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 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 - 03/31/04
Item 1 - Report to Stockholders
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
CMA New Jersey
Municipal Money Fund
Annual Report
March 31, 2004
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.
A description of the policies and procedures that the Fund uses to
determine how to vote proxies relating to portfolio securities is
available (1) without charge, upon request, by calling toll-free
1-800-MER-FUND (1-800-637-3863); (2) on www.mutualfunds.ml.com;
and (3) on the Securities and Exchange Commission's website at
http://www.sec.gov.
CMA New Jersey Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
(GO PAPERLESS LOGO)
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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, 2004 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 Long-Term
Date Date Income Capital Gains
12/31/2003 12/31/2003 $.000020 $.000010
Please retain this information for your records.
Electronic Delivery
The Fund offers 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 NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
A Letter From the President
Dear Shareholder
Index returns during the most recent six-month and 12-month
reporting periods indicate that fixed income markets - both taxable
and tax-exempt - continued to reward those investors who were
willing to accept greater risk. The high yield market, as measured
by the Credit Suisse First Boston High Yield Index, provided a
six-month return of +8.65% and a 12-month return of +22.86% as of
March 31, 2004. By comparison, the Lehman Brothers Aggregate Bond
Index returned +2.98% and +5.40% and the Lehman Brothers Municipal
Bond Index returned +3.12% and +5.86% for the six-month and 12-month
periods ended March 31, 2004, respectively.
As of March month-end, the Federal Reserve Board maintained its
accommodative policy stance, pledging "patience" in raising interest
rates. As a result, short-term interest rates remained at historic
lows and kept the short end of the yield curve relatively flat,
making it increasingly difficult to find attractive income
opportunities. Market watchers continue to monitor the economic data
and Federal Reserve Board language for indications of interest rate
direction. Having said that, if the economy continues to grow at its
recent pace, many believe it is just a matter of time before
interest rates move upward.
Equity markets, in the meantime, continued to provide attractive
returns. For the six-month and 12-month periods ended March 31,
2004, the Standard & Poor's 500 Index returned +14.08% and
+35.12%, respectively. Much of the boost came from improving
economic conditions throughout the past year. Significant fiscal
and monetary stimulus, including the low interest rates and tax
cuts, has opened the door to consumer spending, capital spending,
increases in exports and long-awaited job growth. As expected, these
positive developments have led the way to improvements in corporate
earnings - a positive for stock markets.
The events and efforts of the past year leave us with a much
stronger economy today. With all of this in mind, we believe it is
time for investors to consider what can go right in 2004. We
encourage you to revisit your portfolio and your asset allocation
strategy to ensure you are well positioned to take advantage of the
opportunities that lie ahead. Your financial advisor can help you
develop a strategy designed to perform through all types of market
and economic cycles.
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 NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
A Discussion With Your Fund's Portfolio Manager
We sought to maintain the Fund's stake in fixed rate municipal notes
while still taking advantage of favorable price swings in shorter-
term variable rate demand notes when available.
How did the Fund perform during the fiscal year in light of the
existing market conditions?
For the 12-month period ended March 31, 2004, CMA New Jersey
Municipal Money Fund paid shareholders a net annualized yield of
..43%.* As of March 31, 2004, the Fund's seven-day yield was .43%.
Our principal investment strategy was to maintain the Fund's average
portfolio maturity at or above its peer group average. We
implemented this strategy based on our belief that short-term
borrowing rates would remain stable, at least through the first
quarter of 2004. We believed that fixed-coupon securities such as
municipal notes and puts, which have effective maturities up to 13
months, would outperform variable rate demand products during this
period given the relative stability of short-term interest rates.
This, in fact, was the case as the average yield on the one-year
note, as measured by the Bond Buyer One-Year Note Index, was 1.08%
for the 12-month period ended March 31, 2004. The average seven-day
variable rate yield, as measured by the BMA Municipal Swap Index,
was 1.00% during the same period.
Fund results benefited from our purchase of $70 million in New
Jersey tax revenue anticipation notes in the third quarter of 2003.
These securities had yields between 1.02% and 1.05% and provided
excellent asset diversification and liquidity, as well as solid
credit quality.
For its part, the Federal Reserve Board remained accommodative
throughout the year. The last in a series of interest rate cuts came
in June 2003, as the Federal Reserve Board looked to stimulate
economic growth and ward off the potential for deflation. Although
economic growth began to accelerate later in the year, concerns over
weak job growth persisted in the market. Investors tried to
anticipate when the Federal Reserve Board would restore interest
rates to more neutral levels. The constant interest rate analysis
translated into widespread volatility, which created opportunities
in the fixed income markets.
*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 State of New Jersey during the period.
New Jersey's economy continued to be stronger than that of many of
its Northeastern neighbors. The state's unemployment rate improved
steadily and, as we neared the end of the period, was slightly below
the national average. A recent budget analysis suggested that New
Jersey's revenue projections, once thought overly optimistic, may
actually underestimate collections by as much as $300 million.
During the past 12 months, New Jersey was an active issuer of short-
term municipal debt, bringing to market a total of $1.9 billion
worth of tax and revenue anticipation notes.
What changes were made to the portfolio during the period?
The portfolio's structure was relatively stable over the past 12
months. We did, however, undertake a modest but important
reallocation of a portion of the Fund's assets. Specifically, we
shifted assets out of variable rate demand products and into fixed-
coupon securities. The goal was to extend the portfolio's average
maturity. Given that short-term interest rates were at historic lows
and seemingly in a holding pattern, longer-dated fixed securities
presented the more attractive investment opportunity in our view.
Our expectations about the yield advantages of fixed notes were met,
as indicated by the figures referenced earlier.
We accomplished this reallocation of assets primarily through the
purchase of municipal notes and puts. During the period, we
increased the Fund's weighting in notes and puts by 4%, bringing our
allocation to 25% of net assets as of March 31, 2004. We decreased
the Fund's weighting in variable rate securities by a similar
percentage.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
How would you characterize the portfolio's position at the close of
the period?
We believe the Fund is well positioned for the current interest rate
environment. One likely area of focus in the months ahead will be on
our municipal note holdings. We plan to seek attractive
opportunities to reinvest a significant portion of the Fund's note
positions maturing before September 30, 2004.
We will continue to monitor the tone and actions of the Federal
Reserve Board to determine the potential for an increase in short-
term interest rates. We plan to maintain the current flexibility in
the portfolio's structure and react as needed to any changes in
market conditions. As always, we will continue to monitor
developments in the State of New Jersey and gauge their potential
impact on Fund holdings. We expect that New Jersey will continue to
be an important issuer of municipal debt, and we are looking for the
state's annual short-term financing to take place in the upcoming
two quarters.
Steven T. Lewis
Vice President and Portfolio Manager
April 8, 2004
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Schedule of Investments (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey--81.2%
Bayonne, New Jersey, GO:
$ 3,355 BAN, 2% due 7/09/2004 $ 3,362
3,138 BAN, 2.25% due 7/09/2004 3,146
5,000 TAN, 2% due 8/20/2004 5,013
7,500 TAN, 2.25% due 8/20/2004 7,526
6,120 Temporary Notes, 2% due 7/09/2004 6,133
5,395 Bayonne, New Jersey, Municipal Utilities Authority, Water System Revenue Bonds,
PUTTERS, Series 358, 1.08% due 4/01/2011 (e)(f) 5,395
2,113 Bethlehem Township, New Jersey, GO, BAN, 1.50% due 6/23/2004 2,115
Camden County, New Jersey, Improvement Authority Revenue Bonds, VRDN (e):
21,150 (Harvest Village Senior Redevelopment Project), Series A, 1.15% due 7/01/2029 21,150
13,900 (Parkview Redevelopment Housing Project), AMT, 1.02% due 7/01/2026 13,900
2,230 Camden County, New Jersey, Improvement Authority, Special Revenue Bonds, VRDN, 1.07%
due 9/01/2026 (e) 2,230
11,685 Camden, New Jersey, GO, BAN, 2% due 9/10/2004 11,718
662 Clipper Tax-Exempt Trust, New Jersey, COP, VRDN, Series 1998-6, 1.07% due 10/01/2017 (e) 662
19,970 Eagle Tax-Exempt Trust, New Jersey, GO, VRDN, Series 94C-3005, 1.05% due 2/15/2007 (e) 19,970
8,425 Eagle Tax-Exempt Trust, New Jersey State Turnpike Authority, Turnpike Revenue
Refunding Bonds, Series 2003-0041, VRDN, Class A, 1.05% due 1/01/2030 (a)(e) 8,425
21,572 East Brunswick Township, New Jersey, BAN, 2.50% due 1/08/2005 21,803
3,593 East Hanover Township, New Jersey, BAN, 2% due 3/24/2005 3,627
4,426 East Windsor Township, New Jersey, BAN, 2% due 12/03/2004 4,451
7,000 Essex County, New Jersey, Improvement Authority Revenue Bonds, BAN, 2% due 8/05/2004 7,023
6,450 Garfield, New Jersey, GO, BAN, 2% due 3/18/2005 6,510
50,255 Hudson County, New Jersey, COP, MERLOTS, Series A35, 1.05% due 12/01/2021 (d)(e) 50,255
41,800 Hudson County, New Jersey, Improvement Authority Revenue Bonds (Essential Purpose
Pooled Government), VRDN, 1% due 7/15/2026 (e) 41,800
6,880 Jersey City, New Jersey, GO, Refunding, 2% due 7/02/2004 6,896
4,705 Manchester Township, New Jersey, GO, BAN, 1.75% due 3/25/2005 4,739
2,085 Mercer County, New Jersey, Improvement Authority Revenue Bonds (Mercer Inc. Project),
VRDN, 1.07% due 12/01/2018 (e) 2,085
6,420 Mount Laurel Township, New Jersey, GO, BAN, 1.50% due 5/28/2004 6,425
14,075 Municipal Securities Trust Certificates, New Jersey, Revenue Bonds, VRDN,
Series 1998-64, Class A, 1.04% due 1/01/2012 (c)(e) 14,075
New Brunswick, New Jersey, GO:
6,000 BAN, 1.75% due 8/11/2004 6,014
8,000 Parking Authority, 1.70% due 6/04/2004 8,003
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
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, MARCH 31, 2004
Schedule of Investments (continued) (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (continued)
New Jersey EDA, CP:
$16,700 0.95% due 5/03/2004 $ 16,700
15,000 0.95% due 6/07/2004 15,000
10,300 0.93% due 7/09/2004 10,300
New Jersey EDA, EDR, Refunding (e):
33,850 (Airis Newark LLC Project), ARCS, AMT, 1.02% due 1/01/2019 (a) 33,850
1,000 (Foreign Trade Zone Project), VRDN, 1.11% due 12/01/2007 1,000
4,400 (Jewish Community Foundation Metro West), VRDN, 1.02% due 12/01/2018 4,400
New Jersey EDA, EDR, VRDN (e):
9,100 (Diocese of Metuchen), 1% due 3/01/2026 9,100
10,000 (ENCAP Golf Holdings LLC), AMT, Series A, 1.07% due 10/01/2026 10,000
33,000 (ENCAP Golf Holdings LLC), AMT, Series B, 1.07% due 10/01/2011 33,000
8,000 (MZR Real Estate LP Project), AMT, 1.12% due 12/01/2026 8,000
4,010 (PB Tower & Metro Project), AMT, Series A, 1.17% due 11/01/2026 4,010
2,125 (PB Tower & Metro Project), AMT, Series B, 1.17% due 11/01/2011 2,125
945 (Park Lane Association Project), AMT, 1.17% due 4/01/2010 945
8,000 (Wyckoff Family YMCA Inc. Project), 1.02% due 10/01/2023 8,000
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
39,000 New Jersey EDA, Natural Gas Facilities Revenue Bonds (NUI Corporation Project), VRDN,
AMT, Series A, 1.20% due 6/01/2026 (a)(e) 39,000
New Jersey EDA, Revenue Bonds (e):
2,745 (Accurate Box Co. Inc. Project), VRDN, AMT, 1.12% due 11/01/2009 2,745
1,975 (The Arc of Somerset County Inc.), VRDN, 1.07% due 7/01/2020 1,975
4,230 (Cozzoli Enterprises LLC Project), VRDN, AMT, 1.02% due 2/01/2022 4,230
1,965 (Jewish Family Service), VRDN, 1.07% due 2/01/2022 1,965
8,095 MERLOTS, Series A-41, 1.05% due 6/15/2022 (b) 8,095
22,025 MERLOTS, Series B-02, 1.05% due 6/15/2020 (d) 22,025
3,975 (Ocean County YMCA Inc. Project), VRDN, 1.07% due 9/01/2021 3,975
5,000 (Presbyterian Homes), VRDN, Series B, 1.02% due 12/01/2032 5,000
3,375 ROCS, Series II-R-203, 1.05% due 6/15/2021 (a) 3,375
3,575 (Urban League Project), VRDN, 1.07% due 8/01/2019 3,575
3,050 (YMCA of Montclair Project), VRDN, 1.07% due 6/01/2022 3,050
2,000 New Jersey EDA, Revenue Refunding Bonds (The Peddie School Project), VRDN, Series B,
0.96% due 2/01/2019 (e) 2,000
15,400 New Jersey EDA, Special Facility Revenue Bonds (Port Newark Container LLC), VRDN, AMT,
1.08% due 7/01/2030 (e) 15,400
10,985 New Jersey EDA, Water Facilities Revenue Refunding Bonds (United Water of New Jersey
Inc. Project), VRDN, AMT, Series C, 1.16% due 11/01/2025 (a)(e) 10,985
New Jersey Health Care Facilities Financing Authority Revenue Bonds (e):
21,890 FLOATS, Series 702, 1.02% due 7/01/2014 (d) 21,890
6,500 (Meridian Health System), VRDN, Series A, 1% due 7/01/2033 6,500
11,500 (Meridian Health System), VRDN, Series B, 1% due 7/01/2033 11,500
6,500 (Meridian Hospitals Corp. Computer Program), VRDN, Series A-1, 1% due 7/01/2011 6,500
3,000 (Wiley Mission Project), VRDN, 1.02% due 7/01/2029 3,000
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Schedule of Investments (continued) (In Thousands)
Face
Amount Municipal Bonds Value
New Jersey (concluded)
$ 9,690 New Jersey State Educational Facilities Authority, Revenue Refunding Bonds (Centenary
College), VRDN, Series A, 1.02% due 10/01/2033 (e) $ 9,690
14,930 New Jersey State Highway Authority, Garden State Parkway General Revenue Refunding
Bonds, PUTTERS, Series 247, 1.03% due 1/01/2013 (b)(e)(g) 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
New Jersey State Housing and Mortgage Finance Agency, S/F Housing Revenue Bonds, AMT:
12,000 Series B, 1.10% due 10/01/2004 12,000
12,500 VRDN, Series F, 1.05% due 10/01/2004 (e) 12,500
40,000 New Jersey State, TRAN, Series 2004-A, 2% due 6/25/2004 40,091
5,750 New Jersey State Transit Corporation, COP, ROCS, Series 15, 1.06% due 9/15/2014 (a)(e) 5,750
New Jersey State Transportation Trust Fund Authority Revenue Bonds (e):
34,050 FLOATS, Series 775D, 1.07% due 12/15/2016 (a) 34,050
6,180 MERLOTS, Series A13, 1.05% due 6/15/2020 (d) 6,180
16,795 PUTTERS, Series 332, 1.10% due 12/15/2015 (a) 16,795
7,145 ROCS, Series II-R-4040, 1.05% due 6/15/2022 (c) 7,145
16,295 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, GO, ROCS,
Series II-R-4032, 1.05% due 1/01/2021 (c)(e) 16,295
New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN (c)(e):
12,200 Series C-1, 1% due 1/01/2024 12,200
30,000 Series C-2, 1% due 1/01/2024 30,000
20,000 Series C-3, 1% due 1/01/2024 20,000
8,700 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds, VRDN,
Series D, 1% due 1/01/2018 (b)(e) 8,700
1,760 New Milford, New Jersey, GO, BAN, 1.50% due 6/25/2004 1,763
4,300 North Wildwood, New Jersey, BAN, 2% due 8/13/2004 4,314
5,427 Passaic, New Jersey, GO, BAN, 2% due 11/12/2004 5,453
5,607 Perth Amboy, New Jersey, BAN, 2% due 8/06/2004 5,625
7,300 Salem County, New Jersey, Industrial Pollution Control Financing Authority Revenue
Bonds (E.I. du Pont de Nemours), VRDN, 1% due 3/01/2012 (e) 7,300
1,508 South Amboy, New Jersey, GO, BAN, 2% due 8/05/2004 1,512
3,814 Southampton, New Jersey, BAN, Series A, 1.75% due 8/27/2004 3,825
7,411 Stafford Township, New Jersey, GO, BAN, 2% due 7/16/2004 7,433
21,675 Woodbridge Township, New Jersey, GO, Refunding, BAN, 1.25% due 7/08/2004 21,685
4,024 Woodridge Borough, New Jersey, GO, BAN, 2% due 2/25/2005 4,058
New York/New Jersey--10.7%
Port Authority of New York and New Jersey, CP:
9,000 0.95% due 5/03/2004 9,000
12,720 0.95% due 5/04/2004 12,720
Port Authority of New York and New Jersey, Special Obligation Revenue Refunding
Bonds (Versatile Structure Obligation), VRDN, AMT (e):
73,900 Series 1R, 1.11% due 8/01/2028 73,900
10,000 Series 4, 1.15% due 4/01/2024 10,000
19,400 Series 6, 1.15% due 12/01/2017 19,400
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Schedule of Investments (concluded) (In Thousands)
Face
Amount Municipal Bonds Value
Puerto Rico--7.1%
$ 6,595 Municipal Securities Trust Certificates, Puerto Rico, GO, VRDN, Series 2002-199,
Class A, 1.02% due 1/25/2016 (d)(e) $ 6,595
6,300 Municipal Securities Trust Certificates, Puerto Rico, Revenue Bonds, VRDN,
Series 2000-107, Class A, 1.02% due 5/19/2009 (c)(e) 6,300
10,800 Puerto Rico Commonwealth, TRAN, 2% due 7/30/2004 10,836
Puerto Rico Government Development Bank, CP:
13,776 1.05% due 4/01/2004 13,776
10,000 0.95% due 4/07/2004 10,000
9,198 0.98% due 5/04/2004 9,198
3,960 1% due 6/04/2004 3,960
5,637 0.97% due 6/07/2004 5,637
5,982 0.99% due 6/25/2004 5,982
4,517 0.99% due 7/02/2004 4,517
5,395 Puerto Rico Public Finance Corporation, FLOATS, Series 705D, 1.02% due
8/01/2027 (a)(e) 5,395
Total Investments (Cost--$1,153,176*)--99.0% 1,153,176
Other Assets Less Liabilities--1.0% 12,025
----------
Net Assets--100.0% $1,165,201
==========
(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, 2004.
(f)XL Capital Insured.
(g)Escrowed to maturity.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Statement of Assets and Liabilities
As of March 31, 2004
Assets
Investments, at value (identified cost--$1,153,175,675) $ 1,153,175,675
Cash 177,306
Receivables:
Securities sold $ 8,801,226
Interest 3,424,635 12,225,861
---------------
Prepaid expenses and other assets 9,979
---------------
Total assets 1,165,588,821
---------------
Liabilities
Payables:
Distributor 227,055
Investment adviser 72,793
Other affiliates 24,038
Beneficial interest redeemed 3,702 327,588
---------------
Accrued expenses and other liabilities 60,683
---------------
Total liabilities 388,271
---------------
Net Assets
Net assets $ 1,165,200,550
===============
Net Assets Consist of
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 116,515,918
Paid-in capital in excess of par 1,048,642,930
Undistributed realized capital gains--net 41,702
---------------
Net Assets--Equivalent to $1.00 per share based on 1,165,159,176 shares of
beneficial interest outstanding $ 1,165,200,550
===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Statement of Operations
For the Year Ended March 31, 2004
Investment Income
Interest and amortization of premium and discount earned $ 12,702,567
Expenses
Investment advisory fees $ 5,422,120
Distribution fees 1,487,322
Accounting services 217,771
Transfer agent fees 117,783
Professional fees 72,389
Custodian fees 40,726
Printing and shareholder reports 29,098
Registration fees 20,916
Pricing fees 14,098
Trustees' fees and expenses 11,385
Other 25,143
---------------
Total expenses before waiver 7,458,751
Waiver of expenses (2,664)
---------------
Total expenses after waiver 7,456,087
---------------
Investment income--net 5,246,480
---------------
Realized Gain on Investments--Net
Realized gain on investments--net 53,197
---------------
Net Increase in Net Assets Resulting from Operations $ 5,299,677
===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Statements of Changes in Net Assets
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 2004 2003
Operations
Investment income--net $ 5,246,480 $ 9,443,317
Realized gain on investments--net 53,197 87,248
--------------- ---------------
Net increase in net assets resulting from operations 5,299,677 9,530,565
--------------- ---------------
Dividends & Distributions to Shareholders
Investment income--net (5,246,480) (9,443,317)
Realized gain on investments--net (34,343) (72,268)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (5,280,823) (9,515,585)
--------------- ---------------
Beneficial Interest Transactions
Net proceeds from sale of shares 4,043,731,243 3,387,147,467
Value of shares issued to shareholders in reinvestment of dividends
and distributions 5,280,352 9,515,227
--------------- ---------------
4,049,011,595 3,396,662,694
Cost of shares redeemed (4,109,784,341) (3,437,655,470)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions (60,772,746) (40,992,776)
--------------- ---------------
Net Assets
Total decrease in net assets (60,753,892) (40,977,796)
Beginning of year 1,225,954,442 1,266,932,238
--------------- ---------------
End of year $ 1,165,200,550 $ 1,225,954,442
=============== ===============
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
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: 2004 2003 2002 2001 2000
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
Realized gain on investments--net --++ --++ --++ --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations --++ .01 .02 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends and distributions:
Investment income--net --++++ (.01) (.02) (.03) (.03)
Realized gain on investments--net --++++ --++++ -- -- --
---------- ---------- ---------- ---------- ----------
Total dividends and distributions --++++ (.01) (.02) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment return .43% .80% 1.66% 3.35% 2.74%
========== ========== ========== ========== ==========
Ratios to Average Net Assets
Expenses, net of waiver .61% .62% .62% .62% .64%
========== ========== ========== ========== ==========
Expenses .61% .62% .62% .62% .64%
========== ========== ========== ========== ==========
Investment income--net .44% .79% 1.68% 3.27% 2.71%
========== ========== ========== ========== ==========
Supplemental Data
Net assets, end of year (in thousands) $1,165,201 $1,225,954 $1,266,932 $1,309,394 $1,085,988
========== ========== ========== ========== ==========
++Amount is less than $.01 per share.
++++Amount is less than $(.01) per share.
See Notes to Financial Statements.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
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 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. 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. For the year ended March 31, 2004, FAM earned fees of
$5,422,120, of which $2,664 was waived.
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, MARCH 31, 2004
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, 2004, the Fund reimbursed FAM $24,662
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, 2004 and March 31, 2003 was as follows:
3/31/2004 3/31/2003
Distributions paid from:
Tax-exempt income $ 5,246,480 $ 9,443,317
Ordinary income 22,848 72,268
Long-term capital gains 11,495 --
------------ ------------
Total distributions $ 5,280,823 $ 9,515,585
============ ============
As of March 31, 2004, there were no significant differences between
the book and tax components of net assets.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Independent Auditors' Report
To the Shareholders and Board of Trustees
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 of CMA Multi-State Municipal Series
Trust (the "Trust") as of March 31, 2004, 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
the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are
the responsibility of the Trust'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 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, 2004, 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 of CMA
Multi-State Municipal Series Trust as of March 31, 2004, 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 14, 2004
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Officers and Trustees (unaudited)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Trustee
Terry K. Glenn* President 1999 to President of the Merrill Lynch Investment 124 Funds None
P.O. Box 9011 and present Managers, L.P. ("MLIM")/Fund Asset 160 Portfolios
Princeton, Trustee and Management, L.P. ("FAM")--Advised Funds
NJ 08543-9011 1988 to since 1999; Chairman (Americas Region)
Age: 63 present 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. since 1985.
* Mr. Glenn is a director, trustee or member of an advisory board of
certain other investment companies for which MLIM or FAM 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 MLIM, FAM, 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.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Officers and Trustees (unaudited)(continued)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age 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 51 Funds None
P.O. Box 9095 present Business, State University of New York at 50 Portfolios
Princeton, Albany since 2000 and Professor thereof
NJ 08543-9095 from 1989 to 2000; International Consultant
Age: 63 at the Urban Institute from 1995 to 1999.
Cynthia A. Montgomery Trustee 1994 to Professor, Harvard Business School since 51 Funds Newell
P.O. Box 9095 present 1989. 50 Portfolios Rubbermaid, Inc.
Princeton,
NJ 08543-9095
Age: 51
Kevin A. Ryan Trustee 1992 to Director Emeritus of The Boston University 51 Funds None
P.O. Box 9095 present Center for the Advancement of Ethics and 50 Portfolios
Princeton, Character from 1989 to 1999; Professor of
NJ 08543-9095 Education at Boston University from 1982
Age: 71 to 1999 and Professor Emeritus thereof
since 1999.
Roscoe S. Suddarth Trustee 2000 to President of Middle East Institute from 51 Funds None
P.O. Box 9095 present 1995 to 2001; Foreign Service Officer of 50 Portfolios
Princeton, United States Foreign Service from 1961
NJ 08543-9095 to 1995 and Career Minister from 1989 to
Age: 68 1995; Deputy Inspector General of 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 Professor of Finance, New York University, 51 Funds Bowne & Co.,
P.O. Box 9095 present Leonard N. Stern School of Business 50 Portfolios Inc.; Vornado
Princeton, Administration from 1982 to 1994 and Operating
NJ 08543-9095 Dean Emeritus thereof since 1994. Company;
Age: 66 Vornado Realty
Trust and
Alexander's, Inc.
Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant since 51 Funds None
P.O. Box 9095 present 1994; Executive Vice President of The 50 Portfolios
Princeton, Prudential Insurance Company of America
NJ 08543-9095 from 1988 to 1994; Former Director of
Age: 69 Prudential Reinsurance Company and former
Trustee of The Prudential Foundation.
* 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, MARCH 31, 2004
Officers and Trustees (unaudited)(concluded)
Position(s) Length of
Held with Time
Name, Address & Age 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 since
P.O. Box 9011 President present 1999; Senior Vice President and Treasurer of Princeton Services since 1999;
Princeton, and and Vice President of FAMD since 1999; Director of MLIM Taxation since 1990.
NJ 08543-9011 Treasurer 1999 to
Age: 43 present
Kenneth A. Jacob Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management)
P.O. Box 9011 Vice present of MLIM from 1997 to 2000.
Princeton, President
NJ 08543-9011
Age: 53
John M. Loffredo Senior 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management)
P.O. Box 9011 Vice present of MLIM from 1998 to 2000.
Princeton, President
NJ 08543-9011
Age: 40
Steven T. Lewis Vice 1996 to Vice President of MLIM since 1998.
P.O. Box 9011 President present
Princeton,
NJ 08543-9011
Age: 39
Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) from 2000
P.O. Box 9011 present to 2001; Vice President from 1999 to 2000; Attorney associated with MLIM
Princeton, since 1998.
NJ 08543-9011
Age: 40
* 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
800-221-2104**
**For inquiries regarding your CMA account, call 800-CMA-INFO
or 800-262-4363.
Charles C. Reilly, Trustee of CMA New Jersey Municipal Money Fund,
has recently retired. The Fund's Board of Trustees wishes Mr. Reilly
well in his retirement.
CMA NEW JERSEY MUNICIPAL MONEY FUND, MARCH 31, 2004
Item 2 - Code of Ethics - The registrant has adopted 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 and principal accounting officer, or persons
performing similar functions. A copy of the code of ethics
is available without charge upon request by calling toll-free
1-800-MER-FUND (1-800-637-3863).
Item 3 - Audit Committee Financial Expert - The registrant's board
of directors has determined that (i) the registrant has the
following audit committee financial experts serving on its audit
committee and (ii) each audit committee financial expert is
independent: (1) Ronald W. Forbes, (2) Richard R. West, and (3)
Edward D. Zinbarg.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees - Fiscal Year Ending March 31, 2004 - $33,200
Fiscal Year Ending March 31, 2003 - $35,164
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2004 - $5,200
Fiscal Year Ending March 31, 2003 - $4,800
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for the
project as a whole. Any proposed services exceeding the pre-
approved cost levels will require specific pre-approval by the
Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending March 31, 2004 - $16,708,160
Fiscal Year Ending March 31, 2003 - $17,378,427
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to
the registrant's 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.
Regulation S-X Rule 2-01(c)(7)(ii) - $541,640, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies - Not Applicable
Item 8 - Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders -
Not Applicable
Item 10 - Controls and Procedures
10(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.
10(b) - There were no changes in the registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - See Item 2
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - 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 of CMA Multi-State Municipal
Series Trust
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
CMA New Jersey Municipal Money Fund of
CMA Multi-State Municipal Series Trust
Date: May 21, 2004
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 of
CMA Multi-State Municipal Series Trust
Date: May 21, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
CMA New Jersey Municipal Money Fund of
CMA Multi-State Municipal Series Trust
Date: May 21, 2004