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 Pennsylvania Municipal Money Fund of 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 Pennsylvania Municipal Money Fund of CMA Multi-State Municipal
Series Trust, 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: 03/31/04
Date of reporting period: 04/01/03 - 09/30/03
Item 1 - Attach shareholder report
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
CMA Pennsylvania
Municipal Money Fund
Semi-Annual Report
September 30, 2003
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 Pennsylvania Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
CMA Pennsylvania Municipal Money Fund
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
Roscoe S. Suddarth--Trustee
Richard R. West--Trustee
Edward D. Zinbarg--Trustee
Kenneth A. Jacob--Senior Vice President
John M. Loffredo--Senior Vice President
Darrin J. SanFillippo--Vice President
Donald C. Burke--Vice President and Treasurer
Phillip S. Gillespie--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).
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
A Letter From the President
Dear Shareholder
Now in its final quarter, 2003 has been a meaningful year in many
respects. After one of the most significant equity market downturns
in many investors' memories, this year finally brought hopeful signs
for a sustainable economic recovery. Sub par economic growth of 1.4%
in the first quarter of 2003 increased to projected growth of more
than 4% in the second half of the year. With that good news, fixed
income investments, which had become the asset class of choice
during the long equity market decline, faced new challenges.
The Federal Reserve Board continued its accommodative monetary
policy, lowering the Federal Funds rate in June to 1%, its lowest
level since 1958. With this move, the short end of the yield curve
remained relatively flat and it became increasingly difficult to
find attractive income opportunities. Through September 30, 2003,
both the Bond Market Association (BMA) Index and the one-year
Municipal Market Data (MMD) Index averaged 1.03% for the year. Rates
on the BMA Index, which measures the shortest end of the yield
curve, averaged .85% during the third quarter versus 1.16% in the
second quarter. Rates on the one-year MMD Index averaged .98% in the
third quarter, just below the second quarter average of 1%.
Against this backdrop, our portfolio managers continued to work
diligently to maximize tax-exempt returns consistent with the
preservation of capital. With that said, remember also that the
advice and guidance of a skilled financial advisor often can help
you choose those investments that will best serve you as you plan
for your financial future.
Finally, I am proud to premiere a new look to our shareholder
communications. Our portfolio manager commentaries have been trimmed
and organized in such a way that you can get the information you
need at a glance, in plain language. Today's markets are confusing
enough. We want to help you put it all in perspective. The report's
new size also allows us certain mailing efficiencies. Any cost
savings in production or postage are passed on to the Fund and,
ultimately, to Fund shareholders.
We thank you for trusting Merrill Lynch Investment Managers with
your investment assets, and we look forward to serving you in the
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
A Discussion With Your Fund's Portfolio Manager
With interest rates low and expected to remain that way for some
time, we looked increasingly to the higher yields offered by fixed
rate notes during the period.
How did the Fund perform during the period in light of the existing
market conditions?
For the six-month period ended September 30, 2003, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
..43%.* As of September 30, 2003, the Fund's seven-day yield was
..46%.
The Federal Reserve Board cut the Federal Funds rate once more
during the six-month period, sending interest rates to their lowest
levels in almost 50 years. Despite indications that the economy was
strengthening gradually, the Federal Reserve Board emphasized its
concern that deflation was a bigger threat to the economy than
inflation, and reassured investors that it planned to keep short-
term interest rates low until consistent growth in the economy and
employment was evident.
The expectation for a stable short-term interest rate environment
created a strong demand for fixed rate notes with maturities of six
months - one year. This caused yields on these notes to fall later
in the period and somewhat flattened the yield curve when compared
to variable rate demand securities. However, our aggressive pursuit
of fixed rate notes earlier in the period enabled us to lock in a
favorable spread above variable rate securities. This strategy
enhanced the performance of the Fund during the six-month period.
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Describe conditions in the Commonwealth of Pennsylvania during the
period.
Pennsylvania's economy remained weak for most of the past six
months, but began to show some signs of recovery in the latter
half of the period. In August and September, for example, the
Philadelphia Federal Reserve Business Outlook Survey showed notable
improvement. September's indicators suggested Pennsylvania's
manufacturing sector improved for the third consecutive month as
firms reported continued growth in new orders and shipments.
Expectations for future growth also appeared favorable. As fiscal
year 2003 ended, the commonwealth was forced to close a $700 million
revenue shortfall. This was accomplished through spending cuts and
the use of nonrecurring revenues, such as tobacco settlement funds.
How did you manage the Fund during the period?
In the first half of the period, yields declined from already low
levels as investors worried about the potential for deflation and
its impact on Federal Reserve Board monetary policy. The falling
yields happened to coincide with very modest issuance of new
Pennsylvania short-term fixed rate securities. Although we
participated in a handful of opportunities--mostly secondary market
notes and put bonds with maturities of one year--we were not able to
extend the Fund's average portfolio maturity as much as we would
have liked. Also affecting performance was the maturity of notes
purchased the previous year. As these issues matured, we reinvested
the proceeds at prevailing yields, 80 basis points - 90 basis points
(.80% - .90%) lower than the securities rolling off the portfolio.
Conditions improved somewhat in the second half of the period when
we saw an increase in municipal supply. During this time, we added
longer-term, higher-yielding fixed paper to the portfolio when
prudent, purchasing approximately $30 million in fixed notes with
yields of 1% or more. The ability to lock in these rates helped the
Fund's performance during the period.
During most of the past six months, we looked to maintain a larger
percentage of fixed rate paper than our peers. Early in the period,
however, we were careful to keep enough of the Fund's assets in
short-maturity holdings to handle anticipated tax-time shareholder
redemptions and to take advantage of the expected increase in yields
on these securities. During September, municipal issuance picked up.
This coincided with the end of the quarter, when brokers typically
offer variable paper at somewhat more attractive yields. As a
result, we increasingly took inflows of cash and made investments in
this area.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
How would you characterize the portfolio's position at the close of
the period?
The Fund ended the period with an average portfolio maturity of 45
days compared to the average of 35 days for funds in its iMoneyNet,
Inc. category. This compared to an average life of 42 days at the
beginning of the period, 15 days longer than the iMoneyNet group's
average maturity. As of September 30, 2003, the Fund had $501.2
million in net assets, a 16% decline from March 31, 2003.
We continue to take a relatively neutral approach to the
Pennsylvania short-term municipal market, given our expectation that
the Federal Reserve Board will leave interest rates unchanged for
the foreseeable future. In the months ahead, we will continue to
monitor developments in the national and Pennsylvania economies,
maintaining our basic investment strategy while shifting the Fund's
allocation between fixed and variable rate notes in what we believe
are the best interests of our shareholders.
We also will keep a watchful eye on the Federal Reserve Board's
monetary policy and stand ready to respond with changes to our
investment approach as needed. Moreover, with a majority of fixed
rate issuance behind us, we anticipate the short-term tax-exempt
yield curve will remain relatively flat for the near term. Thus,
unless the economy changes course and is weak enough to generate
another cut in the Federal Funds interest rate, we expect to
purchase fewer fixed rate securities than we did in the current
period.
Darrin J. San Fillippo
Vice President and Portfolio Manager
October 9, 2003
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Schedule of Investments (In Thousands)
Face
State Amount Municipal Bonds Value
Pennsylvania-- ABN AMRO Munitops Certificates Trust, VRDN (d):
99.5% $ 3,760 GO, Series 2001-18, 1.15% due 10/01/2009 (c) $ 3,760
8,450 Refunding, Series 2003-20, 1.15% due 7/15/2011 (c) 8,450
21,879 Series 1999-16, 1.15% due 3/07/2007 (b) 21,879
14,455 Allegheny County, Pennsylvania, GO, Series C-51, 1.30% due 5/03/2004 14,455
Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds
(Presbyterian University Hospital), ACES, VRDN (d):
3,775 Series B-1, 1.15% due 3/01/2018 3,775
930 Series B-2, 1.15% due 3/01/2018 930
4,250 Series B-3, 1.15% due 3/01/2018 4,250
14,715 Allegheny County, Pennsylvania, IDA, Health and Housing Facilities Revenue Refunding
Bonds (Longwood at Oakmont Inc.), VRDN, Senior Series B, 1.20% due 7/01/2027 (d) 14,715
Allegheny County, Pennsylvania, IDA, Revenue Bonds, VRDN (d):
3,025 (The Bradley Center), Series A, 1.17% due 11/01/2014 3,025
5,000 (Western Pennsylvania School for the Blind), 0.85% due 7/01/2004 5,000
Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds, VRDN (d):
7,515 (Commercial Development-Parkway Center Project), Series A, 1.14% due 5/01/2009 7,515
6,500 MERLOTS, Series A-48, 1.15% due 9/01/2011 (a) 6,500
1,620 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN, 1.23%
due 12/03/2007 (d) 1,620
Berks County, Pennsylvania, IDA, Manufacturing Facilities Revenue Bonds,
VRDN, AMT (d):
1,025 (Berks Products Corporation), 1.20% due 8/01/2006 1,025
4,810 (Ram Industries Inc. Project), 1.25% due 12/01/2011 4,810
2,690 Berks County, Pennsylvania, IDA, Revenue Bonds (World Electronics Sales), VRDN,
AMT, 1.25% due 8/01/2016 (d) 2,690
2,800 Bethel Park, Pennsylvania, School District, GO, TRAN, 1.60% due 6/30/2004 2,811
400 Bethel Township, Pennsylvania, IDA, IDR (Brentwood Industries Inc. Project),
VRDN, AMT, 1.20% due 11/01/2011 (d) 400
5,900 Blair County, Pennsylvania, IDA, Revenue Bonds (NPC Inc. Project), VRDN, AMT,
1.22% due 9/01/2017 (d) 5,900
2,500 Boyertown, Pennsylvania, Area School District, GO, TRAN, 1.50% due 6/30/2004 2,507
3,135 Bradford County, Pennsylvania, IDA, EDR (Towanda Printing Company), VRDN, AMT,
1.22% due 9/01/2016 (d) 3,135
2,410 Bradford County, Pennsylvania, IDA, Revenue Bonds (State Aggregates Inc. Project),
VRDN, AMT, 1.25% due 2/01/2015 (d) 2,410
Bucks County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d):
4,145 (Bracalentes Manufacturing Company Inc. Project), 1.25% due 6/01/2016 4,145
4,500 (Harsco Corporation Project), 1.25% due 8/01/2011 4,500
3,740 (L&P Properties LP Project), Series A, 1.35% due 6/01/2014 3,740
735 (Specialty Ring Products Inc.), 1.25% due 10/01/2009 735
6,500 Bucks County, Pennsylvania, TRAN, 2% due 12/31/2003 6,514
Butler County, Pennsylvania, IDA, Revenue Bonds (Concordia Lutheran Ministers),
VRDN (d):
3,750 Series A, 1.30% due 4/01/2004 3,750
3,000 Series B, 1.10% due 8/01/2004 3,000
4,535 Series C, 1.60% due 10/01/2030 4,535
2,155 Carbondale, Pennsylvania, IDA, IDR (JM Wells Company LP Project), VRDN, AMT,
1.25% due 9/01/2015 (d) 2,155
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
ACES SM Adjustable Convertible Extendible Securities
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
EDR Economic Development Revenue Bonds
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
MERLOTS Municipal Extendible Receipt Liquidity Option
Tender Securities
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
PUTTERS Puttable Tax-Exempt Receipts
S/F Single Family
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Adjustable Tax-Exempt Securities
VRDN Variable Rate Demand Notes
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Schedule of Investments (continued) (In Thousands)
Face
State Amount Municipal Bonds Value
Pennsylvania $ 5,435 Chester County, Pennsylvania, IDA, Revenue Bonds (West Vincent Association), VRDN,
(continued) AMT, Series B, 1.25% due 12/01/2020 (d) $ 5,435
1,325 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT, Series A,
1.23% due 11/01/2017 (d) 1,325
3,360 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System Project),
VRDN, AMT, 1.13% due 1/01/2014 (d) 3,360
2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener University Inc.),
VRDN, 1.12% due 7/01/2014 (d) 2,000
10,000 Delaware County, Pennsylvania, IDA (Exelon Generating), CP, Series 2001-A, 1.10%
due 10/09/2003 10,000
2,350 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES, VRDN,
1.22% due 12/01/2009 (d) 2,350
4,300 Eagle Tax-Exempt Trust, Pennsylvania, GO, VRDN, Series 94, Class 3803, 1.15%
due 5/01/2008 (d) 4,300
5,940 Eagle Tax-Exempt Trust, Pennsylvania, VRDN, Series 96-C, Class 3801, 1.15% due
5/01/2014 (d) 5,940
6,100 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Series A, 1.09%
due 3/01/2024 (d) 6,100
1,430 Erie County, Pennsylvania, Industrial Development (Reed Manufacturing Corp. Project),
VRDN, AMT, 1.23% due 6/01/2006 (d) 1,430
1,990 Erie, Pennsylvania, Higher Education Building Authority, University Revenue Bonds
(Gannon University Project), VRDN, Series F, 1.40% due 7/01/2013 (d) 1,990
1,100 Geisinger, Pennsylvania, Health System Authority Revenue Bonds (Geisinger Health
System), VRDN, 1.10% due 11/15/2032 (d) 1,100
1,735 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing Facilities--Kyowa
America), VRDN, AMT, Series D, 1.22% due 7/01/2014 (d) 1,735
5,535 Grove City, Pennsylvania, Area Hospital Authority, Health Care Facility Revenue
Bonds (John XXIII Home Project), VRDN, 1.17% due 2/01/2030 (d) 5,535
915 Hampden, Pennsylvania, IDA, Revenue Refunding Bonds (Pennsylvania Pipe Inc.),
VRDN, AMT, 1.25% due 12/01/2014 (d) 915
4,000 Harrisburg, Pennsylvania, School Authority Revenue Bonds (Harrisburg Project),
VRDN, 0.99% due 12/01/2027 (a)(d) 4,000
7,600 Huntingdon County, Pennsylvania, General Authority, College Revenue Bonds
(Juniata College Project), VRDN, Series A, 1.15% due 5/01/2004 (d) 7,600
2,780 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project), VRDN, AMT,
Series A, 1.20% due 6/01/2027 (d) 2,780
Jackson Township, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d):
1,145 (I Auman Machine Company Inc. Project), 1.25% due 6/01/2008 1,145
1,360 (Pennsylvania Precision Cast Parts), 1.25% due 4/01/2009 1,360
5,915 (V&S Lebanon Galvanizing Project), 1.35% due 4/01/2021 5,915
6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 1.15% due
9/15/2020 (d) 6,390
1,400 Lackawanna County, Pennsylvania, IDA, IDR (Herff Jones Inc. Project), VRDN, AMT,
1.23% due 6/01/2026 (d) 1,400
7,195 Lancaster County, Pennsylvania, Hospital Authority, Health Center Revenue Refunding
Bonds (Brethren Village), VRDN, 1.13% due 6/15/2020 (d) 7,195
1,600 Lancaster, Pennsylvania, IDA, IDR (Bucks County Project), VRDN, AMT, 1.20% due
2/01/2010 (d) 1,600
2,900 Lehigh County, Pennsylvania, IDA, Revenue Bonds (New Columbia Joist Company),
VRDN, AMT, Series B, 1.20% due 11/01/2022 (d) 2,900
4,530 Luzerne County, Pennsylvania, IDA, Revenue Bonds (Nardone Brothers Baking Project),
VRDN, AMT, 1.20% due 3/01/2019 (d) 4,530
3,535 Mercer County, Pennsylvania, IDA, EDR (Solar Atmospheres of Western Pennsylvania),
VRDN, 1.10% due 10/01/2010 (d) 3,535
2,700 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel Enterprises
Project), VRDN, AMT, Series A, 1.22% due 9/01/2013 (d) 2,700
Montgomery County, Pennsylvania, IDA, Revenue Bonds (Alcom Printing Group),
VRDN, AMT (d):
305 Series A, 1.40% due 1/01/2020 305
760 Series B, 1.25% due 1/01/2020 760
Montgomery County, Pennsylvania, IDA, Revenue Bonds, VRDN (d):
3,515 (Edmund Optical Manufacturing LLC Project), AMT, 1.25% due 4/01/2016 3,515
280 (Jadko Inc. Project), AMT, Series B, 1.25% due 6/01/2008 280
505 (Jadko Project), AMT, Series A, 1.25% due 6/01/2020 505
1,795 (PB Hoffmann LLC Project), AMT, 1.25% due 1/01/2020 1,795
2,200 (Valley Forge Baptist), 1.15% due 9/01/2023 2,200
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Schedule of Investments (continued) (In Thousands)
Face
State Amount Municipal Bonds Value
Pennsylvania $ 1,900 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Laneko Engineering),
(continued) VRDN, AMT, Series A, 1.20% due 4/01/2007 (d) $ 1,900
4,100 Montour, Pennsylvania, School District, GO, TRAN, 1.60% due 6/30/2004 4,115
4,425 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, VRDN, Series B-19,
1.15% due 2/15/2027 (b)(d) 4,425
6,000 Municipal Securities Trust Certificates, Revenue Refunding Bonds, VRDN,
Series 2001-121, Class A, 1.14% due 12/22/2009 (c)(d) 6,000
3,500 Norristown, Pennsylvania, TRAN, 2.50% due 12/30/2003 3,507
Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN (d):
3,645 (DG Properties Inc. Project), AMT, 1.25% due 7/01/2021 3,645
1,675 (Follett Corporation Project), 1.25% due 5/01/2019 1,675
2,310 (Nicos Polymers & Grinding), AMT, 1.25% due 2/01/2020 2,310
3,175 Northumberland County, Pennsylvania, IDA, Revenue Bonds (Butter Krust Baking
Company Project), VRDN, AMT, 1.25% due 5/01/2011 (d) 3,175
Pennsylvania Economic Development Financing Authority, EDR, VRDN (d):
3,800 AMT, Series D-7, 1.22% due 8/01/2022 3,800
800 AMT, Series F-5, 1.22% due 12/01/2006 800
600 (Gutchess Hardwoods Inc. Project), Series B, 1.05% due 4/01/2005 600
5,000 (Northeast Architectural Products), AMT, Series B-5, 1.22% due 8/01/2023 5,000
Pennsylvania Economic Development Financing Authority Revenue Bonds, VRDN, AMT (d):
1,935 (Bentley Graphic Commission Inc.), Series C-4, 1.25% due 4/01/2008 1,935
1,410 (International Business Systems Project), Series B-4, 1.20% due 7/01/2012 1,410
3,410 (Waste Gas Fabricating Company Project), Series C-3, 1.25% due 4/01/2020 3,410
900 Pennsylvania Energy Development Authority Revenue Bonds (Piney Creek), VRDN, AMT,
Series C, 1.10% due 12/01/2011 (d) 900
2,500 Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 76, 1.15% due 10/01/2003 2,500
12,453 Pennsylvania State, GO, FLOATS, Series 696, 1.13% due 5/01/2018 (d)(e) 12,452
5,875 Pennsylvania State, GO, MERLOTS, Series A-15, 1.15% due 1/01/2017 (b)(d) 5,875
5,610 Pennsylvania State, GO, Refunding, PUTTERS, Series 346, 1.11% due 4/01/2011 (c)(d) 5,610
3,300 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Bonds,
VRDN, AMT, Series A, 1.10% due 6/01/2029 (a)(d) 3,300
15,500 Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue Refunding
Bonds, VRDN, AMT, Series A, 1.05% due 6/01/2025 (d)(e) 15,500
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds
(Association of Independent Colleges and Universities), VRDN (d):
4,700 Series C-2, 1.80% due 11/01/2003 4,700
700 Series D-4, 1.15% due 5/01/2004 700
6,200 Series F-3, 1.15% due 5/01/2004 6,200
2,500 Series L-3, 1.12% due 5/01/2028 2,500
3,940 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds
(Lafayette College), 2.50% due 11/25/2003 3,947
2,900 Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding Bonds
(Carnegie Mellon University), VRDN, Series A, 1.10% due 11/01/2025 (d) 2,900
3,000 Pennsylvania State Public School Building Authority, School Revenue Bonds, MERLOTS,
VRDN, Series A-42, 1.15% due 6/01/2028 (d)(e) 3,000
3,000 Philadelphia, Pennsylvania, Airport Revenue Refunding Bonds (Philadelphia Airport
System), Series A, 6% due 6/15/2004 (c) 3,105
Philadelphia, Pennsylvania, Authority for IDR, VRDN (d):
4,550 (Comhar Inc. Project), 1.10% due 9/01/2023 4,550
11,350 (Fox Chase Cancer Center Project), 1.10% due 7/01/2025 11,350
2,650 (Lannett Company Inc. Project), 1.25% due 5/01/2014 2,650
7,500 Philadelphia, Pennsylvania, GO, TRAN, 2% due 6/30/2004 7,557
2,400 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority,
Hospital Revenue Refunding Bonds (Children's Hospital Project), VRDN, Series A,
1.10% due 2/15/2014 (d) 2,400
2,995 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, FLOATS, VRDN,
Series 773, 1.15% due 11/01/2031 (c)(d) 2,995
4,275 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System Revenue
Refunding Bonds, 1.15% due 9/01/2004 (e) 4,275
2,300 Pottstown Boro, Pennsylvania, Educational Facilities Authority Revenue Bonds
(The Hill School Project), VRDN, 1.15% due 8/01/2032 (d) 2,300
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Schedule of Investments (concluded) (In Thousands)
Face
State Amount Municipal Bonds Value
Pennsylvania $ 2,000 Red Lion, Pennsylvania, Area School District, TRAN, 1.50% due 6/30/2004 $ 2,006
(concluded) 3,350 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Revenue Refunding
Bonds, MERLOTS, VRDN, Series A-18, 1.15% due 3/01/2015 (a)(d) 3,350
4,275 Somerset County, Pennsylvania, IDA, Revenue Bonds (Somerset Welding and Steel),
VRDN, AMT, 1.23% due 3/02/2015 (d) 4,275
9,000 South-Central Pennsylvania, General Authority Revenue Bonds, VRDN, Series A, 1.13%
due 6/01/2031 (a)(d) 9,000
3,745 Susquehanna County, Pennsylvania, IDA, Revenue Bonds (Pennfield Corporation Project),
VRDN, AMT, 1.20% due 8/01/2014 (d) 3,745
6,000 Union County, Pennsylvania, Hospital Authority, Hospital Revenue Refunding Bonds
(Evangelical Community Hospital), VRDN, 1.30% due 2/01/2021 (d) 6,000
Venango County, Pennsylvania, IDA (Scrubgrass Project), CP:
15,000 Series 90-A, 0.92% due 12/01/2003 15,000
19,800 Series 90-B, 0.95% due 10/10/2003 19,800
2,000 Washington County, Pennsylvania, IDA, IDR (Pennatronics Corporation Project),
VRDN, AMT, 1.23% due 11/01/2020 (d) 2,000
1,510 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer Products),
VRDN, AMT, 1.23% due 12/01/2006 (d) 1,510
2,670 York County, Pennsylvania, IDA, Revenue Bonds (495 Leasing Project), VRDN, AMT,
1.25% due 6/01/2021 (d) 2,670
Puerto Rico--0.2% 1,000 Municipal Securities Trust Certificates, Puerto Rico, GO, VRDN, Series 2002-199,
Class A, 1.05% due 1/25/2016 (b)(d) 1,000
Total Investments (Cost--$499,890*)--99.7% 499,890
Other Assets Less Liabilities--0.3% 1,398
---------
Net Assets--100.0% $ 501,288
=========
(a)AMBAC Insured.
(b)MBIA Insured.
(c)FGIC Insured.
(d)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at September 30, 2003.
(e)FSA Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Statement of Assets and Liabilities
As of September 30, 2003
Assets
Investments, at value (identified cost--$499,890,196) $ 499,890,196
Cash 60,875
Receivables:
Interest $ 1,214,980
Beneficial interest sold 293,129 1,508,109
--------------
Prepaid registration fees and other assets 29,634
--------------
Total assets 501,488,814
--------------
Liabilities
Payables:
Distributor 136,726
Other affiliates 36,405
Investment adviser 27,675
--------------
Total liabilities 200,806
--------------
Net Assets
Net assets $ 501,288,008
==============
Net Assets Consist of
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 50,139,468
Paid-in capital in excess of par 451,230,695
Accumulated realized capital losses--net (82,155)
--------------
Net Assets--Equivalent to $1.00 per share based on 501,394,681 shares of
beneficial interest outstanding $ 501,288,008
==============
See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Statement of Operations
For the Six Months Ended September 30, 2003
Investment Income
Interest and amortization of premium and discount earned $ 3,194,934
Expenses
Investment advisory fees $ 1,403,987
Distribution fees 351,845
Accounting services 59,389
Transfer agent fees 39,352
Professional fees 29,928
Printing and shareholder reports 11,352
Registration fees 10,664
Custodian fees 9,992
Pricing fees 7,678
Trustees' fees and expenses 2,665
Other 7,314
--------------
Total expenses 1,934,166
--------------
Investment income--net 1,260,768
--------------
Net Increase in Net Assets Resulting from Operations $ 1,260,768
==============
See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2003 2003
Operations
Investment income--net $ 1,260,768 $ 4,931,376
Realized loss on investments--net -- (300)
--------------- ---------------
Net increase in net assets resulting from operations 1,260,768 4,931,076
--------------- ---------------
Dividends to Shareholders
Dividends to shareholders from investment income--net (1,260,768) (4,931,376)
--------------- ---------------
Beneficial Interest Transactions
Net proceeds from sale of shares 932,345,766 1,871,842,607
Value of shares issued to shareholders in reinvestment of dividends 1,261,018 4,931,064
--------------- ---------------
933,606,784 1,876,773,671
Cost of shares redeemed (1,023,424,036) (1,914,023,882)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions (89,817,252) (37,250,211)
--------------- ---------------
Net Assets
Total decrease in net assets (89,817,252) (37,250,511)
Beginning of period 591,105,260 628,355,771
--------------- ---------------
End of period $ 501,288,008 $ 591,105,260
=============== ===============
See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Financial Highlights
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended
September 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 2003 2003 2002 2001 2000
Per Share Operating Performance
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net --++ .01 .02 .03 .03
Realized loss on investments--net -- --++++ --++++ --++++ --++++
---------- ---------- ---------- ---------- ----------
Total from investment operations --++ .01 .02 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net --++++ (.01) (.02) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return .43%* .83% 1.71% 3.47% 2.81%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses .68%* .67% .68% .68% .69%
========== ========== ========== ========== ==========
Investment income--net .44%* .84% 1.72% 3.42% 2.78%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of period (in thousands) $ 501,288 $ 591,105 $ 628,356 $ 601,403 $ 539,177
========== ========== ========== ========== ==========
*Annualized.
++Amount is less than $.01 per share.
++++Amount is less than $(.01) per share.
See Notes to Financial Statements.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
Notes to Financial Statements
1. Significant Accounting Policies:
CMA Pennsylvania 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 amended, 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. 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 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 PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
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 six months ended September 30, 2003, the Fund reimbursed FAM
$6,391 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
periods 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. Capital Loss Carryforward:
On March 31, 2003, the Fund had a net capital loss carryforward of
$81,856, of which $22,380 expires in 2006; $3,815 expires in 2007;
$20,995 expires in 2008; $33,951 expires in 2009; and $715 expires
in 2010. This amount will be available to offset like amounts of any
future taxable gains.
Electronic Delivery
The Fund is now offering electronic delivery of communications to
its shareholders. In order to receive this service, you must
register your account and provide us with e-mail information.
To sign up for this service, simply access this website
http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification
number (PIN). You will need this PIN should you wish to update your
e-mail address, choose to discontinue this service and/or make any
other changes to the service. This service is not available for
certain retirement accounts at this time.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND, SEPTEMBER 30, 2003
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 (annual requirement
only)
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 (annual requirement only)
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. N/A
(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
Item 8--Reserved
Item 9(a) - The registrant's certifying officers have reasonably
designed such disclosure controls and procedures to ensure material
information relating to the registrant is made known to us by others
particularly during the period in which this report is being
prepared. The registrant's certifying officers have determined that
the registrant's disclosure controls and procedures are effective
based on our evaluation of these controls and procedures as of a
date within 90 days prior to the filing date of this report.
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 Pennsylvania Municipal Money Fund of CMA Multi-State Municipal
Series Trust
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
CMA Pennsylvania Municipal Money Fund of
CMA Multi-State Municipal Series Trust
Date: November 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 Pennsylvania Municipal Money Fund of
CMA Multi-State Municipal Series Trust
Date: November 21, 2003
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
CMA Pennsylvania Municipal Money Fund of
CMA Multi-State Municipal Series Trust
Date: November 21, 2003
Attached hereto as a furnished exhibit are the certifications
pursuant to Section 906 of the Sarbanes-Oxley Act.