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 811-03111
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: Robert C. Doll, Jr., Chief Executive
Officer, 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: 03/31/06
Date of reporting period: 04/01/05 - 09/30/05
Item 1 - Report to Stockholders
CMA Tax-Exempt Fund
Semi-Annual Report
September 30, 2005
(BULL LOGO) Merrill Lynch Investment Managers
www.mlim.ml.com
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.ml.com
This report is not authorized for use as an offer of sale or a solicitation
of an offer to buy shares of the Fund unless accompanied or preceded by
the Fund's current prospectus. An investment in the Fund is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing
in the Fund. Past performance results shown in this report should not be
considered a representation of future performance, which will fluctuate.
Refer to www.mlim.ml.com to obtain performance data current to the most recent
month-end. 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*
Put Bonds--7.1%
Fixed Rate Notes--11.4%
Tax-Exempt Commercial Paper--8.3%
Variable Rate Demand Obligations--73.2%
* Based on total market value of Master Tax-Exempt Trust as of September 30,
2005. 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.
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 at 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, 2005
A Letter From the President
Dear Shareholder
Amid what we've coined a "muddle through" year for the financial markets, the
major benchmark indexes managed to post positive results for the current
reporting period:
Total Returns as of September 30, 2005 6-month 12-month
U.S. equities (Standard & Poor's (S&P) 500 Index) +5.02% +12.25%
Small-cap U.S. equities (Russell 2000 Index) +9.21% +17.95%
International equities (MSCI Europe Australasia Far East Index) +9.26% +25.79%
Fixed income (Lehman Brothers Aggregate Bond Index) +2.31% + 2.80%
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +2.80% + 4.05%
High yield bonds (Credit Suisse First Boston High Yield Index) +2.82% + 6.31%
Since June 2004, the Federal Reserve Board (the Fed) has tirelessly advanced
its interest rate hiking program, raising the federal funds rate 11 times to
3.75% by period-end. The Fed admittedly remains more concerned about inflation
than slowing economic growth, causing some to worry that the central bank may
overreact to inflation and increase interest rates more than is necessary to
maintain a healthy economic balance. Recent disruptions to production and
spending from Hurricanes Katrina and Rita are likely to distort the economic
data in the short term, muddying the underlying trends. However, any hurricane-
induced slowdown is likely to be short lived, and the fiscal stimulus
associated with reconstruction efforts in the Gulf could add to gross domestic
product growth in 2006.
U.S. equities exhibited resilience over the past several months as investors
generally tended to proceed with caution. After a strong finish to 2004, the
S&P 500 Index remained largely range-bound in 2005, with the last three months
representing the best quarter of the year. Up to this point, strong corporate
earnings reports and low long-term bond yields have worked in favor of
equities. Looking ahead, high energy prices, continued interest rate hikes, a
potential consumer slowdown and/or disappointing earnings pose the greatest
risks to U.S. stocks. Internationally, many markets have benefited from strong
economic statistics, trade surpluses and solid finances.
In the bond market, the yield curve continued to flatten as short-term
interest rates moved in concert with the Fed rate hikes and longer-term
interest rates remained more constant or declined. The difference between
two-year and 10-year Treasury yields collapsed from 151 basis points (1.51%)
on September 30, 2004 to 70 basis points on March 31, 2005, to just 16 basis
points at period-end.
Financial markets are likely to face continued crosscurrents in the months
ahead. Nevertheless, opportunities do exist and we encourage you to work with
your financial advisor to diversify your portfolio among a variety of asset
types. This can help to diffuse risk while also tapping into the potential
benefits of a broader range of investment alternatives. As always, 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,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
President and Trustee
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
A Discussion With Your Fund's Portfolio Manager
As the Fed advanced its monetary tightening campaign, the Fund provided a
competitive market yield as we focused on managing our exposure to fixed rate
versus variable rate notes.
How did the Fund perform during the period?
For the six-month period ended September 30, 2005, CMA Tax-Exempt Fund paid
shareholders a net annualized yield of 1.98%. As of September 30, 2005, the
Fund's seven-day yield was 2.20%.
In the first half of the period, the short-term tax-exempt yield curve
remained inverted - indicating that longer-dated money market securities
offered lower yields than their shorter counterparts. This was largely
attributable to the traditional redemptions associated with tax season, as
taxpayers withdrew funds to pay their income tax bills. As the period
progressed and it became clear that the Federal Reserve Board (the Fed) would
continue to raise interest rates for the near future, we focused on increasing
our weighting in short-term variable rate demand notes. This strategy enhanced
the Fund's performance as variable rate securities outperformed longer fixed
rate securities through the end of May.
The Fund's performance continued to improve during the second half of the
period when many of our fixed rate positions, purchased during last year's
lower interest rate environment, matured from the portfolio. Because rates
rose significantly during this time, we were able to buy some fixed rate notes
at what we believed were attractive yields. These purchases helped the Fund's
performance, as yields on variable rate notes remained lower than expected
from July through September.
Describe market and economic conditions during the past six months.
The U.S. economy continued to grow solidly for most of the period, led by the
housing and labor markets. The pace of new home sales softened but remained
historically high, while the national jobless rate fell to 4.9% in August. For
most of the first half of the period, inflation indexes continued to reflect
little upward pressure on prices. The Fed, believing the current strength of
the U.S. economy warranted a continued tightening of monetary policy,
responded by raising interest rates at its meetings in May, June, August and
September. At period-end, the benchmark federal funds interest rate stood at
3.75%, up from 2.75% at the beginning of the period.
The short-term tax-exempt yield curve - a graphical representation of
municipal yields - remained inverted through the end of May, as tax-related
redemptions caused yields on variable rate demand notes to spike. However,
expectations that inflation would be contained, coupled with a relative lack
of issuance, caused yields on tax-exempt fixed rate notes to remain low. For
example, yields on fixed rate notes maturing in one year hovered around 2.6%
through the end of June.
Many of the same broad economic factors remained in place as we entered
the second half of the period. As the market began to anticipate that the
federal funds rate was approaching a neutral level, investors were becoming
more concerned about inflationary pressures. A significant economic shock came
late in the period from Hurricane Katrina - and to a lesser extent, Hurricane
Rita - which devastated large portions of the Gulf Coast region. The storms
caused the bond market to rally and oil prices to briefly rise above $70 per
barrel. Although it is too soon to judge the full impact of the hurricanes on
the U.S. economy, recent comments from Fed officials suggest the effects could
be temporary. However, in light of the associated rise in fuel prices, they
did allude to the idea that the fallout could exacerbate current inflationary
concerns.
During this time, yields on tax-exempt securities maturing in one year rose
from 2.55% at the beginning of July to over 3% by late August. The increase in
yields reflected the rising interest rate environment and the increased
issuance of traditional cash-flow notes in July and August. Yields generally
stayed in the 3% range for the final month of the period.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
How did you manage the portfolio during the period?
As the period began, we believed that the Fed, although closer to a more
"neutral" short-term interest rate target, would continue to tighten monetary
policy in the near term. We also expected that the short-term tax-exempt yield
curve would be inverted for the first few months of the period as a result of
the aforementioned tax-season redemptions. Against this backdrop, we sought to
increase the portfolio's weighting in variable rate demand notes by investing
the bulk of the proceeds from maturing securities and cash inflows into these
notes. As variable rate notes outperformed their fixed rate counterparts
during April and May, this approach added to performance.
As it became increasingly clear that the Fed intended to continue tightening
monetary policy, we opted to underweight fixed rate securities until the
second half of the period, when we believed we would be able to capture higher
yields. We also believed that more attractive investment opportunities would
be available later on, as the traditional issuance of cash flow notes during
this period historically has resulted in rising yields. The Fed increased
short-term interest rates 50 basis points (.50%) in two separate moves during
the second half of the period. Accordingly, yields on one-year fixed notes
rose from 2.55% at the beginning of July to 3% by late August. Toward the end
of the period, we did purchase some fixed rate notes to replace positions that
had matured from the Fund. This move benefited performance as yields on
variable rate notes remained relatively low.
How would you characterize the portfolio's positioning at the close of the
period?
By period-end, investors had grown increasingly concerned about inflationary
pressures. Consequently, we opted to limit our purchase of fixed rate notes in
anticipation of locking in more attractive yields in the near future. In
general, the portfolio was positioned similar to its peers at period-end while
maintaining a comparable weighting in shorter-term variable rate obligations.
We believe this posture should enable the portfolio to mirror the rise in
short-term interest rates as the Fed continues to tighten over the next few
months, while also allowing us the flexibility to pursue higher yields when
opportunities become available.
Overall, we believe the portfolio is well positioned to take advantage of the
more attractive interest rates expected in the near term. We also will
continue to closely monitor the credit quality of the portfolio's investments
while attempting to offer shareholders an attractive return.
Peter J. Hayes
Vice President and Portfolio Manager
October 14, 2005
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
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, 2005 and
held through September 30, 2005) 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
Beginning Ending During the Period*
Account Value Account Value April 1, 2005 to
April 1, September 30, September 30,
2005 2005 2005
Actual
CMA Tax-Exempt Fund $1,000 $1,009.90 $2.77
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, 2005
Statement of Assets and Liabilities CMA Tax-Exempt Fund
As of September 30, 2005
Assets
Investment in Master Tax-Exempt Trust (the "Trust"), at value
(identified cost--$8,463,912,417) $ 8,463,912,417
Prepaid expenses and other assets 514,561
---------------
Total assets 8,464,426,978
---------------
Liabilities
Payables:
Administrator $ 1,687,053
Distributor 1,501,308
Other affiliates 304,320
---------------
Total liabilities 3,492,681
---------------
Net Assets
Net assets $ 8,460,934,297
===============
Net Assets Consist of
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 846,365,023
Paid-in capital in excess of par 7,616,320,132
Accumulated realized capital losses allocated from the Trust--net (1,750,858)
---------------
Net Assets--Equivalent to $1.00 per share based on 8,463,650,229 shares of beneficial
interest outstanding $ 8,460,934,297
===============
See Notes to Financial Statements.
Statement of Operations CMA Tax-Exempt Fund
For the Six Months Ended September 30, 2005
Investment Income
Interest $ 17,143
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned 109,367,985
Expenses (6,668,663)
---------------
Total income 102,716,465
---------------
Expenses
Administration fees $ 10,923,090
Distribution fees 5,431,864
Transfer agent fees 627,891
Registration fees 253,736
Printing and shareholder reports 59,992
Professional fees 31,765
Other 15,357
---------------
Total expenses 17,343,695
---------------
Investment income--net 85,372,770
---------------
Realized Loss Allocated from the Trust--Net
Realized loss on investments--net (407,675)
---------------
Net Increase in Net Assets Resulting from Operations $ 84,965,095
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
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: 2005 2005
Operations
Investment income--net $ 85,372,770 $ 84,800,519
Realized loss--net (407,675) (873,498)
---------------- ----------------
Net increase in net assets resulting from operations 84,965,095 83,927,021
---------------- ----------------
Dividends to Shareholders
Dividends to shareholders from investment income--net (85,372,770) (84,800,519)
---------------- ----------------
Beneficial Interest Transactions
Net proceeds from sale of shares 19,643,676,289 35,503,093,560
Value of shares issued to shareholders in reinvestment of dividends 85,375,722 84,796,054
---------------- ----------------
Total shares issued 19,729,052,011 35,587,889,614
---------------- ----------------
Cost of shares redeemed (20,296,984,228) (36,079,796,531)
---------------- ----------------
Net decrease in net assets derived from beneficial interest transactions (567,932,217) (491,906,917)
---------------- ----------------
Net Assets
Total decrease in net assets (568,339,892) (492,780,415)
Beginning of period 9,029,274,189 9,522,054,604
---------------- ----------------
End of period $ 8,460,934,297 $ 9,029,274,189
================ ================
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Financial Highlights CMA Tax-Exempt Fund
For the Six
Months Ended
The following per share data and ratios have been derived September 30, For the Year Ended March 31,
from information provided in the financial statements. 2005 2005 2004 2003++++++ 2002
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 .01 .01 .02
Realized gain (loss)--net --++++ --++++ --++++ --++++ --++
----------- ----------- ----------- ----------- -----------
Total from investment operations .01 .01 .01 .01 .02
----------- ----------- ----------- ----------- -----------
Less dividends from investment income--net (.01) (.01) (.01) (.01) (.02)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total investment return .99%** .93% .54% .93% 1.76%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets
Expenses .55%*+++ .55%+++ .55%+++ .55%+++ .55%
=========== =========== =========== =========== ===========
Investment income and realized gain (loss)--net 1.94%* .91% .55% .93% 1.78%
=========== =========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 8,460,934 $ 9,029,274 $ 9,522,055 $10,587,794 $10,545,626
=========== =========== =========== =========== ===========
* 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, 2005
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 and strategies 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, 2005 was 92.3%. 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
1(a) 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.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12(b)-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), an affiliate of FAM, 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 whose Fund accounts are serviced by MLPF&S financial advisors,
whether maintained through MLPF&S or directly with each Fund's transfer agent.
The distribution fee is to compensate MLPF&S for providing, or arranging for
the provision of, account maintenance and sales and promotional activities and
services with respect to shares of the Fund.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co.,
is the Fund's transfer agent. Interest is earned by the Fund from FDS based on
the difference, if any, between estimated and actual beneficial share
activity, which results in uninvested net proceeds from the sales of Fund
shares.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Notes to Financial Statements (concluded) CMA Tax-Exempt Fund
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 and cost of
shares redeemed, respectively, since shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
On March 31, 2005, the Fund had a net capital loss carryforward of $668,930,
of which $72,081 expires in 2008, $144,287 expires in 2011, $220,231 expires
in 2012 and $232,331 expires in 2013. This amount will be available to offset
like amounts of any future taxable gains.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Alabama--1.8%
$ 50,000 Birmingham, Alabama, Special Care Facilities,
Financing Authority, Revenue Refunding Bonds
(Ascension Health Credit), VRDN, Series B, 2.73%
due 11/15/2039 (j) $ 50,000
20,000 Columbia, Alabama, IDB, Revenue Bonds (Alabama
Power Company Project), VRDN, AMT, 2.82%
due 11/01/2021 (j) 20,000
12,200 Daphne, Alabama, Special Care Facilities Financing
Authority, Revenue Refunding Bonds (Presbyterian),
VRDN, Series B, 2.79% due 8/15/2023 (a)(j) 12,200
1,000 Decatur, Alabama, IDB, Environmental Facilities
Revenue Bonds (BP Amoco Chemical Company
Project), VRDN, AMT, 2.83% due 11/01/2035 (j) 1,000
4,255 Eagle Tax-Exempt Trust, Birmingham, Alabama, Water
and Sewer, VRDN, Series 2002-6009, Class A, 2.79%
due 1/01/2043 (f)(j) 4,255
Eagle Tax-Exempt Trust, Jefferson County, Alabama,
Sewer Revenue Refunding Bonds, VRDN,
Series 2002 (b)(j):
7,835 Class 6015, 2.79% due 2/01/2032 7,835
3,000 Class 6016, 2.79% due 2/01/2038 3,000
32,700 Jefferson County, Alabama, Limited Obligation
School Warrants, VRDN, Series B, 2.77%
due 1/01/2027 (a)(j) 32,700
5,000 Jefferson County, Alabama, Sewer Revenue Refunding
Bonds, VRDN, Series C-6, 2.76% due 2/01/2040 (i)(j) 5,000
18,000 Stevenson, Alabama, IDB, Environmental Improvement
Revenue Bonds (Mead Corporation Project), VRDN,
AMT, Series B, 2.79% due 4/01/2033 (j) 18,000
6,300 Stevenson, Alabama, IDB, Environmental Improvement
Revenue Refunding Bonds (Mead Corporation Project),
VRDN, AMT, Series C, 2.79% due 11/01/2033 (j) 6,300
Alaska--1.5%
19,400 Alaska Industrial Development and Export Authority
Revenue Bonds, ROCS, VRDN, Series II-R-320,
2.79% due 4/01/2034 (e)(j) 19,400
13,495 Anchorage, Alaska, Electric Utility Revenue Bonds,
VRDN, Series D, 2.76% due 12/01/2026 (j) 13,495
Face
Amount Municipal Bonds Value
Alaska (concluded)
$ 6,245 Anchorage, Alaska, GO, PUTTERS, VRDN, Series 552,
2.79% due 6/01/2012 (f)(j) $ 6,245
Valdez, Alaska, Marine Terminal Revenue Refunding
Bonds, VRDN (j):
68,280 (BP Pipelines Inc. Project), Series B, 2.83%
due 7/01/2037 68,280
6,000 (BP Pipelines Inc. Project), Series C, 2.73%
due 7/01/2037 6,000
2,300 (ConocoPhillips Transportation Project), 3.03%
due 5/01/2006 2,300
24,800 (Phillips Petroleum Company Project), Series C,
3% due 6/01/2006 24,800
Arizona--2.9%
33,000 Apache County, Arizona, IDA, IDR (Tucson Electric
Power Co.), VRDN, Series 83-A, 2.75%
due 12/15/2018 (j) 33,000
4,500 Arizona Health Facilities Authority, Revenue Refunding
Bonds (Banner Health System), VRDN, Series B,
2.74% due 1/01/2035 (b)(j) 4,500
2,990 Arizona School Facilities Board, COP, Refunding, ROCS,
VRDN, Series II-R-7001, 2.79% due 9/01/2017 (b)(j) 2,990
10,000 Maricopa County, Arizona, IDA, Health Facilities
Revenue Bonds, PUTTERS, VRDN, Series 420, 2.72%
due 1/01/2010 (j) 10,000
Maricopa County, Arizona, IDA, S/F Mortgage Revenue
Bonds, FLOATS, VRDN, AMT (j):
28,555 Series 707, 2.83% due 12/01/2036 28,555
53,000 Series 1165, 2.83% due 8/01/2006 53,000
20,000 McAllister Academic Village, LLC, Arizona, Revenue
Bonds (Arizona State University Project), VRDN,
Series A, 2.76% due 7/01/2045 (a)(j) 20,000
32,290 Morgan Keegan Municipal Products, Inc., Arizona,
Variable Rate Trust Receipts, AMT, Series A, 2.59%
due 2/02/2009 (j) 32,290
74,305 Phoenix, Arizona, IDA, S/F Mortgage Revenue
Bonds, VRDN, Series A, 3.864% due 5/01/2006 (j) 74,305
10,590 Pima County, Arizona, IDA, S/F Mortgage Revenue
Bonds, VRDN, 3.79% due 2/04/2012 (j) 10,590
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
MSTC Municipal Securities Trust Certificates
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
PUTTERS Puttable Tax-Exempt Receipts
ROCS Reset Option Certificates
S/F Single-Family
TAN Tax Anticipation Notes
TOCS Tender Option Certificates
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Arkansas--2.2%
$ 7,000 Arkansas State Development Finance Authority,
Environmental Facilities Revenue Bonds (Teris
LLC Project), VRDN, AMT, 2.80% due 3/01/2021 (j) $ 7,000
7,800 Arkansas State Development Finance Authority,
M/F Housing Revenue Bonds (Chapelridge
Benton Project), VRDN, AMT, Series C, 2.83%
due 6/01/2032 (j) 7,800
Arkansas State Development Finance Authority, VRDN,
S/F Mortgage Revenue Bonds (j):
51,729 3.908% due 9/01/2006 51,729
65,855 FLOATS, AMT, Series 1139, 2.83% due 2/01/2008 65,855
40,000 North Little Rock, Arkansas, Health Facilities Board,
Health Care Revenue Bonds (Baptist Health), VRDN,
Series B, 2.78% due 12/01/2021 (f)(j) 40,000
21,730 Pulaski County, Arkansas, Lease Purpose Revenue
Bonds, VRDN, Series A, 2.85% due 3/01/2007 (c)(j) 21,730
7,530 Pulaski County, Arkansas, Public Facilities Board,
M/F Housing Revenue Refunding Bonds
(Waterford Apartments), VRDN, AMT, 2.83%
due 7/01/2032 (j) 7,530
California--2.4%
50,000 Access To Loans For Learning Student Loan
Corporation, California, Senior Revenue Bonds
(Student Loan Program), VRDN, AMT, Series V-A-1,
2.83% due 7/01/2040 (a)(j) 50,000
5,409 California Health Facilities Financing Authority
Revenue Bonds, FLOATS, VRDN, Series 591, 2.77%
due 3/01/2014 (f)(j) 5,410
32,250 California School Cash Reserve Program Authority,
Pooled Revenue Bonds, Series A, 4% due 7/06/2006 32,586
California State Economic Recovery, GO, FLOATS,
VRDN, (j):
11,295 956, 2.73% due 7/01/2012 (f) 11,295
17,500 Series L27, 2.79% due 7/01/2017 17,500
9,730 California State, GO, MERLOTS, VRDN, Series B-45,
2.76% due 10/01/2029 (j) 9,730
25,000 California Statewide Communities Development
Authority, COP, Refunding, FLOATS, VRDN,
Series 909, 2.73% due 8/15/2023 (f)(j) 25,000
30,000 Los Angeles, California, Community Redevelopment
Agency, M/F Housing Revenue Bonds (Wilshire
Station Apartments Project), VRDN, AMT, Series A,
2.71% due 10/15/2038 (j) 30,000
37,300 Los Angeles, California, S/F Home Mortgage Revenue
Bonds, VRDN, 3.70% due 10/01/2005 (j) 37,300
Colorado--1.5%
7,780 Adams County, Colorado, School District
Number 012, GO, ROCS, VRDN, Series II-R-1045,
2.79% due 12/15/2022 (e)(j) 7,780
3,220 Colorado Department of Transportation Revenue
Bonds, ROCS, VRDN, Series II-R-4046, 2.79%
due 12/15/2016 (a)(j) 3,220
10,110 Colorado Department of Transportation, Revenue
Refunding Bonds, PUTTERS, VRDN, Series 318,
2.79% due 6/15/2015 (f)(j) 10,110
12,000 Colorado Educational and Cultural Facilities Authority
Revenue Bonds (National Jewish Federation
Bond Program Project), VRDN, Series A-6, 2.72%
due 2/01/2025 (j) 12,000
3,960 Colorado Health Facilities Authority, Revenue Refunding
Bonds (Catholic Health Initiatives), VRDN, Series B-1,
2.78% due 3/01/2023 (j) 3,960
Face
Amount Municipal Bonds Value
Colorado (concluded)
$ 7,000 Colorado School Mines Development Corporation,
Revenue Refunding Bonds, VRDN, 2.91%
due 9/01/2026 (j) $ 7,000
Denver, Colorado, City and County Airport Revenue
Bonds, VRDN, AMT (j):
9,625 Series F, 2.80% due 11/15/2025 9,625
4,575 Series G, 2.80% due 11/15/2025 4,575
Denver, Colorado, City and County Airport Revenue
Refunding Bonds, AMT, VRDN (j):
5,880 MERLOTS, Series A61, 2.82% due 11/15/2012 (b) 5,880
19,000 Series C, 2.80% due 11/15/2025 19,000
10,242 Denver, Colorado, City and County S/F Mortgage
Revenue Refunding Bonds, VRDN, AMT, Series A,
3.776% due 10/25/2005 (j) 10,242
4,939 E-470 Public Highway Authority, Colorado, Revenue
Bonds, TOCS, VRDN, Series Z-7, 2.57%
due 10/27/2028 (f)(j) 4,939
2,690 E-470 Public Highway Authority, Colorado, Revenue
Refunding Bonds, FLOATS, VRDN, Series 997, 2.83%
due 3/01/2036 (f)(j) 2,690
3,623 El Paso County, Colorado, S/F Mortgage Revenue
Bonds, FLOATS, VRDN, AMT, Series 1136, 2.83%
due 11/01/2008 (j) 3,623
3,700 Moffat County, Colorado, PCR, Refunding (PacifiCorp
Projects), VRDN, 2.76% due 5/01/2013 (a)(j) 3,700
Pitkin County, Colorado, IDR, Refunding (Aspen Skiing
Company Project), VRDN (j):
7,900 AMT, Series B, 2.77% due 4/01/2014 7,900
7,000 Series A, 2.72% due 4/01/2016 7,000
18,200 Platte River Power Authority, Colorado, Electric
Revenue Refunding Bonds, VRDN, Sub-Lien,
Series S-1, 2.75% due 6/01/2018 (j) 18,200
Connecticut--0.7%
13,400 Connecticut State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Ascension
Health Credit), CP, Series B, 2.72% due 11/15/2029 13,400
22,000 Connecticut State, Special Tax Obligation Revenue
Bonds (Transportation Infrastructure), VRDN, Second
Lien, Series 1, 2.75% due 12/01/2010 (e)(j) 22,000
19,800 Eagle Tax-Exempt Trust, Connecticut, GO, VRDN,
Series 96-0701, 2.79% due 11/15/2007 (j) 19,800
9,000 Meriden, Connecticut, GO, BAN, 4% due 8/04/2006 9,079
Delaware--0.3%
24,200 Delaware State, EDA, Revenue Bonds (Hospital
Billing and Collection), VRDN, Series C, 2.76%
due 12/01/2015 (a)(j) 24,200
2,155 Delaware State Housing Authority Revenue Bonds,
ROCS, VRDN, AMT, Series II-R-359, 2.83%
due 7/01/2035 (e)(j) 2,155
3,600 University of Delaware, Revenue Refunding Bonds,
VRDN, 2.75% due 11/01/2035 (j) 3,600
District of Columbia--1.3%
District of Columbia, GO, Refunding, VRDN (j):
17,350 MSTR, Series SGA-62, 2.75% due 6/01/2017 (a) 17,350
13,040 Series C, 2.77% due 6/01/2026 (b) 13,040
67,120 District of Columbia, HFA, S/F Mortgage Revenue
Bonds, VRDN, AMT, 3.47% due 12/23/2005 (j) 67,120
17,660 District of Columbia, Hospital Revenue Bonds,
FLOATS, VRDN, Series 712, 2.83% due 7/15/2019 (j) 17,660
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Florida--3.2%
$ 13,885 Broward County, Florida, Professional Sports Facilities,
Tax Revenue Bonds, MSTR, VRDN, Series SGA-38,
2.80% due 9/01/2021 (f)(j) $ 13,885
22,715 Capital Trust Agency, Florida, M/F Housing Revenue
Bonds, VRDN, Series 1999-B, 2.91%
due 12/01/2032 (j) 22,715
15,500 Eagle Tax-Exempt Trust, Florida State Board of
Education, GO, VRDN, Series 2005-0057,
Class A, 2.79% due 6/01/2035 (j) 15,500
6,500 Florida Housing Finance Corporation, Housing
Revenue Bonds (Tuscany Lakes), VRDN, AMT,
Series 1, 2.83% due 11/15/2035 (d)(j) 6,500
8,000 Florida State Board of Education, GO, MSTR, VRDN,
Series SGA-139, 2.80% due 6/01/2032 (f)(j) 8,000
Florida State Board of Education, Lottery Revenue
Bonds, VRDN (j):
6,220 FLOATS, Series 858, 2.78% due 1/01/2017 (f) 6,220
2,850 ROCS, Series II-R-4521, 2.79% due 7/01/2020 (b) 2,850
11,678 Florida State Department of Environmental Protection,
Preservation Revenue Bonds, FLOATS, VRDN,
Series 722, 2.78% due 7/01/2022 (b)(j) 11,678
6,000 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist Health
System), VRDN, Series C, 2.77% due 11/15/2021 (j) 6,000
3,975 Hillsborough County, Florida, Aviation Authority Revenue
Refunding Bonds, MERLOTS, VRDN, AMT, Series A18,
2.82% due 10/01/2013 (f)(j) 3,975
2,873 Hillsborough County, Florida, Port District Revenue
Refunding Bonds, FLOATS, VRDN, AMT, Series 1019,
2.82% due 6/01/2018 (f)(j) 2,873
Jacksonville Electric Authority, Florida, Water and Sewer
System Revenue Refunding Bonds, VRDN (j):
2,690 PUTTERS, Series 408, 2.79% due 10/01/2011 (b) 2,690
16,965 Series B, 2.73% due 10/01/2036 (i) 16,965
12,400 Jacksonville, Florida, Electric Authority Revenue
Bonds (Electric System), VRDN, Series B, 2.72%
due 10/01/2030 (j) 12,400
4,595 Jacksonville, Florida, Sales Tax Revenue Bonds,
MERLOTS, VRDN, Series B26, 2.77%
due 10/01/2027 (f)(j) 4,595
32,100 Martin County, Florida, PCR, Refunding
(Florida Power & Light Company Project),
VRDN, 2.82% due 7/15/2022 (j) 32,100
5,870 Miami-Dade County, Florida, GO, ROCS, VRDN,
Series II-R-387, 2.79% due 7/01/2028 (b)(j) 5,870
6,000 Miami-Dade County, Florida, Special Obligation
Revenue Bonds, TOCS, VRDN, Series Z-9, 2.83%
due 4/17/2015 (f)(j) 6,000
Orange County, Florida, Health Facilities Authority
Revenue Bonds, FLOATS, VRDN (j):
32,995 Series 532, 2.79% due 11/15/2015 (a) 32,995
19,295 Series 830, 2.78% due 11/15/2022 (e) 19,295
38,120 Orlando-Orange County Expressway Authority,
Florida, Expressway Revenue Bonds, VRDN,
Sub-Series B-1, 2.73% due 7/01/2040 (a)(j) 38,120
10,000 Palm Beach County, Florida, Health Facilities
Authority, CP, 2.73% due 11/08/2005 10,000
2,080 Palm Beach County, Florida, School Board, COP, ROCS,
VRDN, Series II-R-2105, 2.79% due 8/01/2015 (b)(j) 2,080
Face
Amount Municipal Bonds Value
Florida (concluded)
$ 1,890 Reedy Creek, Florida, Improvement District,
Florida Utilities Revenue Bonds, ROCS, VRDN,
Series II-R-4027, 2.79% due 10/01/2023 (f)(j) $ 1,890
Volusia County, Florida, School Board, COP,
VRDN (f)(j):
2,140 PUTTERS, Series 970, 2.79% due 2/01/2013 2,140
5,515 ROCS, Series II-R-2212, 2.79% due 8/01/2023 5,515
Georgia--3.7%
4,400 Albany-Dougherty County, Georgia, Hospital
Authority, Revenue Refunding Bonds, FLOATS,
VRDN, Series L3J, 2.82% due 9/01/2020 (a)(j) 4,400
16,300 Appling County, Georgia, Development Authority,
PCR (Georgia Power Plant Hatch), VRDN, Second
Series, 2.83% due 12/01/2018 (j) 16,300
10,000 Atlanta, Georgia, Airport Revenue Bonds, CP, 2.70%
due 11/07/2005 10,000
Atlanta, Georgia, Airport Revenue Refunding Bonds,
VRDN (f)(j):
26,710 Series B-2, 2.75% due 1/01/2030 26,710
23,510 Series C-2, 2.75% due 1/01/2030 23,510
4,000 Atlanta, Georgia, Urban Residential Finance Authority,
M/F Housing Revenue Bonds (Lindbergh City
Center Apartment Project), AMT, VRDN, 2.82%
due 11/01/2044 (j) 4,000
Atlanta, Georgia, Water and Wastewater Revenue
Bonds, VRDN (j):
3,000 MSTR, SGA-145, 2.81% due 11/01/2033 (f) 3,000
4,250 ROCS, Series II-R-324, 2.79% due 11/01/2043 (e) 4,250
19,960 Atlanta, Georgia, Water and Wastewater Revenue
Refunding Bonds, VRDN, Series B, 2.78%
due 11/01/2038 (e)(j) 19,960
8,000 Augusta, Georgia, Water and Sewer Revenue
Refunding Bonds, MSTR, VRDN, Series SGS-140,
2.81% due 10/01/2032 (e)(j) 8,000
5,085 Burke County, Georgia, Development Authority, PCR,
Refunding (Oglethorpe Power Corporation-Vogtle),
VRDN, 2.74% due 1/01/2022 (a)(j) 5,085
Clayton County, Georgia, Development Authority,
Special Facilities Revenue Bonds (Delta Air Lines
Project), VRDN (j):
10,545 AMT, Series B, 2.87% due 5/01/2035 10,545
6,500 AMT, Series C, 2.87% due 5/01/2035 6,500
10,135 Series A, 2.82% due 6/01/2029 10,135
38,500 Cobb County, Georgia, GO, TAN, 3.50%
due 12/30/2005 38,602
Eagle Tax-Exempt Trust, Atlanta, Georgia, Water and
Wastewater Revenue Bonds, VRDN (e)(j):
9,100 Series 2005-0009, Class A, 2.79%
due 11/01/2043 9,100
4,475 Series A, 2.79% due 11/01/2028 4,475
10,585 Eagle Tax-Exempt Trust, Georgia, GO, VRDN, Series 01,
Class 1001, 2.79% due 11/01/2017 (j) 10,585
6,815 Georgia Municipal Electric Authority, Power Revenue
Bonds (MACON Trust), VRDN, Series E, 2.83%
due 1/01/2017 (j) 6,815
15,995 Georgia, Revenue Bonds, VRDN, MSTC, AMT,
Series 2002-186, Class A, 2.81%
due 2/25/2021 (f)(j) 15,995
2,590 Gwinnett County, Georgia, Development Authority,
COP, ROCS, VRDN, Series II-R-6009, 2.79%
due 1/01/2021 (f)(j) 2,590
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Georgia (concluded)
$ 68,500 Gwinnett County, Georgia, School District, GO,
Construction Sales Tax Notes, TAN, 3.25%
due 12/30/2005 $ 68,684
13,000 Macon-Bibb County, Georgia, Urban Development
Authority Revenue Bonds, (Bibb County Law
Enforcement Center Project), VRDN, 2.35%
due 7/01/2025 (j) 13,000
11,000 Monroe County, Georgia, Development Authority,
PCR (Georgia Power Company-Scherer), VRDN,
Second Series 95, 2.83% due 5/05/2006 11,000
Hawaii--0.2%
7,930 Eagle Tax-Exempt Trust, Hawaii, VRDN, Series 2001,
Class 1101, 2.79% due 7/01/2011 (e)(j) 7,930
7,500 Hawaii Pacific Health, Special Purpose Revenue
Refunding Bonds (Wilcox Memorial Hospital),
VRDN, Series B-2, 2.88% due 7/01/2033 (h)(j) 7,500
5,700 Hawaii State, Revenue Bonds, GO, Refunding, ROCS,
VRDN, Series II-R-417, 2.79% due 7/01/2010 (a)(j) 5,700
1,995 Hawaii State, Revenue Bonds, ROCS, VRDN,
Series II-R-6504, 2.79% due 10/01/2024 (f)(j) 1,995
Idaho--0.2%
15,000 Idaho State, GO, TAN, 4% due 6/30/2006 15,149
Illinois--8.3%
14,285 ABN Amro Munitops Certificates Trust, Chicago,
Illinois, GO, VRDN, Series 2001-31, 2.78%
due 1/01/2009 (b)(j) 14,285
30,333 Aurora (Kane, DuPage and Will Counties) and
Springfield (Sangamon County), Illinois, S/F
Mortgage Revenue Bonds, FLOATS, VRDN, AMT,
Series 1021, 2.83% due 3/01/2006 (j) 30,333
Aurora, Illinois, S/F Mortgage Revenue Bonds,
FLOATS, VRDN, AMT (j):
45,400 Series 1152, 2.83% due 6/01/2040 45,400
15,395 Series 1154, 2.83% due 6/01/2040 15,395
4,760 Boone, McHenry & Dekalb Counties, Illinois,
Community Unit School District Number 100,
GO, FLOATS, VRDN, Series 1138, 2.82%
due 12/01/2020 (f)(j) 4,760
Chicago, Illinois, Board of Education, GO, VRDN (j):
5,500 Refunding, PUTTERS, Series 942, 2.79%
due 12/01/2012 (f) 5,500
6,120 Series 2005-237, Class A, MSTC, 2.95%
due 1/04/2024 (k) 6,120
30,305 Series C-1, 2.73% due 3/01/2031 (e) 30,305
6,000 TOCS, Series Z-8, 2.51% due 10/28/2025 (b) 6,000
Chicago, Illinois, GO, VRDN (j):
8,110 Refunding, PUTTERS, Series 737, 2.79%
due 1/01/2013 (e) 8,110
11,080 Series B, 2.78% due 1/01/2012 11,080
3,050 TOCS, Series Z-10, 2.83% due 6/29/2029 (b) 3,050
17,250 Chicago, Illinois, Metropolitan Water Reclamation
District, Greater Chicago Area, GO, Refunding,
VRDN, Series A, 2.75% due 12/01/2031 (j) 17,250
Chicago, Illinois, Midway Airport Revenue Bonds,
Second Lien, VRDN, AMT (f)(j):
10,600 Series A, 2.78% due 1/01/2029 10,600
29,600 Series B, 2.78% due 1/01/2029 29,600
5,785 Chicago, Illinois, Motor Fuel Tax Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-2021,
2.79% due 1/01/2020 (a)(j) 5,785
Face
Amount Municipal Bonds Value
Illinois (continued)
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, ROCS, VRDN, AMT (j):
$ 29,950 Series 2001-151, Class A, MSTC, 2.95%
due 1/04/2024 (k) $ 29,950
2,700 Series II-R-239, 2.83% due 1/01/2022 (e) 2,700
5,995 Series II-R-250, 2.83% due 1/01/2034 (g) 5,995
26,045 Chicago, Illinois, O'Hare International Airport,
Revenue Refunding Bonds, VRDN, AMT, MSTC,
Series 2000-93, Class A, 2.77%
due 10/04/2012 (a)(j) 26,045
14,300 Chicago, Illinois, O'Hare International Airport,
Special Facilities Revenue Bonds (Compagnie
Nationale-Air France), VRDN, AMT, 2.80%
due 5/01/2018 (j) 14,300
6,755 Chicago, Illinois, Park District, GO, Refunding, ROCS,
VRDN, Series II-R-4002, 2.79% due 1/01/2023 (b)(j) 6,755
3,375 Cook County, Illinois, GO, Refunding, ROCS, VRDN,
Series II-R-2063, 2.79% due 11/15/2021 (f)(j) 3,375
Cook County, Illinois, GO, MSTC, Refunding,
VRDN, Class A (b)(j):
29,085 Series 2001-145, 2.81% due 11/15/2029 29,085
33,895 Series 2002-191, Class A, 2.81% due 3/18/2019 33,895
11,000 Eagle Tax-Exempt Trust, Chicago Board of Education,
VRDN, Series 01, Class 1309, 2.79%
due 12/01/2026 (j) 11,000
9,900 Eagle Tax-Exempt Trust, Chicago, Illinois, GO,
VRDN, Series 98, Class 1301, 2.79%
due 1/01/2017 (j) 9,900
30,000 Eagle Tax-Exempt Trust, Cook County, Illinois,
VRDN, Series 02, Class 1303, 2.79%
due 11/15/2025 (a)(j) 30,000
14,355 Eagle Tax-Exempt Trust, Illinois Metropolitan
Expo Center, VRDN, Series 98, Class 1306,
2.79% due 6/15/2029 (j) 14,355
Eagle Tax-Exempt Trust, Illinois State, GO, VRDN (j):
11,000 Series 01, Class 1307, 2.79% due 11/01/2022 11,000
11,100 Series 02, Class 1302, 2.79% 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, 2.79% due 6/15/2042 (f)(j) 3,000
3,400 Eagle Tax-Exempt Trust, Metropolitan Pier and
Exposition Authority, Illinois, Hospitality Facilities
Revenue Bonds, Class 49, VRDN, Series A, 2.79%
due 7/01/2026 (j) 3,400
5,000 Eagle Tax-Exempt Trust, Metropolitan Pier and
Exposition Authority, Illinois, VRDN, Series
2002-6001, Class A, 2.79% due 12/15/2028 (f)(j) 5,000
2,000 Eagle Tax-Exempt Trust, Regional Transportation
Authority, Illinois, Revenue Bonds, VRDN,
Series 2005-0003, Class A, 2.79%
due 6/01/2034 (e)(j) 2,000
5,000 Illinois Development Finance Authority, Water Facilities
Revenue Refunding Bonds (Illinois American Water
Company), VRDN, AMT, 2.83% due 3/01/2032 (f)(j) 5,000
Illinois Educational Facilities Authority Revenue Bonds,
VRDN (j):
8,450 (The Art Institute of Chicago), 2.78%
due 3/01/2027 8,450
4,700 (Chicago Historical Society), 2.78% due 12/01/2025 4,700
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Illinois (concluded)
Illinois HDA, M/F Housing Revenue Bonds (Danbury
Court Apartments), VRDN, AMT (j):
$ 6,265 Series A, 2.82% due 5/01/2037 $ 6,265
450 Series B, 2.92% due 5/01/2037 450
45,000 Illinois Health Facilities Authority, CP, 2.83%
due 1/12/2006 45,000
10,000 Illinois Health Facilities Authority Revenue Bonds,
Revolving Fund, Pooled, VRDN, Series B, 2.77%
due 8/01/2020 (j) 10,000
5,910 Illinois Health Facilities Authority, Revenue Refunding
Bonds (University of Chicago Hospitals), VRDN,
2.72% due 8/01/2026 (f)(j) 5,910
2,940 Illinois State Dedicated Tax (Macon Trust), VRDN,
Series N, 2.85% due 12/15/2020 (a)(j) 2,940
12,500 Illinois State Finance Authority, Revenue Refunding
Bonds (Central DuPage Health System), VRDN,
Series B, 2.77% due 11/01/2038 (j) 12,500
8,980 Illinois State, GO, MERLOTS, VRDN, Series B04, 2.77%
due 12/01/2024 (e)(j) 8,980
Illinois State, GO, Refunding, VRDN (f)(j):
16,495 FLOATS, Series 743D, 2.78% due 8/01/2015 (i) 16,495
5,855 MERLOTS, Series A49, 2.77% due 8/01/2013 5,855
16,605 Illinois Student Assistance Commission, Student
Loan Revenue Bonds, VRDN, AMT, Series A-I, 2.79%
due 9/01/2034 (f)(j) 16,605
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds, VRDN (f)(j):
1,400 FLOATS, Series 962, 2.83% due 12/15/2034 1,400
4,600 ROCS, Series II-R-271, 2.88% due 12/15/2032 4,600
670 ROCS, Series II-R-310, 2.88% due 12/15/2033 670
4,295 TOCS, Series Z-1, 2.83% due 12/15/2026 4,295
31,615 Metropolitan Pier and Exposition Authority, Illinois,
Revenue Refunding Bonds, VRDN, MSTC,
Series 2001-157, Class A, 2.81%
due 10/05/2017 (b)(j) 31,615
Regional Transportation Authority, Illinois, GO,
MERLOTS, VRDN (j):
19,840 Series A24, 2.77% due 7/01/2032 (f) 19,840
4,925 Series A41, 2.77% due 6/01/2017 (b) 4,925
32,940 Regional Transportation Authority, Illinois, Revenue
Refunding Bonds, FLOATS, VRDN, Series 818-D,
2.78% due 7/01/2033 (b)(j) 32,940
8,300 Will County, Illinois, Exempt Facilities Revenue
Bonds (Amoco Chemical Company Project), VRDN,
AMT, 2.83% due 3/01/2028 (j) 8,300
10,000 Will County, Illinois, M/F Housing Redevelopment,
Revenue Refunding Bonds (Woodlands Crest Hill),
VRDN, AMT, 3.01% due 2/15/2031 (d)(j) 10,000
Indiana--6.2%
10,000 ABN Amro Munitops Certificates Trust, South Bend,
Indiana, Community School District, VRDN,
Series 1998-5, 2.78% due 4/05/2006 (e)(j) 10,000
7,335 Benton, Indiana, School Improvement Building
Corporation, Revenue Bonds, PUTTERS, VRDN,
Series 903, 2.79% due 1/15/2013 (f)(j) 7,335
5,390 Carmel, Indiana, School Building Corporation
Revenue Bonds, ROCS, VRDN, Series II-R-2065,
2.79% due 7/15/2020 (f)(j) 5,390
Face
Amount Municipal Bonds Value
Indiana (continued)
$ 13,000 Goshen, Indiana, EDR, Refunding (Goshen College
Project), VRDN, 2.78% due 10/01/2037 (j) $ 13,000
13,000 Hammond, Indiana, Sewer and Solid Waste Disposal,
Revenue Refunding Bonds (Cargill Inc. Project),
VRDN, AMT, 2.82% due 12/01/2024 (j) 13,000
50,000 Indiana Bond Bank, Advance Funding Program Notes,
Series A, 3.25% due 1/26/2006 50,150
Indiana Health Facilities Financing Authority, Hospital
Revenue Bonds, VRDN (j):
79,100 (Clarian Health Obligation Group), Series C, 2.75%
due 3/01/2030 79,100
37,100 (Clarian Health Partners), Series H, 2.75%
due 3/01/2033 37,100
15,000 (Community Hospitals Project), Series A, 2.78%
due 7/01/2027 15,000
Indiana Health Facilities Financing Authority, Hospital
Revenue Refunding Bonds (Clarian Health Partners),
VRDN (j):
51,800 Series B, 2.75% due 2/15/2026 51,800
50,800 Series C, 2.75% due 2/15/2026 50,800
350 Indiana Health Facilities Financing Authority Revenue
Bonds (Capital Access Designated Pool), VRDN,
2.74% due 1/01/2012 (j) 350
Indiana Health Facilities Financing Authority, Revenue
Refunding Bonds (Ascension Health Credit Group),
VRDN (j):
14,500 Series A-2, 2.72% due 6/01/2006 14,500
7,000 Series A-4, 2.50% due 3/01/2006 6,998
15,800 Series B, 2.73% due 11/15/2039 (a) 15,800
40,250 Indiana State Development Finance Authority,
Environmental Revenue Bonds (PSI Energy Inc.
Projects), VRDN, AMT, Series A, 2.90%
due 12/01/2038 (j) 40,250
18,500 Indiana State, HFA, S/F Mortgage Revenue Bonds,
VRDN, AMT, Series D-2, 2.30% due 12/15/2005 (j) 18,500
5,305 Indiana State Office Building Commission, Facilities
Revenue Bonds, ROCS, VRDN, Series II-R-4534,
2.79% due 7/01/2020 (j) 5,305
2,000 Indiana Transportation Finance Authority, Highway
Revenue Refunding Bonds, FLOATS, VRDN,
Series 942D, 2.78% due 12/01/2022 (b)(j) 2,000
34,995 Indianapolis, Indiana, Local Tax-Exempt, GO, VRDN,
MSTC, Series 2002-192, Class A, 2.81%
due 6/18/2014 (f)(j) 34,995
11,815 New Albany-Floyd County, Indiana, Independent
School Building Corporation, Revenue Refunding
Bonds, PUTTERS, VRDN, Series 879, 2.79%
due 6/01/2013 (e)(j) 11,815
7,700 Whiting, Indiana, Environmental Facilities Revenue
Bonds (BP Products North America Project), VRDN,
AMT, 2.83% due 7/01/2035 (j) 7,700
Whiting, Indiana, Environmental Facilities Revenue
Refunding Bonds, VRDN, AMT (j):
2,400 (Amoco Oil Company Project), 2.83%
due 1/01/2026 2,400
1,000 (Amoco Oil Company Project), 2.83%
due 7/01/2031 1,000
6,800 (BP Products of North America), 2.83%
due 1/01/2038 6,800
39,095 (BP Products Project), Series C, 2.83%
due 7/01/2034 39,095
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Indiana (concluded)
$ 25,600 Whiting, Indiana, Industrial Sewer and Solid Waste
Disposal Revenue Refunding Bonds (Amoco Oil
Company Project), VRDN, AMT, 2.83%
due 1/01/2026 (j) $ 25,600
Iowa--0.3%
20,000 Iowa Finance Authority, Health Care Facilities,
Revenue Refunding Bonds (Iowa Health System),
VRDN, Series B-3, 2.75% due 2/15/2035 (a)(j) 20,000
1,250 Iowa Higher Education Loan Authority, Revenue
Bonds (University of Dubuque), RAN, Series C,
4.75% due 5/24/2006 1,258
10,000 Louisa County, Iowa, PCR, Refunding (Iowa-Illinois
Gas and Electric), VRDN, Series A, 2.80%
due 9/01/2016 (j) 10,000
Kansas--0.1%
3,985 Kansas State Department of Transportation,
Highway Revenue Bonds, ROCS, VRDN,
Series II-R-6020, 2.79% due 3/01/2019 (e)(j) 3,985
2,775 Reno and Labette Counties, Kansas, S/F Mortgage
Revenue Bonds, FLOATS, VRDN, Series 915,
2.83% due 12/01/2015 (j) 2,775
Kentucky--3.4%
2,500 Boyd County, Kentucky, Sewer and Solid Waste
Revenue Bonds (Air Products and Chemicals Project),
VRDN, AMT, 2.84% due 6/01/2021 (j) 2,500
11,898 Breckinridge County, Kentucky, Lease Program Revenue
Bonds (Kentucky Association of Counties Leasing
Trust), VRDN, Series A, 2.72% due 2/01/2032 (j) 11,898
20,930 Carroll County, Kentucky, Solid Waste, CP, 2.77%
due 11/14/2005 20,930
Daviess County, Kentucky, Solid Waste Disposal Facility
Revenue Bonds (Scott Paper Company Project),
VRDN, AMT (j):
44,100 Series A, 2.79% due 12/01/2023 44,100
26,200 Series B, 2.79% due 12/01/2023 26,200
3,375 Eagle Tax-Exempt Trust, Kentucky State Property and
Buildings Commission, Revenue Refunding Bonds,
VRDN, Series 2004-0002, Class A, 2.79%
due 10/01/2018 (e)(j) 3,375
Jefferson County, Kentucky, CP:
12,500 2.75% due 11/01/2005 12,500
12,500 2.80% due 11/01/2005 12,500
12,500 2.85% due 12/01/2005 12,500
2,200 Kenton County, Kentucky, Airport Board, Special
Facilities Revenue Refunding Bonds, VRDN, Series B,
2.82% due 10/01/2030 (j) 2,200
55,000 Kentucky Asset/Liability Commission, General Fund
Revenue Bonds, TRAN, Series A, 4% due 6/28/2006 55,529
6,840 Kentucky State Property and Buildings Commission,
Revenue Refunding Bonds, FLOATS, VRDN, Series 739,
2.79% due 2/01/2018 (f)(j) 6,840
36,475 Kentucky State Turnpike Authority, Resource Recovery
Road Revenue Bonds, FLOATS, VRDN, Series 488,
2.78% due 7/01/2007 (e)(j) 36,475
4,395 Louisville and Jefferson Counties, Kentucky, Metropolitan
Sewer District, Sewer and Drain System Revenue
Bonds, ROCS, VRDN, Series II-R-304, 2.79%
due 5/15/2037 (b)(j) 4,395
Face
Amount Municipal Bonds Value
Kentucky (concluded)
$ 48,285 Louisville and Jefferson Counties, Kentucky,
Metropolitan Sewer District, Sewer and Drain
System Revenue Refunding Bonds, VRDN, Series B,
2.75% due 5/15/2023 (e)(j) $ 48,285
14,980 Shelby County, Kentucky, Lease Revenue Bonds,
VRDN, Series A, 2.72% due 9/01/2034 (j) 14,980
Louisiana--2.8%
17,700 Ascension Parish, Louisiana, Revenue Bonds
(BASF Corporation Project), VRDN, AMT, 2.89%
due 3/01/2025 (j) 17,700
2,275 East Baton Rouge, Louisiana, Mortgage Finance
Authority, S/F Mortgage Revenue Bonds, VRDN,
Series B, 3.864% due 12/01/2005 (j) 2,275
4,995 East Baton Rouge, Louisiana, Mortgage Finance
Authority, S/F Revenue Bonds, FLOATS, VRDN, AMT,
Series 996, 2.85% due 6/02/2008 (j) 4,995
29,278 Jefferson Parish, Louisiana, Home Mortgage Authority,
S/F Mortgage Revenue Bonds, VRDN, AMT, Series B,
3.73% due 8/25/2036 (j) 29,278
Jefferson Parish, Louisiana, Hospital Service District
Number 001, Hospital Revenue Bonds, VRDN (j):
10,000 PUTTERS, Series 522, 2.81% due 12/01/2008 10,000
25,000 (West Jefferson Medical Center), Series B, 2.78%
due 1/01/2028 (e) 25,000
Louisiana HFA, Mortgage Revenue Refunding Bonds,
FLOATS, VRDN, AMT (j):
9,460 Series 1066, 2.85% due 3/01/2036 9,460
45,460 Series 1069, 2.85% due 12/01/2047 (f) 45,460
4,428 Louisiana HFA, S/F Mortgage Revenue Refunding
Bonds, VRDN, AMT, 3.891% due 4/28/2006 (j) 4,428
6,000 Louisiana Local Government, Environmental Facilities,
Community Development Authority Revenue Bonds
(Honeywell International Inc. Project), VRDN, AMT,
2.95% due 12/01/2037 (j) 6,000
Louisiana Public Facilities Authority, Advanced Funding
Revenue Bonds:
4,965 Series A, 4.50% due 10/19/2006 5,040
3,475 Series D, 4.50% due 10/19/2006 3,527
300 Series E, 4.50% due 10/19/2006 304
Louisiana Public Facilities Authority Revenue
Bonds, VRDN (j):
2,850 (Air Products and Chemicals Project), AMT, 2.84%
due 12/01/2039 2,850
13,210 (Equipment and Capital Facilities Loan Program),
Series C, 3.25% due 7/01/2024 13,210
4,195 Louisiana State GO, Refunding, ROCS, VRDN,
Series II-R-1069, 2.79% due 8/01/2017 (f)(j) 4,195
New Orleans, Louisiana, Ernest N. Morial Exhibit Hall
Authority, Special Tax, VRDN (a)(j):
5,095 MERLOTS, Series A46, 2.77% due 7/15/2028 5,095
8,115 ROCS, Series II-R-4038, 2.79% due 7/15/2023 8,115
11,500 New Orleans, Louisiana, Finance Authority, S/F Mortgage
Revenue Bonds, FLOATERS, VRDN, Series 990, 2.85%
due 6/02/2008 (j) 11,500
New Orleans, Louisiana, Finance Authority, S/F Mortgage
Revenue Refunding Bonds, VRDN (j):
3,000 FLOATS, Series 1137, 2.90% due 12/01/2044 3,000
21,557 Series C, 3.90% due 6/01/2042 21,557
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Louisiana (concluded)
Saint Charles Parish, Louisiana, PCR, VRDN, AMT (j):
$ 7,700 (Shell Oil Company--Norco Project), 2.78%
due 11/01/2021 $ 7,700
12,250 (Shell Oil Company Project), Series A, 2.82%
due 10/01/2022 12,250
4,400 South Louisiana Port Commission, Port Revenue
Refunding Bonds (Occidental Petroleum), VRDN,
2.78% due 7/01/2018 (j) 4,400
Maine--0.1%
7,270 Maine Governmental Facilities Authority, Lease Rental
Revenue Refunding Bonds, ROCS, VRDN,
Series II-R-5027, 2.79% due 10/01/2013 (e)(j) 7,270
Maryland--1.0%
35,700 Baltimore, Maryland, Port Facilities Revenue Bonds
(Occidental Petroleum), FLOATS, VRDN, 2.60%
due 10/14/2011 (j) 35,700
38,305 Maryland State Health and Higher Educational Facilities
Authority, Revenue Refunding Bonds, FLOATS, VRDN,
Series 867, 2.78% due 7/01/2019 (b)(j) 38,305
48,855 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Refunding Bonds, MERLOTS,
VRDN, AMT, Series C35, 1.73% due 10/01/2014 (f)(j) 48,855
9,225 Metropolitan Washington Airports Authority, D.C.,
System Revenue Bonds, ROCS, VRDN, Series II-R-195,
2.83% due 10/01/2032 (b)(j) 9,225
14,000 Montgomery County, Maryland, EDR (Riderwood
Village Inc. Project), Refunding, VRDN, 2.77%
due 3/01/2034 (j) 14,000
Massachusetts--3.1%
44,000 Acton-Boxborough Regional School District,
Massachusetts, GO, BAN, 3.50% due 12/09/2005 44,086
10,000 Eagle Tax-Exempt Trust, Massachusetts Commuter
Facilities, VRDN, Series 2001, Class 2101, 2.78%
due 6/15/2033 (j) 10,000
25,000 Lawrence, Massachusetts, GO, BAN, 3.50%
due 12/22/2005 25,042
8,000 Massachusetts State Development Finance Agency
Revenue Bonds (Suffolk University), VRDN, Series A,
2.83% due 7/01/2035 (j) 8,000
Massachusetts State, GO, Refunding, VRDN (j):
29,687 FLOATS, Series 716D, 2.77% due 8/01/2018 (f) 29,687
2,700 Series A, 2.78% due 9/01/2016 2,700
4,250 Massachusetts State Health and Educational Facilities
Authority Revenue Bonds (Capital Asset Program),
VRDN, Series E, 2.76% due 1/01/2035 (j) 4,250
Massachusetts State Heritage, CP:
39,250 2.75% due 11/14/2005 39,250
10,500 2.80% due 12/01/2005 10,500
15,000 Pembroke, Massachusetts, GO, Refunding, BAN, 4%
due 8/03/2006 15,135
85,245 Route 3 North Transit Improvement Association,
Massachusetts, Lease Revenue Refunding Bonds,
VRDN, Series B, 2.75% due 6/15/2033 (a)(j) 85,245
9,000 Walpole, Massachusetts, GO, BAN, 3.25%
due 11/03/2005 9,011
Michigan--2.5%
Detroit, Michigan, City School District, VRDN (j):
4,615 GO, Series A, 2.83% due 5/01/2029 (e) 4,615
48,525 MERLOTS, Series A113, 2.96% due 7/26/2006 48,525
Face
Amount Municipal Bonds Value
Michigan (concluded)
Detroit, Michigan, Sewer Disposal Revenue Refunding
Bonds, VRDN (e)(j):
$ 6,270 MERLOTS, Series B-02, 2.77% due 7/01/2028 $ 6,270
9,755 MSTR, SGB 47-A, 2.79% due 7/01/2028 9,755
8,200 Eagle Tax-Exempt Trust, Detroit, Michigan, City School
District, GO, Refunding, VRDN, Series 2005-0072,
Class A, 2.79% due 5/01/2032 (e)(j) 8,200
8,910 Eagle Tax-Exempt Trust, Detroit, Michigan, GO,
VRDN, Series 2004-1006, Class A, 2.79%
due 4/01/2009 (f)(j) 8,910
6,900 Eagle Tax-Exempt Trust, Grand Rapids Michigan,
Sanitation Sewer System, VRDN, Series A, 2.79%
due 1/01/2022 (b)(j)(k) 6,900
35,000 Michigan Municipal Bond Authority, Revenue
Refunding Bonds, VRDN, Series B-2, 4%
due 8/18/2006 (j) 35,324
24,600 Michigan State Building Authority, Multi-Modal
Revenue Refunding Bonds (Facilities Program),
VRDN, Series I, 2.75% due 10/15/2039 (j) 24,600
4,275 Michigan State Building Authority, Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-2064,
2.79% due 10/15/2021 (f)(j) 4,275
26,900 Michigan State Hospital Finance Authority Revenue
Bonds (Ascension Health), VRDN, Series B-1, 2.73%
due 11/15/2033 (j) 26,900
22,000 Michigan State Hospital Finance Authority, Revenue
Refunding Bonds, MERLOTS, VRDN, Series K, 2.77%
due 11/15/2023 (f)(j) 22,000
16,505 Michigan State Hospital, Revenue Refunding Bonds,
VRDN, MSTC, Series 1997-24, Class A, 2.81%
due 12/01/2005 (e)(j) 16,505
2,800 Michigan State Strategic Fund, CP, 2.75%
due 10/03/2005 2,800
Minnesota--2.0%
City of Rochester, Minnesota, CP:
16,250 2.65% due 10/06/2005 16,250
13,500 2.68% due 10/06/2005 13,500
30,000 2.75% due 11/21/2005 30,000
17,467 Duluth, Minnesota, EDA, Health Care Facilities
Revenue Refunding Bonds, FLOATS, VRDN,
Series 895, 2.78% due 2/15/2020 (a)(j) 17,468
5,000 Minneapolis and St. Paul, Minnesota, Metropolitan
Airports Commission, Airport Revenue Refunding
Bonds, PUTTERS, VRDN, AMT, Series 928, 2.82%
due 1/01/2013 (a)(j) 5,000
14,000 Minneapolis, Minnesota, Health Care System,
Revenue Refunding Bonds (Fairview Health
Services Project), VRDN, Series B, 2.76%
due 11/15/2029 (a)(j) 14,000
Minnesota Rural Water Finance Authority, Public
Projects Construction Revenue Notes:
12,500 3% due 10/01/2005 12,500
2,500 4.25% due 9/15/2006 2,528
Minnesota State, CP:
66,500 2.68% due 10/06/2005 66,500
4,500 2.70% due 11/01/2005 4,500
1,695 Minnesota State, GO, ROCS, VRDN, Series II-R-4065,
2.79% due 8/01/2023 (j) 1,695
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Mississippi--2.4%
$ 9,600 Mississippi Business Finance Corporation, Mississippi
Solid Waste Disposal Revenue Bonds (Mississippi
Power Company Project), VRDN, AMT, 3.17%
due 7/01/2025 (j) $ 9,600
3,520 Mississippi Business Finance Corporation, Mississippi,
Solid Waste Disposal Revenue Refunding Bonds
(Mississippi Power Company Project), VRDN,
AMT, 3.17% due 5/01/2028 (j) 3,520
5,200 Mississippi Business Finance Corporation Revenue
Bonds (Mississippi Power Company), VRDN, AMT,
2.88% due 12/01/2027 (j) 5,200
30,000 Mississippi Development Bank, Special Obligation
Revenue Bonds (Municipal Gas Authority of
Mississippi--Natural Gas Supply Project),
VRDN, 2.73% due 7/01/2015 (j) 30,000
12,500 Mississippi Home Corporation, Lease Purpose
Revenue Bonds, VRDN, 2.85% due 10/01/2007 (j) 12,500
127,289 Mississippi Home Corporation, S/F Revenue Bonds,
FLOATS, VRDN, AMT, Series 989, 2.85%
due 10/03/2005 (j) 127,289
25,900 Mississippi Hospital Equipment and Facilities
Authority Revenue Bonds (Mississippi Baptist
Medical Center), VRDN, 2.78% due 7/01/2012 (j) 25,900
5,450 University of Mississippi, Educational Building
Corporation Revenue Bonds (The University of
Mississippi Medical Center Pediatric and Research
Facilities Project), VRDN, 2.76% due 6/01/2034 (a)(j) 5,450
Missouri--0.8%
50,000 Missouri Development Finance Board, Cultural Facilities
Revenue Bonds (Nelson Gallery Foundation), VRDN,
Series A, 2.71% due 12/01/2033 (j) 50,000
20,000 Missouri State Health and Educational Facilities
Authority, Health Facilities Revenue Bonds (BJC
Health System), VRDN, Series B, 2.72%
due 5/15/2034 (j) 20,000
5,575 Missouri State Housing Development Commission,
S/F Mortgage Revenue Refunding Bonds, VRDN,
Series A, 3.764% due 5/15/2006 (j) 5,575
Nebraska--1.6%
American Public Energy Agency, Nebraska, Gas
Supply Revenue Bonds, VRDN (j):
75,800 (National Public Gas Agency Project), Series B,
2.75% due 2/01/2014 75,800
20,000 Series A, 2.73% due 12/01/2015 20,000
2,000 Eagle Tax-Exempt Trust, Nebraska Public Power
District Revenue Bonds, VRDN, Series 1016, Class A,
2.79% due 1/01/2035 (a)(j) 2,000
4,370 Municipal Energy Agency of Nebraska, Power Supply
System Revenue Bonds, ROCS, VRDN, Series II-R-2051,
2.79% due 4/01/2022 (e)(j) 4,370
4,125 Nebhelp Inc., Nebraska, Revenue Bonds, ROCS, VRDN,
AMT, Series II-R-205, 2.83% due 6/01/2013 (f)(j) 4,125
36,000 Nebraska Public Power District, CP, 2.50%
due 10/04/2005 (a) 36,000
4,995 Nebraska Public Power District Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-209, 2.79%
due 1/01/2012 (f)(j) 4,995
Face
Amount Municipal Bonds Value
Nevada--1.9%
$ 29,185 ABN Amro Munitops Certificates Trust, Clark County,
Nevada, Airport Revenue Bonds, VRDN, Series
1999-15, 2.77% due 1/02/2008 (f)(j) $ 29,185
57,100 Clark County, Nevada, Airport Improvement Revenue
Refunding Bonds, VRDN, Series A, 2.65%
due 7/01/2012 (f)(j) 57,100
10,000 Clark County, Nevada, CP, 2.73% due 12/05/2005 10,000
2,495 Clark County, Nevada, IDR, Refunding, PUTTERS,
VRDN, AMT, Series 722, 2.82% due 12/01/2012 (b)(j) 2,495
Clark County, Nevada, Las Vegas-McCarran
International Airport Passenger Facility Charge,
Revenue Refunding Bonds, VRDN (f)(j):
22,000 Series A-1, 2.70% due 7/01/2022 22,000
26,000 Series A-2, 2.70% due 7/01/2022 26,000
9,040 Las Vegas Valley, Nevada, Water District, GO,
Refunding, MERLOTS, VRDN, Series B 10, 2.77%
due 6/01/2024 (f)(j) 9,040
6,500 Nevada Housing Division Revenue Bonds
(Multi-Unit Housing-Mesquite), VRDN, AMT,
Series B, 3.08% due 5/01/2028 (j) 6,500
5,850 Nevada State Department of Business and Industry,
Solid Waste Disposal Revenue Bonds (Republic
Services Inc. Project), VRDN, AMT, 3.10%
due 12/01/2034 (j) 5,850
7,255 Washoe County, Nevada, School District, GO, ROCS,
VRDN, Series II-R-2012, 2.79% due 6/01/2020 (b)(j) 7,255
New Hampshire--1.1%
10,000 New Hampshire Health and Educational Facilities
Authority, Revenue Refunding Bonds (Dartmouth
Hitchcock Obligation), VRDN, Series A, 2.75%
due 8/01/2031 (e)(j) 10,000
New Hampshire Higher Educational and Health
Facilities Authority, Revenue Refunding Bonds,
FLOATS, VRDN (b)(j):
5,475 Series 772, 2.79% due 1/01/2017 5,475
11,000 Series 866, 2.79% due 8/15/2021 11,000
7,415 New Hampshire State Business Finance Authority,
Resource Recovery Revenue Refunding Bonds
(Wheelabrator), VRDN, Series A, 2.77%
due 1/01/2018 (j) 7,415
20,000 New Hampshire State Business Fund, CP, 2.78%
due 11/08/2005 20,000
50,600 New Hampshire State Industrial Finance Agency,
CP, 2.75% due 11/10/2005 50,600
New Jersey--1.1%
21,832 East Brunswick Township, New Jersey, BAN, 3%
due 1/06/2006 21,882
15,000 New Jersey EDA, Revenue Bonds (Presbyterian
Homes), VRDN, Series B, 2.75% due 12/01/2032 (j) 15,000
8,370 New Jersey Health Care Facilities Financing Authority
Revenue Bonds, FLOATS, VRDN, Series 702, 2.79%
due 7/01/2014 (f)(j) 8,370
35,000 New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Bonds, VRDN, AMT,
Series Q, 2.82% due 4/01/2032 (j) 35,000
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
New Jersey (concluded)
New Jersey State Turnpike Authority, Turnpike
Revenue Bonds, VRDN (e)(j):
$ 9,700 Series C-1, 2.73% due 1/01/2024 $ 9,700
10,400 Series C-2, 2.73% due 1/01/2024 10,400
300 Port Authority of New York and New Jersey, Special
Obligation Revenue Refunding Bonds (Versatile
Structure Obligation), VRDN, AMT, Series 4, 2.74%
due 4/01/2024 (j) 300
New Mexico--0.9%
7,385 New Mexico Finance Authority, Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-7509, 2.79%
due 6/15/2023 (a)(j) 7,385
51,980 New Mexico Mortgage Finance Authority, S/F
Mortgage Program Revenue Bonds, VRDN,
AMT, 3.864% due 3/01/2006 (j) 51,980
20,000 New Mexico State Hospital Equipment Loan Council,
Hospital Revenue Refunding Bonds (Presbyterian
Healthcare Services), VRDN, Series B, 2.76%
due 8/01/2030 (e)(j) 20,000
New York--3.9%
86,105 Albany, New York, City School District, GO, BAN,
Series B, 4% due 6/30/2006 86,920
6,000 Chautauqua County, New York, GO, TAN, 4%
due 7/28/2006 6,055
24,700 Eagle Tax-Exempt Trust, New York State Dormitory
Authority (Memorial Sloan), VRDN, Series 98,
Class 3202, 2.78% due 7/01/2023 (j) 24,700
65,005 Metropolitan Transportation Authority, New York,
Dedicated Tax Fund, Revenue Refunding Bonds,
VRDN, Series B, 2.74% due 11/01/2022 (e)(j) 65,005
4,000 Mineola, New York, Union Free School District, GO,
TAN, 4% due 6/30/2006 4,035
8,000 Monticello, New York, Central School District, GO,
BAN, 4% due 7/28/2006 8,070
24,000 New York City, New York, City IDA, Liberty Revenue
Bonds (One Bryant Park LLC Project), VRDN, Series A,
2.76% due 11/01/2039 (j) 24,000
10,000 New York City, New York, City Municipal Water Finance
Authority, CP, 2.74% due 12/22/2005 10,000
21,500 New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue
Refunding Bonds, MSTR, VRDN, Series SGB-27,
2.78% due 6/15/2024 (e)(j) 21,500
15,000 New York City, New York, City Transitional Finance
Authority, New York City Recovery Revenue Refunding
Bonds, VRDN, Series 3, Sub-Series 3G, 2.74%
due 11/01/2022 (j) 15,000
10,000 New York City, New York, City Transitional Finance
Authority, Special Tax Revenue Refunding Bonds,
VRDN, Series C, 2.74% due 2/01/2032 (j) 10,000
13,995 New York City, New York, City Transitional Finance
Authority Revenue Bonds, VRDN, MSTC,
Series 2002-202, Class A, 2.76%
due 10/21/2010 (b)(j) 13,995
21,115 New York State Dormitory Authority, Revenue
Refunding Bonds, MERLOTS, VRDN, Series A-09,
2.78% due 5/15/2031 (a)(j) 21,115
12,000 Rochester, New York, GO, Refunding, BAN, Series II,
3% due 10/21/2005 12,007
Face
Amount Municipal Bonds Value
New York (concluded)
$ 19,410 Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Bonds, VRDN, Series B,
2.75% due 1/01/2033 (j) $ 19,410
10,000 Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Refunding Bonds, VRDN,
Series B, 2.73% due 1/01/2032 (a)(j) 10,000
7,000 William Floyd Union Free School District,
Mastics-Moriches-Shirley, New York, GO, BAN, 3.75%
due 6/27/2006 7,051
North Carolina--0.9%
19,995 North Carolina Eastern Municipal Power Agency,
GO, Refunding, VRDN, MSTC, Series 2002-201,
Class A, 2.79% due 4/12/2017 (j) 19,995
8,165 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, MERLOTS, VRDN,
Series A22, 2.77% due 1/01/2024 (j) 8,165
49,500 North Carolina Medical Care Commission, Health
Care Facilities Revenue Bonds (Novant Health
Group), VRDN, Series A, 2.75% due 11/01/2034 (j) 49,500
4,500 North Carolina State, GO, MERLOTS, VRDN,
Series A23, 2.77% due 3/01/2027 (j) 4,500
3,900 Wake County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority Revenue Bonds
(Solid Waste Disposal--Highway 55), VRDN, AMT,
2.85% due 9/01/2013 (j) 3,900
Ohio--1.9%
50,000 Cleveland, Ohio, Water Revenue Refunding Bonds,
VRDN, Series M, 2.75% due 1/01/2033 (e)(j) 50,000
4,000 Eagle Tax-Exempt Trust, Cincinnati, Ohio, City School
District, GO, VRDN, Series 2004-34, Class A, 2.79%
due 12/01/2031 (e)(j) 4,000
22,275 Eagle Tax-Exempt Trust, Ohio State Turnpike, VRDN,
Series 98, Class 3503, 2.78% due 2/15/2026 (j) 22,275
28,000 Hamilton County, Ohio, Health Care Facilities Revenue
Bonds (Twin Towers and Twin Lakes), VRDN, Series A,
2.69% due 7/01/2023 (j) 28,000
9,000 Hamilton County, Ohio, Student Housing Revenue
Bonds (Block 3 Community Urban Redevelopment
Corporation Project), VRDN, 2.80% due 8/01/2036 (j) 9,000
Ohio State Air Quality Development Authority, Revenue
Refunding Bonds (Cincinnati Gas and Electric),
VRDN (j):
7,900 Series A, 2.90% due 9/01/2030 7,900
16,300 Series B, 2.95% due 9/01/2030 16,300
25,000 Ohio State, GO, Common Schools, VRDN, Series A,
2.75% due 3/15/2025 (j) 25,000
7,275 Ohio State Higher Educational Facility Revenue Bonds
(Case Western Reserve University), VRDN, Series A,
2.76% due 10/01/2031 (j) 7,275
2,370 Princeton, Ohio, City School District, GO, VRDN, MSTC,
Series SGB 50-A, 2.79% due 12/01/2030 (f)(j) 2,370
Oklahoma--1.4%
3,400 Cleveland County, Oklahoma, Development Authority,
Family Mortgage Revenue Refunding Bonds, VRDN,
3.01% due 12/24/2005 (j) 3,400
3,300 Cleveland County, Oklahoma, Home Loan Authority,
S/F Mortgage Revenue Refunding Bonds, VRDN,
Series A, 3.01% due 4/25/2006 (j) 3,300
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Oklahoma (concluded)
Comanche County, Oklahoma, Home Finance Authority,
S/F Mortgage Revenue Bonds, VRDN, Series A (j):
$ 16,025 3.844% due 4/03/2006 $ 16,025
3,600 3% due 5/01/2006 3,600
Oklahoma County, Oklahoma, HFA, S/F Mortgage
Revenue Bonds, VRDN (j):
40,656 Series A, 3.891% due 5/01/2006 40,656
9,692 Series D, 3.864% due 2/01/2006 9,692
2,500 Oklahoma Development Finance Authority Revenue
Bonds (Conoco Project), VRDN, AMT, Series B, 2.97%
due 8/01/2037 (j) 2,500
5,000 Oklahoma State Development Finance Authority
Revenue Bonds (ConocoPhillips Company Project),
VRDN, AMT, 2.42% due 12/01/2005 (j) 5,000
3,513 Oklahoma State, HFA, S/F Mortgage Revenue Bonds,
VRDN, AMT, 3.28% due 8/31/2006 (j) 3,513
18,575 Oklahoma State Industries Authority, Revenue
Refunding Bonds (Integris Baptist), VRDN, Series B,
2.72% due 8/15/2029 (f)(j) 18,575
2,870 Tulsa County, Oklahoma, Home Finance Authority,
S/F Mortgage Revenue Bonds, FLOATS, VRDN,
AMT, Series 1068, 2.83% due 12/01/2038 (j) 2,870
15,890 Tulsa County, Oklahoma, Industrial Authority, Capital
Improvements Revenue Bonds, VRDN, Series A,
2.95% due 11/15/2005 (j) 15,890
Oregon--0.2%
11,730 ABN Amro Munitops Certificates Trust, Portland,
Oregon, GO, VRDN, Series 2001-4, 2.77%
due 6/01/2009 (f)(j) 11,730
4,795 Eagle Tax-Exempt Trust, Oregon State Department
of Administrative Services Revenue Bonds,
VRDN, Series 2004-1010, Class A, 2.79%
due 9/01/2009 (e)(j) 4,795
Pennsylvania--2.1%
37,320 Allegheny County, Pennsylvania, GO, Refunding,
VRDN, Series C-50, 2.80% due 5/01/2027 (j) 37,320
2,500 Butler County, Pennsylvania, IDA, IDR, Refunding
(Wetterau Finance Co. Project), VRDN, 2.78%
due 12/01/2014 (j) 2,500
19,850 Delaware Valley, Pennsylvania, Regional Finance
Authority, Local Government Revenue Bonds, VRDN,
Series D, 2.75% due 12/01/2020 (j) 19,850
Emmaus, Pennsylvania, General Authority Revenue
Bonds, VRDN (j):
13,200 (Pennsylvania Loan Program), Series A, 2.78%
due 3/01/2030 (e) 13,200
10,625 Sub-Series A-10, 2.78% due 3/01/2024 10,625
9,897 Erie County, Pennsylvania, Hospital Authority Revenue
Bonds, FLOATS, VRDN, Series 820, 2.79%
due 7/01/2022 (f)(j) 9,897
10,000 Geisinger Health System, Pennsylvania, Revenue
Refunding Bonds, VRDN, Series B, 2.72%
due 8/01/2022 (j) 10,000
12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN,
Series SGB-38, 2.78% due 9/15/2020 (j) 12,000
4,995 Mount Lebanon, Pennsylvania, School District,
GO, MERLOTS, VRDN, Series B19, 2.77%
due 2/15/2027 (f)(j) 4,995
6,700 Pennsylvania Economic Development Financing
Authority, Wastewater Treatment Revenue Refunding
Bonds (Sunoco Inc.--R & M Project), VRDN, AMT,
Series B, 2.94% due 10/01/2034 (j) 6,700
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
$ 9,590 Pennsylvania State Turnpike Commission, Turnpike
Revenue Refunding Bonds, VRDN, Series B, 2.75%
due 12/01/2012 (j) $ 9,590
15,000 Philadelphia, Pennsylvania, Airport Revenue
Refunding Bonds, VRDN, AMT, Series C, 2.83%
due 6/15/2025 (f)(j) 15,000
25,335 Philadelphia, Pennsylvania, Water and Wastewater
Revenue Refunding Bonds, VRDN, 2.74%
due 6/15/2023 (e)(j) 25,335
13,000 Southcentral General Authority, Pennsylvania,
Revenue Refunding Bonds (Wellspan Health--
York Hospital), VRDN, Series A, 2.65%
due 6/07/2023 (a)(j) 13,000
Rhode Island--0.6%
12,500 Lincoln, Rhode Island, GO, BAN, 4.25%
due 8/01/2006 12,622
Rhode Island State and Providence Plantations,
GO, FLOATS, VRDN (j):
26,100 Series 568, 2.78% due 9/01/2017 (f) 26,100
15,980 Series 720, 2.78% due 11/01/2022 (b) 15,980
South Carolina--0.6%
12,195 ABN Amro Munitops Certificates Trust, Lexington
County, South Carolina, GO, VRDN, Series 2001-37,
2.78% due 2/01/2010 (b)(j) 12,195
5,000 Berkeley County, South Carolina, IDR (Nucor
Corporation Project), VRDN, AMT, Series A, 2.82%
due 3/01/2029 (j) 5,000
6,380 Florence County, South Carolina, Solid Waste Disposal
and Wastewater Treatment Revenue Bonds (Roche
Carolina Inc. Project), VRDN, AMT, 2.86%
due 4/01/2027 (j) 6,380
8,035 Medical University Hospital Authority, South Carolina,
Hospital Facilities, Revenue Refunding Bonds, VRDN,
Series A-5, 2.80% due 8/15/2027 (f)(j) 8,035
2,100 South Carolina Housing Finance and Development
Authority, Mortgage Revenue Bonds, ROCS, VRDN,
AMT, Series II-R-398, 2.83% due 7/01/2034 (e)(j) 2,100
6,250 South Carolina Jobs EDA, EDR (Holcim (US) Inc.
Project), VRDN, AMT, 2.91% due 12/01/2033 (j) 6,250
12,500 South Carolina Transportation Infrastructure Bank
Revenue Bonds, FLOATS, VRDN, Series 728, 2.78%
due 10/01/2022 (a)(j) 12,500
South Dakota--0.1%
13,300 Lawrence County, South Dakota, Solid Waste Disposal
Revenue Bonds (Homestake Mining), VRDN, AMT,
Series A, 2.79% due 7/01/2032 (j) 13,300
Tennessee--5.2%
Blount County, Tennessee, Public Building Authority,
Local Government Public Improvement Revenue
Bonds, VRDN (j):
16,000 Series A-4-A, 2.76% due 6/01/2032 16,000
13,000 Series D-3-A, 2.76% due 6/01/2034 13,000
Clarksville, Tennessee, Public Building Authority Revenue
Bonds, Pooled Financing (Tennessee Municipal Bond
Fund), VRDN (j):
34,610 2.75% due 11/01/2027 34,610
62,025 2.75% due 6/01/2029 62,025
1,460 Jackson, Tennessee, Health, Educational and Housing
Facilities Board, M/F Housing Revenue Bonds
(Villages at Old Hickory Project), VRDN, AMT, 3.16%
due 12/01/2005 (j) 1,460
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Tennessee (concluded)
$ 8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley
Manufacturing Company Project), VRDN, 2.75%
due 6/01/2023 (j) $ 8,100
6,450 Memphis, Tennessee, Health, Educational and
Housing Facility Board, M/F Housing Revenue Bonds
(Chickasaw Place Apartments), VRDN, AMT, 2.85%
due 6/01/2033 (j) 6,450
6,020 Memphis, Tennessee, Health, Educational and Housing
Facility Board Revenue Bonds (Not-for-Profit M/F
Program), VRDN, 2.91% due 8/01/2032 (j) 6,020
2,980 Montgomery County, Tennessee, Public Building
Authority, Pooled Financing Revenue Bonds
(Montgomery County Loan Pool), VRDN, 2.75%
due 7/01/2019 (j) 2,980
Sevier County, Tennessee, Public Building Authority,
Local Government Public Improvement Revenue
Bonds, VRDN (j):
69,900 AMT, Series III-A, 2.82% due 6/01/2028 (a) 69,900
7,100 Series II-A-1, 2.77% due 6/01/2024 (a) 7,100
10,000 Series III-D-2, 2.77% due 6/01/2017 (a) 10,000
4,165 Series III-D-6, 2.77% due 6/01/2020 (a) 4,165
18,900 Series III-E-1, 2.77% due 6/01/2025 18,900
10,000 Series III-E-4, 2.77% due 6/01/2025 (a) 10,000
6,030 Series IV-A-4, 2.77% due 6/01/2020 (e) 6,030
37,000 Series VI-A-1, 2.76% due 6/01/2029 37,000
6,700 Series VI-B-1, 2.77% due 6/01/2024 6,700
16,000 Series VI-C-1, 2.77% due 6/01/2034 (a) 16,000
10,000 Series VI-C-2, 2.77% due 6/01/2039 (a) 10,000
10,000 Series VI-D-3, 2.77% due 6/01/2033 (a) 10,000
7,400 Series VI-E-1, 2.77% due 6/01/2020 (a) 7,400
4,135 Sevier County, Tennessee, Public Building
Authority, Local Government Public Improvement,
Revenue Refunding Bonds, VRDN, Series II-E-2,
2.77% due 6/01/2021 (a)(j) 4,135
Shelby County, Tennessee, CP:
8,000 2.56% due 10/04/2005 8,000
12,250 2.73% due 11/09/2005 12,250
4,615 Shelby County, Tennessee, GO, Refunding, ROCS,
VRDN, Series II-R-3023, 2.79% due 4/01/2020 (f)(j) 4,615
34,260 Tennessee HDA, S/F Mortgage Revenue Bonds, VRDN,
AMT, Series CN-1, 3.382% due 8/10/2006 (j) 34,260
34,600 Tennessee State Local Development Authority Revenue
Bonds (Student Loan Program), BAN, Series A, 4%
due 5/25/2006 34,873
19,000 Tennessee State, CP, Series A, 2.65% due 10/06/2005 19,000
Texas--14.5%
15,750 ABN Amro Munitops Certificates Trust, Houston, Texas,
Airport Revenue Bonds, VRDN, AMT, Series 1998-15,
2.84% due 7/05/2006 (b)(j) 15,750
13,500 ABN Amro Munitops Certificates Trust, San Antonio,
Texas, Electric and Gas Revenue Bonds, VRDN,
Series 1998-22, 2.78% due 1/03/2007 (f)(j) 13,500
29,950 ABN Amro Munitops Certificates Trust, San Antonio,
Texas, Independent School District, VRDN,
Series 1999-10, 2.77% due 3/07/2007 (j) 29,950
9,030 ABN Amro Munitops Certificates Trust, Texas Permanent
School Fund, Independent School District, GO, VRDN,
Series 2001-8, 2.78% due 2/15/2007 (j) 9,030
9,100 Alamo Heights, Texas Independent School District, GO,
PUTTERS, VRDN, Series 980, 2.79% due 2/01/2012 (j) 9,100
Face
Amount Municipal Bonds Value
Texas (continued)
$ 4,505 Austin, Texas, Water and Wastewater System, Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-6029,
2.79% due 11/15/2024 (a)(j) $ 4,505
10,395 Austin, Texas, Water Revenue Refunding Bonds,
VRDN, MSTC, Series 2001-134, Class A, 2.81%
due 5/15/2010 (e)(j) 10,395
9,530 Bell County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Scott & White
Memorial Hospital), VRDN, Series 2001-1, 2.72%
due 8/15/2031 (f)(j) 9,530
10,000 Brazos River Authority, Texas, Harbor Navigational
District, Brazoria County Revenue Bonds (BASF Corp.),
VRDN, AMT, 2.84% due 4/01/2032 (j) 10,000
Brazos River Harbor Navigation District, Texas,
Brazoria County Environmental Revenue Bonds
(Dow Chemical Company), VRDN (j):
4,200 Series A-2, 2.96% due 5/15/2033 4,200
2,400 Series B-1, 2.83% due 5/15/2033 2,400
25,000 Brazos River, Texas, Harbor Industrial Development
Corporation Revenue Bonds (BASF Corporation
Project), VRDN, AMT, 2.85% due 5/01/2038 (j) 25,000
2,000 Brownsville, Texas, Utility System Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-4074, 2.79%
due 9/01/2024 (a)(j) 2,000
18,487 Central Texas Housing Finance Corporation, VRDN,
3.32% due 7/03/2006 (j) 18,487
7,345 Corpus Christi, Texas, Business and Job Development
Corporation, Sales Tax Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2001, 2.79%
due 9/01/2017 (a)(j) 7,345
4,000 Corpus Christi, Texas, Industrial Development Crop, IDR
(Dedietrich USA Incorporated Project), VRDN, AMT,
2.90% due 11/01/2008 (j) 4,000
3,730 Corpus Christi, Texas, Utility System Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-2149,
2.79% due 7/15/2024 (e)(j) 3,730
Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, VRDN, AMT (j):
4,407 FLOATS, Series 824, 2.83% due 11/01/2015 (a) 4,408
7,140 PUTTERS, Series 350, 2.82% due 5/01/2011 (f) 7,140
2,500 PUTTERS, Series 351, 2.82% due 5/01/2008 (e) 2,500
4,995 PUTTERS, Series 385, 2.82% due 5/01/2008 (b) 4,995
3,000 ROCS, Series II-R-268, 2.83% due 11/01/2033 (f) 3,000
3,425 Dallas-Fort Worth, Texas, International Airport
Revenue Refunding Bonds, PUTTERS, VRDN, AMT,
Series 1019, 2.82% due 5/01/2010 (b)(j) 3,425
Dallas-Fort Worth, Texas, Regional Airport Revenue
Bonds, MSTR, VRDN, AMT (f)(j):
25,300 Series SGB-49, 2.77% due 11/01/2023 25,300
9,495 Series SGB-52, 2.83% due 11/01/2017 9,495
Dallas-Fort Worth, Texas, Regional Airport Revenue
Refunding Bonds, MSTR, VRDN (j):
23,885 AMT, Series SGB-46, 2.83% due 11/01/2020 (f) 23,885
6,600 Series SGB-52, 2.79% due 11/01/2015 (b) 6,600
Dallas, Texas, Area Rapid Transit, CP:
27,500 2.65% due 10/06/2005 27,500
30,195 2.68% due 10/12/2005 30,195
2,840 Dallas, Texas, Area Rapid Transit Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2078, 2.79%
due 12/01/2022 (a)(j) 2,840
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Texas (continued)
$ 2,500 Denton, Texas, Independent School District, GO,
VRDN, Series 2005-A, 2.82% due 8/01/2035 (j) $ 2,500
8,435 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas,
International Airport Revenue Bonds, VRDN, AMT,
Series 2003-0020, Class A, 2.83%
due 11/01/2032 (a)(j) 8,435
9,900 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas,
VRDN, Series 96C, Class 4301, 2.79%
due 11/01/2005 (j) 9,900
6,000 Eagle Tax-Exempt Trust, Dallas, Texas, VRDN, Series 01,
Class 4310, 2.79% due 12/01/2026 (a)(j) 6,000
4,915 Eagle Tax-Exempt Trust, San Antonio, Texas, VRDN,
Series 01, Class 4311, 2.79% due 8/15/2026 (j) 4,915
4,500 Fort Bend County, Texas, GO, MSTR, VRDN,
SGB-46-A, 2.79% due 3/01/2032 (f)(j) 4,500
5,300 Grapevine, Texas, Industrial Development Corporation,
Airport Revenue Refunding Bonds (Southern Air
Transport), VRDN, 2.83% due 3/01/2010 (j) 5,300
19,000 Gulf Coast Waste Disposal Authority, Texas,
Environmental Facilities Revenue Bonds
(American Aeryl LP Project), VRDN, AMT,
2.85% due 5/01/2038 (j) 19,000
Gulf Coast Waste Disposal Authority, Texas, Revenue
Bonds, VRDN, AMT (j):
12,500 (Air Products Project), 2.84% due 3/01/2035 12,500
2,200 (Air Products Project), 2.84% due 12/01/2039 2,200
2,500 (Waste Management Inc.), Series A, 2.80%
due 4/01/2019 2,500
10,470 Harris County-Houston, Texas, Sports Authority, Special
Revenue Refunding Bonds, TOCS, VRDN, Series Z-3,
2.83% due 11/15/2025 (f)(j) 10,470
87,000 Harris County, Texas, GO, TAN, 3.75% due 2/28/2006 87,370
21,340 Harris County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Texas
Children's Hospital), VRDN, Series B-1, 2.74%
due 10/01/2029 (f)(j) 21,340
Harris County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds, VRDN (j):
77,255 (Methodist Hospital), Series B, 2.72%
due 12/01/2032 77,255
14,000 (Saint Luke's Episcopal Hospital), Series A, 2.78%
due 2/15/2032 (b) 14,000
Harris County, Texas, Industrial Development,
Corporation Solid Waste Disposal Revenue Bonds
(Deer Park Limited Partnership), VRDN, AMT (j):
46,100 Series A, 2.82% due 2/01/2023 46,100
13,300 Series E, 2.82% due 3/01/2023 13,300
Harris County, Texas, Revenue Refunding Bonds,
ROCS, VRDN (j):
10,270 Series II-R-1030, 2.79% due 8/15/2017 (e) 10,270
5,395 Series II-R-2101, 2.79% due 8/15/2014 (b) 5,395
241 Houston, Texas, Housing Finance Corporation,
S/F Mortgage Revenue Refunding Bonds, VRDN,
2.435% due 10/03/2005 (j) 241
8,620 Houston, Texas, Independent School District, GO,
Refunding, VRDN, MSTC, Series 233, Class A, 2.90%
due 1/09/2014 (j) 8,620
41,000 Houston, Texas, Independent School District, GO,
VRDN, 2.77% due 6/14/2006 (j) 41,000
Face
Amount Municipal Bonds Value
Texas (continued)
Houston, Texas, Utility System Revenue Refunding
Bonds, VRDN (e)(j):
$ 5,360 ROCS, Series II-R-4063, 2.79% due 5/15/2021 $ 5,360
6,000 TOCS, Series A, 2.78% due 5/25/2012 6,000
7,795 Houston, Texas, Water and Sewer System Revenue
Bonds, MERLOTS, VRDN, Series A-128, 2.77%
due 12/01/2029 (f)(j) 7,795
3,360 Irving, Texas, Independent School District, GO,
Refunding, ROCS, VRDN, Series II-R-2028, 2.79%
due 2/15/2022 (j) 3,360
5,000 Lewisville, Texas, Independent School District, GO,
Refunding, PUTTERS, VRDN, Series 701, 2.79%
due 8/15/2010 (b)(j) 5,000
32,000 North Central Texas, CP, 2.70% due 11/08/2005 32,000
17,335 Port Arthur, Texas, Navigation District, Environmental
Facilities Revenue Refunding Bonds (Motiva
Enterprises Project), VRDN, AMT, 2.98%
due 12/01/2027 (j) 17,335
Port Arthur, Texas, Navigation District, Industrial
Development Corporation, Exempt Facilities
Revenue Bonds (Air Products and Chemicals Project),
VRDN, AMT (j):
10,000 2.84% due 4/01/2036 10,000
8,400 2.86% due 5/01/2040 8,400
Port Arthur, Texas, Navigation District Revenue Bonds,
VRDN, AMT (j):
20,000 (BASF Corporation Project), 2.84% due 4/01/2033 20,000
10,000 Multi-Mode (Atofina Petrochemicals), Series B,
2.98% due 4/01/2027 10,000
6,000 Port of Corpus Christi Authority, Texas, Nueces County
Solid Waste Disposal Revenue Bonds (Flint Hills
Resources LP Project), VRDN, AMT, 3.05%
due 1/01/2030 (j) 6,000
50,000 Port of Corpus Christi Authority, Texas, Nueces County
Solid Waste Disposal, Revenue Refunding Bonds
(Flint Hills Resources LP Project), VRDN, AMT,
Series A, 3.13% due 7/01/2029 (j) 50,000
4,050 San Antonio, Texas, Convention Center Hotel Finance
Corporation, Contract Revenue Bonds, ROCS, VRDN,
AMT, Series II-R-363, 2.83% due 7/15/2039 (a)(j) 4,050
10,000 San Antonio, Texas, Hotel Occupancy Revenue
Bonds, FLOATS, VRDN, Series SG-51, 2.79%
due 8/15/2019 (j) 10,000
27,000 San Antonio, Texas, Junior Lien Electric and Gas System
Revenue Bonds, VRDN, 2.20% due 12/01/2005 (j) 27,000
4,995 San Marcos, Texas, Consolidated Independent School
District, GO, MERLOTS, VRDN, Series C-23, 2.77%
due 8/01/2029 (j) 4,995
4,165 Socorro, Texas, Independent School District, GO, ROCS,
Series II-R-2222, VRDN, 2.79% due 8/15/2022 (j) 4,165
6,860 Southeast Texas Housing Finance Corporation, Revenue
Refunding Bonds, VRDN, 3.844% due 3/01/2007 (j) 6,860
22,960 Texas Municipal Power Agency Revenue Bonds,
Series 91, CP, 2.65% due 10/04/2005 22,960
54,160 Texas State, GO (College Student Loan), Refunding,
VRDN, AMT, 2.85% due 7/01/2006 (j) 54,160
246,040 Texas State, GO, TRAN, 4.50% due 8/31/2006 249,320
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
Texas (concluded)
$ 2,200 Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, ROCS, VRDN,
Series II-R-284, 2.79% due 8/15/2039 (a)(j) $ 2,200
5,440 Texas State University, System Financing Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-1011,
2.79% due 3/15/2019 (e)(j) 5,440
4 Travis County, Texas, Housing Finance Corporation,
S/F Mortgage Revenue Bonds, VRDN, Series 2001-1,
3.01% due 5/01/2007 (j) 4
4,335 Victoria County, Texas, Hospital Revenue Refunding
Bonds, FLOATS, VRDN, Series 959, 2.78%
due 1/01/2016 (a)(j) 4,335
6,200 West Side Calhoun County, Texas, Navigation District
Sewer and Solid Waste District Revenue Bonds
(BP Chemicals Inc. Project), VRDN, AMT, 2.83%
due 4/01/2031 (j) 6,200
4,760 Williamson County, Texas, GO, Refunding, PUTTERS,
VRDN, Series 410, 2.79% due 2/15/2012 (f)(j) 4,760
Utah--0.3%
4,440 Emery County, Utah, PCR, Refunding (PacifiCorp
Projects), VRDN, 2.72% due 11/01/2024 (a)(j) 4,440
7,000 Intermountain Power Agency, Utah, Power Supply
Revenue Bonds, VRDN, Series F, 2.73%
due 7/01/2018 (a)(j) 7,000
5,000 Murray City, Utah, Hospital Revenue Bonds
(IHC Health Services, Inc.), VRDN, Series C, 2.72%
due 5/15/2036 (j) 5,000
8,300 Utah Water Finance Agency, Tender Option Revenue
Bonds, VRDN, Series A-9, 2.80% due 7/01/2034 (a)(j) 8,300
Vermont--0.1%
2,375 Vermont HFA, S/F Revenue Bonds, VRDN, AMT,
Series 16 A, 2.88% due 5/01/2032 (e)(j) 2,375
8,000 Vermont State Student Assistance Corporation,
Student Loan Revenue Bonds, FLOATS, VRDN, 2.60%
due 1/01/2008 (j) 8,000
Virginia--1.6%
13,000 Fairfax County, Virginia, IDA, Revenue Refunding Bonds
(Inova Health System Project), VRDN, Series A-1,
2.74% due 5/15/2035 (j) 13,000
Norfolk, Virginia, CP:
38,000 2.55% due 10/04/2005 38,000
36,200 2.68% due 11/09/2005 36,200
Washington--2.5%
20,000 ABN Amro Munitops Certificates Trust, Port Seattle,
Washington Revenue Bonds, VRDN, Series 1998-16,
2.78% due 10/04/2006 (f)(j) 20,000
12,685 Central Puget Sound, Washington, Regional Transit
Authority, Sales and Use Tax Revenue Bonds,
ROCS, VRDN, Series II-R-7510, 2.79%
due 11/01/2023 (a)(j) 12,685
22,900 Clark County, Washington, Public Utility District
Number 001, Generating System Revenue Refunding
Bonds, MSTR, VRDN, Series SGA-118, 2.75%
due 1/01/2025 (e)(j) 22,900
Face
Amount Municipal Bonds Value
Washington (concluded)
$ 3,000 Eagle Tax-Exempt Trust, Bellevue, Washington, GO,
Refunding,VRDN, Series 2004-1011, Class A,
2.79% due 12/01/2043 (f)(j) $ 3,000
11,550 Eagle Tax-Exempt Trust, Washington State, GO,
Refunding, VRDN, Series 2005-0067, Class A,
2.79% due 7/01/2015 (a)(j) 11,550
19,000 Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Project No. 3), VRDN, Series D-3-1,
2.74% due 7/01/2018 (e)(j) 19,000
8,925 Grant County, Washington, Public Utility District
Number 002, Electric Revenue Refunding Bonds,
ROCS, VRDN, Series II-R-2039, 2.79%
due 1/01/2019 (e)(j) 8,925
1,820 King County, Washington, GO, ROCS, VRDN,
Series II-R-5036, 2.79% due 12/01/2013 (a)(j) 1,820
5,235 King County, Washington, School District Number 410,
Snoqualmie Valley, GO, ROCS, VRDN, Series II-R-4513,
2.79% due 12/01/2020 (e)(j) 5,235
14,745 King County, Washington, Sewer Revenue Refunding
Bonds, FLOATS, VRDN, Series 554, 2.78%
due 7/01/2009 (b)(j) 14,745
2,270 Lewis County, Washington, Public Utility District
Number 001, Cowlitz Falls Hydroelectric Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-4026,
2.79% due 10/01/2023 (f)(j) 2,270
4,955 Port of Seattle, Washington, Revenue Bonds, MERLOTS,
VRDN, AMT, Series B04, 2.82% due 9/01/2015 (b)(j) 4,955
8,500 Port of Seattle, Washington, Subordinate Lien Revenue
Bonds, VRDN, AMT, 2.83% due 9/01/2035 (j) 8,500
4,955 Seattle, Washington, Water System Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-4006,
2.79% due 9/01/2022 (f)(j) 4,955
3,470 Spokane County, Washington, Spokane School
District Number 081, GO, ROCS, VRDN,
Series II-R-4000, 2.79% due 12/01/2019 (e)(j) 3,470
5,615 Tacoma, Washington, Convention Center and Parking
Revenue Bonds, ROCS, VRDN, Series II-R-2144,
2.79% due 12/01/2022 (f)(j) 5,615
14,000 Tacoma, Washington, Water Revenue Refunding
Bonds, FLOATS, VRDN, Series 555, 2.78%
due 12/01/2009 (b)(j) 14,000
Washington State, GO, PUTTERS, VRDN (j):
2,615 FLOATS, Series 1140, 2.82% due 6/01/2016 (b) 2,615
15,075 Series 333, 2.82% due 12/01/2014 (f) 15,075
5,955 Series 747, 2.79% due 1/01/2013 (e) 5,955
4,475 Series 749, 2.79% due 1/01/2013 (e) 4,475
Washington State, GO, Refunding, VRDN, MERLOTS (j):
5,210 Series A05, 2.77% due 1/01/2013 5,210
12,835 Series A57, 2.77% due 1/01/2011 (f) 12,835
6,400 Washington State Housing Finance Commission,
M/F Housing Revenue Bonds (Arbors on the Park
Project), VRDN, AMT, 2.90% due 10/01/2024 (j) 6,400
14,070 Washington State Motor Vehicle Fuel Tax, GO,
VRDN, MSTC, Series 2001-112, Class A, 2.75%
due 1/07/2021 (j) 14,070
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Schedule of Investments (concluded) Master Tax-Exempt Trust (in Thousands)
Face
Amount Municipal Bonds Value
West Virginia--0.2%
$ 10,695 ABN Amro Munitops Certificates Trust, West Virginia
State, GO, VRDN, Series 2000-12, 2.77%
due 6/04/2008 (f)(j) $ 10,695
9,900 Eagle Tax-Exempt Trust, West Virginia Higher Education
Policy Commission, Revenue Refunding Bonds, VRDN,
Series 2005-0018, Class A, 2.79% due 4/01/2034 (j) 9,900
Wisconsin--1.1%
14,850 Eagle Tax-Exempt Trust, Wisconsin Ball Park, VRDN,
Series 98, Class 4901, 2.79% due 12/15/2026 (j) 14,850
5,000 Eagle Tax-Exempt Trust, Wisconsin State, GO,
Refunding, VRDN, Series 2004-1009, Class A,
2.79% due 5/01/2008 (b)(j) 5,000
2,595 Hartland, Wisconsin, IDR (Commercial Communications
Inc. Project), VRDN, AMT, 2.93% due 8/01/2009 (j) 2,595
2,690 Manitowoc, Wisconsin, Electric Revenue Bonds, ROCS,
VRDN, Series II-R-2177, 2.79% due 10/01/2024 (b)(j) 2,690
4,540 Milwaukee, Wisconsin, GO, PUTTERS, VRDN,
Series 762, 2.79% due 2/15/2013 (e)(j) 4,540
Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Refunding
Bonds, VRDN, AMT, Series A (j):
10,000 2.81% due 9/01/2022 10,000
9,700 2.81% due 9/01/2028 9,700
5,145 Wisconsin Rural Water Construction Loan Program,
Commission Revenue Bonds, BAN, 4.25%
due 9/15/2006 5,203
Wisconsin State, GO, CP:
6,595 2.59% due 10/03/2005 6,595
35,970 2.56% due 10/04/2005 35,970
6,050 Wisconsin State, Transportation Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2180, 2.79%
due 7/01/2025 (e)(j) 6,050
Face
Amount Municipal Bonds Value
Wyoming--0.8%
$ 20,000 Lincoln County, Wyoming, PCR (Exxon Project),
VRDN, AMT, Series B, 2.73% due 7/01/2017 (j) $ 20,000
12,960 Lincoln County, Wyoming, PCR, Refunding
(PacifiCorp Projects), VRDN, 2.72%
due 11/01/2024 (a)(j) 12,960
16,960 Sweetwater County, Wyoming, PCR, Refunding
(PacifiCorp Project), VRDN, 2.72%
due 11/01/2024 (a)(j) 16,960
25,000 Wyoming State Education Fund, GO, TRAN, 4%
due 6/28/2006 25,249
Puerto Rico--1.7%
2,935 Puerto Rico Commonwealth Infrastructure
Financing Authority, Special Obligation
Revenue Bonds, TOCS, VRDN, Series Z-6,
2.83% due 6/26/2037 (b)(j) 2,935
12,800 Puerto Rico Electric Power Authority, Power
Revenue Bonds, MSTR, VRDN, Series SGA-43,
2.73% due 7/01/2022 (f)(j) 12,800
Puerto Rico Government Development Bank, CP:
19,700 3.05% due 10/07/2005 19,700
18,613 3.05% due 10/13/2005 18,613
77,841 3.05% due 10/14/2005 77,841
6,473 3.05% due 10/20/2005 6,473
3,062 3.05% due 11/08/2005 3,062
2,900 3.05% due 11/10/2005 2,900
2,915 3.05% due 11/14/2005 2,915
2,890 3.05% due 11/17/2005 2,890
5,560 3.05% due 11/22/2005 5,560
Total Investments (Cost--$9,282,538*)--101.2% 9,282,538
Liabilities in Excess of Other Assets--(1.2%) (108,544)
----------
Net Assets--100.0% $9,173,994
==========
* Cost for federal income tax purposes.
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FHLMC Collateralized.
(d) FNMA Collateralized.
(e) FSA Insured.
(f) MBIA Insured.
(g) CIFG Insured.
(h) Radian Insured.
(i) XL Capital Insured.
(j) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(k) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Statement of Assets and Liabilities Master Tax-Exempt Trust
<CAPTION
As of September 30, 2005
Assets
Investments in unaffiliated securities, at value (identified cost--$9,282,537,830) $ 9,282,537,830
Cash 30,874
Receivables:
Interest $ 41,834,227
Contributions 827,749 42,661,976
---------------
Prepaid expenses 31,398
---------------
Total assets 9,325,262,078
---------------
Liabilities
Payables:
Securities purchased 150,020,310
Investment adviser 982,270
Other affiliates 98,033 151,100,613
---------------
Accrued expenses and other liabilities 167,295
---------------
Total liabilities 151,267,908
---------------
Net Assets
Net assets $ 9,173,994,170
===============
Net Assets Consist of
Investors' capital $ 9,173,994,170
---------------
Net Assets $ 9,173,994,170
===============
See Notes to Financial Statements.
Statement of Operations Master Tax-Exempt Trust
For the Six Months Ended September 30, 2005
Investment Income
Interest and amortization of premium and discount earned $ 117,973,481
Expenses
Investment advisory fees $ 6,329,784
Accounting services 604,011
Custodian fees 110,300
Professional fees 40,350
Pricing fees 32,739
Trustees' fees and expenses 28,324
Printing and shareholder reports 1,174
Other 46,452
---------------
Total expenses 7,193,134
---------------
Investment income--net 110,780,347
---------------
Realized Loss--Net
Realized loss on investments--net (437,996)
---------------
Net Increase in Net Assets Resulting from Operations $ 110,342,351
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
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: 2005 2005
Operations
Investment income--net $ 110,780,347 $ 131,362,901
Realized loss--net (437,996) (941,838)
---------------- ---------------
Net increase in net assets resulting from operations 110,342,351 130,421,063
---------------- ---------------
Capital Transactions
Proceeds from contributions 23,680,320,041 42,296,733,453
Fair value of withdrawals (24,366,475,235) (42,929,977,629)
---------------- ---------------
Net decrease in net assets derived from capital transactions (686,155,194) (633,244,176)
---------------- ---------------
Net Assets
Total decrease in net assets (575,812,843) (502,823,113)
Beginning of period 9,749,807,013 10,252,630,126
---------------- ---------------
End of period $ 9,173,994,170 $ 9,749,807,013
================ ===============
See Notes to Financial Statements.
Financial Highlights Master Tax-Exempt Trust
For the Six For the Period
Months Ended For the Year Ended February 13, 2003++
The following per share data and ratios have been derived September 30, March 31, to March 31,
from information provided in the financial statements. 2005 2005 2004 2003
Total Investment Return
Total investment return 1.19%+++ 1.33% .94% .68%*
=========== =========== =========== ===========
Ratios to Average Net Assets
Expenses .15%* .15% .15% .21%*
=========== =========== =========== ===========
Investment income and realized gain (loss)--net 2.34%* 1.31% .94% 1.04%*
=========== =========== =========== ===========
Supplemental Data
Net assets, end of period (in thousands) $ 9,173,994 $ 9,749,807 $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, 2005
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, 2005, the Trust reimbursed FAM $106,601
for certain accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Disclosure of Investment Advisory Agreement
Activities and Composition of the Board of Trustees
All but one member of the Board of Trustees is an independent trustee whose
only affiliation with Fund Asset Management, L.P. (the "Investment Adviser")
or other Merrill Lynch affiliates is as a trustee of the Master Tax-Exempt
Trust (the "Trust") and the Fund and certain other funds advised by the
Investment Adviser or its affiliates. The Chairman of the Board is also an
independent trustee. New trustee nominees are chosen as nominees by a
Nominating Committee comprised of independent Trustees. All independent
Trustees also are members of the Board's Audit Committee and the independent
Trustees meet in executive session at each in-person Board meeting. The Board
and Audit Committee meet in person for at least two days each quarter and
conduct other in-person and telephone meetings throughout the year, some of
which are formal board meetings, and some of which are informational meetings.
The independent counsel to the independent Trustees attends all in-person
Board and Audit Committee meetings and other meetings at the independent
Trustees' request.
Investment Advisory Agreement--Matters Considered by the Board
Every year, the Board considers approval of the investment advisory agreement
between the Investment Adviser and the Trust (the "Investment Advisory
Agreement"). The Board also reviews and evaluates the performance of and
services provided by the Investment Adviser throughout each year. The Board
assesses the nature, scope and quality of the services provided to the Trust
and the Fund by the personnel of the Investment Adviser and its affiliates,
including administrative services, shareholder services, oversight of fund
accounting, marketing services and assistance in meeting legal and regulatory
requirements. The Board also receives and assesses information regarding the
services provided to the Trust and the Fund by certain unaffiliated service
providers.
At various times throughout the year, the Board also considers a range of
information in connection with its oversight of the services provided by the
Investment Adviser and its affiliates. Among the matters considered are: (a)
any fees (in addition to management fees) paid to the Investment Adviser and
its affiliates by the Trust or by the Fund, such as transfer agency fees and
fees for marketing and distribution; (b) Trust/Fund operating expenses paid to
third parties; (c) the resources devoted to and compliance reports relating to
the Trust's and the Fund's investment objective, policies and restrictions,
and its compliance with its Code of Ethics and the Investment Adviser's
compliance policies and procedures; and (d) the nature, cost and character of
non-investment management services provided by the Investment Adviser and its
affiliates.
The Board believes that the Investment Adviser is one of the most experienced
global asset management firms and considers the overall services provided by
the Investment Adviser to be generally of high quality. The Board also
believes that the Investment Adviser is financially sound and well managed and
notes that the Investment Adviser is affiliated with one of America's largest
financial firms. The Board works closely with the Investment Adviser in
overseeing the Investment Adviser's efforts to achieve good performance. As
part of this effort, the Board discusses portfolio Investment Adviser
effectiveness and, when performance is not satisfactory, discusses with the
Investment Adviser taking steps such as changing investment personnel.
Annual Consideration of Approval by the Board of Trustees
In the period prior to the Board meeting to consider renewal of the Investment
Advisory Agreement, the Board requests and receives materials specifically
relating to the Trust's Investment Advisory Agreement. These materials include
(a) information compiled by Lipper Inc. ("Lipper") on the fees and expenses
and the investment performance of the Trust/Fund or its predecessor (which had
the same investment objective and strategies as the Trust) as compared to a
comparable group of funds as classified by Lipper; (b) a discussion by the
Trust's/Fund's portfolio management team of investment strategies used by the
Trust/Fund during its most recent fiscal year; (c) information on the
profitability to the Investment Adviser and its affiliates of the Investment
Advisory Agreement and other relationships with the Trust and/or Fund; (d)
information on the profitability to the Investment Adviser and its affiliates
of the Investment Advisory Agreements and other relationships with the
Trust/Fund; and (e) information provided by the Investment Adviser concerning
investment advisory fees charged to other clients, such as institutional
clients. The Board also considers other matters it deems important to the
approval process such as payments made to the Investment Adviser or its
affiliates relating to the distribution of Fund shares, services related to
the valuation and pricing of Trust/Fund portfolio holdings, allocation of
Trust/Fund brokerage fees, and direct and indirect benefits to the Investment
Adviser and its affiliates from their relationship with the Trust/Fund.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Disclosure of Investment Advisory Agreement (continued)
Certain Specific Renewal Data
In connection with the most recent renewal of the Trust's Investment Advisory
Agreement in August 2005, the independent Trustees' and Board's review
included the following:
Investment Adviser's Services and Fund Performance--The Board reviewed the
nature, extent and quality of services provided by the Investment Adviser,
including the investment advisory services and the resulting performance of
the Fund. The Board focused primarily on the Investment Adviser's investment
advisory services and the Fund's investment performance, having concluded that
the other services provided to the Trust/Fund by the Investment Adviser were
satisfactory. The Board compared Fund performance - both including and
excluding the effects of the Trust's/Fund's fees and expenses - to the
performance of a comparable group of mutual funds, and the performance of a
relevant index or combination of indexes. While the Board reviews performance
data quarterly, consistent with the Investment Adviser's investment goals, the
Board attaches primary importance to performance over relatively long periods
of time, typically three to five years. The Board noted that the performance
of the Trust/Fund or its predecessor (which had the same objective and
strategies of the corresponding Trust) was in the third quintile compared to
its Lipper performance group for the one-, three- and five-year periods ended
June 30, 2005. The Board concluded that the Trust's/Fund's performance was
consistent with the continuation of the management fee rate at its current
level and the renewal of the applicable Investment Advisory Agreement.
The Investment Adviser's Personnel and Investment Process--The Board reviewed
the Trust's/Fund's investment objectives and strategies. The Board discussed
with senior management of the Investment Adviser responsible for investment
operations and the senior management of the Investment Adviser's municipal
investing group the strategies being used to achieve the stated objectives.
Among other things, the Board considered the size, education and experience of
the Investment Adviser's investment staff, its use of technology, and the
Investment Adviser's approach to training and retaining portfolio Investment
Advisers and other research, advisory and management personnel. The Board also
reviewed the Investment Adviser's compensation policies and practices with
respect to the Trust's/Fund's portfolio manager. The Board also considered the
experience of the Trust's/Fund's portfolio manager and noted that Mr. Hayes
has more than twenty five years experience investing in municipal securities.
The Board concluded that the Investment Adviser and its investment staff and
the Trust's/Fund's portfolio manager have extensive experience in analyzing
and managing the types of investments used by the Trust and the Fund and that
the Trust and the Fund benefit from that expertise.
Management Fees and Other Expenses--The Board reviewed the Trust's/Fund's
contractual management fee rate and actual management fee rate as a percentage
of total assets at common asset levels - the actual rate includes advisory and
administrative service fees and the effects of any fee waivers - compared to
the other funds in its Lipper category. It also compares the Trust's/Fund's
total expenses to those of other comparable funds. The Board considered the
services provided to and the fees charged by the Investment Adviser to other
types of clients such as institutional clients. The Board noted that, as a
general matter, fees charged to institutional clients were lower than the fees
charged to the Trust/Fund, but determined that the Investment Adviser provided
less extensive services to such clients, which tended to hold much larger
accounts. The Board noted that the Fund's contractual and actual management
fees and total expenses were higher than the median fees charged by the
comparable funds as classified by Lipper. The Board concluded that the
management fee and fee rate and overall expense ratio were reasonable when
compared to those of other comparable funds.
Profitability--The Board considered the cost of the services provided to the
Trust and Fund by the Investment Adviser and the Investment Adviser's and its
affiliates' profits in relation to the management and distribution of the
Trust and Fund and the MLIM/FAM-advised funds. As part of its analysis, the
Board reviews the Investment Adviser's and its affiliates' methodology in
allocating costs to the management of the Trust/Fund and concluded that there
was a reasonable basis for the allocation. The Board believes the profits of
the Investment Adviser and its affiliates are acceptable in relation to the
nature and quality of services provided and given the level of fees and
expenses overall. The Board also considered the federal court decisions
discussing an investment adviser's profitability, and the profitability levels
considered to be reasonable in those decisions.
CMA TAX-EXEMPT FUND SEPTEMBER 30, 2005
Disclosure of Investment Advisory Agreement (concluded)
Economies of Scale--The Board considered the extent to which economies of
scale might be realized as the assets of the Trust/Fund increase and whether
there should be changes in the management fee rate or structure in order to
enable a Trust and a Fund to participate in these economies of scale. The
Board noted that the Trust's/Fund's current management fee rate schedule
includes breakpoints that would reduce the Trust's/Fund's management fee rate
if its assets increase above certain levels. The Board determined that no
changes were currently necessary.
Conclusion
After the independent Trustees deliberated in executive session, the Board,
including all of the independent Trustees, approved the renewal of the
existing Investment Advisory Agreement, concluding that the advisory fee was
reasonable in relation to the services provided and that a contract renewal
was in the best interests of the shareholders.
Officers and Trustees
Robert C. Doll, Jr.,President and Trustee
Ronald W. Forbes,Trustee
Cynthia A. Montgomery,Trustee
Jean Margo Reid,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, 2005
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 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(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.
11(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 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(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/ Robert C. Doll, Jr.
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Robert C. Doll, Jr.,
Chief Executive Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 17, 2005
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/ Robert C. Doll, Jr.
-------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 17, 2005
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke,
Chief Financial Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: November 17, 2005