[LOGO] CMA(R)
CMA ARIZONA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1998
[LOGO] Merrill Lynch
<PAGE>
To Our Shareholders:
For the six-month period ended September 30, 1998, CMA Arizona Municipal Money
Fund paid shareholders a net annualized yield of 2.94%.* As of September 30,
1998, the Fund's 7-day yield was 3.13%.
Economic Environment
During the six-month period ended September 30, 1998, the Arizona economy
continued to grow at a strong pace. Throughout this period, the rate of growth
actually accelerated, a highly unusual event for this point in the economic
cycle. This reacceleration kept demand strong for everything from housing to
automobiles. In fact, for the 12-month period ended June 30, 1998, retail sales
totaled $27.7 billion, an increase of 7.7% from the same 12-month period a year
ago. However, during the first quarter of 1998, Arizona exports decreased by 16%
compared to the first quarter of 1997, but were still up 12% above 1996 levels.
State officials credit the combination of a strong national economy, low
interest rates and rapid population inflows as major contributors to the
continued good fortune of Arizona's economy. For example, Phoenix is now the
sixth-largest US city, with a population of 1.2 million. The state's payroll
through the month of July increased by 4.7% compared to the same period in 1997.
Consequently, according to the Arizona Department of Economic Security, an
estimated 74,000 payroll jobs will be created throughout Arizona during 1998 and
an additional 61,000 jobs in 1999. This is indicative as to why Arizona has
ranked second nationally in terms of job growth for the past five years, an
aggregate increase of 33% over the period.
Despite ongoing strength exhibited during the first half of the year, there are
some potential troubles on the horizon. As the Asian crisis continues to disrupt
world financial markets, many experts predict that things will get worse before
they get better. In 1998, gross domestic product is expected to decrease by 2.7%
in Japan, by 6.7% in South Korea and by 20.0% in Indonesia. This does not bode
well for the greater Phoenix area, since 28% of the region's manufacturing base
is devoted to computers and electronic components. As demand for these products
from Asia slows, employment in these areas is likely to decline. Finally, after
a four-year struggle, Arizona legislators approved a plan to overhaul the system
of funding classroom construction. Under the new plan, known as Students First,
the state will spend nearly $400 million per year to build and maintain its
public schools, replacing the less equitable property-tax method.
Investment Strategy
During the first half of the period, we maintained a relatively neutral average
portfolio maturity for the Fund. Despite fundamentals for the US economy
remaining positive, we believed the ongoing crisis in Asia would keep monetary
policy on hold for the near term. Because of continued flatness in the
short-term tax-exempt yield curve, we accomplished this neutral stance by
predominantly purchasing tax-exempt commercial paper maturing within two
months-four months while awaiting the expected issuance of cash-flow notes that
traditionally enter the market during the summer months. The issuance of these
fixed-rate notes ordinarily drives up the yield on securities of this kind,
providing the
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
<PAGE>
Fund with a more attractive opportunity to extend maturity. However, given both
the low inflation expectations in our market and the decrease in issuance caused
by thriving state economies, yield spreads between fixed-rate and variable-rate
products remained relatively narrow. Nevertheless, we took part in the purchase
of these fixed-rate notes because of our need to replace the Fund's maturing
cash flow notes from the previous year, combined with our belief that these
issues could be some of the more attractive yields we will see on fixed-rate
products over the next six months. For the six-month period ended September 30,
1998, the state of Arizona's issuance totaled $68.5 million, an increase from
the $62.1 million issued during the previous six-month period.
As the September period came to an end, it became evident that the problems that
originated in Pacific Rim countries will significantly affect the world's
financial markets and economies. As a result, US Treasury yields dropped, while
the rate on the 30-year US Treasury bond closed just below 5% on September 30,
1998. Consequently, we continued to increase the Fund's percentage of fixed-rate
securities in order to lock in more attractive yields than were expected over
the next six months. The Fund, which began the period with a weighted average
maturity in the 35-day range, concluded the period in the 65-day range. On
September 28, 1998, the Federal Reserve Board eased monetary policy by lowering
the Federal Funds rate 25 basis points (0.25%), and did so again in October with
another 25 basis point cut, which investors viewed positively. Finally,
diversification and credit quality remain paramount to the Fund, and we will
continue to monitor the ever-changing marketplace.
In Conclusion
We thank you for your support of CMA Arizona Municipal Money Fund, and we look
forward to serving your investment needs in the future.
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 10, 1998
2
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CMA ARIZONA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (IN THOUSANDS)
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona- Arizona Educational Loan Marketing Corp., Educational Loan Revenue
97.3% Bonds, VRDN, AMT, Series A (a):
$ 5,400 4.10% due 3/01/2015 (c) ...................................................... $ 5,400
3,200 3.95% due 12/01/2020 ......................................................... 3,200
2,400 Arizona Health Facilities Authority, Hospital Systems Revenue Bonds
(Northern Arizona Healthcare), VRDN, AMT, Series B, 4% due 10/01/2026 (a)(c) ........ 2,400
290 Arizona Health Facilities Authority Revenue Bonds (ArizonaVoluntary
Hospital Federation), VRDN, Series B, 4% due 10/01/2015 (a)(d) ...................... 290
16,000 Arizona School District, TAN, COP, Series A, 4.10% due 7/30/1999 .................... 16,068
Arizona State Transportation Board, Excise Tax Revenue Bonds (Maricopa
County Regional Area):
1,500 6.90% due 7/01/1999 (c) ...................................................... 1,538
2,260 Refunding, Series B, 5.50% due 7/01/1999 (b) ................................. 2,291
6,000 Cochise County, Arizona, Pollution Control Corp., Solid Waste Disposal
Revenue Bonds (Arizona Electric Power Cooperative, Inc. Project), AMT, 3.55%
due 3/01/1999 ....................................................................... 6,000
Coconino County, Arizona, Pollution Control Corp., Arizona Public Service
Revenue Bonds, VRDN, AMT, Series A (a):
6,710 4.15% due 12/01/2031 ......................................................... 6,710
19,800 (Navajo Project), 4.15% due 10/01/2029 ....................................... 19,800
500 Maricopa County, Arizona, IDA, Hospital Facilities Revenue Bonds (Samaritan
Health Service Hospital), VRDN, Series B-2, 4.10% due 12/01/2008 (a)(c) ............. 500
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN, AMT (a):
6,200 (Privado Park Apartments Project), Series A, 4.10% due 12/15/2033 ............ 6,200
5,200 (Vista Ventana Apartments Project), Series D, 4.10% due 12/15/2033 ........... 5,200
Maricopa County, Arizona, Pollution Control Corp., PCR, CP Southern
California Edison--Palo Verde Project), Series E:
3,700 3.55% due 12/09/1998 ......................................................... 3,700
1,200 3.55% due 12/11/1998 ......................................................... 1,200
100 Maricopa County, Arizona, Pollution Control Corp., PCR, Refunding (Arizona
Public Service Co.), VRDN, Series B, 4.10% due 5/01/2029 (a) ........................ 100
2,025 Maricopa County, Arizona, School District No. 06 (Washington Elementary
Projects of 1996), Series B, 6% due 7/01/1999 (d) ................................... 2,060
Maricopa County, Arizona, Unified School District, UT:
1,085 No. 48 (Scottsdale), 6.50% due 7/01/1999 ..................................... 1,108
4,815 No. 210(Phoenix Project of 1995), Series C, 4.50% due 7/01/1999 .............. 4,840
Mesa, Arizona, Municipal Development Corp., Special Tax, CP:
2,500 3.60% due 10/21/1998 ......................................................... 2,500
2,000 Series B, 3.55% due 11/09/1998 ............................................... 2,000
</TABLE>
Portfolio Abbreviations for CMA Arizona Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
3
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONCLUDED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona Mohave County, Arizona, IDA, IDR (Citizens Utilities), AMT:
(concluded) $ 5,000 CP, 3.60% due 11/02/1998 ..................................................... $ 5,000
7,500 CP, 3.60% due 11/17/1998 ..................................................... 7,500
2,090 VRDN, 4.05% due 5/01/2032 (a) ................................................ 2,090
2,000 Navajo County, Arizona, IDA, IDR (Citizens Utilities Co. Project), VRDN, AMT,
4.05% due 5/01/2032 (a) ............................................................. 2,000
7,000 Phoenix, Arizona, Civic Improvement Corporation, Wastewater System Lease
Revenue Bonds, VRDN, 4.15% due 7/01/2023 (a) ........................................ 7,000
Phoenix, Arizona, IDA, IDR, VRDN, AMT (a):
4,225 (Laich Industries Corp. Project), 4.15% due 9/01/2016 ........................ 4,225
2,500 Refunding (V.A.W. of America, Inc.), 4.15% due 2/01/2012 ..................... 2,500
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds, VRDN (a):
3,000 (Heather Ridge Apartments Project), AMT, Series A, 4.10% due 12/15/2037 ...... 3,000
8,420 (Mariners Pointe Apartments Project), AMT, Series A, 4.10% due 10/01/2023 .... 8,420
1,000 Refunding (Bell Square Apartments Project), 4% due 6/21/2025 ................. 1,000
4,000 Refunding (Paradise Lakes Apartments Project), 4% due 7/01/2025 .............. 4,000
1,000 Phoenix, Arizona, Refunding, GO, UT, Series A, 6% due 7/01/1999 1,017
4,300 Phoenix, Arizona, VRDN, UT, Series 95-2, 4.10% due 6/01/2020 (a) 4,300
Pima County, Arizona, IDA, Industrial Revenue Refunding Bonds, VRDN (a):
1,000 (Brush Wellman Inc. Project), 4.10% due 12/15/2033 ........................... 1,000
1,650 (Tucson Retirement Center), 3.90% due 1/01/2009 .............................. 1,650
Pima County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN (a):
1,000 (Quail Ridge Apartments), AMT, Series B, 4.05% due 9/01/2009 ................. 1,000
6,790 Refunding (Eastside Place Apartments), 4.05% due 5/01/2027 ................... 6,790
5,000 Refunding (La Cholla Apartments Project), 4.05% due 12/01/2025 ............... 5,000
5,000 Santa Cruz County, Arizona, IDA, IDR (Citizens), CP, 3.60% due 11/12/1998 ........... 5,000
1,015 Scottsdale, Arizona, Preservation Authority, Excise Tax Revenue Bonds,
5% due 7/01/1999 (d) ................................................................ 1,025
Yavapai County, Arizona, IDA, IDR (Citizens Utilities), CP, AMT:
3,400 3.50% due 10/23/1998 ......................................................... 3,400
4,500 3.65% due 11/02/1998 ......................................................... 4,500
1,600 Yavapai County, Arizona, IDA, IDR, Refunding (Kachina Pointe Project), VRDN,
3.90% due 10/15/1998 (a)(e) ......................................................... 1,600
3,625 Yuma, Arizona, IDA, M/F Housing Revenue Bonds (El Encanto Apartments),
VRDN, Series A, 3.90% due 11/01/2008 (a) ............................................ 3,625
2,000 Yuma County, Arizona, IDA, IDR (Meadowcraft Inc. Project), VRDN, 4.15%
due 11/01/2012 (a) .................................................................. 2,000
- ------------------------------------------------------------------------------------------------------------------------
Puerto Rico-- 1,215 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
0.6% Revenue Bonds, VRDN, Series X, 3.625% due 7/01/1999 (a) ............................. 1,215
- ------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$182,962*)--97.9% .......................................... 182,962
Other Assets Less Liabilities--2.1% ................................................. 3,835
--------
Net Assets-100.0% ................................................................... $186,797
========
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) The interest rate is subject to change periodically based on certain
indexes. The interest rate shown is the interest rate in effect at
September 30, 1998.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
(e) Prerefunded.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
4
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1998
<TABLE>
Assets:
<S> <C> <C>
Investments, at value (identified cost-$182,962,259) (Note 1a) ...................... $182,962,259
Cash ................................................................................ 86,703
Receivables:
Securities sold .................................................................... $ 2,127,420
Interest ........................................................................... 1,058,408 3,185,828
-------------
Prepaid registration fees and other assets (Note 1d) ................................ 723,663
-------------
Total assets ........................................................................ 186,958,453
-------------
Liabilities:
Payables:
Investment adviser (Note 2) ........................................................ 78,860
Distributor (Note 2) ............................................................... 47,438 126,298
-------------
Accrued expenses and other liabilities .............................................. 35,507
-------------
Total liabilities ................................................................... 161,805
-------------
Net Assets .......................................................................... $ 186,796,648
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 18,684,369
Paid-in capital in excess of par .................................................... 168,159,255
Accumulated realized capital losses--net (Note 4) ................................... (46,976)
-------------
Net Assets--Equivalent to $1.00 per share based on 186,843,690 shares of beneficial
interest outstanding ................................................................ $ 186,796,648
=============
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998
<TABLE>
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned............. $ 3,739,160
Expenses:
Investment advisory fees (Note 2)....................... $ 513,978
Distribution fees (Note 2).............................. 125,810
Professional fees....................................... 26,136
Registration fees (Note 1d)............................. 21,339
Accounting services (Note 2)............................ 16,311
Transfer agent fees (Note 2)............................ 10,749
Custodian fees.......................................... 9,848
Printing and shareholder reports........................ 6,121
Pricing fees............................................ 2,092
Trustees' fees and expenses............................. 690
Other................................................... 1,210
-----------
Total expenses.......................................... 734,284
-----------
Investment income--net................................... 3,004,876
Realized Loss on Investments--Net (Note 1c).............. (5,514)
-----------
Net Increase in Net Assets Resulting from Operations.... $ 2,999,362
===========
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Six Months Year
Ended Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 1998 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ........................................................... $ 3,004,876 $ 5,310,413
Realized loss on investments--net ................................................. (5,514) (5,210)
------------- -------------
Net increase in net assets resulting from operations .............................. 2,999,362 5,305,203
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net ............................................................ (3,004,876) (5,310,413)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders ............... (3,004,876) (5,310,413)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares .................................................. 360,558,135 823,452,683
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) ......................................................................... 3,004,835 5,310,334
------------- -------------
363,562,970 828,763,017
Cost of shares redeemed ........................................................... (390,037,497) (785,032,055)
------------- -------------
Net increase (decrease) in net assets derived from beneficial interest transactions (26,474,527) 43,730,962
------------- -------------
Net Assets:
Total increase (decrease) in net assets ........................................... (26,480,041) 43,725,752
Beginning of period ............................................................... 213,276,689 169,550,937
------------- -------------
End of period ..................................................................... $ 186,796,648 $ 213,276,689
============= =============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended For the Year Ended March 31,
September 30, -----------------------------------------------
Increase (Decrease) in Net Asset Value: 1998 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------
<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 ............................... .01 .03 .03 .03 .03
-------- -------- -------- -------- --------
Total from investment operations ..................... .01 .03 .03 .03 .03
-------- -------- -------- -------- --------
Less dividends from investment income--net............ (.01) (.03) (.03) (.03) (.03)
-------- -------- -------- -------- --------
Net asset value, end of period ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return .............................. 2.94%* 3.05% 2.86% 3.35% 2.83%
Ratios to Average Net Assets: ======== ======== ======== ======== ========
Expenses, net of reimbursement ....................... .71%* .74% .76% .58% .54%
======== ======== ======== ======== ========
Expenses ............................................. .71%* .74% .76% .77% .85%
======== ======== ======== ======== ========
Investment income--net ............................... 2.92%* 2.99% 2.80% 3.27% 2.84%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) ............. $186,797 $213,277 $169,551 $137,520 $103,717
======== ======== ======== ======== ========
</TABLE>
* Annualized.
See Notes to Financial Statements.
8
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Arizona 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
9
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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.
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, 1998, the Fund had a net capital loss carryforward of approximately
$41,000, of which $6,000 expires in 2004, $30,000 expires in 2005 and $5,000
expires in 2006. This amount will be available to offset like amounts of any
future taxable gains.
10
<PAGE>
CMA Arizona 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
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].
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. Past performance results shown in this report should not be
considered a representation of future performance, which will fluctuate. 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. Statements and other information herein are as
dated and are subject to change.
CMA Arizona
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16714-9/98
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