdensome operating regulations.
The state's fiscal 1999 budget also reflects this continued commitment to
spending priorities and tax relief. For example, the recommended general fund
budget of $8.8 billion amounts to only a 1.9% increase over the current year,
the lowest budget increase ever recommended by Governor Engler. The general fund
budget incorporates increases of $189 million in spending, primarily in areas of
education, public protection and healthcare, and $179 million from previously
enacted tax cuts. Through fiscal year 1999, the numerous tax cuts signed into
law by Governor Engler will have saved taxpayers $11 billion with approximately
$8.5 billion going back to individuals and families and $2.5 billion directly
benefiting Michigan job providers. In his 1998 State of the State address,
Governor Engler proposed yet another cut in Michigan's personal income tax. This
newest proposal would begin in fiscal 2000 and be phased in over the next five
years, saving taxpayers $3 billion over this period. Finally, the state's
automobile manufacturers continued their impressive performance into the new
year. Ford Motor Company sales rose 9.4% in January, beating industry forecasts
of a 4% increase, while Daimler Chrysler sales rose a higher-than-expected 19%.
Company executives attributed the strength to the persisting low interest rate
environment and rising consumer buying power.
Investment Strategy
During the first half of the six-month period ended March 31, 1999, we
maintained a slightly bullish investment strategy for CMA Michigan Municipal
Money Fund. The basis for this strategy was twofold. First, as the period began,
a growing number of economic statistics, which reflected a somewhat weaker
domestic economy, increased the probability that the Federal Reserve Board would
have to ease monetary policy again. Second, it was our opinion that the expected
lack of short-term tax-exempt issuance during this period would cause yields on
fixed-rate securities to outperform those on variable-rate demand obligations.
Furthermore, as the period progressed, more evidence that problems in world
financial markets and economies were worsening caused the yield on the one-year
US Treasury bill to trade below 4.0% during
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
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early October 1998. Thus, we continued to increase the Fund's percentage of
fixed-rate product when prudent in order to lock in more attractive yields.
The Federal Reserve Board eased monetary policy by lowering the Federal Funds
rate from 5.25% to 4.75% with two equal moves of 25 basis points (0.25%) early
in the period. However, as 1999 began, it became apparent that previous interest
rate cuts had a favorable effect on the world's financial markets and that the
probability of a full-blown recession was lessening. Moreover, because of an
increasing amount of domestic economic data depicting a robust economy and
subdued inflation, we expected the Federal Reserve Board to keep monetary policy
on hold for the near term. We also believed that because of traditional cash
inflows during January and February, yields on one-year fixed-rate issues would
provide little value to extending the portfolio's average maturity
significantly.
In view of these factors, we limited our purchase of fixed-rate securities to
tax-exempt commercial paper maturing in three monthsBfour months that provided
comparable yields. We maintained this slightly bullish posture until the end of
the period when we began to increase the Fund's percentage in variable-rate
demand obligations in order to seek to take advantage of the expected spike in
yields on these issues from cash outflows during tax time. The Fund, which began
the period with an average maturity in the 60-day range, concluded the period in
the 35-day range. For the six-month period ended March 31, 1999, the state of
Michigan's issuance totaled $126.8 million, a significant decrease from the
$539.7 million issued during the previous six-month period.
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 future.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Darrin J. SanFillippo
Darrin J. SanFillippo
Vice President and Portfolio Manager
May 11, 1999
================================================================================
After more than 20 years of service, Arthur Zeikel recently retired as Chairman
of Merrill Lynch Asset Management, L.P. (MLAM). Mr. Zeikel served as President
of MLAM from 1977 to 1997 and as Chairman since December 1997. Mr. Zeikel is one
of the country's most respected leaders in asset management and presided over
the growth of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500 billion. Mr.
Zeikel will remain on CMA Michigan Municipal Money Fund's Board of Trustees. We
are pleased to announce that Terry K. Glenn has been elected President and
Trustee of the Fund. Mr. Glenn has held the position of Executive Vice President
of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in wishing him
well in his retirement from Merrill Lynch and are pleased that he will continue
as a member of the Fund's Board of Trustees.
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2
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CMA MICHIGAN MUNICIPAL MONEY FUND
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Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Steven T. Lewis--Vice President
Darrin J. SanFillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Donald C. Burke--Vice President and Treasurer
Robert Harris--Secretary
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Gerald M. Richard, Treasurer of CMA Michigan Municipal Money Fund has recently
retired. His colleagues at Merrill Lynch Asset Management, L.P. join the Fund's
Board of Trustees in wishing Mr. Richard well in his retirement.
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Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive
East Jacksonville, FL 32246-6484
(800) 221-7210*
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IMPORTANT TAX INFORMATION (UNAUDITED)
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All of the net investment income distributions paid daily by CMA Michigan
Municipal Money Fund of CMA Multi-State Municipal Series Trust during its
taxable year ended March 31, 1999 qualify as tax-exempt interest dividends for
Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during its
taxable year ended March 31, 1999.
Please retain this information for your records.
* For inquiries regarding your CMA account, call (800) CMA-INFO [(800)
262-4636].
3
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CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Michigan-- $12,981 ABN Amro, Munitops Certificates Trust, VRDN, Series 1998-13, 99.2%
3.11% due 10/04/2006 (a) ............................................................ $ 12,981
1,300 Allegan County, Michigan, Intermediate School District, TAN,
3.77% due 4/01/1999 ................................................................. 1,300
1,265 Battle Creek, Michigan, Housing Corporation, Housing Revenue Bonds, VRDN,
Series 1997-A, 3% due 2/01/2027 (a) ................................................. 1,265
890 Bedford Township, Michigan, Economic Development Corporation (Form-Tech
Steel Inc. Project), VRDN, AMT, 3.20% due 3/01/2010 (a) ............................. 890
4,225 Berrien County, Michigan, EDR (Arlington Corp. Project), VRDN, AMT, 3.20%
due 9/01/2016 (a) ................................................................... 4,225
4,600 Bruce Township, Michigan, Hospital Finance Authority, Health Care System
Revenue Refunding Bonds (Sisters of Charity--Saint Joseph), VRDN, Series B,
2.90% due 5/01/2018 (a)(d) .......................................................... 4,600
Chippewa Valley, Michigan, Schools:
1,500 GO, 8.10% due 5/01/1999 ........................................................... 1,506
7,000 SAN, 3.75% due 8/20/1999 .......................................................... 7,009
900 Crestwood, Michigan, School District, SAN, 3.70% due 8/30/1999 ...................... 901
910 Dearborn, Michigan, Civic Center, GO, 6% due 6/01/1999 (d) .......................... 914
200 Delta County, Michigan, Economic Development Corp., Environmental
Improvement Revenue Refunding Bonds (Mead Escanaba Paper), DATES,
Series F, 2.90% due 12/01/2013 (a) .................................................. 200
Detroit, Michigan, City School District GO:
2,010 Series B, 4% due 5/01/1999 ........................................................ 2,012
8,000 State School Aid Notes, 4.50% due 7/01/1999 ....................................... 8,017
5,000 Detroit, Michigan, Economic Development Corporation Revenue Bonds (Michigan
Opera Theatre), VRDN, 2.95% due 3/01/2029 (a) ....................................... 5,000
5,000 Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, VRDN, Series A,
3% due 7/01/2023 (a)(d) ............................................................. 5,000
2,000 Detroit, Michigan, Water Supply System Revenue Bonds, VRDN, MSTR, Series
SGB-6, 3.16% due 7/01/2025 (a)(d) ................................................... 2,000
Detroit, Michigan, Water Supply System, VRDN (a):
2,000 MSTR, Series SG-64, 3.07% due 7/01/2025 (d) ....................................... 2,000
9,800 Series A-39, 3.10% due 7/01/2027 .................................................. 9,800
10,098 Tender Option Certificates, Series BTP-310, 3.20% due 7/01/2022 ................... 10,098
15,840 Eagle Tax-Exempt Trust, Grand Rapids, Michigan, Sewer System, VRDN,
Series 98-2201, 3.15% due 1/01/2022 (a)(c) .......................................... 15,840
</TABLE>
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Portfolio Abbreviations for CMA Michigan Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HDA Housing Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
SAN State Aid Notes
TAN Tax Anticipation Notes
TEAMS Tax-Exempt Adjustable Municipal Securities
VRDN Variable Rate Demand Notes
4
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CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Michigan $ 2,500 East China School District, Michigan, SAN, 3.60% due 6/30/1999 ...................... $ 2,502
(continued) 1,600 Eaton, Michigan, Intermediate School District, TAN, 3.84% due 4/01/1999 ............. 1,600
1,145 Farmington Hills, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Brookfield Building Association), VRDN,
3.25% due 11/01/2010 (a) ............................................................ 1,145
1,900 Flint, Michigan, Economic Development Corporation, EDR (Plastics Research),
VRDN, AMT, 3.20% due 9/01/2004 (a) .................................................. 1,900
1,250 Garden City, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(Garden City Hospital Obligation), VRDN, Series A, 3.10% due 9/01/2026 (a) .......... 1,250
2,300 Georgetown Charter Township, Michigan, IDR, Limited Obligation (J&F Steel
Corp.), VRDN, AMT, 3.20% due 2/01/2009 (a) .......................................... 2,300
530 Grand Rapids, Michigan, EDR, Limited Obligation Refunding Bonds (Calder),
VRDN, Series A, 3% due 10/01/2011 (a) ............................................... 530
3,325 Grand Rapids, Michigan, Economic Development Corporation, EDR, Refunding
(Amway Hotel Corp. Project), VRDN, Series B, 3.10% due 8/01/2017 (a) ................ 3,325
2,425 Grand Rapids, Michigan, IDR, Refunding (Etheridge Company Project), VRDN,
AMT, 3.15% due 7/01/2009 (a) ........................................................ 2,425
2,000 Holly, Michigan, Area School District, SAN, 4.10% due 8/26/1999 ..................... 2,002
Jackson, Michigan, Public Schools, GO, SAN:
1,830 Series A, 3.30% due 8/25/1999 ..................................................... 1,832
5,500 Series B, 4.25% due 7/02/1999 ..................................................... 5,508
685 Lenawee County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (The Wyatt Project), VRDN, AMT, 3.25% due 5/01/2002 (a) .... 685
800 Lewis Cass Intermediate School District, Michigan, Special Education, TAN,
4.10% due 4/06/1999 ................................................................. 800
1,100 Manchester, Michigan, Community Schools, SAN, 4.01% due 8/11/1999 ................... 1,101
975 Marquette County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Pioneer Labs Inc. Project), VRDN, AMT, Series A,
3.35% due 6/01/2012 (a) ............................................................. 975
835 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Bonds (Davenport Project), VRDN, 3.05% due 3/01/2027 (a) ............................ 835
550 Michigan Municipal Bond Authority Revenue Bonds, Local Government Loan
Program, Series B, 6.90% due 5/01/1999 (c) .......................................... 551
Michigan Municipal Bond Authority Revenue Notes:
24,175 Series B-1, 4.50% due 7/02/1999 ................................................... 24,227
13,000 Series D-2, 4.25% due 8/27/1999 ................................................... 13,048
11,450 Michigan State Building Authority, CP, Series 1, 3.15% due 8/05/1999 ................ 11,450
1,500 Michigan State Building Authority, Revenue Refunding Bonds, Facilities
Program, Series I, 5.50% due 10/01/1999 (b) ......................................... 1,518
4,000 Michigan State, HDA, CP, 2.70% due 6/18/1999 ........................................ 4,000
</TABLE>
5
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CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Michigan Michigan State, HDA, Limited Obligation Revenue Bonds (a):
(continued) $ 1,200 (Laurel Valley), TEAMS, 3% due 12/01/2007 ......................................... $ 1,200
4,000 (Sand Creek Apartments, Phase I Project), VRDN, AMT, 3.15% due 1/01/2029 .......... 4,000
2,000 (Woodland Meadows Project), VRDN, AMT, 3% due 3/01/2013 ........................... 2,000
Michigan State, HDA, M/F, CP, Series A:
11,000 2.70% due 5/13/1999 ............................................................... 11,000
6,645 3.15% due 7/22/1999 ............................................................... 6,645
3,005 3.20% due 7/22/1999 ............................................................... 3,005
6,800 Michigan State, HDA, Rental Housing Revenue Refunding Bonds, VRDN, Series
B, 3% due 4/01/2019 (a) ............................................................. 6,800
6,000 Michigan State Strategic Fund, IDR (Norcor Manufacturing Project), VRDN,
2.95% due 12/01/2000 (a) ............................................................ 6,000
Michigan State Strategic Fund, Limited Obligation Revenue Bonds, VRDN (a):
2,900 (AACOA Estrusions Inc. Project), AMT, 3.20% due 2/01/2008 ......................... 2,900
7,000 (AVL North America Inc. Project), 3.30% due 4/01/2011 ............................. 7,000
900 (Adaptive Manufacturing LLC Project), AMT, 3.20% due 8/01/2016 .................... 900
830 (Akemi Inc. Project), 3.20% due 3/01/2021 ......................................... 830
1,465 (Applied Textiles Inc. Project), AMT, 3.20% due 7/01/2008 ......................... 1,465
3,000 (Automatic Handling Inc. Project), AMT, 3.25% due 7/01/2009 ....................... 3,000
425 (BBPV Project), AMT, Series A-2, 3.55% due 1/01/2014 .............................. 425
1,355 (BCM&N Project), AMT, 3.15% due 6/01/2020 ......................................... 1,355
2,385 (Baron Drawn Steel), AMT, 3.25% due 12/01/2006 .................................... 2,385
3,500 (CAMAC LLC Project), AMT, 3.10% due 8/01/2028 ..................................... 3,500
1,380 (Chambers Enterprises II Project), 3.20% due 11/01/2018 ........................... 1,380
2,500 (Cincinnati Milacron Inc. Project), AMT, 3.25% due 4/15/2005 ...................... 2,500
2,600 (Dott Industries Inc. Project), AMT, 3.20% due 6/01/2001 .......................... 2,600
1,500 (Gollin Block & Supply Co.), AMT, 3.35% due 7/01/2012 ............................. 1,500
1,225 (Hercules Drawn Steel Project), AMT, 3.20% due 8/01/2006 .......................... 1,225
1,380 (Inalfa-Hollandia Inc. Project), AMT, 3.20% due 5/01/2016 ......................... 1,380
2,000 (Ingersoll CM Systems Inc. Project), AMT, 3.20% due 12/01/2011 .................... 2,000
5,200 (Karona Inc. Project), AMT, 3.25% due 12/01/2015 .................................. 5,200
2,940 (Monarch Hydraulics Inc. Project), AMT, 3.20% due 7/01/2016 ....................... 2,940
4,000 (Norbert Industries Inc. Project), AMT, 3.35% due 4/01/2006 ....................... 4,000
900 (Northern Pure Ice Co. Project), AMT, 3.35% due 3/01/2015 ......................... 900
915 (Nuvar Properties LLC Project), AMT, 3.20% due 7/01/2026 .......................... 915
2,300 (Park Realty LLC), AMT, Series A, 3.20% due 9/01/2026 ............................. 2,300
865 (Perfection Steel Inc. Project), 3.20% due 3/01/2002 .............................. 865
4,855 (Pioneer Metal Finishing Project), AMT, 3.20% due 11/01/2008 ...................... 4,855
1,925 (R.H. Wyner Association Inc. Project), AMT, 3.10% due 10/01/2026 .................. 1,925
5,970 (Riverwalk Properties LLC Project), AMT, 3.20% due 8/01/2021 ...................... 5,970
350 Series C-4, 3.55% due 1/01/2009 ................................................... 350
1,175 (TEI Investments LLC), AMT, 3.20% due 2/01/2022 ................................... 1,175
2,000 (Team Industries Inc. Project), AMT, 3.40% due 3/01/2023 .......................... 2,000
3,975 (Temperance Enterprises Company), AMT, 3.25% due 8/01/2011 ........................ 3,975
1,340 (Tom Miller Inc. Project), AMT, 3.15% due 12/01/2009 .............................. 1,340
2,400 (Universal Tube Inc. Project), AMT, 3.20% due 8/01/2011 ........................... 2,400
2,000 (WDKK Development LLC Project), 3.20% due 1/01/2024 ............................... 2,000
3,500 (Waltec American Forgings), AMT, 3.20% due 10/01/2009 ............................. 3,500
400 (Whitehall Industries), AMT, Series A-6, 3.55% due 1/01/2014 ...................... 400
</TABLE>
6
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CMA MICHIGAN MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
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<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Michigan Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds, VRDN (a):
(concluded) $ 900 (Grandview Plaza Project), AMT, 3.25% due 12/15/2010 .............................. $ 900
4,850 (Lake Shore Inc.), AMT, 3.20% due 11/01/2019 ...................................... 4,850
385 (Park Village Pines Project), 3% due 5/01/2006 .................................... 385
1,905 Muskegon County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Baker College), VRDN, 3.05% due 12/01/2021 (a) .. 1,905
4,300 Oakland County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (V& M Corporation Project), VRDN, AMT,
3.20% due 9/01/2018 (a) ............................................................. 4,300
500 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Bonds
(William Beaumont Hospital), VRDN, Series L, 3.05% due 1/01/2027 (a) ................ 500
6,700 University of Michigan, University Hospital Revenue Bonds, VRDN, Series A,
3% due 12/01/2027 (a) ............................................................... 6,700
University of Michigan, University Hospital Revenue Refunding Bonds, VRDN (a):
9,330 Series A, 3% due 12/01/2019 ....................................................... 9,330
8,100 Series A-2, 3% due 12/01/2024 ..................................................... 8,100
19,925 University of Michigan, University Revenue Bonds (Medical Service Plan),
VRDN, Series A, 3% due 12/01/2027 (a) ............................................... 19,925
9,100 University of Michigan, University Revenue Refunding Bonds (Medical Service
Plan), VRDN, Series A-1, 3% due 12/01/2021 (a) ...................................... 9,100
8,000 Walled Lake, Michigan, Consolidated School District, MSTR, GO, VRDN, Series
SGA-68, 3.05% due 5/01/2022 (a)(d) .................................................. 8,000
6,725 Wayne Charter County, Michigan, Airport Revenue Refunding Bonds (Detroit
Metropolitan County), VRDN, AMT, Series A, 3.05% due 12/01/2016 (a) ................. 6,725
4,000 Wayne County, Michigan, Community College, Community College Notes, GO, 4%
due 4/01/1999 ....................................................................... 4,000
690 Wyoming, Michigan, Economic Development Corporation, Revenue Refunding
Bonds (Family One Inc. Project), VRDN, AMT, 3.20% due 11/01/2019 (a) ................ 690
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Total Investments (Cost--$390,482*)C99.2% ........................................... 390,482
Other Assets Less Liabilities--0.8% ................................................. 3,130
--------
Net Assets--100.0% .................................................................. $393,612
========
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</TABLE>
(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, 1999.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
7
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CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1999
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Assets:
Investments, at value (identified cost--
$390,482,129) (Note 1a) ....................... $ 390,482,129
Cash .......................................... 87,624
Interest receivable ........................... 3,424,952
Prepaid registration fees and other assets
(Note 1d) ..................................... 3,651
-------------
Total assets .................................. 393,998,356
-------------
Liabilities:
Payables:
Investment adviser (Note 2) ................... $ 180,989
Distributor (Note 2) .......................... 116,082
Dividends to shareholders (Note 1e) ........... 169
Beneficial interest redeemed .................. 29 297,269
-----------
Accrued expenses and other liabilities ........ 88,880
-------------
Total liabilities ............................. 386,149
-------------
Net Assets .................................... $ 393,612,207
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par
value, unlimited number of shares
authorized .................................... $ 39,368,996
Paid-in capital in excess of par .............. 354,320,962
Accumulated realized capital losses--net
(Note 4) ...................................... (77,751)
-------------
Net Assets--Equivalent to $1.00 per share
based on 393,689,958 shares of beneficial
interest outstanding .......................... $ 393,612,207
=============
See Notes to Financial Statements.
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CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 199998
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Investment Income (Note 1c):
Interest and amortization of premium
and discount earned ........................... $ 12,371,699
Expenses:
Investment advisory fees (Note 2) ............. $ 1,806,214
Distribution fees (Note 2) .................... 450,367
Registration fees (Note 1d) ................... 67,071
Accounting services (Note 2) .................. 58,678
Transfer agent fees (Note 2) .................. 57,327
Professional fees ............................. 55,618
Custodian fees ................................ 32,917
Printing and shareholder reports .............. 19,866
Pricing fees .................................. 9,511
Trustees' fees and expenses ................... 2,196
Other ......................................... 3,859
-----------
Total expenses ................................ 2,563,624
-------------
Investment income--net ........................ 9,808,075
Realized Gain on Investments--Net
(Note 1c) ..................................... 77,625
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Net Increase in Net Assets Resulting
from Operations ............................... $ 9,885,700
=============
See Notes to Financial Statements.
8
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CMA MICHIGAN MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
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For the Year Ended March 31,
-----------------------------------
Increase (Decrease) in Net Assets: 1999 1998
- --------------------------------------------------------------------------------
Operations:
Investment income--net ................... $ 9,808,075 $ 8,565,688
Realized gain (loss) on investments--net . 77,625 (5,036)
--------------- ---------------
Net increase in net assets resulting
from operations .......................... 9,885,700 8,560,652
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net ................... (9,808,075) (8,565,688)
--------------- ---------------
Net decrease in net assets resulting from
dividends to shareholders ................ (9,808,075) (8,565,688)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares ......... 1,485,901,215 1,337,768,909
Net asset value of shares issued to
shareholders in reinvestment of
dividends (Note 1e) ...................... 9,807,997 8,565,686
--------------- ---------------
1,495,709,212 1,346,334,595
Cost of shares redeemed .................. (1,408,220,996) (1,313,252,528)
--------------- ---------------
Net increase in net assets derived from
beneficial interest transactions ......... 87,488,216 33,082,067
--------------- ---------------
Net Assets:
Total increase in net assets ............. 87,565,841 33,077,031
Beginning of year ........................ 306,046,366 272,969,335
--------------- ---------------
End of year .............................. $ 393,612,207 $ 306,046,366
=============== ===============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
CMA MICHIGAN MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements For the Year Ended March 31,
------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income--net ................................... .03 .03 .03 .03 .03
Realized gain (loss) on investments--net ................. --+ --+ --+ --+ --+
-------- -------- -------- -------- --------
Total from investment operations ......................... .03 .03 .03 .03 .03
-------- -------- -------- -------- --------
Less dividends from investment income--net................ (.03) (.03) (.03) (.03) (.03)
Net asset value, end of year ............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return .................................. 2.78% 3.07% 2.90% 3.12% 2.57%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses ................................................. .71% .71% .72% .73% .73%
======== ======== ======== ======== ========
Investment income--net ................................... 2.72% 3.02% 2.84% 3.05% 2.54%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) ................... $393,612 $306,046 $272,969 $247,544 $220,171
======== ======== ======== ======== ========
</TABLE>
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
9
<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 Fund's financial statements are prepared in accordance
with generally accepted accounting principles which may require the use of
management accruals and estimates. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized cost, which
approximates market value. For the purpose of valuation, the maturity of a
variable rate demand instrument is deemed to be the next coupon date on which
the interest rate is to be adjusted. In the case of a floating rate instrument,
the remaining maturity is the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(c) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income (including amortization of premium and discount) is recognized
on the accrual basis. Realized gains and losses on security transactions are
determined on the identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax withheld) in additional fund shares at net asset value.
Dividends are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized capital
gains, if any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more frequently than
annually in order to maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co"), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets, at the following
annual rates: 0.50% of the first $500 million of average daily net assets;
0.425% of average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1 billion.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") receives a distribution fee from the Fund
at the end of each month at the annual rate of 0.125% of average daily net
assets of the Fund. The distribution fee is to compensate MLPF&S financial
consultants and other directly involved branch office personnel for selling
shares of the Fund and for providing direct personal services to shareholders.
The distribution fee is not compensation for the administrative and operational
10
<PAGE>
- --------------------------------------------------------------------------------
CMA MICHIGAN MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
services rendered to the Fund by MLPF&S in processing share orders and
administering shareholder accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period corresponds to the
amounts included in the Statements of Changes in Net Assets for net proceeds
from sale of shares and cost of shares redeemed, respectively, since shares are
recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 1999, the Fund had a net capital loss carryforward of approximately
$78,000, of which $39,000 expires in 2003, $32,000 expires in 2005 and $7,000
expires in 2006. This amount will be available to offset like amounts of any
future taxable gains.
- --------------------------------------------------------------------------------
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, 1999, the related statements
of operations for the year then ended and changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for each
of the years in the five-year period then ended. These financial statements and
the financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at March
31, 1999 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of CMA Michigan
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of March 31,
1999, the results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte &Touche LLP
Princeton, New Jersey
May 12, 1999
11
<PAGE>
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
CMA Michigan
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16056--3/99
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