UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-3111
811-21301
Name of Fund: CMA Tax-Exempt Fund
Master Tax-Exempt Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President,
CMA Tax-Exempt Fund and Master Tax-Exempt 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: 04/01/04 - 09/30/04
Item 1 - Report to Stockholders
(BULL LOGO)
Merrill Lynch Investment Managers
www.mlim.ml.com
CMA Tax-Exempt Fund
Semi-Annual Report
September 30, 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) at www.mutualfunds.ml.com;
and (3) on the Securities and Exchange Commission's Web site at
http://www.sec.gov.Information about how the Fund voted proxies
relating to securities held in the Fund's portfolio during the
most recent 12-month period ended June 30 is available (1) at
www.mutualfunds.ml.com and (2) on the Securities and Exchange
Commission's Web site at http://www.sec.gov.
CMA Tax-Exempt Fund
Box 9011
Princeton, NJ
08543-9011
(GO PAPERLESS LOGO)
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To sign up today, go to www.icsdelivery.com/live.
CMA Tax-Exempt Fund
Portfolio Holdings*
Pie Chart illustrated the following:
Description Percentage
Put Bonds 9.3%
Fixed Rate Notes 19.5%
Tax-Exempt Commercial Paper 6.0%
Variable Rate Demand Obligations 65.2%
*Based on total market value of the portfolio as of September 30,
2004. Investments are valued at amortized cost, which approximates
market value.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the
Securities and Exchange Commission ("SEC") for the first and third
quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are
available on the SEC's Web site at http://www.sec.gov. The Fund's
Forms N-Q may also be reviewed and copied at the SEC's Public
Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
A Letter From the President
Dear Shareholder
As we ended the current reporting period, the financial markets were
facing a number of uncertainties. At the top of investors' minds
were questions about economic expansion, corporate earnings,
interest rates and inflation, politics, oil prices and terrorism.
After benefiting from aggressive monetary and fiscal policy
stimulus, some fear the U.S. economy has hit a "soft patch." In
fact, economic expansion has slowed somewhat in recent months, but
we believe it is easing into a pace of growth that is sustainable
and healthy. The favorable economic environment has served to
benefit American corporations, which have continued to post strong
earnings. Although the most impressive results were seen earlier in
the year, solid productivity, improved revenue growth and cost
discipline all point to a vital corporate sector.
In terms of inflation and interest rates, the Federal Reserve Board
(the Fed) has signaled its confidence in the economic recovery by
increasing the Federal Funds target rate three times in the past
several months, from 1% to 1.75%. Inflation, for its part, has
remained in check. Investors and economists are focused on how
quickly Fed policy will move from here, anxiously absorbing every
bit of economic data and Fed innuendo.
While any market jitters associated with the presidential election
should subside after November, the effect of oil prices is more
difficult to predict. At around $50 per barrel, the price of oil is
clearly a concern. However, on an inflation-adjusted basis and
considering modern usage levels, the situation is far from the
crisis proportions we saw in the 1980s. Finally, although terrorism
and geopolitical crises are realities we are forced to live with
today, history has shown us that the financial effects of any single
event tend to be short-lived.
Amid the uncertainty, short-term tax-exempt bond yields generally
moved higher over the past six months. The yield on seven-day
variable rate instruments, as measured by the Bond Market
Association Municipal Swap Index, rose from 1.01% on March 31, 2004
to 1.69% on September 30, 2004. As always, our investment
professionals are closely monitoring the markets, the economy and
the overall environment in an effort to make well-informed decisions
for the portfolios they manage. For the individual investor, the key
during uncertain times is to remain focused on the big picture.
Investment success comes not from reacting to short-term volatility,
but from maintaining a long-term perspective and adhering to the
disciplines of asset allocation, diversification and rebalancing. We
encourage you to work with your financial advisor to ensure these
time-tested techniques are incorporated into your investment plan.
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 TAX-EXEMPT FUND, SEPTEMBER 30, 2004
A Discussion With Your Fund's Portfolio Manager
A large portion of the Fund's notes matured in June, enabling us to
lock in attractive rates by reinvesting the proceeds in six-month to
one-year bonds after rates rose significantly.
How did the Fund perform during the period in light of the existing
market conditions?
For the six-month period ended September 30, 2004, CMA Tax-Exempt
Fund paid shareholders a net annualized yield of .64%. As of
September 30, 2004, the Fund's seven-day yield was .96%.
Throughout the period, we continued our strategy of overweighting
fixed-rate notes in an environment characterized by a positively
sloped yield curve - indicating that these longer-term investments
were offering better yields than their shorter counterparts. The
Federal Reserve Board (the Fed) ended its long-accommodative policy
stance by increasing interest rates .25% in June, and again in
August and September. Although we entered a period of rising short-
term interest rates, the increase was widely anticipated by the
market and yields adjusted accordingly. By mid May, yields on fixed
rate notes had risen more than 100 basis points (1.00%) from the
beginning of the period in response to stronger economic data.
Two main factors contributed to the Fund's performance during the
past six months. First, a large portion of the Trust's notes matured
in June, enabling us to lock in attractive rates by reinvesting the
proceeds in bonds with maturities of six months to one year. Second,
tax-season redemption activity in the municipal market was lower
than in past years - a factor that kept yields on variable rate
securities low, allowing the yield curve to maintain its positive
slope. Thus, we were able to pursue a weighted average maturity
modestly longer than neutral, which contributed to Fund performance
in the past six months.
What changes were made to the portfolio during the period?
Overall, our investment strategy remained very similar to that
discussed in prior shareholder reports. While we continued to
overweight fixed rate notes, which have maturities of up to 13
months, we did reduce the portfolio's average maturity. As we moved
from an environment of falling interest rates to one of rising
rates, we believed that a more cautious approach was warranted. At
the end of the period, the portfolio was still positioned slightly
longer than neutral. We believe this stance is justified, as it
provides a clear yield advantage, and it appears the market has
already aggressively priced in its expectations for further interest
rate hikes from the Fed.
Another notable change was our reduction in tax-exempt commercial
paper, which we had used as a vehicle to lock in rates for a desired
period of time. Instead, we favored variable rate demand notes to
provide a hedge against rising interest rates. This approach
provided the portfolio with a "barbell" structure, with longer fixed
rate notes balanced by very short-term variable rate securities.
How would you characterize the portfolio's position at the close of
the period?
The portfolio continues to be postured slightly longer than neutral.
The final months of the calendar year are traditionally a period of
low new issuance in the short-term tax-exempt market. This adds to
the value of holding fixed rate notes. In addition, demand for short-
term tax-exempt securities typically is very strong at the beginning
of each year, at which time the short-term yield curve often
steepens.
We will continue to closely monitor economic data for indications of
future Fed policy. In light of the current high oil prices and the
potential impact on the economy, it appears the Fed is likely to
pause its campaign of interest rate hikes late this year or early in
2005 as it assesses the U.S. economy's strength.
Peter J. Hayes
Vice President and Portfolio Manager
October 18, 2004
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a)
expenses related to transactions, including sales charges,
redemption fees and exchange fees; and (b) operating expenses
including advisory fees, distribution fees including 12(b)-1 fees,
and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on April 1, 2004 and held
through September 30, 2004) is intended to assist shareholders both
in calculating expenses based on an investment in the Fund and in
comparing these expenses with similar costs of investing in other
mutual funds.
The first table below provides information about actual account
values and actual expenses. In order to estimate the expenses a
shareholder paid during the period covered by this report,
shareholders can divide their account value by $1,000 and then
multiply the result by the number in the first line under the
heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before
expenses. In order to assist shareholders in comparing the ongoing
expenses of investing in this Fund and other funds, compare the 5%
hypothetical example with the 5% hypothetical examples that appear
in other funds' shareholder reports.
The expenses shown in the table are intended to highlight
shareholders ongoing costs only and do not reflect any transactional
expenses, such as sales charges, redemption fees, or exchange fees.
Therefore, the second table is useful in comparing ongoing expenses
only, and will not help shareholders determine the relative total
expenses of owning different funds. If these transactional expenses
were included, shareholder expenses would have been higher.
Expenses Paid
Ending During the Period*
Beginning Account Value April 1, 2004 to
Account Value September 30, September 30,
April 1, 2004 2004 2004
Actual
CMA Tax-Exempt Fund Class A $1,000 $1,003.20 $2.76
Hypothetical (5% annual return before expenses)**
CMA Tax-Exempt Fund $1,000 $1,022.31 $2.79
* Expenses are equal to the Fund's annualized expense ratio of .55%, multiplied by the average
account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).
Because the Fund is a feeder fund, the expense table example reflects the expenses of both the
feeder fund and the master fund in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in
the most recent fiscal half-year divided by 365.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statement of Assets and Liabilities CMA Tax-Exempt Fund
As of September 30, 2004
Assets
Investment in Master Tax-Exempt Trust, at value (identified cost--$8,949,657,224) $ 8,949,657,224
Prepaid expenses 441,711
---------------
Total assets 8,950,098,935
---------------
Liabilities
Payables:
Distributor $ 2,998,588
Administrator 369,607
Other affiliates 196,703 3,564,898
---------------
Accrued expenses 78,149
---------------
Total liabilities 3,643,047
---------------
Net Assets
Net assets $ 8,946,455,888
===============
Net Assets Consist of
Shares of beneficial interest, $.10 par value, unlimited number of
shares authorized $ 894,796,092
Paid-in capital in excess of par 8,052,145,812
Undistributed investment income--net $ 53,944
Accumulated realized capital losses allocated from the Trust--net (539,960)
---------------
Total accumulated losses--net (486,016)
---------------
Net Assets--Equivalent to $1.00 per share based on 8,947,960,921
shares of beneficial interest outstanding. $ 8,946,455,888
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statement of Operations CMA Tax-Exempt Fund
For the Six Months Ended September 30, 2004
Investment Income--Net
Interest $ 6,834
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned 55,250,685
Expenses (7,129,609)
---------------
Total income and net investment income allocated from the Trust 48,127,910
---------------
Expenses
Administration fees $ 11,684,248
Distribution fees 5,841,398
Transfer agent fees 596,638
Registration fees 303,206
Printing and shareholder reports 73,631
Professional fees 40,875
Other 28,818
---------------
Total expenses 18,568,814
---------------
Investment income--net 29,559,096
---------------
Realized Loss Allocated from the Trust--Net
Realized loss on investments allocated from the Trust--net (70,275)
---------------
Net Increase in Net Assets Resulting from Operations $ 29,488,821
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statements of Changes in Net Assets CMA Tax-Exempt Fund
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2004 2004
Operations
Investment income--net $ 29,559,096 $ 54,689,821
Realized loss allocated from the Trust--net (70,275) (255,938)
--------------- ---------------
Net increase in net assets resulting from operations 29,488,821 54,433,883
--------------- ---------------
Dividends to Shareholders
Dividends to shareholders from investment income--net (29,559,096) (54,690,122)
--------------- ---------------
Beneficial Interest Transactions
Net proceeds from sale of shares 15,878,103,904 34,265,235,678
Value of shares issued to shareholders in reinvestment of dividends 29,560,179 54,687,363
--------------- ---------------
Total shares issued 15,907,664,083 34,319,923,041
--------------- ---------------
Cost of shares redeemed (16,483,192,524) (34,644,148,609)
Shares redeemed in connection with the bulk transfer of WCMA
shareholder assets -- (741,257,384)
--------------- ---------------
Total shares redeemed (16,483,192,524) (35,385,405,993)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions (575,528,441) (1,065,482,952)
--------------- ---------------
Net Assets
Net decrease in net assets (575,598,716) (1,065,739,191)
Beginning of period 9,522,054,604 10,587,793,795
--------------- ---------------
End of period* $ 8,946,455,888 $ 9,522,054,604
=============== ===============
* Undistributed investment income $ 53,944 $ 53,944
=============== ===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Financial Highlights CMA Tax-Exempt Fund
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: 2004 2004 2003++++++ 2002 2001
Per Share Operating Performance
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Investment income--net --++ .01 .01 .02 .03
Realized gain (loss) and allocated from
the Trust--net --++++ --++++ --++++ --++ --++
----------- ----------- ----------- ----------- -----------
Total from investment operations -- .01 .01 .02 .03
----------- ----------- ----------- ----------- -----------
Less dividends from investment income--net --++++ (.01) (.01) (.02) (.03)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total investment return .32%** .54% .93% 1.76% 3.51%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses .55%*+++ .55%+++ .55%+++ .55% .54%
=========== =========== =========== =========== ===========
Investment income and realized loss and
allocated from the Trust--net .63%* .55% .93% 1.78% 3.46%
=========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 8,946,456 $ 9,522,055 $10,587,794 $10,545,626 $10,379,038
=========== =========== =========== =========== ===========
* Annualized.
** Aggregate total investment return.
++ Amount is less than $.01 per share.
++++ Amount is less than $(.01) per share.
++++++ On February 13, 2003, the Fund converted from a stand-alone investment company to
a "feeder" fund that seeks to achieve its investment objective by investing all of
its assets in the Trust, which has the same investment objective as the Fund. All
investments will be made at the Trust level. This structure is sometimes called a
"master/feeder" structure.
+++ Includes the Fund's share of the Trust's allocated expenses.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Notes to Financial Statements
CMA Tax-Exempt Fund
1. Significant Accounting Policies:
CMA Tax-Exempt Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a no load, diversified, open-end
management investment company. The Fund seeks to achieve its
investment objective by investing all of its assets in the Master
Tax-Exempt Trust (the "Trust"), which has the same investment
objective as the Fund. The value of the Fund's investment in the
Trust reflects the Fund's proportionate interest in the net assets
of the Trust. The performance of the Fund is directly affected by
the performance of the Trust. The financial statements of the Trust,
including the Schedule of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's
financial statements. The Fund's financial statements are prepared
in conformity with U.S. generally accepted accounting principles,
which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited
financial statements reflect all adjustments, which are, in the
opinion of management, necessary to present a fair statement of the
results for the interim period. All such adjustments are of a
normal, recurring nature. The percentage of the Trust owned by the
Fund at September 30, 2004 was 92.2%. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--The Fund records its investment in the
Trust at fair value. Valuation of securities held by the Trust is
discussed in Note 1a of the Trust's Notes to Financial Statements,
which are included elsewhere in this report.
(b) Investment income and expenses--The Fund records daily its
proportionate share of the Trust's income, expenses and realized and
unrealized gains and losses. In addition, the Fund accrues its own
expenses.
(c) 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.
(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 and
distributions are declared from the total of net investment income
and net realized gain or loss on investments.
(f) Investment transactions--Investment transactions are accounted
for on a trade date basis.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Administration Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), a wholly-owned subsidiary of
Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited
partner. The Fund pays a monthly fee at an annual rate of .25% of
the Fund's average daily net assets for the performance of
administrative services (other than investment advice and related
portfolio activities) necessary for the operation of the Fund.
The Fund has adopted a Distribution and Shareholder Servicing Plan
in compliance with Rule 12b-1 under the Investment Company Act of
1940, pursuant to which Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("MLPF&S"), a subsidiary of ML & Co., receives a
distribution fee from the Fund. The fee is accrued daily and paid
monthly at the annual rate of .125% of average daily net assets of
the Fund for shareholders who maintain their accounts through
MLPF&S. 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 TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Notes to Financial Statements (concluded)
CMA Tax-Exempt Fund
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, FDS, and/or ML & Co.
3. Transactions in 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, cost of shares redeemed and shares redeemed in
connection with the bulk transfer of WCMA shareholder assets,
respectively, since shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
On March 31, 2004, the Fund had a net capital loss carryforward of
$436,599, of which $72,081 expires in 2008, $144,287 expires in 2011
and $220,231 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
Officers and Trustees
Terry K. Glenn,President and Trustee
Ronald W. Forbes,Trustee
Cynthia A. Montgomery,Trustee
Jean Margo Reid,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
Peter J. Hayes,Vice President
Donald C. Burke,Vice President and Treasurer
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino,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 TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Alabama--2.3% $ 96,755 Alabama Special Care Facilities Financing Authority, Mobile Revenue Refunding
Bonds (Ascension Health Credit), VRDN, Series B, 1.67% due 11/15/2039 (i) $ 96,755
23,000 Birmingham, Alabama, Special Care Facilities, Financing Authority, Revenue
Refunding Bonds (Ascension Health Credit), VRDN, Series B, 1.68% due
11/15/2039 (i) 23,000
20,000 Columbia, Alabama, IDB, Revenue Bonds (Alabama Power Company Project),
VRDN, AMT, 1.70% due 11/01/2021 (i) 20,000
27,765 Daphne, Alabama, Special Care Facilities Financing Authority Revenue Bonds,
FLOATS, VRDN, Series 593, 1.59% due 8/15/2008 (k)(i) 27,765
12,450 Daphne, Alabama, Special Care Facilities Financing Authority, Revenue
Refunding Bonds (Presbyterian), VRDN, Series B, 1.55% due 8/15/2023 (a)(i) 12,450
1,000 Decatur, Alabama, IDB, Environmental Facilities Revenue Bonds (BP Amoco
Chemical Company Project), VRDN, AMT, 1.70% due 11/01/2035 (i) 1,000
4,255 Eagle Tax-Exempt Trust, Birmingham, Alabama, Water and Sewer, VRDN,
Series 2002-6009, Class A, 1.75% due 1/01/2043 (f)(i) 4,255
Eagle Tax-Exempt Trust, Jefferson County, Alabama, Sewer Revenue Refunding
Bonds, VRDN, Series 2002 (b)(i):
7,835 Class 6015, 1.57% due 2/01/2032 7,835
3,000 Class 6016, 1.57% due 2/01/2038 3,000
5,000 Jefferson County, Alabama, Sewer Revenue Refunding Bonds, VRDN, Series C-6,
1.51% due 2/01/2040 (h)(i) 5,000
18,000 Stevenson, Alabama, IDB, Environmental Improvement Revenue Bonds (Mead
Corporation Project), VRDN, AMT, Series B, 1.73% due 4/01/2033 (i) 18,000
6,300 Stevenson, Alabama, IDB, Environmental Improvement Revenue Refunding Bonds
(Mead Corporation Project), VRDN, AMT, Series C, 1.73% due 11/01/2033 (i) 6,300
Alaska--0.6% 25,295 Alaska State Housing Finance Corporation, Housing Revenue Bonds, VRDN,
Series A, 1.50% due 12/01/2023 (e)(i) 25,295
Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (i):
24,800 (ConocoPhillips Project), 1.80% due 6/01/2005 24,800
5,500 (ConocoPhillips Transportation Project), 1.47% due 5/01/2005 5,500
Arizona--2.3% 33,000 Apache County, Arizona, IDA, IDR (Tucson Electric Power Co.), VRDN,
Series 83-A, 1.75% due 12/15/2018 (i) 33,000
10,000 Maricopa County, Arizona, IDA, Health Facilities Revenue Bonds, PUTTERS,
VRDN, Series 420, 1.57% due 1/01/2010 (i) 10,000
Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds:
28,555 FLOATS, AMT, VRDN, Series 707, 1.64% due 12/01/2036 (i) 28,555
7,526 Series A, 1.711% due 9/01/2005 7,526
13,130 Series R-1A, 1.721% due 12/01/2004 13,130
68,596 VRDN, Series B, 1.711% due 9/01/2005 (i) 68,596
49,450 Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series A, 1.682%
due 7/01/2005 49,450
9,000 Pima County, Arizona, IDA, S/F Mortgage Revenue Bonds, VRDN, 1.82% due
2/04/2012 (i) 9,000
Portfolio Abbreviations for Master Tax-Exempt Trust
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certification of Participation
CP Commercial Paper
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
FLOATS Floating Rate Securities
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MERLOTS Municipal Extendible Receipt Liquidity Option
Tender Securities
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
PUTTERS Puttable Tax-Exempt Receipts
RAN Revenue Anticipation Notes
ROCS Reset Option Certificates
S/F Single-Family
TAN Tax Anticipation Notes
TAW Tax Anticipation Warrants
TOCS Tender Option Certificates
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Arkansas--2.0% $ 7,000 Arkansas State Development Finance Authority, Environmental Facilities
Revenue Bonds (Teris LLC Project), VRDN, AMT, 1.57% due 3/01/2021 (i) $ 7,000
Arkansas State Development Finance Authority, S/F Mortgage Revenue
Bonds, VRDN (i):
70,015 1.711% due 9/01/2006 70,015
48,800 FLOATS, AMT, Series 708, 1.64% due 2/01/2008 48,800
40,000 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue
Bonds (Baptist Health), VRDN, Series B, 1.54% due 12/01/2021 (f)(i) 40,000
22,000 Pulaski County, Arkansas, Lease Purpose Revenue Bonds, VRDN, Series A, 1.79%
due 3/01/2007 (c)(i) 22,000
7,530 Pulaski County, Arkansas, Public Facilities Board, M/F Housing Revenue
Refunding Bonds (Waterford Apartments), VRDN, AMT, 1.63% due 7/01/2032 (i) 7,530
California--5.5% 5,837 California Health Facilities Financing Authority Revenue Bonds, FLOATS,
VRDN, Series 591, 1.54% due 3/01/2014 (f)(i) 5,837
California State Department of Water Resources, Power Supply Revenue
Bonds, VRDN (i):
13,100 Series C-3, 1.50% due 5/01/2022 (a) 13,100
34,200 Series C-13, 1.51% due 5/01/2022 (e) 34,200
17,500 California State Economic Recovery, GO, FLOATS, VRDN, Series L27, 1.75%
due 7/01/2017 (f)(i) 17,500
California State, Economic Recovery Revenue Bonds, VRDN (i):
26,000 Series C-11, 1.67% due 7/01/2023 26,000
15,000 Series C-13, 1.68% due 7/01/2023 (h) 15,000
9,875 California State, GO, MERLOTS, VRDN, Series B-45, 1.71% due 10/01/2029 (i) 9,875
150,000 California State, RAN, Series A, 3% due 6/30/2005 151,371
14,000 California State Univeristy Institute, CP, Series A, 1.20% due 12/07/2004 14,000
20,000 California Statewide Communities Development Authority Revenue Bonds, VRDN,
Series J, 1.69% due 4/01/2036 (e)(i) 20,000
30,000 California Statewide Communities Development Authority, TRAN, Series A-1,
3% due 6/30/2005 30,311
26,620 Long Beach, California, Health Facilities Revenue Refunding Bonds (Memorial
Health Services), VRDN, 1.70% due 10/01/2016 (i) 26,620
30,000 Los Angeles, California, Community Redevelopment Agency, M/F Housing Revenue
Bonds (Wilshire Station Apartments Project), VRDN, AMT, Series A, 1.75%
due 10/15/2038 (i) 30,000
25,900 Los Angeles, California, S/F Home Mortgage Revenue Bonds, 1.67% due 10/01/2004 25,900
Los Angeles, California, Water and Power Revenue Refunding Bonds, VRDN (i):
22,000 Sub-Series B-2, 1.52% due 7/01/2034 22,000
21,800 Sub-Series B-5, 1.48% due 7/01/2034 21,800
25,000 Sacramento County, California, TRAN, Series A, 3% due 7/11/2005 25,258
46,950 South Placer, California, Wastewater Authority, Wastewater Revenue Bonds,
VRDN, Series B, 1.49% due 11/01/2035 (b)(i) 46,950
Colorado--1.7% 7,830 Adams County, Colorado, School District Number 012, GO, ROCS,
Series II-R-1045, 1.57% due 12/15/2022 (e)(i) 7,830
3,235 Colorado Department of Transportation Revenue Bonds, ROCS, Series II-R-4046,
1.57% due 12/15/2016 (a)(i) 3,235
10,190 Colorado Department of Transportation Revenue Refunding Bonds, PUTTERS, VRDN,
Series 318, 1.55% due 6/15/2015 (f)(i) 10,190
5,915 Colorado School Mines Development Corporation Revenue Bonds, VRDN, 1.56%
due 9/01/2026 (i) 5,915
16,000 Colorado State, Education Loan Program, FLOATS, VRDN, Series L48J, 1.20%
due 8/09/2005 (i) 16,000
Denver, Colorado, City and County Airport Revenue Bonds, VRDN, AMT (i):
9,850 Series F, 1.80% due 11/15/2025 9,850
4,675 Series G, 1.80% due 11/15/2025 4,675
Denver, Colorado, City and County Airport Revenue Refunding Bonds, VRDN,
AMT (i):
5,925 MERLOTS, Series A61, 1.79% due 11/15/2012 (b) 5,925
19,500 Series C, 1.80% due 11/15/2025 19,500
10,128 Denver, Colorado, City and County S/F Mortgage Revenue Refunding Bonds, AMT,
Series A, 1.81% due 10/25/2005 10,128
7,312 El Paso County, Colorado, S/F Mortgage Revenue Refunding Bonds, Series A,
1.81% due 5/25/2005 7,312
6,500 Pitkin County, Colorado, IDR, Refunding (Aspen Skiing Company Project), VRDN,
AMT, Series B, 1.70% due 4/01/2014 (i) 6,500
53,200 Platte River Power Authority, Colorado, Electric Revenue Refunding Bonds,
VRDN, Sub-Lien, Series S-1, 1.69% due 6/01/2018 (i) 53,200
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Connecticut-- $ 13,710 Connecticut State Health and Educational Facilities Authority, Revenue
0.5% Refunding Bonds (Ascension Health Credit), VRDN, Series B, 1.67%
due 11/15/2029 (i) $ 13,710
5,800 Connecticut State Special Tax Obligation Revenue Bonds, Transportation
Infrastructure, VRDN, Second Lien, Series 1, 1.69% due 12/01/2010 (e)(i) 5,800
24,750 Eagle Tax-Exempt Trust, Connecticut, VRDN, Series 96, Class 0701, 1.53%
due 11/15/2004 (i) 24,750
Delaware--0.2% 21,880 Delaware State EDA Revenue Bonds (Hospital Billing and Collection), VRDN,
Series C, 1.71% due 12/01/2015 (a)(i) 21,880
District of 10,000 District of Columbia, CP, 1.38% due 10/05/2004 10,000
Columbia--1.2% District of Columbia, GO, Refunding, VRDN (i):
17,350 MSTR, Series SGA-62, 1.68% due 6/01/2017 (a) 17,350
13,440 Series C, 1.71% due 6/01/2026 (b) 13,440
54,840 District of Columbia HFA, S/F Mortgage Revenue Bonds, AMT, 1.84% due
12/24/2004 54,840
18,245 District of Columbia, Hospital Revenue Bonds, FLOATS, VRDN, Series 712,
1.61% due 7/15/2019 (i) 18,245
Florida--2.9% 13,885 Broward County, Florida, Professional Sports Facilities, Tax Revenue Bonds,
MSTR, VRDN, Series SGA-38, 1.75% due 9/01/2021 (f)(i) 13,885
32,530 Capital Trust Agency, Florida, M/F Housing Revenue Bonds, VRDN,
Series 1999-B, 1.53% due 12/01/2032 (i) 32,530
12,080 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN, 1.66%
due 10/05/2022 (b)(i) 12,080
5,000 Florida Housing Finance Corporation, Housing Revenue Bonds (Tuscany Lakes),
VRDN, AMT, Series 1, 1.61% due 11/15/2035 (d)(i) 5,000
8,000 Florida State Board of Education, GO, MSTR, VRDN, Series SGA-139, 1.75%
due 6/01/2032 (f)(i) 8,000
Florida State Board of Education, Lottery Revenue Bonds (i):
6,220 FLOATS, VRDN, Series 858, 1.20% due 1/01/2017 (f) 6,220
2,870 ROCS, Series II-R-4521, 1.57% due 7/01/2020 (b) 2,870
11,677 Florida State Department of Environmental Protection, Preservation Revenue
Bonds, FLOATS, VRDN, Series 722, 1.55% due 7/01/2022 (b)(i) 11,677
6,000 Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), VRDN, Series C, 1.60% due
11/15/2021 (i) 6,000
3,990 Hillsborough County, Florida, Aviation Authority Revenue Refunding Bonds,
MERLOTS, VRDN, AMT, Series A18, 1.79% due 10/01/2013 (f)(i) 3,990
Jacksonville Electric Authority, Florida, Water and Sewer System Revenue
Refunding Bonds, VRDN (i):
2,700 PUTTERS, Series 408, 1.55% due 10/01/2011 (b) 2,700
57,565 Series B, 1.67% due 10/01/2036 (h) 57,565
4,605 Jacksonville, Florida, Sales Tax Revenue Bonds, MERLOTS, VRDN, Series B26,
1.74% due 10/01/2027 (f)(i) 4,605
32,100 Martin County, Florida, PCR, Refunding (Florida Power & Light Company Project),
VRDN, 1.74% due 7/15/2022 (i) 32,100
Orange County, Florida, Health Facilities Authority Revenue Bonds, FLOATS,
VRDN (i):
32,995 Series 532, 1.74% due 11/15/2015 (a) 32,995
19,295 Series 830, 1.55% due 11/15/2022 (e) 19,295
15,000 Orlando and Orange County, Florida, Expressway Authority, Expressway Revenue
Refunding Bonds, VRDN, Series C3, 1.50% due 7/01/2025 (e)(i) 15,000
10,000 Palm Beach County, Florida, Health Facilities Authority, Pooled Hospital
Revenue Bonds, CP, 1.15% due 10/12/2004 10,000
2,095 Palm Beach County, Florida, School Board, COP, ROCS, Series II-R-2105, 1.75%
due 8/01/2015 (b)(i) 2,095
6,955 Reedy Creek, Florida, Improvement District, Florida Utilities Revenue Bonds,
ROCS, Series II-R-4027, 1.57% due 10/01/2023 (f)(i) 6,955
Georgia--4.0% 4,400 Albany-Dougherty County, Georgia, Hospital Authority Revenue Refunding Bonds,
FLOATS, VRDN, Series L3J, 1.75% due 9/01/2020 (a)(i) 4,400
16,300 Appling County, Georgia, Development Authority, PCR (Georgia Power Plant Hatch),
VRDN, Second Series, 1.70% due 12/01/2018 (i) 16,300
Atlanta, Georgia, Airport Revenue Refunding Bonds, VRDN (f)(i):
26,710 Series B-2, 1.53% due 1/01/2030 26,710
21,710 Series C-3, 1.51% due 1/01/2030 21,710
3,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, MSTR, VRDN, SGA-145,
1.75% due 11/01/2033 (f)(i) 3,000
44,970 Atlanta, Georgia, Water and Wastewater Revenue Refunding Bonds, VRDN,
Series B, 1.50% due 11/01/2038 (e)(i) 44,970
8,000 Augusta, Georgia, Water and Sewer Revenue Refunding Bonds, MSTR, VRDN,
Series SGS-140, 1.75% due 10/01/2032 (e)(i) 8,000
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Georgia $ 17,000 Burke County, Georgia, Development Authority, PCR (Georgia Power
(concluded) Company--Plant Vogtle Project), Refunding, 1st Series, 1.08% due 4/19/2005 $ 17,000
Clayton County, Georgia, Development Authority, Special Facilities
Revenue Bonds (Delta Air Lines Project), VRDN (i):
10,545 AMT, Series B, 1.76% due 5/01/2035 10,545
6,500 AMT, Series C, 1.77% due 5/01/2035 6,500
10,135 Series A, 1.71% due 6/01/2029 10,135
7,000 Cobb County, Georgia, Development Authority Revenue Bonds (Whitefield
Academy Inc. Project), 1.70% due 7/01/2025 (i) 7,000
25,000 De Kalb County, Georgia, School District, GO, TAN, 2% due 12/31/2004 25,058
4,475 Eagle Tax-Exempt Trust, Atlanta, Georgia, Water and Wastewater Revenue
Bonds, VRDN, Series A, 1.75% due 11/01/2028 (e)(i) 4,475
10,585 Eagle Tax-Exempt Trust, Georgia, GO, VRDN, Series 01, Class 1001, 1.57%
due 11/01/2017 (i) 10,585
6,815 Georgia Municipal Electric Authority Power Revenue Bonds, VRDN, Series D,
1.59% due 1/01/2017 (i) 6,815
2,600 Gwinnett County, Georgia, Development Authority, COP, ROCS, Series II-R-6009,
1.75% due 1/01/2021 (f)(i) 2,600
136,950 Gwinnett County, Georgia, School District, GO, Construction Sales Tax Notes,
1.75% due 12/30/2004 137,190
5,200 Monroe County, Georgia, Development Authority, PCR (Georgia Power Company--
Scherer), Second Series 95, 1.20% due 4/19/2005 5,200
10,400 Putnam County, Georgia, Development Authority, PCR (Georgia Power Company),
First Series 97, 1.20% due 4/19/2005 10,400
12,900 Rockdale County, Georgia, TAN, 2.25% due 12/31/2004 12,925
Hawaii--0.7% 7,930 Eagle Tax-Exempt Trust, Hawaii, VRDN, Series 2001, Class 1101, 1.57% due
7/01/2011 (e)(i) 7,930
7,500 Hawaii Pacific Health, Special Purpose Revenue Refunding Bonds (Wilcox
Memorial Hospital), VRDN, Series B-2, 1.82% due 7/01/2033 (g)(i) 7,500
7,220 Hawaii State, GO, FLOATS, VRDN, Series 605, 1.55% due 8/01/2015 (b)(i) 7,220
29,000 Honolulu, Hawaii, City and County, GO, Refunding, Series C, 1.18% due
12/02/2004 (b) 29,000
15,995 Municipal Securities Trust Certificates Revenue Bonds, VRDN, AMT,
Series 2002-186, Class A, 1.75% due 2/25/2021 (f)(i) 15,995
Idaho--0.4% 40,000 Idaho State, GO, TAN, 3% due 6/30/2005 40,418
Illinois--7.2% 14,285 ABN Amro Munitops Certificates Trust, Chicago, Illinois, GO, VRDN,
Series 2001-31, 1.75% due 1/01/2009 (b)(i) 14,285
Aurora (Kane, DuPage and Will Counties) and Springfield (Sangamon County),
Illinois, S/F Mortgage Revenue Bonds, AMT:
25,995 FLOATS, VRDN, Series 789, 1.63% due 4/03/2006 (i) 25,995
28,959 Series A, 1.721% due 4/01/2005 28,959
4,000 Chicago, Illinois, Board of Education, GO, Refunding, PUTTERS, VRDN,
Series 472, 1.77% due 6/01/2014 (b)(i) 4,000
12,410 Chicago, Illinois, GO, VRDN, Series B, 1.72% due 1/01/2012 (i) 12,410
17,250 Chicago, Illinois, Metropolitan Water Reclamation District, Greater
Chicago Area, GO, Refunding, VRDN, Series A, 1.67% due 12/01/2031 (i) 17,250
5,815 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, ROCS,
Series II-R-2021, 1.57% due 1/01/2020 (a)(i) 5,815
Chicago, Illinois, O'Hare International Airport Revenue Bonds, ROCS, AMT (i):
2,700 Series II-R-239, 1.61% due 1/01/2022 (e) 2,700
5,995 Series II-R-250, 1.61% due 1/01/2034 (j) 5,995
14,300 Chicago, Illinois, O'Hare International Airport, Special Facilities Revenue
Bonds (Compagnie Nationale--Air France), VRDN, AMT, 1.74% due 5/01/2018 (i) 14,300
14,000 Chicago, Illinois, Park District, Corporate Purpose, TAW, Series A, 3% due
5/02/2005 14,118
6,775 Chicago, Illinois, Park District, GO, Refunding, ROCS, Series II-R-4002,
1.57% due 1/01/2023 (b)(i) 6,775
6,170 Chicago, Illinois, Revenue Bonds (Homestart Program), VRDN, Series A,
1.60% due 6/01/2005 (i) 6,170
35,000 Chicago, Illinois, Second Lien Water Revenue Refunding Bonds, VRDN,
1.50% due 11/01/2031 (f)(i) 35,000
3,390 Cook County, Illinois, GO, Refunding, ROCS, Series II-R-2063, 1.57%
due 11/15/2021 (f)(i) 3,390
11,000 Eagle Tax-Exempt Trust, Chicago Board of Education, VRDN, Series 01,
Class 1309, 1.57% due 12/01/2026 (i) 11,000
9,900 Eagle Tax-Exempt Trust, Chicago, Illinois, GO, VRDN, Series 98, Class 1301,
1.57% due 1/01/2017 (i) 9,900
30,000 Eagle Tax-Exempt Trust, Cook County, Illinois, VRDN, Series 02, Class 1303,
1.75% due 11/15/2025 (a)(i) 30,000
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Illinois $ 14,355 Eagle Tax-Exempt Trust, Illinois Metropolitan Expo Center, VRDN, Series 98,
(concluded) Class 1306, 1.75% due 6/15/2029 (f)(i) $ 14,355
Eagle Tax-Exempt Trust, Illinois State, GO, VRDN (i):
11,000 Series 01, Class 1307, 1.57% due 11/01/2022 11,000
11,100 Series 02, Class 1302, 1.57% due 2/01/2027 11,100
3,000 Eagle Tax-Exempt Trust, Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds, VRDN, Series 2004-0030, Class A, 1.57%
due 6/15/2042 (i) 3,000
5,000 Eagle Tax-Exempt Trust, Metropolitan Pier and Exposition Authority, Illinois,
VRDN, Series 2002-6001, Class A, 1.75% due 12/15/2028 (f) 5,000
5,000 Illinois Development Finance Authority, Water Facilities Revenue Refunding
Bonds (Illinois American Water Company), VRDN, AMT, 1.55% due 3/01/2032 (f)(i) 5,000
Illinois Educational Facilities Authority Revenue Bonds, VRDN (i):
8,450 (Art Institute of Chicago), 1.70% due 3/01/2027 8,450
4,800 (Chicago Historical Society), 1.70% due 12/01/2025 4,800
28,800 Illinois Educational Facilities Authority, Revenue Refunding Bonds
(The Art Institute of Chicago), VRDN, 1.70% due 3/01/2027 (i) 28,800
14,000 Illinois HDA, Homeowner Mortgage Revenue Bonds, AMT, Series B-2, 1.04%
due 4/01/2005 14,000
Illinois HDA, M/F Housing Revenue Bonds (Danbury Court Apartments),
VRDN, AMT (i):
6,300 Series A, 1.63% due 5/01/2037 6,300
450 Series B, 1.73% due 5/01/2037 450
Illinois Health Facilities Authority Revenue Bonds, Revolving Fund, Pooled,
VRDN (i):
10,000 Series B, 1.71% due 8/01/2020 10,000
7,000 Series F, 1.71% due 8/01/2015 7,000
2,940 Illinois State Dedicated Tax (Macon Trust), VRDN, Series N, 1.61% due
12/15/2020 (a)(i) 2,940
12,500 Illinois State Finance Authority, Revenue Refunding Bonds (Central Dupage
Health System), VRDN, Series B, 1.73% due 11/01/2038 (i) 12,500
8,990 Illinois State, GO, MERLOTS, VRDN, Series B04, 1.74% due 12/01/2024 (e)(i) 8,990
Illinois State, GO, Refunding, VRDN (f)(i):
16,615 FLOATS, Series 743D, 1.73% due 8/01/2015 (h) 16,615
5,905 MERLOTS, Series A49, 1.74% due 8/01/2013 5,905
16,605 Illinois Student Assistance Commission, Student Loan Revenue Bonds, VRDN,
AMT, Series A-I, 1.70% due 9/01/2034 (f)(i) 16,605
Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax
Revenue Bonds (f)(i):
7,500 FLOATS, VRDN, Series 913, 1.77% due 12/15/2032 7,500
1,400 FLOATS, VRDN, Series 962, 1.61% due 12/15/2034 1,400
4,600 ROCS, Series II-R-270, 1.84% due 12/15/2031 4,600
4,600 ROCS, Series II-R-271, 1.84% due 12/15/2032 4,600
29,950 Municipal Securities Trust Certificates, Chicago O'Hare Airport, Illinois,
Revenue Bonds, VRDN, AMT, Series 2001-151, Class A, 1.70% due 6/30/2015 (a)(i) 29,950
Municipal Securities Trust Certificates, Cook County, Illinois, GO, Refunding,
VRDN, Class A (b)(i):
29,085 Series 2001-145, 1.75% due 11/15/2029 29,085
33,895 Series 2002-191, 1.80% due 3/18/2019 33,895
31,615 Municipal Securities Trust Certificates, Metropolitan Pier and Exposition
Authority, Illinois, Revenue Refunding Bonds, VRDN, Series 2001-157,
Class A, 1.75% due 10/05/2017 (b)(i) 31,615
26,045 Municipal Securities Trust Certificates Revenue Refunding Bonds, Chicago
O'Hare International Airport, Illinois, VRDN, AMT, Series 2000-93, Class A,
1.70% due 10/04/2012 (a)(i) 26,045
Regional Transportation Authority, Ilinois, GO, MERLOTS, VRDN (i):
19,895 Series A24, 1.74% due 7/01/2032 (f) 19,895
4,950 Series A41, 1.74% due 6/01/2017 (b) 4,950
21,350 Regional Transportation Authority, Illinois, FLOATS, VRDN, Series SG-82,
1.55% due 6/01/2025 (i) 21,350
5,180 Regional Transportation Authority, Illinois, Revenue Bonds, MERLOTS, VRDN,
Series B 15, 1.74% due 6/01/2027 (f)(i) 5,180
33,095 Regional Transportation Authority, Illinois, Revenue Refunding Bonds, FLOATS,
VRDN, Series 818-D, 1.55% due 7/01/2033 (b)(i) 33,095
8,300 Will County, Illinois, Exempt Facilities Revenue Bonds (Amoco Chemical
Company Project), VRDN, AMT, 1.70% due 3/01/2028 (i) 8,300
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Indiana--7.4% $ 10,000 ABN Amro Munitops Certificates Trust, South Bend, Indiana, Community
School District, VRDN, Series 1998-5, 1.75% due 4/05/2006 (e)(i) $ 10,000
5,415 Carmel, Indiana, School Building Corporation Revenue Bonds, ROCS,
Series II-R-2065, 1.57% due 7/15/2020 (i) 5,415
13,000 Goshen, Indiana, EDR, Refunding (Goshen College Project), VRDN, 1.70%
due 10/01/2037 (i) 13,000
250,000 Indiana Bond Bank, Advance Program Revenue Notes, Series A, 2% due 1/25/2005 250,689
28,755 Indiana Bond Bank, Midyear Funding Program Notes, Series A, 2.50% due 1/26/2005 28,858
5,875 Indiana Bond Bank Revenue Bonds, FLOATS, VRDN, Series 670, 1.55% due
10/01/2022 (f)(i) 5,875
Indiana Health Facilities Financing Authority, Hospital Revenue Bonds,
VRDN (i):
80,700 (Clarian Health Obligation Group), Series C, 1.69% due 3/01/2030 80,700
11,000 (Clarian Health Partners), Series H, 1.69% due 3/01/2033 11,000
15,000 (Community Hospitals Project), Series A, 1.50% due 7/01/2027 15,000
Indiana Health Facilities Financing Authority, Hospital Revenue Refunding
Bonds (Clarian Health Partners), VRDN (i):
51,800 Series B, 1.69% due 2/15/2026 51,800
50,800 Series C, 1.69% due 2/15/2026 50,800
550 Indiana Health Facilities Financing Authority Revenue Bonds (Capital Access
Designated Pool), VRDN, 1.67% due 1/01/2012 (i) 550
Indiana Health Facilities Financing Authority, Revenue Refunding Bonds
(Ascension Health Credit), VRDN (i):
20,000 Series GP-A-2, 1.73% due 7/05/2005 20,000
16,000 Series GP-A-3, 1.05% due 3/01/2005 16,000
17,500 Series GP-A-4, 1.05% due 3/01/2005 17,500
40,250 Indiana State Development Finance Authority, Environmental Revenue Bonds
(PSI Energy Inc. Projects), VRDN, AMT, Series A, 1.77% due 12/01/2038 (i) 40,250
5,345 Indiana State Office Building Commission, Facilities Revenue Bonds, ROCS,
Series II-R-4534, 1.57% due 7/01/2020 (i) 5,345
2,000 Indiana Transportation Finance Authority, Highway Revenue Refunding Bonds,
FLOATS, VRDN, Series 942D, 1.55% due 12/01/2022 (b)(i) 2,000
2,600 Indianapolis, Indiana, Local Public Improvement Bond Bank Revenue Bonds,
PUTTERS, VRDN, Series 422, 1.77% due 8/15/2020 (a)(i) 2,600
34,995 Municipal Securities Trust Certificates, Indianapolis, Indiana, Local Public
Improvement, GO, VRDN, Series 2002-192, Class A, 1.75% due 6/18/2014 (f)(i) 34,995
7,700 Whiting, Indiana, Environmental Facilities Revenue Bonds (BP Products North
America Project), VRDN, AMT, 1.70% due 7/01/2035 (i) 7,700
Whiting, Indiana, Environmental Facilities Revenue Refunding Bonds, VRDN,
AMT (i):
2,400 (Amoco Oil Company Project), 1.70% due 1/01/2026 2,400
1,000 (Amoco Oil Company Project), 1.70% due 7/01/2031 1,000
2,600 (BP Products of North America), 1.70% due 1/01/2038 2,600
16,345 (BP Products Project), Series C, 1.70% due 7/01/2034 16,345
25,600 Whiting, Indiana, Industrial Sewer and Solid Waste Disposal Revenue Refunding
Bonds (Amoco Oil Company Project), VRDN, AMT, 1.70% due 1/01/2026 (i) 25,600
Iowa--0.1% 10,000 Louisa County, Iowa, PCR, Refunding (Iowa--Illinois Gas and Electric),
VRDN, Series A, 1.71% due 9/01/2016 (i) 10,000
Kansas--0.6% 4,000 Kansas State Department of Transportation, Highway Revenue Bonds, ROCS,
Series II-R-6020, 1.75% due 3/01/2019 (e)(i) 4,000
13,000 Kansas State Turnpike Authority, Turnpike Revenue Refunding Bonds, PUTTERS,
VRDN, Series 361, 1.73% due 3/01/2011 (a)(i) 13,000
32,060 Olathe, Kansas, Temporary, GO, Series A, 2.50% due 6/01/2005 32,293
2,775 Reno and Labette Counties, Kansas, S/F Mortgage Revenue Bonds, FLOATS,
VRDN, Series 915, 1.82% due 12/01/2015 (i) 2,775
6,610 Unified Government of Wyandotte County and Kansas City, Kansas, GO, Municipal
Temporary Notes, Series III, 1.08% due 11/01/2004 6,610
Kentucky--2.7% 2,500 Boyd County, Kentucky, Sewer and Solid Waste Revenue Bonds (Air Products and
Chemicals Project), VRDN, AMT, 1.76% due 6/01/2021 (i) 2,500
20,930 Carroll County, Kentucky, Solid Waste Disposal Facilities, CP, 1.45% due
10/15/2004 20,930
Daviess County, Kentucky, Solid Waste Disposal Facility Revenue Bonds
(Scott Paper Company Project), VRDN, AMT (i):
44,100 Series A, 1.73% due 12/01/2023 44,100
26,200 Series B, 1.73% due 12/01/2023 26,200
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Kentucky $ 3,375 Eagle Tax-Exempt Trust, Kentucky State Property and Buildings Commission
(concluded) Revenue Refunding Bonds, VRDN, Series 2004-0002, Class A, 1.75% due
10/01/2018 (e)(i) $ 3,375
Jefferson County, Kentucky, CP:
15,000 1.20% due 10/04/2004 15,000
7,500 1.22% due 10/06/2004 7,500
26,000 1.25% due 10/06/2004 26,000
2,200 Kenton County, Kentucky, Airport Board, Special Facilities Revenue Refunding
Bonds, VRDN, Series B, 1.71% due 10/01/2030 (i) 2,200
5,900 Kentucky State Property and Buildings Commission Revenue Refunding Bonds,
FLOATS, VRDN, Series 575, 1.55% due 2/01/2017 (e)(i) 5,900
36,475 Kentucky State Turnpike Authority, Resource Recovery Road Revenue Bonds,
FLOATS, VRDN, Series 488, 1.55% due 7/01/2007 (e)(i) 36,475
50,000 Louisville and Jefferson Counties, Kentucky, Metropolitan Sewer District,
Sewer and Drain System Revenue Refunding Bonds, VRDN, Series B, 1.71% due
5/15/2023 (e)(i) 50,000
15,000 Shelby County, Kentucky, Lease Revenue Bonds, VRDN, Series A, 1.65% due
9/01/2034 (i) 15,000
10,000 Trimble County, Kentucky, CP, 1.22% due 10/06/2004 10,000
Louisiana--3.7% 17,700 Ascension Parish, Louisiana, Revenue Bonds (BASF Corporation Project),
VRDN, AMT, 1.73% due 3/01/2025 (i) 17,700
30,565 East Baton Rouge, Louisiana, Mortgage Finance Authority Revenue Bonds,
VRDN, Series A-R-4, 1.711% due 5/02/2005 (i) 30,565
15,845 East Baton Rouge, Louisiana, Mortgage Finance Authority, S/F Mortgage
Revenue Bonds, VRDN, Series B, 1.876% due 12/01/2004 (i) 15,845
11,943 Jefferson Parish, Louisiana, Home Mortgage Authority, S/F Mortgage
Revenue Bonds, VRDN, AMT, Series B, 1.792% due 9/23/2005 (i) 11,943
25,000 Jefferson Parish, Louisiana, Hospital Service District Number 001,
Hospital Revenue Bonds (West Jefferson Medical Center), VRDN, Series B,
1.53% due 1/01/2028 (e)(i) 25,000
Louisiana HFA, S/F Mortgage Revenue Refunding Bonds, VRDN (i):
23,682 1.697% due 4/29/2005 23,682
30,704 1.877% due 5/31/2035 30,704
5,506 AMT, 1.707% due 5/31/2005 5,506
6,000 Louisiana Local Government, Environmental Facilities, Community Development
Authority Revenue Bonds (Honeywell International Inc. Project), VRDN, AMT,
1.71% due 12/01/2037 (i) 6,000
14,915 Louisiana Public Facilities Authority Revenue Bonds (Equipment and Capital
Facilities Loan Program), VRDN, Series C, 1.56% due 7/01/2024 (i) 14,915
2,845 Louisiana State GO, FLOATS, VRDN, Series 667, 1.55% due 4/01/2019 (b)(i) 2,845
New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special
Tax (a)(i):
5,115 MERLOTS, VRDN, Series A46, 1.74% due 7/15/2028 5,115
8,145 ROCS, Series II-R-4038, 1.57% due 7/15/2023 8,145
21,557 New Orleans, Louisiana, Finance Authority, S/F Mortgage Revenue Refunding
Bonds, VRDN, Series C, 1.706% due 6/01/2042 (i) 21,557
5,250 New Orleans, Louisiana, IDB, M/F Housing and Mortgage Revenue Bonds,
VRDN, 1.84% due 12/01/2043 (i) 5,250
111,800 New Orleans, Louisiana, Sewer Service Revenue Refunding Notes, BAN, 2.75%
due 7/29/2005 112,942
4,400 Saint Charles Parish, Louisiana, PCR, Refunding (Shell Oil Company Project),
VRDN, 1.54% due 6/01/2005 (i) 4,400
7,700 Saint Charles Parish, Louisiana, PCR (Shell Oil Company--Norco Project),
VRDN, AMT, 1.70% due 11/01/2021(i) 7,700
4,400 South Louisiana Port Commission, Port Revenue Refunding Bonds (Occidental
Petroleum), VRDN, 1.72% due 7/01/2018 (i) 4,400
Maine--0.4% 7,335 Maine Governmental Facilities Authority, Lease Rental Revenue Refunding Bonds,
ROCS, Series II-R-5027, 1.75% due 10/01/2013 (e)(i) 7,335
Maine State, GO:
6,000 BAN, 3% due 6/23/2005 6,060
26,000 TAN, 3% due 6/30/2005 26,270
Maryland--0.9% 35,700 Baltimore, Maryland, Port Facilities Revenue Bonds (Occidental Petroleum),
FLOATS, VRDN, 1.35% due 10/14/2011 (i) 35,700
38,305 Maryland State Health and Higher Educational Facilities Authority Revenue
Refunding Bonds, FLOATS, VRDN, Series 867, 1.57% due 7/01/2019 (b)(i) 38,305
10,000 Montgomery County, Maryland, EDR (Riderwood Village Inc. Project), Refunding,
VRDN, 1.55% due 3/01/2034 (i) 10,000
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Massachusetts-- $ 10,000 Eagle Tax-Exempt Trust, Massachusetts Commuter Facilities, VRDN, Series 2001,
1.3% Class 2101, 1.54% due 6/15/2033 (i) $ 10,000
Massachusetts State, GO, Refunding, VRDN (i):
29,804 FLOATS, Series 716D, 1.51% due 8/01/2018 (f) 29,804
2,700 Series A, 1.50% due 9/01/2016 2,700
10,500 Massachusetts State Heritage, CP, 1.23% due 10/27/2004 10,500
22,460 Massachusetts State Water Resource Authority, Multimodel General Revenue
Refunding Bonds, Sub-Series C, 1.69% due 8/01/2037 (b) 22,460
9,700 Route 3 North Transit Improvement Association, Massachusetts, Lease Revenue
Refunding Bonds, VRDN, Series B, 1.66% due 6/15/2033 (a)(i) 9,700
18,344 Westford, Massachusetts, Refunding, BAN, GO, 2.25% due 5/10/2005 18,451
23,500 Woburn, Massachusetts, GO, BAN, 1.75% due 4/08/2005 23,560
Michigan--2.4% 15,000 ABN Amro Munitops Certificates Trust, Michigan, GO, Series 2002-29, 1.08%
due 11/01/2010 (b)(i) 15,000
Detroit, Michigan, City School District, VRDN (i):
4,615 GO, Series A, 1.59% due 5/01/2029 (e) 4,615
48,680 MERLOTS, Series A113, 1.80% due7/27/2005 48,680
6,300 Detriot, Michigan, Sewage Disposal System Revenue Refunding Bonds, MERLOTS,
VRDN, Series B-02, 1.74% due 7/01/2028 (e)(i) 6,300
9,755 Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, MSTR, VRDN,
SGB 47-A, 1.57% due 7/01/2028 (e)(i) 9,755
8,910 Eagle Tax-Exempt Trust, Detroit, Michigan, GO, Series 2004-1006, VRDN,
Class A, 1.57% due 4/01/2009 (f)(i) 8,910
6,900 Eagle Tax-Exempt Trust, Grand Rapids Michigan, Sanitation Sewer System,
VRDN, Series A, 1.75% due 1/01/2022 (i) 6,900
Kent Hospital Finance Authority, Michigan, Revenue Refunding Bonds
(Spectrum Health), VRDN (f)(i):
24,200 Series B, 1.69% due 1/15/2026 24,200
16,800 Series C, 1.69% due 1/15/2026 16,800
20,000 Michigan Municipal Bond Authority Revenue Bonds, Series B-2, 3% due 8/23/2005 20,252
4,295 Michigan State Building Authority, Revenue Refunding Bonds, ROCS,
Series II-R-2064, 1.57% due 10/15/2021 (f)(i) 4,295
25,000 Michigan State, CP, 1.10% due 12/01/2004 25,000
22,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, MERLOTS,
VRDN, Series K, 1.74% due 11/15/2023 (f)(i) 22,000
16,505 Municipal Securities Trust Certificates, Revenue Refunding Bonds (Michigan
State Hospital), VRDN, Series 1997-24, Class A, 1.75% due 12/01/2005 (e)(i) 16,505
Minnesota--1.8% 30,600 City of Rochester, Minnesota, CP, 1.30% due 10/20/2004 30,600
18,140 Duluth, Minnesota, EDA, Health Care Facilities Revenue Refunding Bonds,
FLOATS, VRDN, Series 895, 1.57% due 2/15/2020 (a)(i) 18,140
10,226 Minneapolis and Saint Paul, Minnesota, CP, 1.15% due 10/06/2004 10,226
14,000 Minnesota Rural Water Finance Authority, Public Projects Construction Notes,
Series B, 2% due 10/15/2004 14,005
12,500 Minnesota Rural Water Finance Authority, Public Projects Construction Revenue
Notes, 3% due 10/01/2005 12,655
Minnesota State, CP:
81,000 1.16% due 10/12/2004 81,000
9,100 1.14% due 10/14/2004 9,100
1,700 Minnesota State, GO, ROCS, Series II-R-4065, 1.57% due 8/01/2023 (i) 1,700
Mississippi--1.6% 7,100 Mississippi Business Finance Corporation, Mississippi Solid Waste Disposal
Revenue Bonds (Mississippi Power Company Project), VRDN, AMT, 1.74% due
7/01/2025 (i) 7,100
3,520 Mississippi Business Finance Corporation, Mississippi, Solid Waste Disposal
Revenue Refunding Bonds (Mississippi Power Company Project), VRDN, AMT,
1.74% due 5/01/2028 (i) 3,520
5,200 Mississippi Business Finance Corporation Revenue Bonds (Mississippi Power
Company), VRDN, AMT, 1.72% due 12/01/2027 (i) 5,200
12,500 Mississippi Home Corporation, Lease Purpose Revenue Bonds, VRDN, 1.61%
due 10/01/2007 (i) 12,500
77,000 Mississippi Home Corporation, S/F Revenue Bonds, FLOATS, VRDN, AMT,
Series 714, 1.64% due 10/03/2005 (i) 77,000
Mississippi Hospital Equipment and Facilities Authority Revenue Bonds, VRDN (i):
18,000 (Baptist Memorial Hospital Project), 1.53% due 5/01/2021 18,000
25,900 (Mississippi Baptist Medical Center), 1.55% due 7/01/2012 25,900
5,500 University of Mississippi Educational Building Corporation Revenue Bonds
(The University of Mississippi Medical Center Pediatric and Research
Facilities Project), VRDN, 1.51% due 6/01/2034 (a)(i) 5,500
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Missouri--0.3% Missouri State Health and Educational Facilities Authority, School District
Advance Funding Program Revenue Bonds:
$ 10,000 (Park Hill School District), Series M, 1.15% due 10/29/2004 $ 10,000
8,000 (Saint Louis County Schools), Series O, 1.18% due 10/29/2004 8,000
10,750 Missouri State Public Utilities Commission, Interim Construction Notes, 2%
due 10/15/2004 10,754
Nebraska--1.5% 78,700 American Public Energy Agency, Nebraska, Gas Supply Revenue Bonds (National
Public Gas Agency Project), VRDN, Series B, 1.69% due 2/01/2014 (i) 78,700
25,000 Lincoln, Nebraska, Electric System, CP, 1.21% due 11/08/2004 25,000
4,385 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds,
ROCS, Series II-R-2051, 1.57% due 4/01/2022 (e)(i) 4,385
4,520 Nebhelp Inc., Nebraska, Revenue Bonds, ROCS, AMT, Series II-R-205, 1.61%
due 6/01/2013 (f)(i) 4,520
32,400 Nebraska Public Power District, CP, 1.12% due 10/07/2004 32,400
4,995 Nebraska Public Power District Revenue Refunding Bonds, ROCS, Series II-R-209,
1.57% due 1/01/2012 (f)(i) 4,995
Nevada--1.2% 29,185 ABN Amro Munitops Certificates Trust, Clark County, Nevada, Airport Revenue
Bonds, VRDN, Series 1999-15, 1.75% due 1/02/2008 (f)(i) 29,185
36,740 Clark County, Nevada, Airport Improvement Revenue Refunding Bonds, VRDN,
Series A, 1.67% due 7/01/2012 (f)(i) 36,740
18,860 Clark County, Nevada, Airport System Subordinate Lien Revenue Refunding
Bonds, VRDN, Series C, 1.66% due 7/01/2029 (b)(i) 18,860
3,825 Clark County, Nevada, GO, ROCS, Series II-R-4012, 1.61% due 7/01/2023 (a)(i) 3,825
9,050 Las Vegas Valley, Nevada, Water District, GO, Refunding, MERLOTS, VRDN,
Series B-10, 1.74% due 6/01/2024 (f)(i) 9,050
6,605 Nevada Housing Division Revenue Bonds (Multi-Unit Housing--Mesquite), VRDN,
AMT, Series B, 2.01% due 5/01/2028 (i) 6,605
7,300 Washoe County, Nevada, School District, GO, ROCS, Series II-R-2012, 1.57%
due 6/01/2020 (b)(i) 7,300
New Hampshire-- 20,500 New Hampshire Health and Educational Facilities Authority, Revenue Refunding
0.7% Bonds (Dartmouth Hitchcock Obligation), VRDN, Series A, 1.51% due 8/01/2031 (e)(i) 20,500
New Hampshire Higher Educational and Health Facilities Authority, Revenue
Refunding Bonds, FLOATS, VRDN (b)(i):
5,475 Series 772, 1.57% due 1/01/2017 5,475
11,000 Series 866, 1.57% due 8/15/2021 11,000
7,415 New Hampshire State Business Finance Authority, Resource Recovery Revenue
Refunding Bonds (Wheelabrator), VRDN, Series A, 1.71% due 1/01/2018 (i) 7,415
25,600 New Hampshire State, CP, 1.45% due 11/09/2004 25,600
New Jersey--1.5% 15,000 Fair Lawn, New Jersey, School District, GO, 2.70% due 5/20/2005 15,103
14,920 Middlesex County, New Jersey, GO, BAN, 1.75% due 1/10/2005 14,929
52,000 New Jersey State, FLOATS, VRDN, Series L55J, 1.75% due 6/24/2005 (i) 52,000
New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN (e)(i):
27,000 Series C-1, 1.68% due 1/01/2024 27,000
11,000 Series C-2, 1.68% due 1/01/2024 11,000
20,000 Passaic County, New Jersey, GO, Refunding, BAN, 3% due 6/10/2005 20,190
6,000 Port Authority of New York and New Jersey, Special Obligation Revenue
Refunding Bonds (Versatile Structure Obligation), VRDN, AMT, Series 6,
1.66% due 12/01/2017 (i) 6,000
New Mexico--0.9% 25,000 Bernalillo County, New Mexico, GO, TRAN, 3% due 6/30/2005 25,261
8,000 Hurley, New Mexico, PCR (Kennecott Santa Fe), VRDN, 1.65% due 12/01/2015 (i) 8,000
16,700 New Mexico Mortgage Finance Authority, S/F Mortgage Program Revenue Bonds,
AMT, 1.625% due 9/23/2005 16,700
18,800 New Mexico Mortgage Finance Authority, S/F Mortgage Revenue Bonds, VRDN,
AMT, 1.67% due 3/01/2005 (i) 18,800
15,000 New Mexico State, FLOATS, VRDN, Series L38, 1.75% due 6/30/2005 (i) 15,000
New York--5.8% Albany, New York, City School District, GO, BAN:
10,425 1.75% due 3/25/2005 10,444
16,230 2.75% due 6/30/2005 16,361
15,000 Series A, 1.75% due 3/25/2005 15,027
19,720 Babylon, New York, IDA, Residential Recovery Revenue Refunding Bonds
(Ogden Martin Project), VRDN, 1.66% due 1/01/2019 (e)(i) 19,720
4,000 Babylon, New York, Union Free School District, GO, TAN, 2.75% due 6/29/2005 4,034
5,500 Connetquot Central School District, New York, Islip, GO, BAN, 2% due 1/27/2005 5,515
24,700 Eagle Tax-Exempt Trust, New York State Dormitory Authority (Memorial Sloan),
VRDN, Series 98, Class 3202, 1.71% due 7/01/2023 (i) 24,700
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
New York $ 14,200 East Meadow, New York, Union Free School District, GO, BAN, 2.50% due
(concluded) 8/17/2005 $ 14,323
8,700 Elmont, New York, Union Free School District, GO, TAN, 2.75% due 6/29/2005 8,764
7,500 Hastings Township, New York, GO, BAN, 2.75% due 7/15/2005 7,564
8,000 Herricks, New York, Union Free School District, BAN, 2% due 12/02/2004 8,011
3,800 Kings Park, New York, Central School District, GO, BAN, 2.75% due 8/02/2005 3,836
6,500 Long Island Power Authority, New York, Electric System Revenue Bonds, VRDN,
Sub-Series 7-B, 1.72% due 4/01/2025 (f)(i) 6,500
9,000 Longwood Central School District of Suffolk County, New York, GO, TAN, 2.75%
due 6/30/2005 9,076
1,800 Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue
Refunding Bonds, VRDN, Series B, 1.50% due 11/01/2022 (e)(i) 1,800
55,000 Monroe County, New York, GO, RAN, 2.50% due 4/15/2005 55,276
20,000 Monroe County, New York, Public Improvement, GO, BAN, 3% due 7/28/2005 20,198
15,930 Monroe County, New York, Public Improvement, GO, Refunding, BAN, 2.25%
due 12/17/2004 15,963
13,995 Municipal Securities Trust Certificates Revenue Bonds, New York City,
New York, City Transitional Finance Authority, VRDN, Series 2002-202,
Class A, 1.73% due 10/21/2010 (b)(i) 13,995
New York City, New York, City Municipal Water Finance Authority, CP:
15,000 1.17% due 10/01/2004 15,000
15,000 1.20% due 11/04/2004 15,000
21,500 New York City, New York, City Municipal Water Finance Authority, Water and
Sewer System Revenue Refunding Bonds, MSTR, VRDN, Series SGB-27, 1.53% due
6/15/2024 (e)(i) 21,500
New York City, New York, City Transitional Finance Authority Revenue Bonds,
VRDN (i):
940 (New York City Recovery), Series 1, Sub-Series 1C, 1.63% due 11/01/2022 940
22,000 Sub-Series 2D, 1.70% due 11/01/2022 22,000
23,100 New York City, New York, GO, Refunding, VRDN, Sub-Series C-5, 1.69% due
8/01/2020 (i) 23,100
10,000 New York City, New York, GO, VRDN, Sub-Series H-3, 1.70% due 3/01/2034 (i) 10,000
New York State Dormitory Authority, Mental Health Facilities Improvement
Revenue Refunding Bonds, VRDN (e)(i):
9,000 Series F-2A, 1.49% due 2/15/2021 9,000
40,000 Series F-2B, 1.50% due 2/15/2021 40,000
17,500 New York State HFA, Service Contract Revenue Refunding Bonds, VRDN, Series B,
1.68% due 3/15/2026 (i) 17,500
7,400 New York State Local Government Assistance Corporation Revenue Bonds, VRDN,
Series B, 1.68% due 4/01/2025 (i) 7,400
3,300 New York State Local Government Assistance Corporation, Revenue Refunding
Bonds, Sub Lien, VRDN, Series A-5V, 1.68% due 4/01/2020 (e)(i) 3,300
5,995 New York State Power Authority Revenue Bonds, ROCS, Series II-R-210, 1.53%
due 11/15/2015 (f)(i) 5,995
9,600 Putnam County, New York, GO, TAN, 2% due 11/19/2004 9,611
15,000 Riverhead, New York, Central School District, GO, TAN, 2.75% due 6/30/2005 15,123
35,805 Rochester, New York, GO, BAN, Series II, 2% due 10/22/2004 35,824
10,000 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue
Refunding Bonds, VRDN, Series B, 1.68% due 1/01/2032 (a)(i) 10,000
25,000 Ulster County, New York, GO, BAN, 2.75% due 6/10/2005 25,196
14,950 Wilson, New York, Central School District, GO, BAN, 2.75% due 8/03/2005 15,092
North Carolina-- 17,000 Mecklenburg County, North Carolina, GO, VRDN, Series B, 2% due 2/01/2005 (i) 17,052
1.1% 19,995 Municipal Securities Trust Certificates, North Carolina Eastern Municipal
Power Agency, GO, Refunding, VRDN, Series 2002-201, Class A, 1.73% due
4/12/2017 (i) 19,995
8,165 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
MERLOTS, VRDN, Series A22, 1.30% due 4/13/2005 (i) 8,165
21,100 North Carolina Medical Care Commission, Hospital Revenue Bonds (Moses H. Cone
Memorial Health System), VRDN, Series B, 1.50% due 10/01/2035 (i) 21,100
4,500 North Carolina State, GO, MERLOTS, VRDN, Series A23, 1.74% due 3/01/2027 (i) 4,500
Wake County, North Carolina, GO, VRDN (i):
16,000 Series A, 2% due 4/01/2005 16,069
15,000 Series B, 2% due 4/01/2005 15,065
4,200 Wake County, North Carolina, Industrial Facilities and Pollution Control
Financing Authority Revenue Bonds (Solid Waste Disposal--Highway 55), VRDN,
AMT, 1.62% due 9/01/2013 (i) 4,200
North Dakota-- 9,610 North Dakota Rural Water Finance Corporation, Public Projects Construction
0.2% Notes, VRDN, 2% due 10/15/2004 (i) 9,613
6,330 Oliver City, North Dakota, PCR, Refunding, MERLOTS, VRDN, Series B07,
1.74% due 1/01/2027 (a)(i) 6,330
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Ohio--1.4% $ 2,000 Brunswick, Ohio, GO, BAN, 2.50% due 5/26/2005 $ 2,011
20,000 Cleveland, Ohio, Water Revenue Refunding Bonds, VRDN, Series M, 1.50%
due 1/01/2033 (e)(i) 20,000
4,000 Eagle Tax-Exempt Trust, Cincinnatti, Ohio, City School District, GO, VRDN,
Series 2004-34, Class A, 1.75% due 12/01/2031 (e)(i) 4,000
22,275 Eagle Tax-Exempt Trust, Ohio State Turnpike, VRDN, Series 98, Class 3503,
1.75% due 2/15/2026 (i) 22,275
10,500 Eagle Tax-Exempt Trust, Ohio, Water Authority Revenue Bonds (Ohio Edison),
VRDN, Series 95, Class 3502, 1.57% due 7/01/2015 (i) 10,500
28,000 Hamilton County, Ohio, Health Care Facilities Revenue Bonds (Twin Towers
and Twin Lakes), VRDN, Series A, 1.54% due 7/01/2023 (i) 28,000
9,000 Hamilton County, Ohio, Student Housing Revenue Bonds (Block 3 Community
Urban Redevelopment Corporation Project), VRDN, 1.77% due 8/01/2036 (i) 9,000
2,370 Municipal Securities Trust Certificates, Princeton, Ohio, City School
District, GO, Series SGB 50-A, 1.75% due 12/01/2030 (f)(i) 2,370
Ohio State Air Quality Development Authority, Revenue Refunding Bonds
(Cincinnati Gas and Electric), VRDN (i):
7,900 Series A, 1.66% due 9/01/2030 7,900
16,300 Series B, 1.85% due 9/01/2030 16,300
5,000 Ohio State, GO, FLOATS, VRDN, Series 603, 1.54% due 9/15/2020 (e)(i) 5,000
6,000 Springboro, Ohio, Community City School District, GO, BAN, 1.75% due 10/12/2004 6,001
Oklahoma--1.6% 3,400 Cleveland County, Oklahoma, Development Authority, Family Mortgage Revenue
Refunding Bonds, VRDN, 1.59% due 5/25/2005 (i) 3,400
3,300 Cleveland County, Oklahoma, Home Loan Authority, S/F Mortgage Revenue
Refunding Bonds, VRDN, Series A, 1.61% due 4/25/2005 (i) 3,300
Comanche County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds,
VRDN, Series A (i):
16,508 1.721% due 4/01/2005 16,508
3,750 1.94% due 5/02/2005 3,750
3,525 Oklahoma County, Oklahoma, Finance Authority Revenue Bonds (Oklahoma County
Housing Preservation), VRDN, 1.53% due 1/01/2033 (i) 3,525
41,710 Oklahoma County, Oklahoma, Home Financing Authority, S/F Mortgage Revenue
Bonds, VRDN, Series A, 1.733% due 5/01/2006 (i) 41,710
5,000 Oklahoma State Development Finance Authority Revenue Bonds (ConocoPhilips
Company Project), VRDN, AMT, 1.35% due 12/01/2004 (i) 5,000
549 Oklahoma State Housing Finance Agency, S/F Mortgage Revenue Refunding Bonds,
1.64% due 8/31/2005 549
Oklahoma State Water Resource Board, State Loan Program Revenue Bonds,
Series A:
31,000 0.98% due 10/01/2004 31,000
36,000 1.58% due 4/01/2005 36,000
Tulsa County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds,
Series A:
7,500 1.891% due 4/01/2005 7,500
4,740 VRDN, AMT, 1.721% due 4/01/2005 (i) 4,740
Oregon--0.2% 11,730 ABN Amro Munitops Certificates Trust, Portland, Oregon, GO, VRDN, Series 2001-4,
1.73% due 6/01/2009 (f)(i) 11,730
4,795 Eagle Tax-Exempt Trust, Oregon State Department of Administrative Services
Revenue Bonds, VRDN, Series 2004-1010, Class A, 1.57% due 9/01/2009 (i) 4,795
6,400 Oregon State Housing and Community Services Department, Mortgage Revenue
Refunding Bonds (S/F Mortgage Program), Series D, 1.16% due 5/05/2005 (e) 6,400
Pennsylvania--3.0% 37,325 Allegheny County, Pennsylvania, GO, Refunding, Series C-50, 1.40% due 5/01/2005 37,325
7,800 Arkansas State Development Finance Authority, M/F Housing Revenue Bonds
(Chapelridge Benton Project), VRDN, AMT, Series C, 1.63% due 6/01/2032 (i) 7,800
2,500 Butler County, Pennsylvania, IDA, IDR, Refunding (Wetterau Finance Co. Project),
VRDN, 1.53% due 12/01/2014 (i) 2,500
25,240 Dauphin County, Pennsylvania, General Authority, Revenue Refunding Bonds
(School District Pooled Financing Program II), VRDN, 1.68% due 9/01/2032 (a)(i) 25,240
Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government
Revenue Bonds, VRDN (i):
15,600 Mode 1, 1.69% due 8/01/2016 15,600
15,100 Series B, 1.69% due 12/01/2020 15,100
5,400 Series C, 1.69% due 12/01/2020 5,400
15,150 Series D, 1.69% due 12/01/2020 15,150
Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (i):
13,200 (Pennsylvania Loan Program), Series A, 1.55% due 3/01/2030 (e) 13,200
7,500 Series D, 1.73% due 3/01/2024 7,500
10,625 Sub-Series A-10, 1.73% due 3/01/2024 10,625
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Pennsylvania $ 11,690 Erie County, Pennsylvania, Hospital Authority Revenue Bonds, FLOATS, VRDN,
(concluded) Series 820, 1.55% due 7/01/2022 (f)(i) $ 11,690
12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 1.57%
due 9/15/2020 (i) 12,000
5,000 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, VRDN, Series B19,
1.74% due 2/15/2027 (f)(i) 5,000
10,665 Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds,
VRDN, Series B, 1.51% due 12/01/2012 (i) 10,665
35,700 Philadelphia, Pennsylvania, School District, GO, TRAN, 3% due 6/30/2005 36,065
48,375 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds,
VRDN, 1.68% due 6/15/2023 (e)(i) 48,375
9,120 Southeastern Pennsylvania Transportation Authority, Special Revenue Bonds,
Series A, 5.75% due 3/01/2005 (b)(k) 9,330
Rhode Island-- Rhode Island State and Providence Plantations, GO, FLOATS, VRDN (i):
0.4% 26,160 Series 568, 1.55% due 9/01/2017 (f) 26,160
16,060 Series 720, 1.55% due 11/01/2022 (b) 16,060
South Carolina-- 12,195 ABN Amro Munitops Certificates Trust, Lexington County, South Carolina, GO,
0.8% VRDN, Series 2001-37, 1.75% due 2/01/2010 (b)(i) 12,195
200 Florence County, South Carolina, Solid Waste Disposal and Wastewater
Treatment Revenue Bonds (Roche Carolina Inc. Project), VRDN, AMT, 1.72%
due 4/01/2027 (i) 200
26,000 Oconee County, South Carolina, PCR, Refunding (Duke Energy Corporation),
VRDN, 1.50% due 2/01/2017 (i) 26,000
23,000 South Carolina Association of Governmental Organizations, COP, 2.75%
due 4/15/2005 23,149
6,250 South Carolina Jobs EDA, EDR (Holcim (US) Inc. Project), VRDN, AMT, 1.66%
due 12/01/2033 (i) 6,250
12,500 South Carolina Transportation Infrastructure Bank Revenue Bonds, FLOATS,
VRDN, Series 728, 1.55% due 10/01/2022 (a)(i) 12,500
South Dakota-- 13,300 Lawrence County, South Dakota, Solid Waste Disposal Revenue Bonds (Homestake
0.1% Mining), VRDN, AMT, Series A, 1.69% due 7/01/2032 (i) 13,300
Tennessee--5.0% Clarksville, Tennessee, Public Building Authority Revenue Bonds, Pooled
Financing (Tennessee Municipal Bond Fund), VRDN (i):
37,605 1.55% due 11/01/2027 37,605
66,900 1.55% due 6/01/2029 66,900
10,605 1.65% due 1/01/2033 10,605
23,800 1.65% due 7/01/2034 23,800
Knoxville, Tennessee, Utilities Board Revenue Bonds, VRDN (e)(i):
15,335 (Sub-Gas System), 1.64% due 1/15/2005 15,335
17,900 (Sub-Wastewater System), 1.64% due 1/15/2005 17,900
8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley Manufacturing Company
Project), VRDN, 1.50% due 6/01/2023 (i) 8,100
6,450 Memphis, Tennessee, Health, Educational and Housing Facility Board, M/F Housing
Revenue Bonds (Chickasaw Place Apartments), VRDN, AMT, 1.63% due 6/01/2033 (i) 6,450
6,020 Memphis, Tennessee, Health, Educational and Housing Facility Board Revenue
Bonds (Not-for-Profit M/F Program), VRDN, 1.53% due 8/01/2032 (i) 6,020
15,000 Metropolitan Government of Nashville and Davidson County, Tennessee, Health
and Education Facilities Board Revenue Bonds (Ascension Health Credit),
Series B-2, 1.20% due 1/04/2005 15,000
Montgomery County, Tennessee, Public Building Authority, Pooled Financing
Revenue Bonds, VRDN (i):
2,980 (Montgomery County Loan), 1.55% due 7/01/2019 2,980
27,860 (Tennessee County Loan Pool), 1.55% due 11/01/2027 27,860
Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local
Government Public Improvement II, VRDN (a)(i):
7,100 Series A-1, 1.54% due 6/01/2024 7,100
4,630 Series E-2, 1.54% due 6/01/2021 4,630
5,000 Series F-3, 1.54% due 6/01/2005 5,000
Sevier County, Tennessee, Public Building Authority Revenue Bonds, Local
Government Public Improvement III, VRDN (i):
69,900 AMT, Series A, 1.70% due 6/01/2028 (a) 69,900
10,000 Series D-2, 1.54% due 6/01/2017 (a) 10,000
4,350 Series D-6, 1.54% due 6/01/2020 (a) 4,350
18,970 Series E-1, 1.54% due 6/01/2025 18,970
10,000 Series E-4, 1.54% due 6/01/2025 (a) 10,000
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Tennessee $ 4,650 Shelby County, Tennessee, GO, Refunding, ROCS, Series II-R-3023, 1.75%
(concluded) due 4/01/2020 (f)(i) $ 4,650
12,000 Shelby County, Tennessee, Health, Educational and Housing Facilities Board
Revenue Bonds (Hutchison School Project), VRDN, 1.54% due 5/01/2026 (i) 12,000
18,705 Shelby County, Tennessee, Public Improvement and School, GO, VRDN, Series B,
1.75% due 1/10/2005 (i) 18,742
Tennessee HDA, S/F Mortgage Revenue Bonds, AMT:
15,300 Series CN-1, 1.466% due 8/11/2005 15,300
32,655 VRDN, Series CN-1A, 1.494% due 12/08/2005 (i) 32,655
29,500 Tennessee State Local Development Authority Revenue Bonds (Student Loan Progam),
BAN, Series A, 3% due 5/31/2005 29,771
Texas--11.0% 15,750 ABN Amro Munitops Certificates Trust, Houston, Texas, Airport Revenue Bonds,
VRDN, AMT, Series 1998-15, 1.80% due 7/05/2006 (b)(i) 15,750
13,500 ABN Amro Munitops Certificates Trust, San Antonio, Texas, Electric and Gas
Revenue Bonds, VRDN, Series 1998-22, 1.75% due 1/03/2007 (f)(i) 13,500
29,950 ABN Amro Munitops Certificates Trust, San Antonio, Texas, Independant School
District, VRDN, Series 1999-10, 1.75% due 3/07/2007 (f)(i) 29,950
9,030 ABN Amro Munitops Certificates Trust, Texas Permanent School Fund, Independant
School District, GO, VRDN, Series 2001-8, 1.75% due 2/15/2007 (i) 9,030
10,000 Brazos River Authority, Texas, Harbor Navigational District, Brazoria County
Revenue Bonds (BASF Corp.), VRDN, AMT, 1.73% due 4/01/2032 (i) 10,000
25,000 Brazos River, Texas, Harbor Industrial Development Corporation Revenue Bonds
(BASF Corporation Project), VRDN, AMT, 1.78% due 5/01/2038 (i) 25,000
5,000 Cameron County, Texas, Housing Finance Corporation, S/F Mortgage Revenue
Bonds, VRDN, 1.70% due 9/01/2005 (i) 5,000
18,279 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds, VRDN,
AMT, Series A, 1.707% due 7/01/2005 (i) 18,279
7,390 Corpus Christi, Texas, Business and Job Development Corporation, Sales Tax
Revenue Refunding Bonds, ROCS, Series II-R-2001, 1.70% due 9/01/2017 (a)(i) 7,390
4,000 Corpus Christi, Texas, Industrial Development Corp., IDR (Dedietrich USA
Incorporated Project), VRDN, AMT, 1.84% due 11/01/2008 (i) 4,000
3,745 Corpus Christi, Texas, Utility System Revenue Refunding Bonds, ROCS,
Series II-R-2149, 1.57% due 7/15/2024 (e)(i) 3,745
2,855 Dallas, Texas, Area Rapid Transit Revenue Refunding Bonds, ROCS, Series II-R-2078,
1.57% due 12/01/2022 (a)(i) 2,855
Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT (i):
3,000 ROCS, Series II-R-268, 1.79% due 11/01/2033 (f) 3,000
4,408 VRDN, FLOATS, Series 824, 1.25% due 11/01/2015 (a) 4,408
7,140 VRDN, PUTTERS, Series 350, 1.76% due 5/01/2011 (f) 7,140
2,500 VRDN, PUTTERS, Series 351, 1.58% due 5/01/2008 (e) 2,500
4,995 VRDN, PUTTERS, Series 385, 1.58% due 5/01/2008 (b) 4,995
Dallas-Fort Worth, Texas, Regional Airport Revenue Bonds, MSTR, VRDN, AMT (f)(i):
25,300 Series SGB-49, 1.70% due 11/01/2023 25,300
9,495 Series SGB-52, 1.78% due 11/01/2017 9,495
Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding Bonds, MSTR, VRDN (i):
23,885 AMT, Series SGB-46, 1.78% due 11/01/2020 (f) 23,885
6,600 Series SGB-52, 1.57% due 11/01/2015 (b) 6,600
6,000 Eagle Tax-Exempt Trust, Dallas, Texas, VRDN, Series 01, Class 4310, 1.57%
due 12/01/2026 (a)(i) 6,000
8,435 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, AMT, Series 2003-0020, Class A, 1.61% due 11/01/2032 (a)(i) 8,435
9,900 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas, VRDN, Series 96C, Class 4301,
1.75% due 11/01/2005 (i) 9,900
4,915 Eagle Tax-Exempt Trust, San Antonio, Texas, VRDN, Series 01, Class 4311, 1.57%
due 8/15/2026 (i) 4,915
5,000 El Paso County, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds,
VRDN, Series A, 1.509% due 12/01/2035 (i) 5,000
4,500 Fort Bend County, Texas, GO, MSTR, VRDN, SGB-46-A, 1.57% due 3/01/2032 (f)(i) 4,500
5,300 Grapevine, Texas, Industrial Development Corporation, Airport Revenue Refunding
Bonds (Southern Air Transport), VRDN, 1.55% due 3/01/2010 (i) 5,300
7,400 Gulf Coast IDA, Texas, Solid Waste Disposal Revenue Bonds (Citgo Petroleum
Corporation Project), VRDN, AMT, 1.70% due 4/01/2026 (i) 7,400
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Texas Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities Revenue
(concluded) Bonds, VRDN, AMT (i):
$ 19,000 (American Aeryl LP Project), 1.58% due 5/01/2038 $ 19,000
2,200 (BP Amoco Chemical Company), 1.70% due 5/01/2038 2,200
5,500 (BP Amoco Chemical Company Project), Series B, 1.70% due 9/01/2038 5,500
11,000 (BP Products North America Project), 1.70% due 7/01/2036 11,000
Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds, VRDN, AMT (i):
12,500 (Air Products Project), 1.76% due 3/01/2035 12,500
2,500 (Waste Management Inc.), Series A, 1.75% due 4/01/2019 2,500
46,500 Harris County, Texas, Health Facilities Development Corporation, Revenue
Refunding Bonds (Methodist Hospital), VRDN, 1.72% due 12/01/2032 (i) 46,500
46,100 Harris County, Texas, Industrial Development Corporation, Solid Waste Disposal
Revenue Bonds (Deer Park Limited Partnership), VRDN, AMT, Series A, 1.72% due
2/01/2023 (i) 46,100
Harris County, Texas, Revenue Refunding Bonds, ROCS (i):
10,330 Series II-R-1030, 1.57% due 8/15/2017 (e) 10,330
5,430 Series II-R-2101, 1.75% due 8/15/2014 (b) 5,430
15,587 Houston, Texas, Housing Finance Corporation, S/Family Mortgage Revenue
Refunding Bonds, VRDN, 1.465% due 12/01/2033 (i) 15,587
75,000 Houston, Texas, Independent School District, GO, Refunding (School Building),
VRDN, 1.73% due 6/15/2005 (i) 75,000
Houston, Texas, Utility System Revenue Refunding Bonds (e)(i):
5,370 ROCS, Series II-R-4063, 1.75% due 5/15/2021 5,370
6,000 TOCS, Series A, 1.55% due 5/25/2012 6,000
7,810 Houston, Texas, Water and Sewer System Revenue Bonds, MERLOTS, VRDN,
Series A-128, 1.74% due 12/01/2029 (f)(i) 7,810
3,375 Irving, Texas, Independent School District, GO, Refunding, ROCS,
Series II-R-2028, 1.57% due 2/15/2022 (i) 3,375
10,395 Municipal Securities Trust Certificates, Austin, Texas, Water Revenue
Refunding Bonds, VRDN, Series 2001-134, Class A, 1.75% due 5/15/2010 (e)(i) 10,395
North Central Texas, CP:
12,000 1.39% due 10/07/2004 12,000
31,000 1.33% due 11/01/2004 31,000
17,335 Port Arthur, Texas, Navigation District, Environmental Facilities Revenue
Refunding Bonds (Motiva Enterprises Project), VRDN, AMT, 1.80% due 12/01/2027 (i) 17,335
10,000 Port Arthur, Texas, Navigation District, Industrial Development Corporation,
Exempt Facilities Revenue Bonds (Air Products and Chemicals Project), VRDN,
AMT, 1.76% due 4/01/2036 (i) 10,000
Port Arthur, Texas, Navigation District Revenue Bonds, VRDN, AMT (i):
20,000 (BASF Corporation Project), 1.73% due 4/01/2033 20,000
10,000 Multi-Mode (Atofina Petrochemicals), Series B, 1.80% due 4/01/2027 10,000
50,000 Port Corpus Christi, Texas, Nueces County Solid Waste Disposal Revenue
Refunding Bonds (Flint Hills Resources), VRDN, AMT, Series A, 2.05% due
7/01/2029 (i) 50,000
10,000 San Antonio, Texas, Hotel Occupancy Revenue Bonds, FLOATS, VRDN,
Series SG-51, 1.55% due 8/15/2019 (i) 10,000
5,000 San Marcos, Texas, Consolidated Independent School District, GO, MERLOTS,
VRDN, Series C-23, 1.70% due 8/01/2029 (i) 5,000
8,459 Southeast Texas Housing Finance Corporation, Revenue Refunding Bonds, 1.655%
due 4/01/2005 8,459
33,210 Texas Municipal Power Agency Revenue Bonds, Series 91, CP, 1.30% due
10/13/2004 33,210
45,000 Texas State, College Student Loan, GO, Refunding, VRDN, AMT, 1.80% due
7/01/2005 (i) 45,000
3,145 Texas State, GO, Refunding, FLOATS, VRDN, Series 657, 1.55% due 4/01/2010 (i) 3,145
200,000 Texas State, TRAN, 3% due 8/31/2005 202,529
Texas State Turnpike Authority, Central Texas Turnpike System Revenue
Bonds (a)(i):
3,300 PUTTERS, VRDN, Series 421, 1.77% due 2/15/2025 3,300
2,200 ROCS, Series II-R-284, 1.75% due 8/15/2039 2,200
5,480 Texas State University, System Financing Revenue Refunding Bonds, ROCS,
Series II-R-1011, 1.57% due 3/15/2019 (e)(i) 5,480
15,200 University of Texas Revenue Bonds, CP, 1.20% due 11/10/2004 15,200
5,000 Victoria County, Texas, Hospital Revenue Refunding Bonds, FLOATS, VRDN,
Series 959, 1.55% due 1/01/2016 (a)(i) 5,000
6,200 West Side Calhoun County, Texas, Navigation District Sewer and Solid Waste
District Revenue Bonds (BP Chemicals Inc. Project), VRDN, AMT, 1.70% due
4/01/2031 (i) 6,200
4,790 Williamson County, Texas, GO, Refunding, PUTTERS, VRDN, Series 410, 1.73%
due 2/15/2012 (f)(i) 4,790
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Utah--0.2% $ 12,300 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, VRDN, Series F,
1.25% due 12/01/2004 (a)(i) $ 12,300
8,300 Utah Water Finance Agency, Tender Option Revenue Bonds, VRDN, Series A-9,
1.77% due 7/01/2034 (a)(i) 8,300
Vermont--0.0% 2,900 Vermont HFA, S/F Revenue Bonds, VRDN, AMT, Series 16 A, 1.64% due
5/01/2032 (e)(i) 2,900
Virginia--1.5% Metropolitan Washington Airports Authority, D.C., Airport System Revenue
Refunding Bonds, VRDN, AMT (i):
49,045 MERLOTS, Series C35, 1.73% due 10/01/2014 (f) 49,045
1,700 PUTTERS, Series 404, 1.58% due 10/01/2011 (b) 1,700
7,725 Metropolitan Washington Airports Authority, D.C., System Revenue Bonds, ROCS,
Series II-R-195, 1.61% due 10/01/2032 (b)(i) 7,725
13,995 Metropolitan Washington Airports Authority, D.C., Virginia Airports Authority,
General Airport Revenue Bonds, PUTTERS, VRDN, AMT, Series 240, 1.76% due
10/01/2021 (f)(i) 13,995
66,400 Norfolk, Virginia, CP, 1.15% due 10/06/2004 66,400
6,410 Prince William County, Virginia, IDA, Revenue Bonds (PDH LLC Project), VRDN,
1.77% due 4/01/2025 (i) 6,410
Washington--2.4% 20,000 ABN Amro Munitops Certificates Trust, Port Seattle, Washington Revenue Bonds,
VRDN, Series 1998-16, 1.75% due 10/04/2006 (f)(i) 20,000
22,900 Clark County, Washington, Public Utility District Number 001, Generating
System Revenue Refunding Bonds, MSTR, VRDN, Series SGA-118, 1.68% due
1/01/2025 (e)(i) 22,900
3,000 Eagle Tax-Exempt Trust, Bellevue, Washington, GO, Refunding, VRDN,
Series 2004-1011, Class A, 1.57% due 12/01/2043 (f)(i) 3,000
8,965 Grant County, Washington, Public Utility District Number 002, Electric Revenue
Refunding Bonds, ROCS, Series II-R-2039, 1.57% due 1/01/2019 (e)(i) 8,965
1,835 King County, Washington, GO, ROCS, Series II-R-5036, 1.75% due 12/01/2013 (a)(i) 1,835
5,260 King County, Washington, School District Number 410, Snoqualmie Valley, GO,
ROCS, Series II-R-4513, 1.57% due 12/01/2020 (e)(i) 5,260
14,810 King County, Washington, Sewer Revenue Refunding Bonds, FLOATS, VRDN,
Series 554, 1.55% due 7/01/2009 (b)(i) 14,810
2,280 Lewis County, Washington, Public Utility District Number 001, Cowlitz Falls
Hydroelectric Revenue Refunding Bonds, Series II-R-4026, 1.57% due
10/01/2023 (f)(i) 2,280
14,070 Municipal Securities Trust Certificates, Washington State Motor Vehicle Fuel
Tax, GO, VRDN, Series 2001-112, Class A, 1.68% due 1/07/2021 (i) 14,070
4,970 Port Seattle, Washington, Revenue Bonds, MERLOTS, VRDN, AMT, Series B04,
1.79% due 9/01/2015 (b)(i) 4,970
4,975 Seattle, Washington, Water System Revenue Refunding Bonds, ROCS,
Series II-R-4006, 1.57% due 9/01/2022 (f)(i) 4,975
14,000 Snohomish County, Washington, Public Utility District Number 001, Electric
Revenue Bonds (Generation System), VRDN, 1.66% due 1/01/2025 (f)(i) 14,000
3,490 Spokane County, Washington, Spokane School District Number 081, GO, ROCS,
Series II-R-4000, 1.57% due 12/01/2019 (e)(i) 3,490
5,635 Tacoma, Washington, Convention Center and Parking Revenue Bonds, ROCS,
Series II-R-2144, 1.57% due 12/01/2022 (f)(i) 5,635
14,040 Tacoma, Washington, Water Revenue Refunding Bonds, FLOATS, VRDN, Series 555,
1.55% due 12/01/2009 (b)(i) 14,040
15,075 Washington State, GO, PUTTERS, VRDN, Series 333, 1.59% due 12/01/2014 (f)(i) 15,075
Washington State, GO, Refunding, MERLOTS, VRDN (f)(i):
5,245 Series A05, 1.74% due 1/01/2013 5,245
12,895 Series A57, 1.74% due 1/01/2011 12,895
Washington State Housing Finance Commission, M/F Housing Revenue Bonds,
VRDN, AMT (i):
6,400 (Arbors on the Park Project), 1.79% due 10/01/2024 6,400
9,505 (Courtside Apartments Project), 1.61% due 1/01/2026 9,505
Washington State Public Power Supply Systems, Electric Revenue Refunding
Bonds, VRDN (f)(i):
17,505 (Project Number 2), Series 2A-1, 1.66% due 7/01/2012 17,505
11,440 (Project Number 2), Series 2A-2, 1.66% due 7/01/2012 11,440
13,955 (Project Number 3), Series 3-A, 1.70% due 7/01/2018 13,955
West Virginia-- 10,695 ABN Amro Munitops Certificates Trust, West Virginia State, GO, VRDN,
0.2% Series 2000-12, 1.75% due 6/04/2008 (f)(i) 10,695
11,220 Hancock County, West Virginia, County Commission, IDR, Refunding
(The Boc Group Inc. Project), VRDN, 1.50% due 8/01/2005 (i) 11,220
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Schedule of Investments (concluded) Master Tax-Exempt Trust (In Thousands)
Face
State Amount Municipal Bonds Value
Wisconsin--1.4% $ 16,000 Carlton, Wisconsin, PCR, Refunding (Wisconsin Power and Light Company Project),
VRDN, Series B, 1.95% due 9/01/2005 (i) $ 16,000
14,850 Eagle Tax-Exempt Trust, Wisconsin Ball Park, VRDN, Series 98, Class 4901,
1.75% due 12/15/2026 (i) 14,850
5,000 Eagle Tax-Exempt Trust, Wisconsin State, GO, Refunding, VRDN, Series 2004-1009,
Class A, 1.75% due 5/01/2008 (b)(i) 5,000
3,170 Hartland, Wisconsin, IDR (Commercial Communications Inc. Project), VRDN, AMT,
1.70% due 8/01/2009 (i) 3,170
19,000 Pleasant Prairie, Wisconsin, Pollution Revenue Refunding Bonds (Wisconsin
Electric Power Company), VRDN, Series C, 1.65% due 9/01/2030 (i) 19,000
6,000 Wisconsin Rural Water Construction Loan Program, Commission Revenue Bonds, BAN,
2% due 10/15/2004 6,002
Wisconsin State, GO, CP:
26,500 1.17% due 10/07/2004 26,500
31,070 1.41% due 10/14/2004 31,070
14,020 Wisconsin State Transportation Revenue Bonds, ROCS, Series II-R-1021, 1.57%
due 7/01/2021 (b)(i) 14,020
Wyoming--2.6% 12,960 Lincoln County, Wyoming, PCR, Refunding (Pacificorp Projects), VRDN, 1.69%
due 11/01/2024 (a)(i) 12,960
16,960 Sweetwater County, Wyoming, PCR, Refunding (Pacificorp Project), VRDN, 1.69%
due 11/01/2024 (a)(i) 16,960
220,000 Wyoming State Education Fund, TRAN, 3% due 6/24/2005 222,289
Puerto Rico-- 12,800 Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN,
0.3% Series SGA-43, 1.70% due 7/01/2022 (f)(i) 12,800
16,141 Puerto Rico Government Development Bank, CP, 1.19% due 11/08/2004 16,141
Total Investments (Cost--$9,679,080*)--99.7% 9,679,080
Other Assets Less Liabilities--0.3% 32,776
-----------
Net Assets--100.0% $ 9,711,856
===========
* The cost and unrealized appreciation/depreciation of investments as of September 30, 2004,
as computed for federal income tax purposes, were as follows:
(in Thousands)
Aggregate cost $ 9,679,146
==============
Gross unrealized appreciation --
Gross unrealized depreciation $ (66)
--------------
Net unrealized depreciation $ (66)
==============
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHLMC Collateralized.
(d) FNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) Radian Insured.
(h) XL Capital Insured.
(i) 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, 2004.
(j) CIFG Insured.
(k) Prerefunded.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statement of Assets and Liabilities Master Tax-Exempt Trust
As of September 30, 2004
Assets
Investments in unaffiliated securities, at value
(identified cost--$9,679,079,734) $ 9,679,079,734
Cash 64,601
Receivables:
Securities sold $ 205,038,012
Interest 31,445,272
Contributions 11,250,685 247,733,969
---------------
Prepaid expenses 60,580
---------------
Total assets 9,926,938,884
---------------
Liabilities
Payables:
Securities purchased 214,696,000
Investment adviser 214,409
Other affiliates 52,769 214,963,178
---------------
Accrued expenses 119,712
---------------
Total liabilities 215,082,890
---------------
Net Assets
Net assets $ 9,711,855,994
===============
Net Assets Consist of
Investors' capital $ 9,711,855,994
---------------
Net Assets $ 9,711,855,994
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statement of Operations Master Tax-Exempt Trust
For the Six Months Ended September 30, 2004
Investment Income
Interest and amortization of premium and discount earned $ 59,635,971
Expenses
Investment advisory fees $ 6,745,784
Accounting services 649,343
Custodian fees 123,139
Professional fees 50,769
Pricing fees 30,796
Trustees' fees and expenses 28,652
Printing and shareholder reports 21,328
Other 44,691
---------------
Total expenses 7,694,502
---------------
Investment income--net 51,941,469
---------------
Realized Loss--Net
Realized loss on investments--net (75,875)
---------------
Net Increase in Net Assets Resulting from Operations $ 51,865,594
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Statements of Changes in Net Assets Master Tax-Exempt Trust
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2004 2004
Operations
Investment income--net $ 51,941,469 $ 98,514,257
Realized loss--net (75,875) (272,665)
--------------- ---------------
Net increase in net assets resulting from operations 51,865,594 98,241,592
--------------- ---------------
Capital Transactions
Proceeds from contributions 18,954,521,567 38,210,930,891
Fair value of withdrawals (19,547,161,293) (38,647,721,740)
--------------- ---------------
Net decrease in net assets derived from capital transactions (592,639,726) (436,790,849)
--------------- ---------------
Net Assets
Total decrease in net assets (540,774,132) (338,549,257)
Beginning of period 10,252,630,126 10,591,179,383
--------------- ---------------
End of period $ 9,711,855,994 $10,252,630,126
=============== ===============
See Notes to Financial Statements.
Financial Highlights Master Tax-Exempt Trust
For the Six For the For the Period
Months Ended Year Ended February 13, 2003++
The following ratios have been derived from September 30, March 31, to March 31,
information provided in the financial statements. 2004 2004 2003
Total Investment Return
Total investment return .52%+++ .94% .68%*
=============== =============== ===============
Ratios to Average Net Assets
Expenses .15%* .15% .21%*
=============== =============== ===============
Investment income and realized loss--net 1.03%* .94% 1.04%*
=============== =============== ===============
Supplemental Data
Net assets, end of period (in thousands) $ 9,711,856 $ 10,252,630 $ 10,591,179
=============== =============== ===============
* Annualized.
++ Commencement of operations.
+++ Aggregate total investment return.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Notes to Financial Statements
Master Tax-Exempt Trust
1. Significant Accounting Policies:
Master Tax-Exempt Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, and is organized as a
Delaware statutory trust. The Declaration of Trust permits the
Trustees to issue nontransferable interest in the Trust, subject to
certain limitations. The Trust's financial statements are prepared
in conformity with U.S. generally accepted accounting principles,
which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited
financial statements reflect all adjustments, which are, in the
opinion of management, necessary to present a fair statement of the
results for the interim period. All such adjustments are of a
normal, recurring nature. The following is a summary of significant
accounting policies followed by the Trust.
(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--The Trust is classified as a partnership for
federal income tax purposes. As such, each investor in the Trust is
treated as owner of its proportionate share of the net assets,
income, expenses and realized and unrealized gains and losses of the
Trust. Therefore, no federal income tax provision is required. It is
intended that the Trust's assets will be managed so an investor in
the Trust can satisfy the requirements of Subchapter M of the
Internal Revenue Code.
(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.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Trust 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 Trust's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Trust. For such
services, the Trust pays a monthly fee based upon the average daily
value of the Trust's net assets at the following annual rates: .25%
of the Trust's average daily net assets not exceeding $500 million;
..175% of the average daily net assets in excess of $500 million but
not exceeding $1 billion; and .125% of the average daily net assets
in excess of $1 billion.
For the six months ended September 30, 2004, the Trust reimbursed
FAM $125,951 for certain accounting services.
Certain officers and/or trustees of the Trust are officers and/or
directors of FAM, PSI, and/or ML & Co.
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 Web site
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 TAX-EXEMPT FUND, SEPTEMBER 30, 2004
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to
this semi-annual report
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 last 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 - Not Applicable to this semi-annual
report
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 Tax-Exempt Fund and Master Tax-Exempt Trust
By: _/s/ Terry K. Glenn_______
Terry K. Glenn,
President of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 19, 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 Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 19, 2004
By: _/s/ Donald C. Burke________
Donald C. Burke,
Chief Financial Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 19, 2004