UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-5011
Name of Fund: CMA New Jersey Municipal Money Fund
CMA Multi-State Municipal Series Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
CMA New Jersey Municipal Money Fund, 800 Scudders Mill Road,
Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton,
NJ, 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 03/31/03
Date of reporting period: 04/01/02 - 3/31/03
Item 1 - Attach shareholder report
(BULL LOGO)
Merrill Lynch Investment Managers
Annual Report
March 31, 2003
CMA New Jersey
Municipal Money Fund
www.mlim.ml.com
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 New Jersey Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
To Our Shareholders:
For the year ended March 31, 2003, CMA New Jersey Municipal Money
Fund paid shareholders a net annualized yield of .80%.* As of March
31, 2003, the Fund's 7-day yield was .59%.
Economic Environment
During the six-month period ended March 31, 2003, equity and fixed
income markets and the domestic economy continued to be influenced
strongly by developments outside of the financial sector. The
uncertainty that surrounded the effectiveness of the weapons
inspections by the United Nations and the eventual onset of war with
Iraq in mid-March weighed heavily on consumer and corporate
spending. Despite the increased volatility in the equity markets
because of geopolitical uncertainty, the Dow Jones Industrial
Average and the NASDAQ Composite Index were able to post positive
gains for the period. However, by the end of the period, both
indexes were well off the highs reached in late November 2002. Fixed
income investors favored the very short end of the U.S. Treasury
yield curve because of its relative safety. Six-month and two-year
U.S. Treasury bills experienced solid gains that lowered yields on
these instruments 43 basis points (.43%) and 31 basis points,
respectively. Finally, the Federal Open Market Committee has met
four times since September 30, 2002, lowering interest rates 50
basis points at its meeting on November 6, 2002 and bringing the
Federal Funds borrowing rate to a historic low of 1.25%.
Interestingly, at the Federal Open Market Committee meeting on
March 18, 2003, the Federal Reserve Board chose not to issue its
customary stated bias, which typically characterizes the committee's
current risk assessment for the economy. This may have left the door
open for the Federal Reserve Board to cut the Federal Funds rate
between meetings should conditions warrant.
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Specific to New Jersey, the state is facing a growing budget deficit
as tax revenues continue to fall well short of projected levels. The
estimated deficit for fiscal year 2003 may exceed $1 billion and for
fiscal year 2004 could approach $5 billion. On the positive side,
the state's unemployment rate of 5.5% continued to run slightly
below the national average of 5.7% as of January 2003. The state's
currrent long-term general obligation debt rating remained strong in
the AA range by all three of the major rating agencies.
Investment Strategy
For the six-month period ended March 31, 2003, the short-term
municipal market experienced two distinct segments. Initially, short-
term municipal yields moved higher as a result of unusually heavy
supply in the short end of the yield curve. One-year note yields
that began the period in the 1.45% range rose to the 1.75% area,
while the average variable rate yield rose from 1.55% to 1.85%.
However, from early November 2002 through period end, the increased
uncertainty surrounding international events and strong asset
inflows into the short end of the yield curve strengthened demand
for these municipal securities. This higher demand lowered the yield
on a one-year fixed coupon note to the 1.10% range, while the
average variable rate yield fell to the 1.15% range by period end.
We maintained the Fund's average portfolio maturity in the neutral
range of 40 days - 45 days. This investment strategy was appropriate
in light of growing global uncertainties. Additionally, the flat
nature of the short-term yield curve offered little incentive to
implement a more aggressive investment stance.
Within the portfolio, fixed coupon securities with maturities
predominately in the 3-month - 6-month range remained an important
diversification tool and provided an avenue to secure attractive
yields through the first quarter of 2003. During the first quarter,
average variable rate yields, which adjust on a daily or weekly
basis, fell to a period low of .95% - 1.00% because of strong
demand. The Fund's fixed coupon securities, which included municipal
notes and tax-exempt commercial paper, comprised approximately 35%
of the Fund's assets during the period and performed especially well
as variable rate yields moved lower. Finally, the Fund's portfolio
strategy and asset allocation for the six-month period ended March
31, 2003 provided shareholders with a well-diversified portfolio of
high credit quality securities and a stable net asset value.
Looking forward, we will continue to monitor budget developments in
New Jersey as we anticipate that state and local government
short-term borrowing needs over the next 18 months will exceed
current levels and could place significant upward pressure on
New Jersey-specific short-term yields.
In Conclusion
We thank you for your continued support of CMA New Jersey Municipal
Money Fund, and we look forward to serving your investment needs in
the months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Kenneth A. Jacob)
Kenneth A. Jacob
Senior Vice President
(John M. Loffredo)
John M. Loffredo
Senior Vice President
(Steven T. Lewis)
Steven T. Lewis
Portfolio Manager
May 2, 2003
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (IN THOUSANDS)
Face
State Amount Issue Value
New Jersey-- Bayonne, New Jersey:
70.1% $ 2,309 BAN, 2.125% due 7/11/2003 $ 2,313
3,624 GO, BAN, Refunding, 3% due 7/11/2003 3,633
4,000 GO, TAN, 2.75% due 7/29/2003 4,011
7,000 GO, TAN, 3% due 10/22/2003 7,054
14,000 Bayonne, New Jersey, Municipal Utilities Authority, Revenue Refunding Bonds
(Water Project Notes), 5.35% due 6/26/2003 14,104
12,382 Bayonne, New Jersey, Temporary Notes, GO, Refunding, 3% due 7/11/2003 12,418
4,517 Bergenfield, New Jersey, BAN, 1.75% due 8/18/2003 4,528
1,579 Bethlehem Township, New Jersey, GO, BAN, 2.50% due 6/24/2003 1,582
12,250 Branchburg Township, New Jersey, GO, BAN, 1.625% due 9/10/2003 12,280
7,767 Brick Township, New Jersey, GO, BAN, Series A, 2.125% due 2/13/2004 7,832
Camden County, New Jersey, Improvement Authority Revenue Bonds, VRDN (e):
1,180 (Jewish Community Center Project), 1.10% due 12/01/2010 1,180
13,900 (Parkview Redevelopment Housing Project), AMT, 1.15% due 7/01/2026 13,900
2,345 Camden County, New Jersey, Improvement Authority, Special Revenue Bonds,
VRDN, 1.20% due 9/01/2026 (e) 2,345
4,612 Clipper Tax-Exempt Trust, COP, VRDN, Series 1998-6, 1.20% due 10/01/2017 (e) 4,612
19,970 Eagle Tax-Exempt Trust, New Jersey, GO, VRDN, Series 94C-3005, 1.15% due 2/15/2007 (e) 19,970
17,605 East Brunswick Township, New Jersey, GO, BAN, 1.75% due 1/08/2004 17,686
25,000 Essex County, New Jersey, GO, TAN, Series B, 1.75% due 6/16/2003 25,030
3,166 Hopewell Township, New Jersey, GO, BAN, 2% due 11/20/2003 3,178
50,780 Hudson County, New Jersey, COP, MERLOTS, Series A35, 1.19% due 12/01/2021 (d)(e) 50,780
28,000 Hudson County, New Jersey, Improvement Authority Revenue Bonds (Essential Purpose
Pooled Government), VRDN, 1.10% due 7/15/2026 (e) 28,000
14,445 Jersey City, New Jersey, GO, Refunding, 2.75% due 7/02/2003 14,477
1,800 Lakewood Township, New Jersey, GO, BAN, 2.25% due 4/25/2003 1,801
Maywood, New Jersey, GO, BAN:
5,685 2.60% due 6/13/2003 5,695
3,000 2% due 1/30/2004 3,019
2,185 Mercer County, New Jersey, Improvement Authority Revenue Bonds (Mercer Inc. Project),
VRDN, 1.20% due 12/01/2018 (e) 2,185
8,350 Moorestown Township, New Jersey, GO, BAN, 3% due 5/29/2003 8,365
6,725 Municipal Securities Trust Certificates, GO, Refunding, VRDN, Series 2001-174,
Class A, 1.15% due 2/26/2015 (e) 6,725
Portfolio Abbreviations for CMA New Jersey Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
ARCS Auction Rate Certificates
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
FLOATS Floating Rate Securities
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
MERLOTS Municipal Extendible Receipt Liquidity
Option Tender Securities
PUTTERS Puttable Tax-Exempt Receipts
ROCS Reset Option Certificates
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face
State Amount Issue Value
New Jersey $ 14,075 Municipal Securities Trust Certificates, New Jersey, Revenue Bonds, VRDN,
(continued) Series 1998-64, Class A, 1.12% due 1/01/2012 (c)(e) $ 14,075
28,600 New Jersey EDA, EDR, CP, 1.02% due 6/12/2003 28,600
New Jersey EDA, EDR, Refunding (e):
34,850 (Airis Newark LLC Project), ARCS, AMT, 1.15% due 1/01/2019 (a) 34,850
12,295 (Foreign Trade Zone Project), VRDN, 1.15% due 12/01/2007 12,295
4,400 (Jewish Community Foundation Metro West), VRDN, 1.15% due 12/01/2018 4,400
New Jersey EDA, EDR, VRDN (e):
2,385 (CVC Specialty Chemicals), AMT, 1.30% due 5/01/2011 2,385
9,100 (Diocese of Metuchen), 1.10% due 3/01/2026 9,100
20,100 (ENCAP Golf Holdings LLC), AMT, Series A, 1.15% due 10/01/2026 20,100
33,000 (ENCAP Golf Holdings LLC), AMT, Series B, 1.15% due 10/01/2011 33,000
3,025 (Eatem Realty Company), AMT, 1.20% due 10/01/2013 3,025
255 (International Vitamin Corp. Project), AMT, 1.25% due 5/01/2003 255
8,275 (MZR Real Estate LP Project), AMT, 1.25% due 12/01/2026 8,275
4,095 (PB Tower & Metro Project), AMT, Series A, 1.30% due 11/01/2026 4,095
2,265 (PB Tower & Metro Project), AMT, Series B, 1.30% due 11/01/2011 2,265
1,080 (Park Lane Association Project), AMT, 1.30% due 4/01/2010 1,080
2,400 (Wyckoff Family YMCA Project), 1.15% due 10/01/2017 2,400
800 New Jersey EDA, IDR (Plastic Suppliers Inc. Project), VRDN, AMT, 1.40%
due 6/01/2006 (e) 800
4,000 New Jersey EDA, Industrial and Economic Development Revenue Bonds
(Tru Urban Renewal Co.), DATES, 1.30% due 4/01/2019 (e) 4,000
4,500 New Jersey EDA, Natural Gas Facilities Revenue Bonds (NUI Corporation
Project), VRDN, AMT, Series A, 1.20% due 6/01/2026 (a)(e) 4,500
New Jersey EDA, Revenue Bonds:
3,140 (Accurate Box Co. Inc. Project), VRDN, AMT, 1.25% due 11/01/2009 (e) 3,140
2,045 (The Arc of Somerset County Inc.), VRDN, 1.20% due 7/01/2020 (e) 2,045
4,430 (Cozzoli Enterprises LLC Project), VRDN, AMT, 1.15% due 3/01/2022 (e) 4,430
600 (Economic Growth-Patterson), VRDN, AMT, 1.10% due 1/01/2005 (e) 600
2,000 (Economic Growth-Patterson), VRDN, AMT, 1.10% due 1/01/2016 (e) 2,000
2,035 (Jewish Family Service), VRDN, 1.20% due 2/01/2022 (e) 2,035
31,700 (Keystone Project), CP, 1.02% due 6/02/2003 31,700
22,045 MERLOTS, Series B02, 1.19% due 6/15/2020 (d)(e) 22,045
4,105 (Ocean County YMCA Inc. Project), VRDN, 1.20% due 9/01/2021 (e) 4,105
5,000 (Presbyterian Homes), VRDN, Series B, 1.20% due 12/01/2032 (e) 5,000
3,375 ROCS, Series II-R-203, 1.15% due 6/15/2021 (a)(e) 3,375
3,725 (Urban League Project), VRDN, 1.20% due 8/01/2019 (e) 3,725
3,150 (YMCA of Montclair Project), VRDN, 1.20% due 6/01/2022 (e) 3,150
2,000 New Jersey EDA, Revenue Refunding Bonds (The Peddie School Project),
VRDN, Series B, 1.10% due 2/01/2019 (e) 2,000
15,400 New Jersey EDA, Special Facility Revenue Bonds (Port Newark Container LLC),
VRDN, AMT, 1.25% due 7/01/2030 (e) 15,400
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONTINUED) (IN THOUSANDS)
Face
State Amount Issue Value
New Jersey New Jersey EDA, Water Facilities Revenue Refunding Bonds (United Water of
(concluded) New Jersey Inc. Project), VRDN (a)(e):
$ 9,550 AMT, Series C, 1.25% due 11/01/2025 $ 9,550
4,800 Series A, 1.15% due 11/01/2026 4,800
1,500 Series B, 1.20% due 11/01/2025 1,500
New Jersey Health Care Facilities Financing Authority Revenue Bonds (e):
2,000 (Capital Health System Inc. Computer Program), VRDN, Series A-3, 1.10%
due 7/01/2021 2,000
14,595 FLOATS, Series 702, 1.15% due 7/01/2014 (d) 14,595
11,500 (Meridian Health System), VRDN, Series B, 1.10% due 7/01/2033 11,500
7,200 (Meridian Hospitals Corp. Computer Program), VRDN, Series A-1, 1.10% due 7/01/2011 7,200
3,000 (Wiley Mission Project), VRDN, 1.15% due 7/01/2029 3,000
10,800 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds, VRDN,
Series C, 1.10% due 9/01/2024 (d)(e) 10,800
10,000 New Jersey Sports and Exposition Authority, State Contract Revenue Refunding Bonds,
VRDN, Series B-1, 1.10% due 3/01/2021 (d)(e) 10,000
New Jersey State Educational Facilities Authority, Revenue Refunding Bonds, VRDN,
Series A (e):
9,850 (Centenary College), 1.15% due 10/01/2033 9,850
40,145 (College of New Jersey), 1.10% due 7/01/2029 (a) 40,145
14,930 New Jersey State Highway Authority, Garden State Parkway, General Revenue Refunding
Bonds, PUTTERS, Series 247, 1.15% due 1/01/2013 (b)(e) 14,930
5,000 New Jersey State Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds,
AMT, Series EE, 1.10% due 4/01/2004 (d) 5,000
25,000 New Jersey State TRAN, 3% due 6/12/2003 25,074
New Jersey State Transportation Trust Fund Authority Revenue Bonds (e):
34,245 FLOATS, Series 775D, 1.20% due 12/15/2016 34,245
6,205 MERLOTS, Series A13, 1.19% due 6/15/2020 (d) 6,205
5,235 Newark, New Jersey, GO, BAN, 2.50% due 8/01/2003 5,248
20,815 Passaic County, New Jersey, Utilities Authority, Solid Waste Disposal Revenue
Refunding Bonds, Series A, 2.25% due 2/27/2004 20,955
3,588 Princeton Borough, New Jersey, GO, BAN, 2.50% due 6/26/2003 3,596
7,300 Salem County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds (E.I. du Pont de Nemours), VRDN, 1.10% due 3/01/2012 (e) 7,300
4,500 Somerville, New Jersey, BAN, 2% due 7/17/2003 4,510
3,648 Washington Township, New Jersey, Mercer County, GO, BAN, 2.125% due 11/26/2003 3,665
West Deptford Township, New Jersey, BAN:
3,085 2% due 5/30/2003 3,088
10,635 GO, 2% due 5/14/2003 10,640
10,000 Willingboro Township, New Jersey, GO, BAN, 2% due 12/11/2003 10,038
4,148 Wood Ridge Boro, New Jersey, GO, BAN, 2% due 2/27/2004 4,180
2,549 Woodbridge Township, New Jersey, GO, BAN, Refunding, 2.50% due 7/08/2003 2,556
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2003 (CONCLUDED) (IN THOUSANDS)
Face
State Amount Issue Value
New York/ Port Authority of New York and New Jersey, CP, Series A and B:
New Jersey-- $ 27,905 1.03% due 4/01/2003 $ 27,905
22.9% 16,190 1.05% due 4/07/2003 16,190
23,090 Port Authority of New York and New Jersey, Revenue Refunding Bonds, FLOATS,
AMT, Series 693, 1.18% due 12/15/2032 (a)(e) 23,090
Port Authority of New York and New Jersey, Special Obligation Revenue
Refunding Bonds (Versatile Structure Obligation), VRDN (e):
75,800 AMT, Series 1R, 1.20% due 8/01/2028 75,800
48,350 AMT, Series 4, 1.25% due 4/01/2024 48,350
38,450 AMT, Series 6, 1.25% due 12/01/2017 38,450
6,640 Series 3, 1.15% due 6/01/2020 6,640
43,800 Series 5, 1.18% due 8/01/2024 43,800
Puerto Rico-- Government Development Bank of Puerto Rico, CP:
6.7% 26,500 1% due 4/10/2003 26,500
8,508 1.07% due 5/20/2003 8,508
4,803 1.08% due 6/19/2003 4,803
20,472 1.05% due 7/01/2003 20,472
10,845 Municipal Securities Trust Certificates, Puerto Rico, Revenue Bonds, VRDN,
Series 2000-107, Class A, 1.07% due 5/19/2009 (c)(e) 10,845
5,990 Puerto Rico Commonwealth Highway and Transportation Authority,
Transportation Revenue Bonds, MERLOTS, Series FFF, 1.21% due 7/01/2031 (e) 5,990
5,405 Puerto Rico Public Finance Corporation, FLOATS, Series 705D, 1.12%
due 8/01/2027 (a)(e) 5,405
Total Investments (Cost--$1,221,871*)--99.7% 1,221,871
Other Assets Less Liabilities--0.3% 4,083
----------
Net Assets--100.0% $1,225,954
==========
(a)AMBAC Insured.
(b)FGIC Insured.
(c)FSA Insured.
(d)MBIA Insured.
(e)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at March 31, 2003.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2003
Assets:
Investments, at value (identified cost--$1,221,871,026) $ 1,221,871,026
Cash 123,473
Interest receivable 4,284,558
Prepaid registration fees and other assets 419,863
---------------
Total assets 1,226,698,920
---------------
Liabilities:
Payables:
Investment adviser $ 471,327
Distributor 206,433 677,760
---------------
Accrued expenses and other liabilities 66,718
---------------
Total liabilities 744,478
---------------
Net Assets $ 1,225,954,442
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 122,593,192
Paid-in capital in excess of par 1,103,338,402
Undistributed realized capital gains--net 22,848
---------------
Net Assets--Equivalent to $1.00 per share based on 1,225,931,922 shares of
beneficial interest outstanding $ 1,225,954,442
===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2003
Investment Income:
Interest and amortization of premium and discount earned $ 16,812,967
Expenses:
Investment advisory fees $ 5,355,569
Distribution fees 1,484,348
Accounting services 211,351
Transfer agent fees 120,630
Professional fees 67,844
Registration fees 30,386
Custodian fees 27,453
Printing and shareholder reports 24,728
Trustees' fees and expenses 11,475
Pricing fees 10,299
Other 25,567
---------------
Total expenses 7,369,650
---------------
Investment income--net 9,443,317
Realized Gain on Investments--Net 87,248
---------------
Net Increase in Net Assets Resulting from Operations $ 9,530,565
===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 2003 2002
Operations:
Investment income--net $ 9,443,317 $ 20,689,307
Realized gain on investments--net 87,248 18,370
--------------- ---------------
Net increase in net assets resulting from operations 9,530,565 20,707,677
--------------- ---------------
Dividends & Distributions to Shareholders:
Investment income--net (9,443,317) (20,689,307)
Realized gain on investments--net (72,268) --
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (9,515,585) (20,689,307)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares 3,387,147,467 3,814,205,798
Value of shares issued to shareholders in reinvestment of dividends and distributions 9,515,227 20,686,417
--------------- ---------------
3,396,662,694 3,834,892,215
Cost of shares redeemed (3,437,655,470) (3,877,372,797)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions (40,992,776) (42,480,582)
--------------- ---------------
Net Assets:
Total decrease in net assets (40,977,796) (42,462,212)
Beginning of year 1,266,932,238 1,309,394,450
--------------- ---------------
End of year $ 1,225,954,442 $ 1,266,932,238
=============== ===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
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: 2003 2002 2001 2000 1999
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net .01 .02 .03 .03 .03
Realized gain on investments--net --++ --++ --++ --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .02 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net (.01) (.02) (.03) (.03) (.03)
Realized gain on investments--net --++ -- -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions (.01) (.02) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return .80% 1.66% 3.35% 2.74% 2.71%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .62% .62% .62% .64% .66%
========== ========== ========== ========== ==========
Investment income--net .79% 1.68% 3.27% 2.71% 2.65%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,225,954 $1,266,932 $1,309,394 $1,085,988 $1,017,235
========== ========== ========== ========== ==========
++Amount is less than $.01 per share.
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA New Jersey 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 conformity with accounting
principles generally accepted in the United States of America, 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 demand notice payment period. In the case of a floating rate
instrument, the remaining maturity is the next coupon date on which
the interest rate is to be adjusted.
(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). Realized gains and losses on security
transactions are determined on the identified cost basis. Interest
income (including amortization of premium and discount) is
recognized on the accrual 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 backup 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.
(f) Expenses--Certain expenses have been allocated to the individual
funds in the Trust on a pro rata basis based upon the respective
aggregate net asset value of each fund included in the Trust.
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: .50%
of the first $500 million of average daily net assets; .425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and .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 .125% of average daily net assets of the Fund.
The distribution fee is to compensate MLPF&S financial advisors 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.
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
For the year ended March 31, 2003, the Fund reimbursed FAM $22,960
for certain accounting services.
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 sold, reinvested and redeemed during the years
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares, value of shares
reinvested and cost of shares redeemed, respectively, since shares
are recorded at $1.00 per share.
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years
ended March 31, 2003 and March 31, 2002 was as follows:
3/31/2003 3/31/2002
Distributions paid from:
Tax-exempt income $ 9,443,317 $ 20,689,307
Ordinary income 72,268 --
------------ ------------
Total distributions $ 9,515,585 $ 20,689,307
============ ============
As of March 31, 2003, there were no significant differences between
the book and tax components of net assets.
CMA NEW JERSEY MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
To the Shareholders and Board of Trustees of
CMA New Jersey 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 New
Jersey Municipal Money Fund as of March 31, 2003, and the related
statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then
ended, and financial highlights for each of the five years in the
period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. 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 as of March 31, 2003, 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, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of CMA New Jersey Municipal Money Fund as of
March 31, 2003, the results of its operations for year then ended,
the changes in its net assets for each of the two years in the
period then ended, and its financial highlights for each of the five
years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 8, 2003
CMA NEW JERSEY MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid by CMA New
Jersey Municipal Money Fund of CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 2003 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, the following table summarizes the taxable per share
distributions paid by the Fund during the year:
Record Payable Ordinary
Date Date Income
6/12/2002 6/12/2002 $.000007
12/31/2002 12/31/2002 $.000055
Please retain this information for your records.
CMA NEW JERSEY MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Trustee
Terry K. Glenn* President 1999 to President and Chairman of Merrill Lynch 118 Funds None
P.O. Box 9011 and present Investment Managers, L.P. ("MLIM")/Fund 162 Portfolios
Princeton, Trustee and Asset Management, L.P. ("FAM")-Advised
NJ 08543-9011 1988 to Funds since 1999; Chairman (Americas
Age: 62 present Region) of MLIM from 2000 to 2002;
Executive Vice President of MLIM and FAM
(which terms as used herein include their
corporate predecessors) from 1983 to 2002;
President of FAM Distributors, Inc. ("FAMD")
from 1986 to 2002 and Director thereof from
1991 to 2002; Executive Vice President and
Director of Princeton Services, Inc.
("Princeton Services") from 1993 to 2002;
President of Princeton Administrators, L.P.
from 1989 to 2002; Director of Financial
Data Services, Inc. from 1985 to 2002.
*Mr. Glenn is a director, trustee or member of an advisory board of
certain other investment companies for which FAM or MLIM acts as
investment adviser. Mr. Glenn is an "interested person," as
described in the Investment Company Act, of the Fund based on his
former positions with FAM, MLIM, FAMD, Princeton Services and
Princeton Administrators, L.P. The Trustee's term is unlimited.
Trustees serve until their resignation, removal or death, or until
December 31 of the year in which they turn 72. As Fund President,
Mr. Glenn serves at the pleasure of the Board of Trustees.
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Trustees
Ronald W. Forbes Trustee 1988 to Professor Emeritus of Finance, School of 45 Funds None
P.O. Box 9095 present Business, State University of New York at 51 Portfolios
Princeton, Albany since 2000 and Professor thereof
NJ 08543-9095 from 1989 to 2000; International Consultant,
Age: 62 Urban Institute from 1995 to 1999.
Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 45 Funds Unum
P.O. Box 9095 present 1989; Director, Unum Provident Corporation 51 Portfolios Provident
Princeton, since 1990; Director, Newell Rubbermaid, Corporation;
NJ 08543-9095 Inc. since 1995. Newell
Age: 50 Rubbermaid,
Inc.
CMA NEW JERSEY MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES (CONTINUED)
Number of
Portfolios Other
in Fund Director-
Position(s) Length Complex ships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Trustees (concluded)
Charles C. Reilly Trustee 1990 to Self-employed financial consultant since 45 Funds None
P.O. Box 9095 present 1990. 51 Portfolios
Princeton,
NJ 08543-9095
Age: 71
Kevin A. Ryan Trustee 1992 to Founder and Director Emeritus of The 45 Funds None
P.O. Box 9095 present Boston University Center for the 51 Portfolios
Princeton, Advancement Ethics of and Character;
NJ 08543-9095 Professor of Education at Boston
Age: 70 University from 1982 to 1999 and
Professor Emeritus since 1999.
Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute from 45 Funds None
P.O. Box 9095 present 1995 to 2001; Foreign Service Officer, 51 Portfolios
Princeton, United States Foreign Service from 1961
NJ 08543-9095 to 1995; Career Minister from 1989 to
Age: 67 1995; Deputy Inspector General, U.S.
Department of State from 1991 to 1994;
U.S. Ambassador to the Hashemite Kingdom
of Jordan from 1987 to 1990.
Richard R. West Trustee 1988 to Dean Emeritus of New York University, 45 Funds Bowne & Co.,
P.O. Box 9095 present Leonard N. Stern School of Business 51 Portfolios Inc.; Vornado
Princeton, Administration since 1994. Operating
NJ 08543-9095 Company;
Age: 65 Vornado
Realty Trust;
Alexander's,
Inc.
Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant since 45 Funds None
P.O. Box 9095 present 1994. 51 Portfolios
Princeton,
NJ 08543-9095
Age: 68
*The Trustee's term is unlimited. Trustees serve until their
resignation, removal or death, or until December 31 of the year in
which they turn 72.
CMA NEW JERSEY MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES (CONCLUDED)
Position(s) Length
Held of Time
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
Fund Officers
Donald C. Burke Vice 1993 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof
P.O. Box 9011 President present since 1999; Senior Vice President and Treasurer of Princeton Services
Princeton, and and since 1999; Vice President of FAMD since 1999; Director of MLIM Taxation
NJ 08543-9011 Treasurer 1999 to since 1990.
Age: 42 present
Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income)
P.O. Box 9011 Vice present of MLIM from 1997 to 2000.
Princeton, President
NJ 08543-9011
Age: 51
John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fixed Income)
P.O. Box 9011 Vice present of MLIM from 1998 to 2000.
Princeton, President
NJ 08543-9011
Age: 39
Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) of MLIM
P.O. Box 9011 present from 2000 to 2001; Vice President of MLIM from 1999 to 2000; Attorney
Princeton, associated with MLIM since 1998; Assistant General Counsel of Chancellor
NJ 08543-9011 LGT Asset Management, Inc. from 1997 to 1998.
Age: 39
*Officers of the Fund serve at the pleasure of the Board of
Trustees.
Further information about the Fund's Officers and Trustees is
available in the Fund's Statement of Additional Information, which
can be obtained without charge by calling 1-800-MER-FUND.
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
or 800-262-4636.
Item 2 - Did registrant adopt a code of ethics, as of the end of the
period covered by this report, that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party? If not, why not? Briefly describe
any amendments or waivers that occurred during the period. State
here if code of ethics/amendments/waivers are on website and give
website address-. State here if fund will send code of ethics to
shareholders without charge upon request--N/A (not answered until
July 15, 2003 and only annually for funds)
Item 3 - Did the registrant's board of directors determine that the
registrant either: (i) has at least one audit committee financial
expert serving on its audit committee; or (ii) does not have an
audit committee financial expert serving on its audit committee? If
yes, disclose name of financial expert and whether he/she is
"independent," (fund may, but is not required, to disclose
name/independence of more than one financial expert) If no, explain
why not. -N/A (not answered until July 15, 2003 and only annually
for funds)
Item 4 - Disclose annually only (not answered until December 15,
2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last
two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant
in connection with statutory and regulatory filings or engagements
for those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of
the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance
of the audit of the registrant's financial statements and are not
reported under paragraph (a) of this Item. Registrants shall
describe the nature of the services comprising the fees disclosed
under this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last
two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the
fees disclosed under this category. N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the
last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs
(a) through (c) of this Item. Registrants shall describe the nature
of the services comprising the fees disclosed under this category.
N/A.
(e)(1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X. N/A.
(e)(2)Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the
audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-
3 under the Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act regarding an exemption from the listing
standards for audit committees.
(Listed issuers must be in compliance with the new listing rules by
the earlier of their first annual shareholders meeting after January
2004, or October 31, 2004 (annual requirement))
Item 6 - Reserved
Item 7 - For closed-end funds that contain voting securities in
their portfolio, describe the policies and procedures that it uses
to determine how to vote proxies relating to those portfolio
securities. N/A (not answered until July 1, 2003)
Item 8--Reserved
Item 9(a) - Disclose the conclusions of the registrant's principal
executive officer or officers and principal financial officer or
officers, or persons performing similar functions, about the
effectiveness of the registrant's disclosure controls and procedures
(as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c)))
based on their evaluation of these controls and procedures as of a
date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph. N/A (not answered until
July 15, 2003 and only annually for funds)
Item 9(b)--There were no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of
ethics or amendments/waivers is on website or offered to
shareholders upon request without charge. N/A.
10(b) - Attach certifications pursuant to Section 302 of the
Sarbanes-Oxley Act. Attached hereto.
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
CMA New Jersey Municipal Money Fund
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
CMA New Jersey Municipal Money Fund
Date: May 21, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: _/s/ Terry K. Glenn________
Terry K. Glenn,
President of
CMA New Jersey Municipal Money Fund
Date: May 21, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
CMA New Jersey Municipal Money Fund
Date: May 21, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.