UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-03111
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: 03/31/07
Date of reporting period: 04/01/06 - 03/31/07
Item 1 - Report to Stockholders
Annual Report
March 31, 2007
CMA Tax-Exempt Fund
This report is transmitted to shareholders only. It is not authorized for use
as an offer of sale or a solicitation of an offer to buy shares of the Fund
unless accompanied or preceded by the Fund's current prospectus. An investment
in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund. Past performance results shown in this
report should not be considered a representation of future performance, which
will fluctuate. Statements and other information herein are as dated and are
subject to change.
A description of the policies and procedures that the Fund uses to determine
how to vote proxies relating to portfolio securities is available (1)
without charge, upon request, by calling toll-free 1-800-441-7762; (2) at
www.blackrock.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.blackrock.com and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
CMA Tax-Exempt Fund
P.O. Box 9011
Princeton, NJ 08543-9011
(GO PAPERLESS... logo)
It's Fast, Convenient, & Timely!
CMA Tax-Exempt Fund
Portfolio Holdings*
Put Bonds--3.1%
Fixed Rate Notes--8.9%
Tax-Exempt Commercial Paper--9.0%
Variable Rate Demand Obligations--79.0%
* Based on total market value of Master Tax-Exempt Trust as of
March 31, 2007. Investments are valued at amortized cost,
which approximates market value.
CMA TAX-EXEMPT FUND MARCH 31, 2007
A Letter to Shareholders
Dear Shareholder
For most financial markets, 2007 opened just as 2006 ended - on a positive
trajectory. At the end of February and into March, however, global equity
markets registered their first significant decline since last summer. The
market jitters were triggered by a significant setback in the Chinese market
and were exacerbated by several concerns, notably a weakening economy, some
disappointing corporate earnings announcements, escalating geopolitical
concerns in the Middle East and increasing delinquencies in the subprime
mortgage market. Despite the recent spate of volatility, underlying stock
market fundamentals appear quite sound, supported by a generally favorable
global economic backdrop, tame inflation, relatively low interest rates and
attractive valuations.
Not unlike the equity market, the bond market also has seen volatility
recently as observers have attempted to interpret mixed economic signals. A
bond market rally late last year reversed itself early in 2007 as economic
data strengthened. Prices improved (and yields fell) again in February as
equities struggled, but retrenched slightly in March. Notably, the Treasury
curve remained inverted for much of 2006 and into 2007. The 30-year Treasury
yield stood at 4.84% at the end of March 2007, while the one-month Treasury
offered the highest yield on the curve at 5.07%.
For its part, the Federal Reserve Board (the Fed) has left the target short-
term interest rate on hold at 5.25% since first pausing in its interest rate-
hiking campaign on August 8, 2006. Although the central bankers continue to
express concern about potential inflationary pressures, they also have made
reference to signs of economic weakness in their public statements. Most
observers expect the Fed to keep interest rates on hold for now.
Notwithstanding some recent volatility, most major market indexes managed to
post positive returns for the annual and semi-annual reporting periods ended
March 31, 2007:
Total Returns as of March 31, 2007 6-month 12-month
U.S. equities (Standard & Poor's 500 Index) + 7.38% +11.83%
Small cap U.S. equities (Russell 2000 Index) +11.02 + 5.91
International equities (MSCI Europe, Australasia, Far East Index) +14.85 +20.20
Fixed income (Lehman Brothers Aggregate Bond Index) + 2.76 + 6.59
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.93 + 5.43
High yield bonds (Credit Suisse High Yield Index) + 7.59 +11.82
If recent market movements are any guide, 2007 could be a year of enhanced
market volatility. As you navigate the uncertainties of the financial markets,
we encourage you to review your investment goals with your financial
professional and to make portfolio changes, as needed. For more reflection on
the markets, please ask your financial professional for the latest issue of
"What's Ahead in 2007: First Quarter Update," or view it online at
www.blackrock.com/funds. We thank you for trusting BlackRock with your
investment assets, and we look forward to continuing to serve you in the
months and years ahead.
Sincerely,
(Robert C. Doll, Jr.)
Robert C. Doll, Jr.
Fund/Trust President and Trustee
CMA TAX-EXEMPT FUND MARCH 31, 2007
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 12b-1 fees, and other Fund expenses. The following example (which is
based on a hypothetical investment of $1,000 invested on October 1, 2006 and
held through March 31, 2007) 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 October 1, 2006
October 1, March 31, to March 31,
2006 2007 2007
Actual
CMA Tax-Exempt Fund $1,000 $1,015.10 $2.81
Hypothetical (5% annual return before expenses)**
CMA Tax-Exempt Fund $1,000 $1,022.11 $2.82
* Expenses are equal to the Fund's annualized expense ratio of .56%, multiplied by the average account
value over the period, multiplied by 182/365 (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 trust 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 MARCH 31, 2007
Statement of Assets and Liabilities CMA Tax-Exempt Fund
As of March 31, 2007
Assets
Investment in Master Tax-Exempt Trust (the "Trust"), at value
(identified cost--$9,260,701,553) $ 9,260,701,553
Prepaid expenses 521,736
---------------
Total assets 9,261,223,289
---------------
Liabilities
Payables:
Administrator $ 1,926,587
Distributor 1,362,736 3,289,323
---------------
Accrued expenses and other liabilities 304,775
---------------
Total liabilities 3,594,098
---------------
Net Assets
Net assets $ 9,257,629,191
===============
Net Assets Consist of
Shares of beneficial interests, $.10 par value, unlimited number of shares authorized $ 925,953,505
Paid-in capital in excess of par 8,332,611,491
Accumulated realized capital losses allocated from the Trust--net (935,805)
---------------
Net Assets--Equivalent to $1.00 per share based on 9,259,535,047 shares of beneficial
interests outstanding $ 9,257,629,191
===============
See Notes to Financial Statements.
Statement of Operations CMA Tax-Exempt Fund
For the Year Ended March 31, 2007
Investment Income
Interest from affiliates $ 3,362
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned 311,783,148
Expenses (13,017,813)
---------------
Total income 298,768,697
---------------
Expenses
Administration fees $ 21,794,326
Distribution fees 10,816,176
Transfer agent fees 1,469,838
Registration fees 875,431
Printing and shareholder reports 114,318
Professional fees 69,281
Other 22,760
---------------
Total expenses 35,162,130
---------------
Investment income--net 263,606,567
---------------
Realized Gain Allocated from the Trust--Net
Realized gain on investments--net 789,164
---------------
Net Increase in Net Assets Resulting from Operations $ 264,395,731
===============
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Statements of Changes in Net Assets CMA Tax-Exempt Fund
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 263,606,567 $ 192,840,950
Realized gain (loss)--net 789,164 (386,763)
---------------- ----------------
Net increase in net assets resulting from operations 264,395,731 192,454,187
---------------- ----------------
Dividends to Shareholders
Dividends to shareholders from investment income--net (263,606,567) (192,840,950)
---------------- ----------------
Beneficial Interests Transactions
Net proceeds from sale of shares 48,483,788,131 42,771,723,313
Value of shares issued to shareholders in reinvestment of dividends 263,607,070 192,841,208
---------------- ----------------
Total shares issued 48,747,395,201 42,964,564,521
Cost of shares redeemed (48,251,663,564) (43,232,343,557)
---------------- ----------------
Net increase (decrease) in net assets derived from beneficial interests transactions 495,731,637 (267,779,036)
---------------- ----------------
Net Assets
Total increase (decrease) in net assets 496,520,801 (268,165,799)
Beginning of year 8,761,108,390 9,029,274,189
---------------- ----------------
End of year $ 9,257,629,191 $ 8,761,108,390
================ ================
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Financial Highlights CMA Tax-Exempt Fund
The following per share data and ratios have been derived For the Year Ended March 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003++++++
Per Share Operating Performance
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Investment income--net .03 .02 .01 .01 .01
Realized gain (loss)--net --++++ --++ --++ --++ --++
------------ ------------ ------------ ------------ ------------
Total from investment operations .03 .02 .01 .01 .01
------------ ------------ ------------ ------------ ------------
Less dividends from investment income--net (.03) (.02) (.01) (.01) (.01)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return 3.05% 2.24% .93% .54% .93%
============ ============ ============ ============ ============
Ratios to Average Net Assets*
Expenses .55% .55% .55% .55% .55%
============ ============ ============ ============ ============
Investment income and realized gain (loss)--net 3.03% 2.21% .91% .55% .93%
============ ============ ============ ============ ============
Supplemental Data
Net assets, end of year (in thousands) $ 9,257,629 $ 8,761,108 $ 9,029,274 $ 9,522,055 $ 10,587,794
============ ============ ============ ============ ============
* Includes the Fund's share of the Trust's allocated expenses and/or investment income and realized
gain (loss)--net.
++ 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.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
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. The percentage of the Trust owned by the Fund at March 31, 2007 was
91.3%. 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 income and 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 are declared from the total of net investment income. Distributions
of net realized gain, if any, on investments are paid at least annually.
(f) Investment transactions--Investment transactions are accounted for on a
trade date basis.
(g) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109." FIN 48 prescribes the minimum recognition threshold a tax position must
meet in connection with accounting for uncertainties in income tax positions
taken or expected to be taken by an entity, including mutual funds, before
being measured and recognized in the financial statements. Adoption of FIN 48
is required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on the Fund's financial statements, if any, is currently
being assessed.
In September 2006, "Statement of Financial Accounting Standards No. 157, Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Fund's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes
for similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Fund's financial
statements, if any, has not been determined.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Notes to Financial Statements (concluded) CMA Tax-Exempt Fund
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc. has
approximately a 34% economic and voting interest. The new company operates
under the BlackRock name and is governed by a board of directors with a
majority of independent members.
On September 15, 2006, the shareholders of the Fund approved a new Investment
Advisory Agreement for the Trust with BlackRock Advisors, Inc., an indirect,
wholly owned subsidiary of BlackRock, Inc., which was reorganized into a
limited liability company and renamed BlackRock Advisors, LLC. The Investment
Advisory Agreement became effective on September 29, 2006. Prior to September
29, 2006, FAM was the Trust's manager. The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch,
which is the limited partner.
The Fund has entered into an Administration Agreement with BlackRock Advisors,
LLC (the "Administrator"). 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. Prior to September 29,
2006, FAM acted as the Fund's administrator and was compensated at the same
fee rate.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill
Lynch, 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 the Fund's
transfer agent. The distribution fee is to compensate MLPF&S for providing, or
arranging for the provision of, shareholder services and sales and promotional
activities and services with respect to shares of the Fund. For the year ended
March 31, 2007, MLPF&S earned $10,816,176 under the Shareholder Servicing Plan.
Financial Data Services, Inc. ("FDS"), a wholly owned subsidiary of
Merrill Lynch, is the Fund's transfer agent. Interest is earned by the
Fund from FDS based on the difference, if any, between estimated and
actual daily beneficial share activity, which results in uninvested
net proceeds from sales of Fund shares.
Prior to September 29, 2006, certain officers and/or trustees of the Fund
were officers and/or directors of MLIM, FAM, PSI, and/or Merrill Lynch.
Commencing September 29, 2006, certain officers and/or trustees of the
Fund are officers and/or directors of BlackRock, Inc. or its affiliates.
3. Beneficial Interests Transactions:
The number of shares sold, reinvested and redeemed during the years
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares, value of shares
reinvested and cost of shares redeemed, respectively, since shares are
recorded at $1.00 per share.
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended
March 31, 2007 and March 31, 2006 was as follows:
3/31/2007 3/31/2006
Distributions paid from:
Tax-exempt income $ 263,606,567 $ 192,840,950
--------------- ---------------
Total distributions $ 263,606,567 $ 192,840,950
=============== ===============
As of March 31, 2007, there were no significant differences between
book and tax components of net assets.
5. Capital Loss Carryforward:
On March 31, 2007, the Fund had a net capital loss carryforward of
$935,805, all of which expires in 2014. This amount will be available
to offset like amounts of any future taxable gains.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Report of Independent Registered Public Accounting Firm CMA Tax-Exempt Fund
To the Shareholders and Board of
Trustees of CMA Tax-Exempt Fund:
We have audited the accompanying statement of assets and liabilities of CMA
Tax-Exempt Fund as of March 31, 2007, and the related statement of operations
for the year then ended, the statements of changes in net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Fund's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of CMA
Tax-Exempt Fund as of March 31, 2007, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in
the period then ended, and its financial highlights for each of the five years
in the period then ended, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 21, 2007
Important Tax Information (unaudited)
All of the net investment income distributions paid by CMA Tax-Exempt Fund
during the taxable year ended March 31, 2007 qualify as tax-exempt interest
dividends for federal income tax purposes.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments as of March 31, 2007 Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Alabama--2.1%
$ 55,000 Alabama, HFA, S/F Mortgage Revenue Bonds,
VRDN, AMT, Series H, 3.80% due 6/01/2009 (j) $ 55,000
3,995 Birmingham, Alabama, Waterworks and Sewer
Board, Water and Sewer Revenue Refunding
Bonds, PUTTERS, VRDN, Series 1737, 3.72%
due 1/01/2015 (a)(j)(p) 3,995
20,000 Columbia, Alabama, IDB, Revenue Bonds (Alabama
Power Company Project), VRDN, AMT, 3.76%
due 11/01/2021 (j) 20,000
11,950 Daphne, Alabama, Special Care Facilities Financing
Authority, Revenue Refunding Bonds (Presbyterian),
VRDN, Series B, 3.70% due 8/15/2023 (a)(j) 11,950
1,000 Decatur, Alabama, IDB, Environmental Facilities Revenue
Bonds (BP Amoco Chemical Company Project), VRDN,
AMT, 3.70% due 11/01/2035 (j) 1,000
4,255 Eagle Tax-Exempt Trust, Birmingham, Alabama, Water
and Sewer, VRDN, Series 2002-6009, Class A, 3.72%
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, 3.72% due 2/01/2032 7,835
3,000 Class 6016, 3.72% due 2/01/2038 3,000
89,455 Jefferson County, Alabama, Limited Obligation
School Warrants, VRDN, Series B, 3.67%
due 1/01/2027 (a)(j) 89,455
5,000 Jefferson County, Alabama, Sewer Revenue Refunding
Bonds, VRDN, Series C-6, 3.67% due 2/01/2040 (j)(n) 5,000
8,100 Lehman Municipal Trust Receipts, Alabama Housing
Finance Authority, FLOATS, VRDN, Series 2006-K41,
3.75% due 10/01/2037 (j)(o) 8,100
Alaska--0.8%
19,400 Alaska Industrial Development and Export Authority
Revenue Bonds, ROCS, VRDN, Series II-R-320, 3.71%
due 4/01/2034 (e)(j)(p) 19,400
2,205 Anchorage, Alaska, Electric Utility Revenue Refunding
Bonds, PUTTERS, VRDN, Series 1128, 3.72%
due 6/01/2013 (f)(j)(p) 2,205
6,200 Anchorage, Alaska, GO, PUTTERS, VRDN, Series 552,
3.72% due 6/01/2012 (f)(j)(p) 6,200
Valdez, Alaska, Marine Terminal Revenue Refunding
Bonds (ConocoPhillips Company Project), VRDN (j):
3,580 3.77% due 5/01/2007 3,580
49,650 Series C, 3.68% due 6/01/2007 49,650
Face
Amount Municipal Bonds Value
Arizona--1.7%
$ 33,000 Apache County, Arizona, IDA, IDR (Tucson Electric
Power Co.), VRDN, Series 83-A, 3.65%
due 12/15/2018 (j) $ 33,000
Arizona Health Facilities Authority, Revenue
Refunding Bonds (Banner Health System),
VRDN (j):
4,970 Series A, 3.65% due 1/01/2029 (f) 4,970
4,390 Series C, 3.62% due 1/01/2035 (b) 4,390
49,055 Clipper Tax-Exempt Certificates Trust, Arizona,
Revenue Bonds, VRDN, Series 2007-1,
3.70% due 2/01/2020 (j) 49,055
10,000 Maricopa County, Arizona, IDA, Health Facilities
Revenue Bonds, PUTTERS, VRDN, Series 420, 3.71%
due 1/01/2010 (j)(p) 10,000
7,526 Maricopa County, Arizona, IDA, S/F Mortgage Revenue
Bonds, FLOATS, VRDN, AMT, Series 1165, 3.70%
due 2/01/2008 (j) 7,526
20,000 McAllister Academic Village, LLC, Arizona, Revenue
Bonds (Arizona State University Project), VRDN,
Series A, 3.63% due 7/01/2045 (a)(j) 20,000
39,630 Morgan Keegan Municipal Products, Inc., Maricopa
County, Arizona, IDA, VRDN, AMT, Series A, 3.75%
due 2/02/2009 (j) 39,630
Phoenix, Arizona, Civic Improvement Corporation,
State of Arizona Distribution Revenue Bonds,
VRDN (b)(j)(p):
2,400 PUTTERS, Series 1306, 3.71% due 1/01/2026 2,400
4,775 TOCS, Series Z-11, 3.71% due 5/08/2034 4,775
4,080 Phoenix, Arizona, IDA, Government Office Lease
Revenue Refunding Bonds, PUTTERS, VRDN,
Series 1119, 3.70% due 9/15/2013 (a)(j)(p) 4,080
Arkansas--1.0%
7,800 Arkansas State Development Finance Authority,
M/F Housing Revenue Bonds (Chapelridge
Benton Project), VRDN, AMT, Series C, 3.73%
due 6/01/2032 (j) 7,800
50,595 Arkansas State Development Finance Authority,
S/F Mortgage Revenue Bonds, FLOATS, VRDN, AMT,
Series 1139, 3.72% due 2/01/2008 (j) 50,595
Morgan Keegan Municipal Products, Inc., Arkansas
State Development Finance Authority, VRDN (j):
20,595 AMT, Series D, 3.75% due 2/01/2010 20,595
1,990 S/F Mortgage Revenue Bonds, Series C, 3.75%
due 6/01/2011 1,990
Portfolio Abbreviations for Master Tax-Exempt Trust
ACES (SM) Adjustable Convertible Extendible Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates 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 Exempt Receipts Liquidity
Optional Tenders
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
PUTTERS Puttable Tax-Exempt Receipts
RAN Revenue Anticipation Notes
ROCS Reset Option Certificates
S/F Single-Family
TAN Tax Anticipation Notes
TOCS Tender Option Certificates
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Arkansas (concluded)
$ 9,000 North Little Rock, Arkansas, Health Facilities Board,
Health Care Revenue Bonds (Baptist Health), VRDN,
Series B, 3.68% due 12/01/2021 (f)(j) $ 9,000
10,685 University of Arkansas, University Revenue Bonds,
FLOATS, VRDN, Series 1397, 3.69%
due 11/01/2036 (a)(j) 10,685
California--1.1%
2,184 California Health Facilities Financing Authority
Revenue Bonds, FLOATS, VRDN, Series 591, 3.69%
due 3/01/2014 (f)(j) 2,184
17,500 California State Economic Recovery, GO, FLOATS,
VRDN, Series L27, 3.67% due 7/01/2017 (j) 17,500
8,020 California State, GO, MERLOTS, VRDN, Series B-45,
3.67% due 10/01/2029 (j)(p) 8,020
3,430 California Statewide Communities Development
Authority, M/F Housing Revenue Bonds, FLOATS,
VRDN, Series 54TP, 3.75% due 1/01/2049 (j) 3,430
30,485 Los Angeles, California, S/F Home Mortgage Revenue
Bonds, VRDN, AMT, 4.52% due 10/01/2040 (j) 30,485
50,040 Morongo Band of Mission Indians, California, Revenue
Bonds, VRDN, 3.73% due 12/01/2019 (j) 50,040
4,800 San Francisco, California, City and County Airport
Commission, International Airport Revenue Refunding
Bonds, VRDN, Second Series, Issue 33J, 3.43%
due 5/01/2026 (j)(n) 4,800
Colorado--2.1%
7,705 Adams County, Colorado, School District Number 012,
GO, ROCS, VRDN, Series II-R-1045, 3.71%
due 12/15/2022 (e)(j)(p) 7,705
3,190 Colorado Department of Transportation Revenue Bonds,
ROCS, VRDN, Series II-R-4046, 3.71%
due 12/15/2016 (a)(j)(p) 3,190
9,990 Colorado Department of Transportation Revenue
Refunding Bonds, PUTTERS, VRDN, Series 318,
3.70% due 6/15/2015 (f)(j)(p) 9,990
Colorado Educational and Cultural Facilities Authority,
Revenue Refunding Bonds (National Jewish Federation
Bond Program Project), VRDN (j):
23,510 Series A-1, 3.71% due 9/01/2033 23,510
11,180 Series A-6, 3.71% due 2/01/2025 11,180
24,335 Series A-8, 3.71% due 9/01/2035 24,335
16,515 Series C-1, 3.71% due 9/01/2035 16,515
3,640 Colorado Health Facilities Authority, Revenue Refunding
Bonds (Catholic Health Initiatives), VRDN, Series B-1,
3.67% due 3/01/2023 (j) 3,640
6,900 Colorado School Mines Development Corporation,
Revenue Refunding Bonds, VRDN, 3.82%
due 9/01/2026 (j) 6,900
40,000 Colorado State, General Fund, RAN, 4.50%
due 6/27/2007 40,068
Denver, Colorado, City and County Airport, Revenue
Refunding Bonds, VRDN (b)(j):
9,500 FLOATS, Series 63-TP, 3.69% due 11/15/2025 9,500
5,805 MERLOTS, AMT, Series A61, 3.74%
due 11/15/2012 (p) 5,805
3,031 E-470 Public Highway Authority, Colorado, Revenue
Bonds, TOCS, VRDN, Series Z-9, 3.71%
due 10/01/2021 (f)(j)(p) 3,031
2,835 E-470 Public Highway Authority, Colorado, Revenue
Refunding Bonds, FLOATS, VRDN, Series 997, 3.72%
due 3/01/2036 (f)(j) 2,835
Face
Amount Municipal Bonds Value
Colorado (concluded)
$ 7,200 Eclipse Funding Trust, Solar Eclipse Certificates,
El Paso County, Colorado, School District, COP,
VRDN, Series 2006-0101, 3.69% due 12/15/2028 (f)(j) $ 7,200
98 El Paso County, Colorado, S/F Mortgage Revenue Bonds,
FLOATS, VRDN, AMT, Series 1136, 3.72%
due 11/01/2008 (j) 98
14,700 Pitkin County, Colorado, IDR, Refunding (Aspen
Skiing Company Project), VRDN, Series A, 3.71%
due 4/01/2016 (j) 14,700
18,200 Platte River Power Authority, Colorado, Electric
Revenue Refunding Bonds, VRDN, Sub-Lien,
Series S-1, 3.65% due 6/01/2018 (j) 18,200
6,500 University of Colorado Hospital Authority Revenue
Bonds, ROCS, VRDN, Series II-R-573CE, 3.71%
due 11/15/2040 (j)(p) 6,500
Connecticut--0.2%
12,725 Connecticut State Health and Educational Facilities
Authority, Revenue Refunding Bonds (Ascension
Health Credit), VRDN, Series B, 3.60%
due 11/15/2029 (j) 12,725
4,960 Eagle Tax-Exempt Trust, Connecticut, GO, VRDN,
Series 96-0701, 3.70% due 11/15/2007 (j) 4,960
Delaware--1.4%
Delaware State EDA Revenue Bonds (Hospital
Billing and Collection), VRDN (j):
40,735 Series B, 3.68% due 12/01/2015 40,735
65,850 Series C, 3.63% due 12/01/2015 65,850
Delaware State Housing Authority Revenue Bonds,
VRDN (j)(p):
3,685 MERLOTS, Series B10, 3.74% due 7/01/2031 (f) 3,685
2,020 ROCS, AMT, Series II-R-359, 3.74%
due 7/01/2035 (e)(p) 2,020
GS Pool Trust, Delaware, FLOATS, VRDN, AMT (j):
14,910 Series 1, 3.78% due 6/02/2012 14,910
11,960 Series 35TP, 3.78% due 8/01/2049 11,960
2,315 Series 56TP, 3.75% due 7/01/2048 2,315
District of Columbia--0.8%
4,000 District of Columbia, Ballpark Revenue Bonds,
PUTTERS, VRDN, Series 1325, 3.70%
due 2/01/2014 (b)(j)(p) 4,000
District of Columbia, GO, Refunding, VRDN (j):
17,350 MSTR, Series SGA-62, 3.72% due 6/01/2017 (a)(p) 17,350
21,000 Series C, 3.67% due 6/01/2026 (b) 21,000
16,605 District of Columbia, Hospital Revenue Bonds, FLOATS,
VRDN, Series 712, 3.69% due 7/15/2019 (b)(j) 16,605
26,190 District of Columbia, Water and Sewer Authority,
Public Utility Revenue Bonds, FLOATS, VRDN,
Series 1125, 3.69% due 10/01/2033 (b)(j) 26,190
Florida--7.3%
14,770 Collier County, Florida, Educational Facilities
Authority, Limited Obligation Revenue Bonds (Ave
Maria University), VRDN, 3.71% due 10/01/2036 (j) 14,770
11,680 Collier County, Florida, School Board, COP, ROCS, VRDN,
Series II-R-7032, 3.71% due 2/15/2024 (e)(j)(p) 11,680
Eagle Tax-Exempt Trust, Florida State Board of
Education, GO, VRDN, Class A (j):
15,500 Series 2005-0057, 3.72% due 6/01/2035 15,500
8,000 Series 2005-3013, 3.72% due 6/01/2033 8,000
19,730 Eagle Tax-Exempt Trust, South Florida Water Management
District, COP, VRDN, Series 2006-0136, Class A, 3.72%
due 10/01/2036 (a)(j) 19,730
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Florida (continued)
$ 11,975 Eclipse Funding Trust, Solar Eclipse Certificates,
Gainesville, Florida, Utilities System Revenue
Refunding Bonds, VRDN, Series 2006-0027, 3.69%
due 10/01/2013 (e)(j) $ 11,975
Florida Gas Utility Revenue Bonds (Gas Supply Project
Number 2), VRDN (j):
50,000 Series A-1, 3.65% due 11/01/2026 50,000
121,535 Series A-3, 3.63% due 11/01/2026 121,535
5,480 Florida Housing Finance Corporation, M/F Mortgage
Revenue Bonds, ROCS, VRDN, Series II-R-600CE,
3.74% due 7/01/2043 (j)(p) 5,480
16,176 Florida Local Government Finance Commission,
CP, 3.64% due 4/09/2007 16,176
3,470 Florida State Board of Education, GO, Refunding, ROCS,
VRDN, Series II-R-6087, 3.71% due 6/01/2014 (b)(j)(p) 3,470
Florida State Board of Education, Lottery Revenue
Bonds, VRDN (j):
6,220 FLOATS, Series 858, 3.69% due 1/01/2017 (f) 6,220
2,825 ROCS, Series II-R-4521, 3.71% due 7/01/2020 (b)(p) 2,825
27,840 Florida State, Revenue Refunding Bonds, MERLOTS,
VRDN, Series A-22, 3.65% due 7/01/2027 (j)(p) 27,840
4,100 Gainesville, Florida, Utilities System Revenue Refunding
Bonds, VRDN, Series C, 3.70% due 10/01/2026 (j) 4,100
6,000 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Refunding Bonds (Adventist Health
System), VRDN, Series C, 3.68% due 11/15/2021 (j) 6,000
3,950 Hillsborough County, Florida, Aviation Authority,
Revenue Refunding Bonds, MERLOTS, VRDN, AMT,
Series A18, 3.74% due 10/01/2013 (f)(j)(p) 3,950
15,000 Jacksonville, Florida, Electric Authority, CP, 3.67%
due 5/22/2007 15,000
38,825 Jacksonville, Florida, Electric Authority Revenue
Bonds (Electric System), VRDN, Series B, 3.71%
due 10/01/2030 (j) 38,825
5,825 Miami-Dade County, Florida, GO, ROCS, VRDN,
Series II-R-387, 3.72% due 7/01/2028 (b)(j)(p) 5,825
60,000 Miami-Dade County, Florida, School District, TAN,
4.50% due 6/28/2007 60,108
6,000 Miami-Dade County, Florida, Special Obligation
Revenue Bonds, TOCS, VRDN, Series Z-9, 3.71%
due 4/17/2015 (f)(j)(p) 6,000
16,240 Miami-Dade County, Florida, UBS Municipal CRVS Trust,
Expressway Authority, Toll System Revenue Bonds,
FLOATS, VRDN, Series 06-1004, 3.68%
due 1/01/2014 (a)(j) 16,240
40,000 Miami-Dade County, Florida, Water and Sewer
Revenue Refunding Bonds, VRDN, 3.66%
due 10/01/2025 (e)(j) 40,000
15,600 North Broward, Florida, Hospital District Revenue
Refunding Bonds, VRDN, Series B, 3.66%
due 1/15/2031 (g)(j) 15,600
5,000 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), VRDN, Series A-10, 3.73%
due 10/01/2041 (e)(j) 5,000
Orange County, Florida, Health Facilities Authority
Revenue Bonds, FLOATS, VRDN (j):
29,850 Series 532, 3.69% due 11/15/2015 (a) 29,850
17,245 Series 830, 3.69% due 11/15/2022 (e) 17,245
57,450 Orlando, Florida, Utilities Commission, Water and
Electric Revenue Bonds, VRDN, Series A, 3.65%
due 10/01/2017 (j) 57,450
Face
Amount Municipal Bonds Value
Florida (concluded)
Orlando-Orange County Expressway Authority, Florida,
Expressway Revenue Bonds, VRDN (a)(j):
$ 2,250 Sub-Series A-2, 3.64% due 7/01/2040 $ 2,250
38,600 Sub-Series C, 3.63% due 7/01/2040 38,600
19,000 Orlando-Orange County Expressway Authority, Florida,
Expressway Revenue Refunding Bonds, VRDN,
Series D, 3.63% due 7/01/2032 (e)(j) 19,000
10,000 Palm Beach County, Florida, Health Facilities
Authority, CP, 3.71% due 5/24/2007 10,000
6,100 Saint Johns County, Florida, Sales Tax Revenue
Bonds, ROCS, VRDN, Series II-R-755PB, 3.70%
due 10/01/2036 (f)(j)(p) 6,100
17,700 Sunshine State, Florida, Governmental Finance
Commission, CP, 3.68% due 5/03/2007 17,700
Volusia County, Florida, School Board, COP,
VRDN (f)(j)(p):
2,125 PUTTERS, Series 970, 3.72% due 2/01/2013 2,125
5,470 ROCS, Series II-R-2212, 3.71% due 8/01/2023 5,470
Georgia--1.4%
4,005 Albany-Dougherty County, Georgia, Hospital Authority,
Revenue Refunding Bonds, FLOATS, VRDN, Series L3J,
3.70% due 9/01/2020 (a)(j) 4,005
16,300 Appling County, Georgia, Development Authority,
PCR (Georgia Power Plant Hatch), VRDN, Second
Series, 3.70% due 12/01/2018 (j) 16,300
12,500 Atlanta, Georgia, Subordinate Lien Tax Allocation Bonds
(Atlantic Station), VRDN, 3.74% due 12/01/2024 (j) 12,500
4,000 Atlanta, Georgia, Urban Residential Finance Authority,
M/F Housing Revenue Bonds (Lindbergh City Center
Apartment Project), VRDN, AMT, 3.72%
due 11/01/2044 (j) 4,000
15,500 Burke County, Georgia, CP, 3.65% due 9/10/2007 15,500
Clayton County, Georgia, Development Authority,
Special Facilities Revenue Bonds (Delta Air Lines
Project), VRDN (j):
10,545 AMT, Series B, 3.80% due 5/01/2035 10,545
6,500 AMT, Series C, 3.80% due 5/01/2035 6,500
10,135 Series A, 3.74% due 6/01/2029 10,135
2,400 Clayton County, Georgia, Housing Authority, M/F
Housing Revenue Bonds (Provence Place Apartments
Project), VRDN, 3.73% due 10/01/2041 (j) 2,400
4,485 DeKalb County, Georgia, Public Safety and Judicial
Facilities Authority, Special Tax Revenue
Bonds, FLOATS, VRDN, Series 1459, 3.69%
due 12/01/2034 (j) 4,485
Eagle Tax-Exempt Trust, Atlanta, Georgia, Water and
Wastewater Revenue Bonds, VRDN, Class A (e)(j):
9,100 Series 2005-0009, 3.72% due 11/01/2043 9,100
5,000 Series 2006-0130, 3.72% due 11/01/2034 5,000
6,815 Georgia Municipal Electric Authority, Power Revenue
Bonds (MACON Trust), VRDN, Series E, 3.71%
due 1/01/2017 (e)(j) 6,815
2,150 Georgia State, GO, PUTTERS, VRDN, Series 1420,
3.71% due 6/01/2012 (j)(p) 2,150
2,575 Gwinnett County, Georgia, Development
Authority, COP, ROCS, VRDN, Series II-R-6009,
3.71% due 1/01/2021 (f)(j)(p) 2,575
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Georgia (concluded)
$ 20,000 Monroe County, Georgia, Development Authority, PCR
(Georgia Power Company--Scherer), VRDN, Second
Series 95, 3.76% due 6/01/2007 (j) $ 20,000
15,995 Municipal Securities Trust Certificates, Atlanta,
Georgia, Water and Wastewater Revenue Bonds, VRDN,
AMT, Series 2002-186, Class A, 3.70% due
2/25/2021 (f)(j) 15,995
Hawaii--0.2%
7,930 Eagle Tax-Exempt Trust, Hawaii State Highway Revenue
Bonds, VRDN, Series 2001-1101, Class A, 3.72%
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, 3.77% due 7/01/2033 (h)(j) 7,500
1,985 Hawaii State, Revenue Bonds, ROCS, VRDN,
Series II-R-6504, 3.71% due 10/01/2024 (f)(j)(p) 1,985
Illinois--7.7%
14,285 ABN AMRO MuniTops Certificates Trust, Chicago,
Illinois, GO, VRDN, Series 2001-31, 3.68%
due 1/01/2009 (b)(j) 14,285
Chicago, Illinois, Board of Education, GO (p):
4,525 ROCS, VRDN, Series II-R-9077, 3.71%
due 12/01/2026 (e)(j) 4,525
6,174 TOCS, Series Z-8, 3.71% due 10/28/2025 (b)(p) 6,174
Chicago, Illinois, GO, VRDN (j):
8,175 Series B, 3.67% due 1/01/2012 8,175
3,058 TOCS, Series Z-10, 3.71% due 6/29/2029 (b)(p) 3,058
5,740 Chicago, Illinois, Motor Fuel Tax Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2021, 3.71%
due 1/01/2020 (a)(j)(p) 5,740
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, VRDN (j):
9,330 (MACON Trust), Series A, 3.74%
due 1/01/2018 (f) 9,330
3,700 ROCS, AMT, Series II-R-239, 3.74%
due 1/01/2022 (e)(p) 3,700
5,995 ROCS, AMT, Series II-R-250, 3.74%
due 1/01/2034 (g)(p) 5,995
9,375 ROCS, Series II-R- 556, 3.71%
due 1/01/2029 (f)(p) 9,375
5,110 ROCS, Series II-R-605PB, 3.70%
due 1/01/2033 (b)(p) 5,110
41,550 Chicago, Illinois, O'Hare International Airport,
Revenue Refunding Bonds (General Airport Third
Lien), VRDN, Series D, 3.66% due 1/01/2035 (g)(j) 41,550
6,705 Chicago, Illinois, Park District, GO, Refunding, ROCS,
VRDN, Series II-R-4002, 3.71% due 1/01/2023 (b)(j)(p) 6,705
28,100 Chicago, Illinois, Second Lien Water Revenue
Refunding Bonds, VRDN, 3.65%
due 11/01/2031 (f)(j) 28,100
3,345 Cook County, Illinois, GO, Refunding, ROCS, VRDN,
Series II-R-2063, 3.71% due 11/15/2021 (f)(j)(p) 3,345
11,000 Eagle Tax-Exempt Trust, Chicago, Illinois, Board of
Education, VRDN, Series 01, Class 1309, 3.72%
due 12/01/2026 (j) 11,000
Eagle Tax-Exempt Trust, Chicago, Illinois, GO, VRDN (j):
9,900 Series 98, Class 1301, 3.72% due 1/01/2017 9,900
7,155 Series 2006-0001, Class-A, 3.72%
due 1/01/2034 (e) 7,155
Face
Amount Municipal Bonds Value
Illinois (continued)
$ 30,000 Eagle Tax-Exempt Trust, Cook County, Illinois,
VRDN, Series 02, Class 1303, 3.72%
due 11/15/2025 (a)(j) $ 30,000
3,150 Eagle Tax-Exempt Trust, Illinois State Finance
Authority, Revenue Refunding Bonds, VRDN, Series
2006-0118, Class A, 3.72% due 12/01/2042 (j) 3,150
Eagle Tax-Exempt Trust, Illinois State, GO, VRDN (j):
11,000 Series 01, Class 1307, 3.72% due 11/01/2022 11,000
11,100 Series 02, Class 1302, 3.72% 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,
3.72% due 6/15/2042 (f)(j) 3,000
5,000 Eagle Tax-Exempt Trust, Metropolitan Pier and
Exposition Authority, Illinois, VRDN, Series
2002-6001, Class A, 3.72% due 12/15/2028 (f)(j) 5,000
10,000 Eagle Tax-Exempt Trust, University of Illinois,
University Revenue Refunding Bonds, VRDN, Series
2006-0124, Class A, 3.72% due 4/01/2035 (f)(j) 10,000
10,720 Eclipse Funding Trust, Solar Eclipse Certificates,
Chicago, Illinois, GO, Refunding, VRDN, Series
2006-0038, 3.69% due 1/01/2028 (e)(j) 10,720
5,000 Illinois Development Finance Authority, Water
Facilities Revenue Refunding Bonds (Illinois
American Water Company), VRDN, AMT, 3.78% due
3/01/2032 (f)(j) 5,000
8,450 Illinois Educational Facilities Authority Revenue
Bonds (Art Institute of Chicago), VRDN, 3.70%
due 3/01/2027 (j) 8,450
Illinois HDA, M/F Housing Revenue Bonds (Danbury
Court Apartments), VRDN, AMT (j):
6,225 Series A, 3.73% due 5/01/2037 6,225
445 Series B, 3.80% due 5/01/2037 445
50,000 Illinois Health Facilities Authority, CP, 3.67%
due 7/19/2007 50,000
2,940 Illinois State Dedicated Tax (MACON Trust), VRDN,
Series N, 3.75% due 12/15/2020 (a)(j) 2,940
Illinois State Finance Authority Revenue Bonds,
VRDN (j):
4,190 FLOATS, Series 1489, 3.69% due 12/01/2042 4,190
50,415 (University of Chicago), Series B, 3.65%
due 7/01/2034 50,415
12,500 Illinois State Finance Authority, Revenue Refunding
Bonds (Central DuPage Health System), VRDN,
Series B, 3.71% due 11/01/2038 (j) 12,500
Illinois State, GO,VRDN (j):
1,750 (MACON Trust), Series L, 3.69% due 1/01/2031 1,750
8,960 MERLOTS, Series B04, 3.69% due 12/01/2024 (e)(p) 8,960
Illinois State, GO, Refunding, VRDN (f)(j):
16,310 FLOATS, Series 743D, 3.69% due 8/01/2015 (n) 16,310
5,780 MERLOTS, Series A49, 3.69% due 8/01/2013 (p) 5,780
16,605 Illinois Student Assistance Commission, Student
Loan Revenue Bonds, VRDN, AMT, Series A-I, 3.72%
due 9/01/2034 (f)(j) 16,605
5,690 Kane County, Illinois, School District Number 129
(Aurora West Side), GO, Refunding, PUTTERS, VRDN,
Series 1113, 3.72% due 2/01/2013 (b)(j)(p) 5,690
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Bonds, FLOATS,
VRDN (f)(j):
1,800 Series 2006-6Z, 3.71% due 12/15/2032 1,800
5,310 Series 2006-9Z, 3.71% due 12/15/2034 5,310
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Illinois (concluded)
$ 35,000 Morgan Keegan Municipal Products, Inc., Aurora,
Illinois, S/F Mortgage Revenue Bonds, VRDN, AMT,
Series B, 3.75% due 6/01/2045 (j) $ 35,000
6,250 Municipal Securities Trust Certificates, Chicago,
Illinois, Board of Education, GO, VRDN, Series
2005-237, Class A, 3.71% due 1/04/2024 (b)(j)(m) 6,250
26,045 Municipal Securities Trust Certificates, Chicago,
Illinois, O'Hare International Airport, Revenue
Refunding Bonds, VRDN, AMT, Series 2000-93,
Class A, 3.72% due 10/04/2012 (a)(j)(m) 26,045
29,950 Municipal Securities Trust Certificates, Chicago
O'Hare Airport, Illinois, Revenue Bonds, VRDN,
AMT, Series 2001-151, Class A, 3.72%
due 6/30/2015 (a)(j)(m) 29,950
Municipal Securities Trust Certificates, Cook County,
Illinois, GO, Refunding, VRDN, Class A (b)(j):
29,085 Series 2001-145, 3.70% due 11/15/2029 29,085
33,895 Series 2002-191, 3.70% due 3/18/2019 33,895
7,810 Municipal Securities Trust Certificates, Illinois
Finance Authority, Revenue Refunding Bonds, VRDN,
Series 2006-253, Class A, 3.70%
due 5/12/2014 (a)(j)(m) 7,810
13,230 Municipal Securities Trust Certificates, Kane, McHenry,
Cook and DeKalb Counties, Illinois, United School
District Number 300, GO, VRDN, Series 2007-309,
Class A, 3.72% due 1/15/2015 (a)(j)(m) 13,230
31,615 Municipal Securities Trust Certificates, Metropolitan
Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, VRDN, Series 2001-157, Class A,
3.70% due 10/05/2017 (b)(j) 31,615
18,065 Municipal Securities Trust Certificates, Will County,
Illinois, Community High School District Number 210,
VRDN, Series 2006-265, Class A, 3.71%
due 4/08/2021 (e)(j) 18,065
2,165 Regional Transportation Authority, Illinois, GO,
MERLOTS, VRDN, Series A41, 3.69%
due 6/01/2017 (b)(j)(p) 2,165
2,755 Regional Transportation Authority, Illinois, Revenue
Bonds (MACON Trust), VRDN, Series K, 3.69%
due 7/01/2026 (f)(j) 2,755
32,783 Regional Transportation Authority, Illinois, Revenue
Refunding Bonds, FLOATS, VRDN, Series 818-D,
3.69% due 7/01/2033 (b)(j) 32,783
10,000 University of Illinois, COP (Utility Infrastructure
Projects), Refunding, VRDN, 3.65%
due 8/15/2021 (j) 10,000
22,000 University of Illinois, University Revenue Refunding
Bonds (South Campus Project), VRDN, Series A,
3.68% due 1/15/2022 (b)(j) 22,000
2,065 Will County, Illinois, Community Unit School District
Number 365-U (Valley View), GO, Refunding, TOCS,
VRDN, Series Z-10, 3.71% due 4/15/2020 (e)(j)(p) 2,065
Will County, Illinois, Exempt Facilities Revenue Bonds
(BP Amoco Chemical Company Project), VRDN, AMT (j):
2,025 3.70% due 3/01/2028 2,025
3,500 3.70% due 7/01/2031 3,500
2,600 3.70% due 7/01/2032 2,600
10,000 Will County, Illinois, M/F Housing Redevelopment,
Revenue Refunding Bonds (Woodlands Crest Hill),
VRDN, AMT, 3.74% due 2/15/2031 (d)(j) 10,000
Face
Amount Municipal Bonds Value
Indiana--2.6%
$ 5,360 Carmel, Indiana, School Building Corporation
Revenue Bonds, ROCS, VRDN, Series II-R-2065,
3.71% due 7/15/2020 (f)(j)(p) $ 5,360
4,450 Elkhart County, Indiana, Revenue Refunding
Bonds, PUTTERS, VRDN, Series 1669, 3.72%
due 12/01/2014 (e)(j)(p) 4,450
13,000 Goshen, Indiana, EDR, Refunding (Goshen College
Project), VRDN, 3.70% due 10/01/2037 (j) 13,000
6,000 Hobart, Indiana, Building Corporation, First Mortgage
Revenue Bonds, MERLOTS, VRDN, Series D-3, 3.69%
due 1/15/2029 (b)(j)(p) 6,000
4,110 Huntington, Indiana, School Building Corporation
Revenue Bonds, PUTTERS, VRDN, Series 1648, 3.72%
due 7/15/2014 (f)(j)(p) 4,110
37,900 Indiana Bond Bank, Advance Funding Program Revenue
Notes, Series A, 4.25% due 1/31/2008 38,085
40,250 Indiana State Development Finance Authority,
Environmental Revenue Bonds (PSI Energy, Inc.
Projects), VRDN, AMT, Series A, 3.85%
due 12/01/2038 (j) 40,250
3,700 Indiana State Development Finance Authority, IDR
(Republic Services, Inc. Project), VRDN, AMT, 4.01%
due 11/01/2035 (j) 3,700
11,000 Indiana State Housing and Community Development
Authority, S/F Mortgage Revenue Bonds, VRDN, AMT,
Series E-2, 3.62% due 12/20/2007 (j) 11,000
5,245 Indiana State Office Building Commission, Facilities
Revenue Bonds, ROCS, VRDN, Series II-R-4534,
3.71% due 7/01/2020 (j)(p) 5,245
1,972 Indiana Transportation Finance Authority, Highway
Revenue Refunding Bonds, FLOATS, VRDN, Series 942D,
3.69% due 12/01/2022 (b)(j) 1,972
4,240 Indianapolis, Indiana, Local Public Improvement Bond
Bank, Revenue Refunding Bonds (MACON Trust),
VRDN, Series S, 3.69% due 1/01/2021 (f)(j) 4,240
34,995 Municipal Securities Trust Certificates, Indianapolis,
Indiana, Local Tax-Exempt, GO, VRDN, Series 2002-192,
Class A, 3.69% due 6/18/2014 (f)(j) 34,995
7,705 New Albany-Floyd County, Indiana, Independent
School Building Corporation, Revenue Refunding
Bonds, PUTTERS, VRDN, Series 879, 3.72%
due 6/01/2013 (e)(j)(p) 7,705
6,565 Pike County, Indiana, Multi-School Building Corporation,
Revenue Refunding Bonds, PUTTERS, VRDN,
Series 1122, 3.72% due 7/15/2012 (f)(j)(p) 6,565
41,635 Saint Joseph County, Indiana, Industrial Educational
Facilities, Revenue Refunding Bonds (University
of Notre Dame du Lac Project), VRDN, 3.60%
due 3/01/2040 (j) 41,635
Whiting, Indiana, Environmental Facilities Revenue
Refunding Bonds, VRDN, AMT (j):
6,085 (Amoco Oil Company Project),3.70%
due 7/01/2031 6,085
27,900 (BP Products Project), Series C, 3.70%
due 7/01/2034 27,900
Iowa--0.8%
15,000 Iowa Finance Authority, Health Care Facilities,
Revenue Refunding Bonds (Iowa Health System),
VRDN, Series B-3, 3.64% due 2/15/2035 (a)(j) 15,000
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Iowa (concluded)
$ 22,000 Iowa Finance Authority, Revenue Refunding Bonds
(Trinity Health Credit Group), VRDN, Series D,
3.65% due 12/01/2030 (j) $ 22,000
33,200 Iowa State, TRAN, 4.25% due 6/29/2007 33,259
10,000 Louisa County, Iowa, PCR, Refunding (Iowa-Illinois
Gas and Electric), VRDN, Series A, 3.72%
due 9/01/2016 (j) 10,000
Kansas--0.3%
3,955 Kansas State Department of Transportation, Highway
Revenue Bonds, ROCS, VRDN, Series II-R-6020,
3.71% due 3/01/2019 (e)(j)(p) 3,955
19,700 Kansas State Department of Transportation, Highway
Revenue Refunding Bonds, VRDN, Series C-1, 3.62%
due 9/01/2019 (j) 19,700
1,780 Kansas State Development Financing Authority, Revenue
Bonds (Sisters of Charity of Leavenworth Health
System), VRDN, Series C, 3.71% due 12/01/2019 (j) 1,780
7,500 Lehman Municipal Trust Receipts, Sedgwick and
Shawnee Counties, Kansas, FLOATS, VRDN,
Series 2006-P33U, 3.75% due 6/01/2038 (c)(i)(j) 7,500
Kentucky--2.8%
3,775 Boyd County, Kentucky, Sewer and Solid Waste
Revenue Bonds (Air Products and Chemicals Project),
VRDN, AMT, 3.75% due 7/01/2021 (j) 3,775
36,737 Breckinridge County, Kentucky, Lease Program Revenue
Bonds (Kentucky Association of Counties Leasing
Trust), VRDN, Series A, 3.71% due 2/01/2032 (j) 36,737
20,930 Carroll, Kentucky, CP, 3.78% due 4/02/2007 20,930
14,000 Eagle Tax-Exempt Trust, Louisville and Jefferson
Counties, Kentucky, Metropolitan Sewer District,
Sewer and Drain System Revenue Bonds, VRDN, Series
2006-0053 Class A, 3.72% due 5/15/2033 (b)(j) 14,000
35,000 Jefferson County, Kentucky, CP, 3.68% due 6/12/2007 35,000
2,200 Kenton County, Kentucky, Airport Board, Special
Facilities Revenue Refunding Bonds, VRDN, Series B,
3.74% due 10/01/2030 (j) 2,200
1,750 Kentucky Economic Development Finance Authority,
Solid Waste Disposal Revenue Bonds (Republic
Services, Inc.), VRDN, AMT, 3.95% due 7/01/2035 (j) 1,750
36,475 Kentucky State Turnpike Authority, Resource Recovery
Road Revenue Bonds, FLOATS, VRDN, Series 488,
3.69% due 7/01/2007 (e)(j) 36,475
Louisville and Jefferson Counties, Kentucky,
Metropolitan Government Health System, Revenue
Refunding Bonds, ROCS, VRDN (j)(p):
8,205 Series II-R-651CE, 3.71% due 10/01/2036 8,205
17,500 Series II-R-662CE, 3.71% due 10/01/2036 (b) 17,500
29,915 Louisville and Jefferson Counties, Kentucky,
Metropolitan Sewer District, Sewer and Drain System,
Revenue Refunding Bonds, VRDN, Series B, 3.65%
due 5/15/2023 (e)(j) 29,915
63,815 Public Energy Authority of Kentucky, Inc., Gas Supply
Revenue Bonds (BP Corporation of North America),
VRDN, Series A, 3.72% due 8/01/2016 (j) 63,815
13,980 Shelby County, Kentucky, Lease Revenue Bonds, VRDN,
Series A, 3.71% due 9/01/2034 (j) 13,980
Face
Amount Municipal Bonds Value
Louisiana--2.8%
$ 17,700 Ascension Parish, Louisiana, Revenue Bonds
(BASF Corporation Project), VRDN, AMT,
3.76% due 3/01/2025 (j) $ 17,700
32,900 Calcasieu Parish, Louisiana, IDB, Environmental
Revenue Bonds (Citgo Petroleum Corp.), VRDN,
AMT, 3.70% due 7/01/2026 (j) 32,900
13,495 Calcasieu Parish, Louisiana, IDB, Environmental
Revenue Refunding Bonds (Citgo Petroleum Corp.),
VRDN, AMT, 3.70% due 3/01/2025 (j) 13,495
Eagle Tax-Exempt Trust, Louisiana State Gas and Fuel
Tax Revenue Bonds, VRDN, Class A (e)(j):
27,225 Series 2006-0129, 3.72% due 5/01/2041 (b) 27,225
4,020 Series 2006-137, 3.72% due 5/01/2036 4,020
3,625 East Baton Rouge, Louisiana, Mortgage Finance
Authority, S/F Revenue Bonds, FLOATS, VRDN, AMT,
Series 996, 3.75% due 6/02/2008 (j) 3,625
Jefferson Parish, Louisiana, Hospital Service District
Number 001, Hospital Revenue Bonds, VRDN (j):
10,000 PUTTERS, Series 522, 3.71% due 12/01/2008 (p) 10,000
25,000 (West Jefferson Medical Center), Series B, 3.67%
due 1/01/2028 (e) 25,000
25,114 Louisiana HFA, Mortgage Revenue Refunding Bonds,
FLOATS, AMT, Series 1069, 3.75% due 12/01/2047 (j) 25,114
Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Bonds, VRDN, AMT (j):
4,000 (BASF Corporation Project), 3.74%
due 12/01/2036 4,000
6,000 (Honeywell International Inc. Project), 3.85%
due 12/01/2037 6,000
7,500 Louisiana Local Government Environmental Facilities
and Community Development Authority, Revenue
Refunding Bonds (BASF Corporation Project), VRDN,
Series B, 3.64% due 12/01/2030 (j) 7,500
Louisiana Public Facilities Authority Revenue Bonds,
VRDN (j):
2,850 (Air Products and Chemicals Project), AMT, 3.75%
due 12/01/2039 2,850
12,655 (Equipment and Capital Facilities Loan Program),
Series C, 3.70% due 7/01/2024 12,655
10,000 Louisiana State, GO, MERLOTS, VRDN, Series C-4,
3.69% due 5/01/2026 (e)(j)(p) 10,000
17,600 Louisiana State, Gas and Fuels Tax Revenue
Bonds, ROCS, VRDN, Series II-R-660, 3.71%
due 5/01/2041 (b)(j)(p) 17,600
15,500 Louisiana State Municipal Natural Gas Purchasing
and Distribution Authority Revenue Bonds,
PUTTERS, VRDN, Series 1411Q, 3.71%
due 3/15/2014 (j)(p) 15,500
8,790 Morgan Keegan Municipal Products, Inc., East
Baton Rouge, Louisiana, Mortgage Finance
Authority, S/F Revenue Bonds, VRDN, AMT,
Series A, 3.75% due 2/01/2011 (j) 8,790
24,125 Morgan Keegan Municipal Products, Inc., New Orleans,
Louisiana, Finance Authority, VRDN, Series G, 3.75%
due 12/01/2041 (j) 24,125
8,065 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall
Authority, Special Tax, ROCS, VRDN, Series II-R-4038,
3.74% due 7/15/2023 (a)(j)(p) 8,065
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Louisiana (concluded)
$ 4,400 South Louisiana Port Commission, Port Revenue
Refunding Bonds (Occidental Petroleum), VRDN,
3.67% due 7/01/2018 (j) $ 4,400
Maine--0.1%
12,000 Maine State Housing Authority, Mortgage Purpose
Revenue Bonds, VRDN, AMT, Series H, 3.62%
due 11/15/2034 (j) 12,000
Maryland--1.9%
4,780 Baltimore County, Maryland, Revenue Refunding
Bonds (The Paths at Loveton Farms Apartments
Facility Project), VRDN, 3.70% due 12/01/2021 (j) 4,780
35,700 Baltimore, Maryland, Port Facilities Revenue
Bonds (Occidental Petroleum), FLOATS, VRDN,
3.60% due 10/14/2011 (j) 35,700
2,500 Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Bonds, VRDN, AMT, Series R, 3.64%
due 12/14/2007 (j) 2,500
11,000 Maryland State Community Development
Administration, Department of Housing and
Community Development, Residential Revenue
Refunding Bonds, VRDN, Series Q, 3.59%
due 12/14/2007 (j) 11,000
29,000 Maryland State Economic Development Corporation,
Revenue Refunding Bonds (Constellation Energy
Group, Inc. Project), VRDN, Series A, 3.63%
due 4/01/2024 (j) 29,000
34,350 Maryland State Health and Higher Educational
Facilities Authority, Revenue Refunding
Bonds, FLOATS, VRDN, Series 867, 3.69%
due 7/01/2019 (b)(j) 34,350
4,000 Maryland State Stadium Authority, Lease Revenue
Refunding Bonds (Baltimore Convention Center),
VRDN, AMT, 3.65% due 12/15/2014 (j) 4,000
48,295 Metropolitan Washington Airports Authority, D.C.,
Airport System Revenue Refunding Bonds,
MERLOTS, VRDN, AMT, Series C35, 3.74%
due 10/01/2014 (f)(j)(m)(p) 48,295
9,225 Metropolitan Washington Airports Authority, D.C.,
System Revenue Bonds, ROCS, VRDN, Series II-R-195,
3.74% due 10/01/2032 (b)(j)(p) 9,225
13,805 Montgomery County, Maryland, EDR (Riderwood
Village, Inc. Project), Refunding, VRDN, 3.68%
due 3/01/2034 (j) 13,805
Massachusetts--1.5%
10,000 Eagle Tax Exempt Trust, Massachusetts Commuter
Facilities, VRDN, Series 2001, Class 2101, 3.71%
due 6/15/2033 (j) 10,000
7,495 Eagle Tax-Exempt Trust, Massachusetts State Water
Resources Authority, Revenue Refunding Bonds,
VRDN, Series 2006-0054 Class A, 3.71%
due 8/01/2036 (a)(j) 7,495
10,500 Massachusetts State Development Finance Agency,
CP, 3.67% due 5/18/2007 10,500
7,935 Massachusetts State Development Finance Agency
Revenue Bonds (Suffolk University), VRDN, Series A,
3.70% due 7/01/2035 (j)(k) 7,935
Face
Amount Municipal Bonds Value
Massachusetts (concluded)
$ 2,700 Massachusetts State, GO, Refunding, VRDN, Series A,
3.62% due 9/01/2016 (j) $ 2,700
39,250 Massachusetts State Industrial Finance Agency, Solid
Waste Disposal, CP, 3.67% due 5/09/2007 39,250
60,000 Massachusetts State Port Authority, CP, 3.57%
due 6/14/2007 60,000
9,925 Massachusetts State Special Obligation and Dedicated
Tax Revenue Bonds, MERLOTS, VRDN, Series B19,
3.68% due 1/01/2028 (b)(j)(p) 9,925
Michigan--3.2%
5,100 Detroit, Michigan, City School District, GO, Refunding
(MACON Trust), VRDN, Series J, 3.69%
due 5/01/2028 (e)(j) 5,100
4,615 Detroit, Michigan, City School District, GO, VRDN,
Series A, 3.73% due 5/01/2029 (e)(j) 4,615
20,930 Detroit, Michigan, Water Supply System, Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-665PB,
3.70% due 7/01/2033 (f)(j)(p) 20,930
6,900 Eagle Tax-Exempt Trust, Grand Rapids Michigan,
Sanitation Sewer System, VRDN, Series A, 3.72%
due 1/01/2022 (b)(j) 6,900
Eagle Tax-Exempt Trust, Michigan State Building
Authority, Revenue Refunding Bonds, VRDN,
Class A (b)(j):
8,080 Series 2006-0113, 3.72% due 10/15/2036 8,080
7,100 Series 2006-156, 3.72% due 10/15/2036 7,100
57,720 Kent, Michigan, Hospital Finance Authority, Revenue
Refunding Bonds (Spectrum Health), VRDN, Series A,
3.65% due 1/15/2029 (b)(j) 57,720
Michigan State Building Authority, Revenue Refunding
Bonds, ROCS, VRDN (f)(j)(p):
4,965 Series II-R-550, 3.71% due 10/15/2024 (a) 4,965
4,250 Series II-R-2064, 3.71% due 10/15/2021 4,250
Michigan State Hospital Finance Authority Revenue
Bonds, VRDN (j):
82,000 (Ascension Health), Series B-1, 3.62%
due 11/15/2033 82,000
11,100 (Trinity Health Credit Group), Series F, 3.67%
due 11/01/2018 11,100
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds, VRDN (j):
39,700 (Ascension Health), 3.62% due 11/15/2033 39,700
22,000 MERLOTS, Series K, 3.69% due 11/15/2023 (f)(p) 22,000
28,110 (Trinity Health Credit Group), Series E, 3.70%
due 12/01/2030 (a) 28,110
2,940 Michigan State Strategic Fund, Limited Obligation
Revenue Bonds (Russell Investment Co. LLC Project),
VRDN, AMT, 3.78% due 11/01/2031 (j) 2,940
5,615 Michigan State Strategic Fund, Limited Obligation
Revenue Refunding Bonds (Dow Chemical Project),
VRDN, Series B-1, 3.77% due 6/01/2014 (j) 5,615
10,000 RBC Municipal Products, Inc., Detroit, Michigan, Water
Supply System Revenue Bonds, FLOATS, VRDN,
Series I-18, 3.70% due 7/01/2014 (e)(j) 10,000
3,365 Royal Oak, Michigan, Hospital Finance Authority,
Hospital Revenue Refunding Bonds (William
Beaumont Hospital), VRDN, Series U, 3.74%
due 1/01/2020 (a)(j) 3,365
3,550 Whitmore Lake, Michigan, Public School District,
GO, ROCS, VRDN, Series II-R-4515, 3.71%
due 5/01/2023 (j)(p) 3,550
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Minnesota--1.8%
$ 16,005 Duluth, Minnesota, EDA, Health Care Facilities,
Revenue Refunding Bonds, FLOATS, VRDN,
Series 895, 3.69% due 2/15/2020 (a)(j) $ 16,005
Minneapolis and Saint Paul, Minnesota, Metropolitan
Airports Commission, Airport Revenue Bonds,
FLOATS, VRDN (j):
27,900 Series 2007-1G, 3.70% due 1/01/2032 (a) 27,900
11,345 Series 2007-2G, 3.70% due 1/01/2032 (b) 11,345
13,955 Minneapolis, Minnesota, Health Care System, Revenue
Refunding Bonds (Fairview Health Services Project),
VRDN, Series B, 3.64% due 11/15/2029 (a)(j) 13,955
1,680 Minnesota State, GO, ROCS, VRDN, Series II-R-4065,
3.71% due 8/01/2023 (j)(p) 1,680
6,300 Municipal Securities Trust Certificates, Minneapolis
and Saint Paul, Minnesota, Metropolitan Airports
Commission, Airport Revenue Bonds, VRDN,
Series 2007-292, Class A, 3.71%
due 12/23/2014 (a)(j) 6,300
Rochester, Minnesota, Healthcare, CP:
16,250 3.66% due 5/01/2007 16,250
20,500 3.66% due 5/08/2007 20,500
33,300 3.66% due 6/15/2007 33,300
33,200 3.67% due 7/13/2007 33,200
Mississippi--1.7%
56,695 Mississippi Development Bank, Special Obligation
Revenue Bonds (Municipal Gas Authority of
Mississippi--Natural Gas Supply Project), VRDN,
3.65% due 7/01/2015 (j) 56,695
89,191 Mississippi Home Corporation, S/F Revenue Bonds,
FLOATS, VRDN, AMT, Series 1212, 3.72%
due 12/01/2008 (j) 89,191
18,780 Mississippi State, Capital Improvement, GO, VRDN,
3.65% due 9/01/2025 (j) 18,780
5,950 University of Mississippi Educational Building
Corporation Revenue Bonds (The University of
Mississippi Medical Center Pediatric and Research
Facilities Project), VRDN, 3.68% due 6/01/2034 (a)(j) 5,950
Missouri--0.6%
4,645 Jackson County, Missouri, Special Obligation
Revenue Bonds, ROCS, VRDN, Series II-R-9013,
3.71% due 12/01/2029 (a)(j)(p) 4,645
5,220 Lehman Municipal Trust Receipts, St. Louis, Missouri,
Industrial Development Authority, M/F Housing
Revenue Bonds, FLOATS, VRDN, AMT, Series 2006-K50,
3.75% due 12/20/2044 (f)(j) 5,220
Missouri Development Finance Board, Cultural Facilities
Revenue Bonds (Nelson Gallery Foundation), VRDN (j):
13,050 Series A, 3.71% due 12/01/2033 13,050
9,870 Series B, 3.71% due 12/01/2031 (f) 9,870
3,160 Missouri-Illinois Bi-State Development Agency,
Subordinate Mass Transit Revenue Bonds (Metrolink
Cross County Extension Project), VRDN, Series A,
3.67% due 10/01/2035 (j) 3,160
5,760 Missouri Joint Municipal Electric Utility Commission,
Power Project Revenue Bonds, ROCS, VRDN,
Series II-R-620PB, 3.70% due 1/01/2034 (a)(j)(p) 5,760
4,650 Missouri State Health and Educational Facilities
Authority, Health Facilities Revenue Bonds (BJC
Health System), VRDN, Series B, 3.71% due
5/15/2034 (f)(j) 4,650
5,232 Missouri State Housing Development Commission,
S/F Mortgage Revenue Refunding Bonds, VRDN,
AMT, Series A, 4.52% due 9/01/2038 (j) 5,232
Face
Amount Municipal Bonds Value
Missouri (concluded)
$ 6,000 Palmyra, Missouri, IDA, Solid Waste Disposal Revenue
Bonds (BASF Corporation Project), VRDN, AMT, 3.74%
due 12/01/2022 (j) $ 6,000
Montana--0.1%
13,640 Montana Facility Finance Authority Revenue Bonds
(Sisters of Charity of Leavenworth Health System),
VRDN, Series A, 3.71% due 12/01/2025 (j) 13,640
Nebraska--2.1%
American Public Energy Agency, Nebraska, Gas Supply
Revenue Bonds, VRDN (j):
89,866 (National Public Gas Agency Project), Series B,
3.65% due 2/01/2014 89,866
34,080 Series A, 3.65% due 12/01/2015 34,080
9,720 Central Plains Energy Project, Nebraska, Gas Project
Number 1 Revenue Bonds, VRDN, Series A, 5%
due 12/01/2007 (j) 9,802
2,000 Eagle Tax-Exempt Trust, Nebraska Public Power
District Revenue Bonds, VRDN, Series 2004-1016,
Class A, 3.72% due 1/01/2035 (a)(j) 2,000
16,995 Eagle Tax-Exempt Trust, Nebraska Public Power District,
Revenue Refunding Bonds, VRDN, Series 2007-0013,
Class A, 3.70% due 1/01/2031(b)(j) 16,995
5,960 Eclipse Funding Trust, Solar Eclipse Certificates,
Omaha, Nebraska, Public Power District Revenue Bonds,
VRDN, Series 2006-0025, 3.69% due 2/01/2036 (a)(j) 5,960
4,345 Municipal Energy Agency of Nebraska, Power Supply
System Revenue Bonds, ROCS, VRDN, Series II-R-2051,
3.71% due 4/01/2022 (e)(j)(p) 4,345
34,000 Omaha Public Power District, Nebraska, CP, 3.64%
due 4/03/2007 34,000
14,150 Omaha Public Power District, Nebraska, Electric System
Revenue Bonds, ROCS, VRDN, Series II-R-9031, 3.71%
due 2/01/2039 (j)(p) 14,150
Nevada--1.1%
29,185 ABN AMRO MuniTops Certificates Trust, Clark County,
Nevada, Airport Revenue Bonds, VRDN, Series 1999-15,
3.68% due 1/02/2008 (f)(j) 29,185
5,700 Clark County, Nevada, Airport System Subordinate Lien,
Revenue Refunding Bonds, VRDN, Series C, 3.66%
due 7/01/2029 (b)(j) 5,700
20,250 Clark County, Nevada, CP, 3.65% due 7/12/2007 20,250
4,690 Clark County, Nevada, School District, GO, PUTTERS,
VRDN, Series 1429, 3.70% due 12/15/2013 (e)(j)(p) 4,690
18,965 Eagle Tax-Exempt Trust, Clark County, Nevada, GO,
Refunding, VRDN, Series 2007-0011, Class A, 3.70%
due 11/01/2030 (a)(j) 18,965
9,025 Las Vegas Valley, Nevada, Water District, GO,
Refunding, MERLOTS, VRDN, Series B 10, 3.69%
due 6/01/2024 (f)(j)(p) 9,025
5,850 Nevada State Department of Business and Industry,
Solid Waste Disposal Revenue Bonds (Republic Services,
Inc. Project), VRDN, AMT, 4.04% due 12/01/2034 (j) 5,850
9,330 Truckee Meadows, Nevada, Water Authority, Water
Revenue Refunding Bonds, ROCS, VRDN,
Series II-R-6078, 3.71% due 1/01/2027 (e)(j)(p) 9,330
7,190 Washoe County, Nevada, School District, GO, ROCS,
VRDN, Series II-R-2012, 3.71% due 6/01/2020 (b)(j)(p) 7,190
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
New Hampshire--0.7%
$ 6,500 New Hampshire Health and Educational Facilities
Authority, Revenue Refunding Bonds (Dartmouth
Hitchcock Obligation), VRDN, Series A, 3.65%
due 8/01/2031 (e)(j) $ 6,500
New Hampshire Higher Educational and Health
Facilities Authority Revenue Refunding Bonds,
FLOATS, VRDN (b)(j):
9,658 Series 866, 3.69% due 8/15/2021 9,658
4,782 Series 772, 3.69% due 1/01/2017 4,782
7,415 New Hampshire State Business Finance Authority,
Resource Recovery Revenue Refunding Bonds
(Wheelabrator), VRDN, Series A, 3.67%
due 1/01/2018 (j) 7,415
40,600 New Hampshire State Business Fund, CP, 3.64%
due 5/07/2007 40,600
New Jersey--1.8%
15,490 GS Pool Trust, Newark, New Jersey, Housing Authority,
Revenue Refunding Bonds, FLOATS, VRDN, Series 24,
3.71% due 1/01/2027 (f)(j) 15,490
10,500 Municipal Securities Trust Certificates, New Jersey
State, GO, Refunding, VRDN, Series 2001-174, Class A,
3.70% due 2/26/2015 (j) 10,500
Municipal Securities Trust Certificates, New Jersey State
Transportation Trust Fund Authority, Transportation
System Revenue Bonds, Class A, VRDN (j)(m):
5,855 Series 2006-3010, 3.71% due 6/13/2024 (a) 5,855
11,550 Series 2006-3013, 3.71% due 11/05/2026 (b) 11,550
12,000 New Jersey EDA, Revenue Refunding Bonds
(Presbyterian Homes), VRDN, Series B, 3.65%
due 4/01/2016 (j) 12,000
7,257 New Jersey Health Care Facilities Financing Authority
Revenue Bonds, FLOATS, VRDN, Series 702, 3.70%
due 7/01/2014 (f)(j) 7,257
10,350 New Jersey State Transportation Trust Fund Authority
Revenue Bonds, PUTTERS, VRDN, Series 1365, 3.69%
due 6/15/2023 (f)(j)(p) 10,350
New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, VRDN (e)(j):
22,325 Series C-1, 3.63% due 1/01/2024 22,325
52,785 Series C-2, 3.63% due 1/01/2024 52,785
30,000 Passaic, New Jersey, GO, Refunding, BAN, 4.50%
due 6/08/2007 30,052
New Mexico--0.4%
14,505 Eclipse Funding Trust, Solar Eclipse Certificates,
Rio Rancho, New Mexico, Water and Waste Water
Revenue Bonds, VRDN, Series 2006-0019, 3.69%
due 5/15/2032 (f)(j) 14,505
7,340 New Mexico Finance Authority, Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-7509, 3.71%
due 6/15/2023 (a)(j)(p) 7,340
23,591 New Mexico Mortgage Finance Authority, S/F
Mortgage Program Revenue Bonds, VRDN, AMT,
4.52% due 7/01/2007 (j) 23,591
Face
Amount Municipal Bonds Value
New York--6.4%
$ 7,000 Aurora, New York, GO, BAN, 4% due 7/25/2007 $ 7,000
10,000 Carmel, New York, Central School District, GO,
BAN, 4.50% due 6/29/2007 10,015
7,080 GS Pool Trust, New York City, New York, City
Transitional Finance Authority Revenue Bonds,
FLOATS, VRDN, Series 25, 3.71% due 11/01/2020 (j) 7,080
7,000 Hempstead, New York, Union Free School District,
GO, TAN, 4.50% due 6/28/2007 7,011
31,950 Metropolitan Transportation Authority, New York,
Dedicated Tax Fund, Revenue Refunding Bonds,
VRDN, Series B, 3.65% due 11/01/2022 (e)(j) 31,950
Monroe County, New York, GO:
9,390 BAN, 4.75% due 7/18/2007 9,411
25,000 RAN, 4% due 4/16/2007 25,004
32,700 Monroe County, New York, Public Improvement
Refunding Bonds, GO, BAN, 4% due 7/18/2007 32,738
13,995 Municipal Securities Trust Certificates, New York City,
New York, City Transitional Finance Authority
Revenue Bonds, VRDN, Series 2002-202,
Class A, 3.65% due 10/21/2010 (b)(j)(m) 13,995
13,000 New York City, New York, City Housing Development
Corporation, M/F Rental Housing Revenue Bonds
(Brittany Development), VRDN, AMT, Series A, 3.69%
due 6/15/2029 (d)(j) 13,000
24,000 New York City, New York, City IDA, Liberty Revenue
Bonds (One Bryant Park LLC Project), VRDN, Series A,
3.67% due 11/01/2039 (j) 24,000
New York City, New York, City Municipal Water
Finance Authority, CP:
42,000 3.67% due 6/06/2007 42,000
50,000 3.68% due 6/11/2007 50,000
49,000 3.68% due 6/13/2007 49,000
40,000 3.70% due 6/14/2007 40,000
11,500 New York City, New York, City Transitional Finance
Authority, Special Tax Revenue Refunding Bonds,
VRDN, Series C, 3.62% due 2/01/2032 (j) 11,500
25,000 New York City, New York, GO, ROCS, VRDN,
Series II-R-251A, 3.72% due 12/15/2033 (j)(p) 25,000
5,695 New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, ROCS, VRDN,
Series II-R-6084, 3.70% due 10/01/2023 (j)(p) 5,695
1,500 New York State Dormitory Authority, Mental Health
Facilities Improvement Revenue Refunding Bonds,
VRDN, Series F-2B, 3.65% due 2/15/2021 (e)(j) 1,500
6,500 New York State HFA, Service Contract Revenue
Refunding Bonds, VRDN, Series G, 3.65%
due 3/15/2028 (j) 6,500
56,600 New York State Local Assistance Corporation
Revenue Bonds, VRDN, Series B, 3.59%
due 4/01/2023 (j) 56,600
6,500 New York State Local Government Assistance
Corporation, Revenue Refunding Bonds, Sub-Lien,
VRDN, Series 3V, 3.63% due 4/01/2024 (b)(j) 6,500
10,975 New York State Thruway Authority, State Personal
Income Tax, Revenue Refunding Bonds, FLOATS,
VRDN, Series 1194, 3.68% due 3/15/2023 (e)(j) 10,975
11,000 Oceanside, New York, Union Free School District, GO,
TAN, 4.50% due 6/27/2007 11,019
5,930 Plainedge, New York, Union Free School District, GO,
TAN, 4.50% due 6/27/2007 5,940
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
New York (concluded)
$ 20,000 Sachem Central School District (Holbrook), New York,
GO, BAN, 4.50% due 6/27/2007 $ 20,034
3,990 Tobacco Settlement Financing Corporation of New
York Revenue Bonds, FLOATS, VRDN, Series 1457,
3.75% due 6/01/2022 (j) 3,990
Triborough Bridge and Tunnel Authority, New York,
General Purpose Revenue Bonds, VRDN (j):
46,280 Series A, 3.65% due 11/01/2035 46,280
18,570 Series B, 3.64% due 1/01/2033 18,570
29,000 Triborough Bridge and Tunnel Authority, New York,
General Revenue Refunding Bonds, VRDN,
Sub-Series B-2, 3.65% due 1/01/2032 (j) 29,000
4,985 Triborough Bridge and Tunnel Authority, New York,
Special Obligation Revenue Refunding Bonds, VRDN,
Series C, 3.61% due 1/01/2031 (e)(j) 4,985
25,000 William Floyd Union Free School District of
Mastics-Moriches-Shirley, GO, TAN, 4.50%
due 6/29/2007 25,040
North Carolina--1.9%
10,890 Eagle Tax-Exempt Trust, North Carolina Capital
Facilities Finance Agency, Revenue Refunding Bonds,
VRDN, Series 2007-0015, Class A, 3.70%
due 7/01/2042 (j) 10,890
4,800 Lee County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, IDR (Arden
Corporation Project), VRDN, AMT, 3.82%
due 8/01/2034 (j) 4,800
Mecklenburg County, North Carolina, VRDN (j):
9,905 COP, 3.63% due 2/01/2026 9,905
21,010 GO, Series A, 3.63% due 2/01/2026 21,010
19,995 Municipal Securities Trust Certificates, North Carolina
Eastern Municipal Power Agency, GO, Refunding,
VRDN, Series 2002-201, Class A, 3.69%
due 4/12/2017 (j) 19,995
4,025 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, MERLOTS, VRDN,
Series A22, 3.69% due 1/01/2024 (j)(p) 4,025
19,500 North Carolina Eastern Municipal Power Agency, Power
System Revenue Refunding Bonds, VRDN, Series A,
3.65% due 1/01/2024 (f)(j) 19,500
North Carolina HFA, Home Ownership Revenue Bonds,
VRDN, AMT (j):
3,200 MERLOTS, Series B12, 3.74% due 7/01/2037 (p) 3,200
3,000 Series 18-C, 3.72% due 1/01/2035 3,000
16,500 North Carolina Medical Care Commission, Health Care
Facilities Revenue Bonds (Novant Health Inc.), VRDN,
Series A, 3.66% due 11/01/2034 (j) 16,500
North Carolina Medical Care Commission, Health
Care Facilities, Revenue Refunding Bonds, VRDN (j):
4,800 (Duke University Health System), Series C, 3.65%
due 6/01/2028 4,800
38,520 (University Health Systems of Eastern Carolina),
Series C1, 3.65% due 12/01/2036 (a) 38,520
North Carolina Medical Care Commission, Hospital
Revenue Bonds, VRDN (j):
6,900 (Moses H. Cone Memorial Health System),
Series B, 3.65% due 10/01/2035 6,900
4,100 (Pooled Equipment Financing Project), ACES,
3.65% due 12/01/2025 (f) 4,100
Face
Amount Municipal Bonds Value
North Carolina (concluded)
$ 15,700 North Carolina Medical Care Commission, Hospital
Revenue Refunding Bonds (Northeast Medical
Center Project), VRDN, Series B, 3.66%
due 11/01/2032 (j) $ 15,700
4,500 North Carolina State, GO, MERLOTS, VRDN, Series A23,
3.69% due 3/01/2027 (j)(p) 4,500
6,400 Raleigh, North Carolina, Combined Enterprise System
Revenue Bonds, ROCS, VRDN, Series II-R-645, 3.71%
due 3/01/2036 (j)(p) 6,400
3,100 Wake County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority Revenue Bonds
(Solid Waste Disposal-Highway 55), VRDN, AMT, 3.76%
due 9/01/2013 (j) 3,100
Ohio--1.3%
1,930 Brunswick, Ohio, Special Assessment
Improvement, BAN, 3.90% due 4/03/2008 1,934
30,000 Cleveland, Ohio, Water Revenue Refunding Bonds,
VRDN, Series M, 3.65% due 1/01/2033 (e)(j) 30,000
5,500 Columbus, Ohio, City School District, GO, TOCS, VRDN,
Series H, 3.67% due 10/11/2012 (e)(j)(p) 5,500
5,000 Franklin County, Ohio, Health Care Facilities Revenue
Refunding Bonds (Ohio Presbyterian Services), VRDN,
Series A, 3.68% due 7/01/2036 (h)(j) 5,000
1,623 Franklin, Ohio, GO, BAN, 3.67% due 3/12/2008 1,623
13,940 Hamilton County, Ohio, Sales Tax Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-9051, 3.71%
due 12/01/2032 (a)(j)(p) 13,940
9,000 Hamilton County, Ohio, Student Housing Revenue
Bonds (Block 3 Community Urban Redevelopment
Corporation Project), VRDN, 3.70% due 8/01/2036 (j) 9,000
1,770 Hudson, Ohio, City School District, Energy Conservation,
GO, BAN, 4% due 3/13/2008 1,775
3,755 Licking County, Ohio, GO (Buckeye Lake Project), BAN,
4.25% due 11/28/2007 3,771
2,370 Municipal Securities Trust Certificates, Princeton, Ohio,
City School District, GO, Series SGB 50-A, 3.70%
due 12/01/2030 (f) 2,370
780 North Olmsted, Ohio, Capital Improvement and
Equipment, BAN, 3.90% due 4/03/2008 782
5,000 North Royalton, Ohio, Various Purpose Improvement,
BAN, 3.90% due 2/28/2008 5,010
2,150 Oakwood, Ohio, Capital Facilities, GO, BAN, 4%
due 3/13/2008 2,156
Ohio State Air Quality Development Authority,
Revenue Refunding Bonds (Cincinnati Gas and
Electric), VRDN (j):
7,900 Series A, 3.85% due 9/01/2030 7,900
16,300 Series B, 3.90% due 9/01/2030 16,300
22,890 Ohio State, GO, Common Schools, VRDN, Series A,
3.65% due 3/15/2025 (j) 22,890
2,500 Ohio State Solid Waste Revenue Bonds (Republic
Services, Inc. Project), VRDN, AMT, 3.95%
due 11/01/2035 (j) 2,500
3,000 Richland County, Ohio, Correctional Facilities, GO,
BAN, 4.50% due 2/21/2008 3,019
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Oklahoma--1.0%
$ 3,584 Comanche County, Oklahoma, Home Finance
Authority, S/F Mortgage Revenue Bonds, VRDN,
Series A, 3.90% due 5/01/2007 (j) $ 3,584
23,045 Morgan Keegan Municipal Products, Inc., Oklahoma
County, Oklahoma, HFA, S/F Revenue Bonds, VRDN,
AMT, Series A, 3.75% due 5/01/2009 (j) 23,045
2,500 Oklahoma State Development Finance Authority
Revenue Bonds (ConocoPhillips Company Project),
VRDN, AMT, Series B, 3.77% due 8/01/2037 (j) 2,500
5,084 Oklahoma State, HFA, S/F Mortgage Revenue Bonds,
VRDN, AMT, 4.52% due 8/31/2007 (j) 5,084
Oklahoma State Turnpike Authority, Second Senior
Revenue Refunding Bonds, VRDN (j)(n):
52,810 Series C, 3.65% due 1/01/2028 52,810
10,000 Series E, 3.66% due 1/01/2028 10,000
Oregon--0.1%
11,730 ABN AMRO MuniTops Certificates Trust, Portland,
Oregon, GO, VRDN, Series 2001-4, 3.70%
due 6/01/2009 (f)(j) 11,730
Pennsylvania--5.0%
Allegheny County, Pennsylvania, Hospital
Development Authority Revenue Bonds, VRDN (j):
27,165 PUTTERS, Series 1281, 3.70% due 1/15/2011 (b)(p) 27,165
6,907 (University of Pittsburgh Medical Center),
Series B-1, 3.78% due 12/01/2016 6,907
25,000 Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
VRDN, Series D, 3.68% due 12/01/2020 (j) 25,000
Emmaus, Pennsylvania, General Authority Revenue
Bonds, VRDN, Series A (j):
11,925 3.71% due 3/01/2024 11,925
13,200 (Pennsylvania Loan Program), 3.68%
due 3/01/2030 (e) 13,200
9,897 Erie County, Pennsylvania, Hospital Authority Revenue
Bonds, FLOATS, VRDN, Series 820, 3.69%
due 7/01/2022 (f)(j) 9,897
17,000 Erie, Pennsylvania, City School District, GO, TRAN,
4.50% due 6/29/2007 17,021
12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN,
Series SGB-38, 3.69% due 9/15/2020 (j)(p) 12,000
4,995 Mount Lebanon, Pennsylvania, School District, GO,
MERLOTS, VRDN, Series B19, 3.69%
due 2/15/2027 (f)(j)(p) 4,995
6,700 Pennsylvania Economic Development Financing
Authority, Wastewater Treatment Revenue Refunding
Bonds (Sunoco, Inc.--R & M Project), VRDN, AMT,
Series B, 3.86% due 10/01/2034 (j) 6,700
15,120 Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, FLOATS, VRDN, Series 1402,
3.69% due 12/01/2024 (a)(j) 15,120
Pennsylvania State Turnpike Commission, Turnpike
Revenue Refunding Bonds, VRDN (j):
6,925 Series B, 3.65% due 12/01/2012 6,925
20,420 Series U, 3.64% due 12/01/2019 20,420
Face
Amount Municipal Bonds Value
Pennsylvania (concluded)
Philadelphia, Pennsylvania, Gas Works, CP:
$ 65,000 3.63% due 5/04/2007 $ 65,000
49,500 3.63% due 5/07/2007 49,500
66,400 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, VRDN, Series 6, 3.66%
due 8/01/2031 (e)(j) 66,400
Philadelphia, Pennsylvania, Water and Wastewater
Revenue Refunding Bonds, VRDN (e)(j):
72,855 3.65% due 6/15/2023 72,855
18,650 Series B, 3.65% due 8/01/2018 18,650
12,800 Southcentral General Authority, Pennsylvania, Revenue
Refunding Bonds (Wellspan Health--York Hospital),
VRDN, Series A, 3.65% due 6/07/2023 (a)(j) 12,800
18,000 Temple University of the Commonwealth System of
Higher Education, Pennsylvania, University Funding
Obligations, Revenue Refunding Bonds, VRDN, 5%
due 4/26/2007 (j) 18,017
8,000 Washington County, Pennsylvania, Authority Revenue
Refunding Bonds (University of Pennsylvania), VRDN,
3.66% due 7/01/2034 (j) 8,000
10,510 Washington County, Pennsylvania, IDA, Health Care
Facilities Revenue Bonds (Presbyterian Senior Care),
VRDN, 3.69% due 1/01/2030 (h)(j) 10,510
Rhode Island--1.2%
14,000 Narragansett Bay Commission, Rhode Island,
Wastewater System Revenue Bonds, ROCS, VRDN,
Series II-R-780PB, 3.70% due 2/01/2032 (f)(j)(p) 14,000
5,345 Rhode Island Housing and Mortgage Finance
Corporation Revenue Bonds, ROCS, VRDN,
Series II-R-599, 3.71% due 4/01/2033 (j)(p) 5,345
Rhode Island State and Providence Plantations, GO:
26,035 FLOATS, VRDN, Series 568, 3.69%
due 9/01/2017 (f)(j) 26,035
15,855 FLOATS, VRDN, Series 720, 3.69%
due 11/01/2022 (b)(j) 15,855
48,225 TAN, 4.25% due 6/29/2007 48,313
13,700 Rhode Island State Health and Educational Building
Corporation, Higher Education Facilities Revenue
Bonds (Brown University), VRDN, Series A, 3.60%
due 5/01/2035 (j) 13,700
South Carolina--1.8%
12,195 ABN AMRO MuniTops Certificates Trust, Lexington
County, South Carolina, GO, VRDN, Series 2001-37,
3.70% due 2/01/2010 (b)(j) 12,195
6,235 BNP Paribas STARS Certificates, Spartanburg,
South Carolina, Waterworks Revenue Refunding
Bonds, VRDN, Series 2007-012, 3.70%
due 6/01/2028 (e)(j) 6,235
9,080 Bank of America MACON Trust, South Carolina Jobs
EDA, Revenue Bonds, VRDN, Series 2007-303, 3.71%
due 2/01/2012 (j) 9,080
Berkeley County, South Carolina, Exempt Facilities,
Industrial Revenue Bonds (Amoco Chemical Company
Project), VRDN, AMT (j):
25,400 3.70% due 4/01/2028 25,400
11,260 3.70% due 5/01/2038 11,260
3,685 Charleston Educational Excellence Financing
Corporation, South Carolina, ROCS, VRDN,
Series II-R-515, 3.71% due 12/01/2030 (j)(k)(p) 3,685
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
South Carolina (concluded)
$ 11,500 Eagle Tax-Exempt Trust, South Carolina State Public
Service Authority, Revenue Bonds, VRDN,
Series 2006-0007, Class A, 3.72%
due 1/01/2036 (f)(j) $ 11,500
9,500 Eagle Tax-Exempt Trust, South Carolina State Public
Service Authority, Revenue Refunding Bonds,
VRDN, Series 2006-0019, Class A, 3.72%
due 1/01/2039 (f)(j) 9,500
6,380 Florence County, South Carolina, Solid Waste Disposal
and Wastewater Treatment Revenue Bonds (Roche
Carolina, Inc. Project), VRDN, AMT, 3.70%
due 4/01/2027 (j) 6,380
Greenville Hospital System, South Carolina, Hospital
Facilities Revenue Bonds, VRDN (a)(j):
23,700 Series A, 3.65% due 5/01/2035 23,700
22,750 Series B, 3.65% due 5/01/2035 22,750
8,035 Medical University Hospital Authority, South Carolina,
Hospital Facilities, Revenue Refunding Bonds, VRDN,
Series A-5, 3.70% due 8/15/2027 (f)(j)(l) 8,035
South Carolina Housing Finance and Development
Authority, Mortgage Revenue Bonds, AMT (j)(p):
5,295 PUTTERS, VRDN, Series 1388, 3.75%
due 7/01/2010 (a) 5,295
2,075 ROCS, Series II-R-398, 3.74% due 7/01/2034 (e) 2,075
6,250 South Carolina Jobs EDA, EDR (Holcim (US) Inc.
Project), VRDN, AMT, 3.82% due 12/01/2033 (j) 6,250
South Carolina Transportation Infrastructure Bank
Revenue Bonds, VRDN (a)(j):
12,500 FLOATS, Series 728, 3.69% due 10/01/2022 12,500
4,185 ROCS, Series II-R-9016, 3.71% due 10/01/2033 (p) 4,185
Tennessee--5.4%
20,325 Bank of America MACON Trust, Tennessee Energy
Acquisition Corporation, Gas Revenue Bonds,
FLOATS, VRDN, Series 2007-3, 3.69%
due 2/01/2024 (j) 20,325
Blount County, Tennessee, Public Building Authority,
Local Government Public Improvement Revenue
Bonds, VRDN (j):
11,285 Series A-4-A, 3.67% due 6/01/2032 11,285
4,175 Series D-1-F, 3.68% due 6/01/2030 (a) 4,175
13,600 Series D-3-A, 3.85% due 6/01/2034 13,600
2,000 Series D-7-B, 3.68% due 6/01/2031 (n) 2,000
4,000 Series D-7-C, 3.68% due 6/01/2032 (n) 4,000
Clarksville, Tennessee, Public Building Authority
Revenue Bonds, Pooled Financing (Tennessee
Municipal Bond Fund), VRDN (j):
30,670 3.66% due 11/01/2027 30,670
57,630 3.66% due 6/01/2029 57,630
4,200 3.71% due 7/01/2031 4,200
16,925 3.71% due 7/01/2034 16,925
34,120 3.71% due 11/01/2035 34,120
20,000 Franklin, Tennessee, Public Building Authority, Local
Government Public Improvement Revenue Bonds,
VRDN, Series 101-A-1, 3.68% due 6/01/2019 (j) 20,000
8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley
Manufacturing Company Project), VRDN, 3.66%
due 6/01/2023 (j) 8,100
6,020 Memphis, Tennessee, Health, Educational and
Housing Facility Board Revenue Bonds (Not-for-Profit
M/F Program), VRDN, 3.85% due 8/01/2032 (j) 6,020
Face
Amount Municipal Bonds Value
Tennessee (concluded)
Montgomery County, Tennessee, Public Building
Authority, Pooled Financing Revenue Bonds
(Tennessee County Loan Pool), VRDN (j):
$ 17,000 3.71% due 4/01/2032 $ 17,000
51,950 3.71% due 7/01/2034 51,950
9,000 3.71% due 2/01/2036 9,000
34,830 Morgan Keegan Municipal Products, Inc., Tennessee
HDA, Revenue Bonds, VRDN, AMT, Series C, 3.75%
due 8/09/2007 (j) 34,830
27,600 Municipal Energy Acquisition Corporation, Tennessee,
Gas Revenue Bonds, PUTTERS, VRDN, Series 1578,
3.71% due 2/01/2013 (j)(p) 27,600
9,985 Municipal Securities Trust Certificates, Tennessee
Energy Acquisition Corporation, Revenue Bonds,
VRDN, Series 2006-276, Class A, 3.70%
due 8/30/2022 (j)(m) 9,985
Sevier County, Tennessee, Public Building Authority,
Local Government Public Improvement Revenue
Bonds, VRDN (j):
41,550 AMT, Series III-A, 3.73% due 6/01/2028 (a) 41,550
7,100 Series II-A-1, 3.69% due 6/01/2024 (a) 7,100
10,000 Series III-D-2, 3.69% due 6/01/2017 (a) 10,000
3,970 Series III-D-6, 3.69% due 6/01/2020 (a) 3,970
18,825 Series III-E-1, 3.69% due 6/01/2025 18,825
10,000 Series III-E-4, 3.69% due 6/01/2025 (a) 10,000
6,000 Series IV-A-4, 3.68% due 6/01/2020 (e) 6,000
1,100 Series VI-D-4, 3.68% due 6/01/2025 (a) 1,100
5,850 Series VI-F-3, 3.68% due 6/01/2030 (n) 5,850
3,620 Sevier County, Tennessee, Public Building Authority,
Local Government Public Improvement, Revenue
Refunding Bonds, VRDN, Series II-E-2, 3.69%
due 6/01/2021 (a)(j) 3,620
4,555 Shelby County, Tennessee, GO, Refunding, ROCS, VRDN,
Series II-R-3023, 3.71% due 4/01/2020 (f)(j)(p) 4,555
10,000 Shelby County, Tennessee, Public Improvement
and Schools, GO, VRDN, Series B, 3.70%
due 4/01/2030 (j) 10,000
38,290 The Tennergy Corporation, Tennessee, Gas Revenue
Bonds, PUTTERS, VRDN, Series 1258Q, 3.71%
due 11/01/2013 (j)(p) 38,290
Texas--12.3%
4,480 Austin, Texas, Water and Wastewater System,
Revenue Refunding Bonds, ROCS, VRDN,
Series II-R-6029, 3.71% due 11/15/2024 (a)(j)(p) 4,480
5,120 BNP Paribas STARS Certificates, San Antonio, Texas,
Water Revenue Refunding Bonds, VRDN,
Series 2007-009, 3.70% due 5/15/2037 (b)(j) 5,120
Bell County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Scott & White
Memorial Hospital), VRDN (f)(j):
285 Series 2001-1, 3.71% due 8/15/2031 285
12,500 Series 2001-2, 3.71% due 8/15/2031 12,500
5,625 Series B-2, 3.71% due 8/15/2029 5,625
10,000 Brazos River Authority, Texas, Harbor Navigational
District, Brazoria County Revenue Bonds (BASF
Corp.), VRDN, AMT, 3.76% 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, 3.81% due 5/15/2033 4,200
2,400 Series B-1, 3.77% due 5/15/2033 2,400
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Texas (continued)
$ 25,000 Brazos River, Texas, Harbor Industrial Development
Corporation Revenue Bonds (BASF Corporation
Project), VRDN, AMT, 3.74% due 5/01/2038 (j) $ 25,000
1,985 Brownsville, Texas, Utility System Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-4074, 3.71%
due 9/01/2024 (a)(j)(p) 1,985
3,588 Central Texas Housing Finance Corporation, S/F
Mortgage Revenue Bonds, VRDN, AMT, Series A,
5.02% due 7/01/2008 (j) 3,588
10,925 Collin County, Texas, GO, FLOATS, VRDN, Series 42-TP,
3.69% due 2/15/2026 (j) 10,925
7,270 Corpus Christi, Texas, Business and Job Development
Corporation, Sales Tax Revenue Refunding Bonds, ROCS,
VRDN, Series II-R-2001, 3.71% due 9/01/2017 (a)(j)(p) 7,270
3,705 Corpus Christi, Texas, Utility System Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2149, 3.71%
due 7/15/2024 (e)(j)(p) 3,705
2,555 Cypress-Fairbanks, Texas, Independent School District,
GO, FLOATS, VRDN, Series 86TP, 3.71%
due 2/15/2030 (f)(j) 2,555
Dallas-Fort Worth, Texas, International Airport Revenue
Bonds, VRDN, AMT (j):
4,407 FLOATS, Series 824, 3.72% due 11/01/2015 (a) 4,408
7,140 PUTTERS, Series 350, 3.75% due 5/01/2011 (f)(p) 7,140
2,500 PUTTERS, Series 351, 3.75% due 5/01/2008 (e)(p) 2,500
4,995 PUTTERS, Series 385, 3.75% due 5/01/2008 (b)(p) 4,995
3,000 ROCS, Series II-R-268, 3.74% due 11/01/2033 (f)(p) 3,000
3,425 Dallas-Fort Worth, Texas, International Airport Revenue
Refunding Bonds, PUTTERS, AMT, Series 1019, 3.75%
due 5/01/2010 (b)(j)(p) 3,425
Dallas-Fort Worth, Texas, Regional Airport Revenue
Bonds, MSTR, VRDN, AMT (f)(j)(p):
25,300 Series SGB-49, 3.72% due 11/01/2023 25,300
9,495 Series SGB-52, 3.74% due 11/01/2017 9,495
23,885 Dallas-Fort Worth, Texas, Regional Airport Revenue
Refunding Bonds, MSTR, VRDN, AMT, Series SGB-46,
3.74% due 11/01/2020 (f)(j)(p) 23,885
2,810 Dallas, Texas, Area Rapid Transit Revenue Refunding
Bonds, ROCS, VRDN, Series II-R-2078, 3.71%
due 12/01/2022 (a)(j)(p) 2,810
2,500 Denton, Texas, Independent School District, GO, VRDN,
Series 2005-A, 3.68% due 8/01/2035 (j) 2,500
8,435 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas,
International Airport Revenue Bonds, AMT, VRDN,
Series 2003-0020, Class A, 3.74%
due 11/01/2032 (a)(j) 8,435
6,000 Eagle Tax-Exempt Trust, Dallas, Texas, VRDN,
Series 01, Class 4310, 3.72% due 12/01/2026 (a)(j) 6,000
13,200 Eagle Tax-Exempt Trust, Houston, Texas, Airport
System Revenue Refunding Bonds, VRDN,
Series 2006-0123, Class A, 3.72%
due 7/01/2032 (e)(j) 13,200
4,915 Eagle Tax-Exempt Trust, San Antonio, Texas, VRDN,
Series 01, Class 4311, 3.72% due 8/15/2026 (j) 4,915
14,500 Eagle Tax-Exempt Trust, San Antonio, Texas, Water
Revenue Refunding Bonds, VRDN, Series 2006-0005,
Class A, 3.72% due 5/15/2040 (f)(j) 14,500
Eagle Tax-Exempt Trust, Texas State, GO, VRDN,
Class A (j):
7,200 Series 2006-0125, 3.72% due 4/01/2033 7,200
23,100 Series 2006-0126, 3.72% due 4/01/2035 23,100
Face
Amount Municipal Bonds Value
Texas (continued)
$ 3,200 Ector County, Texas Independent School District,
GO, Refunding, PUTTERS, VRDN, Series 1707,
3.70% due 2/15/2015 (j)(p) $ 3,200
4,500 Fort Bend County, Texas, GO, MSTR, VRDN,
SGB-46-A, 3.70% due 3/01/2032 (f)(j)(p) 4,500
12,250 Galena Park, Texas, Independent School District,
GO, Refunding, FLOATS, VRDN, Series SG-153,
3.68% due 8/15/2023 (j) 12,250
5,300 Grapevine, Texas, Industrial Development Corporation,
Airport Revenue Refunding Bonds (Southern Air
Transport), VRDN, 3.72% due 3/01/2010 (j) 5,300
14,150 Gulf Coast Waste Disposal Authority, Texas,
Environmental Facilities Revenue Bonds (BP Amoco
Chemical Company Project), VRDN, AMT, Series B,
3.70% due 9/01/2038 (j) 14,150
Gulf Coast Waste Disposal Authority, Texas,
Environmental Facilities Revenue Refunding Bonds,
VRDN, AMT (j):
19,000 (American Aeryl LP Project), 3.73%
due 5/01/2038 19,000
4,300 (BP Products North America Project), 3.70%
due 7/01/2036 4,300
5,000 Gulf Coast Waste Disposal Authority, Texas, PCR
(Amoco Oil Company Project), VRDN, AMT, 3.70%
due 5/01/2023 (j) 5,000
Gulf Coast Waste Disposal Authority, Texas, Revenue
Bonds, VRDN, AMT (j):
2,200 (Air Products Project), 3.75% due 12/01/2039 2,200
2,500 (Waste Management, Inc.), Series A, 3.71%
due 4/01/2019 2,500
21,300 Gulf Coast Waste Disposal Authority, Texas, Revenue
Refunding Bonds (Amoco Oil Company Project),
VRDN, AMT, 3.70% due 8/01/2023 (j) 21,300
11,095 Harris County-Houston, Texas, Sports Authority, Special
Revenue Refunding Bonds, TOCS, VRDN, Series Z-3,
3.71% due 11/15/2025 (f)(j)(p) 11,095
9,360 Harris County, Texas, Flood Control District, GO,
PUTTERS, VRDN, Series 1634Q, 3.72%
due 10/01/2014 (j)(p) 9,360
Harris County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds, VRDN (j):
83,200 (Methodist Hospital System), Series A, 3.71%
due 12/01/2032 83,200
14,000 (Saint Luke's Episcopal Hospital), Series A, 3.70%
due 2/15/2032 (b) 14,000
2,090 (Saint Luke's Episcopal Hospital), Series B, 3.71%
due 2/15/2031 2,090
31,350 Harris County, Texas, Industrial Development Corporation,
Solid Waste Disposal Revenue Bonds (Deer Park
Limited Partnership), VRDN, AMT, 3.79%
due 2/01/2023 (j) 31,350
10,190 Harris County, Texas, Revenue Refunding Bonds, ROCS,
VRDN, Series II-R-1030, 3.71% due 8/15/2017 (e)(j)(p) 10,190
29,675 Houston, Texas, Independent School District, GO, VRDN,
3.63% due 6/15/2007 (j) 29,675
Houston, Texas, Utility System Revenue Refunding
Bonds, VRDN (e)(j)(p):
5,345 ROCS, Series II-R-4063, 3.71% due 5/15/2021 5,345
6,000 TOCS, Series A, 3.69% due 5/25/2012 6,000
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Texas (continued)
Houston, Texas, Water and Sewer Enterprise, CP:
$ 5,000 3.70% due 6/19/2007 $ 5,000
15,000 3.70% due 6/21/2007 15,000
3,275 Houston, Texas, Water and Sewer Enterprise, Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-787, 3.72%
due 12/01/2028 (e)(j)(p) 3,275
5,345 Houston, Texas, Water and Sewer System, Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-630,
3.72% due 12/01/2020 (e)(j)(p) 5,345
4,950 Lewisville, Texas, Independent School District, GO,
Refunding, PUTTERS, VRDN, Series 701, 3.70%
due 8/15/2010 (b)(j)(p) 4,950
10,395 Municipal Securities Trust Certificates, Austin, Texas,
Water Revenue Refunding Bonds, VRDN,
Series 2001-134, Class A, 3.70% due 5/15/2010 (e)(j) 10,395
8,620 Municipal Securities Trust Certificates, Houston, Texas,
Independent School District, GO, Refunding, VRDN,
Series 233, Class A, 3.71% due 1/09/2014 (j) 8,620
3,000 Municipal Securities Trust Certificates, San Antonio,
Texas, Water Revenue Refunding Bonds, VRDN,
Series SGB 66, 3.70% due 5/15/2037 (b)(j) 3,000
32,000 North Central Texas, Health Facility Development
Corporation, CP, 3.55% due 4/05/2007 32,000
8,445 North Texas Municipal Water District, Texas, Water
System Revenue Bonds, ROCS, VRDN,
Series II-R-593PB, 3.70% due 9/01/2035 (f)(j)(p) 8,445
3,385 Plano, Texas, Independent School District, GO, PUTTERS,
VRDN, Series 1428, 3.71% due 8/15/2010 (j)(p) 3,385
17,335 Port Arthur, Texas, Navigation District, Environmental
Facilities Revenue Refunding Bonds (Motiva
Enterprises Project), VRDN, AMT, 3.80%
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 3.75% due 4/01/2036 10,000
8,400 3.72% due 5/01/2040 8,400
Port Arthur, Texas, Navigation District Revenue
Bonds, VRDN, AMT (j):
20,000 (BASF Corporation Project), 3.76% due 4/01/2033 20,000
16,000 (Fina Oil and Chemical Company Project), 3.71%
due 5/01/2033 16,000
10,000 Multi-Mode (Atofina Petrochemicals), Series B,
3.88% due 4/01/2027 10,000
12,500 Port of Corpus Christi Authority, Texas, Nueces County
Solid Waste Disposal Revenue Bonds (Flint Hills
Resources LP Project), VRDN, AMT (j) 12,500
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, 3.95% due 7/01/2029 (j) 50,000
1,800 San Antonio, Texas, Independent School District,
GO, Refunding, PUTTERS, VRDN, Series 1726, 3.70%
due 8/15/2014 (j)(p) 1,800
4,135 Socorro, Texas, Independent School District, GO,
ROCS, VRDN, Series II-R-2222, 3.71%
due 8/15/2022 (j)(p) 4,135
25,000 Texas Municipal Power Agency, CP, 3.64%
due 7/09/2007 25,000
Face
Amount Municipal Bonds Value
Texas (concluded)
$ 6,870 Texas Municipal Power Agency, Revenue Refunding
Bonds, PUTTERS, VRDN, Series 1323, 3.72%
due 3/01/2014 (f)(j)(p) $ 6,870
Texas State Affordable Housing Corporation, M/F
Housing Revenue Bonds, FLOATS, VRDN (f)(j):
17,653 Series 11, 3.69% due 3/01/2032 17,653
43,400 Series 12TP, 3.69% due 3/01/2032 43,400
10,000 Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educator
Home Loan Program), VRDN, AMT, Series A-2, 3.75%
due 3/10/2008 (j) 10,000
14,000 Texas State, CP, 3.63% due 5/10/2007 14,000
40,000 Texas State, GO, PUTTERS, VRDN, Series 1521, 3.70%
due 10/01/2014 (j)(p) 40,000
Texas State, GO, Refunding, VRDN, AMT, 3.93%
54,160 due 7/02/2007 (j) 54,160
172,055 Texas State, TRAN, 4.50% due 8/31/2007 172,714
23,800 Texas State Transportation Commission, First Tier
Revenue Bonds, VRDN, Series B, 3.66%
due 4/01/2026 (j) 23,800
13,435 Texas State Transportation Commission, GO, ROCS,
VRDN, Series II-R-4083, 3.71% due 4/01/2035 (j)(p) 13,435
5,390 Texas State University, System Financing Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-1011,
3.71% due 3/15/2019 (e)(j)(p) 5,390
4,093 Travis County, Texas, Housing Finance Corporation,
S/F Mortgage Revenue Bonds, VRDN, Series 2001-1,
3.91% due 5/01/2007 (j) 4,093
3,984 Victoria County, Texas, Hospital Revenue Refunding
Bonds, FLOATS, VRDN, Series 959, 3.69%
due 1/01/2016 (a)(j) 3,984
2,265 Wichita Falls, Texas, Water and Sewer Revenue
Refunding Bonds, PUTTERS, VRDN, Series 1713,
3.72% due 8/01/2014 (b)(j)(p) 2,265
Utah--1.4%
6,500 Emery County, Utah, PCR, Refunding (PacifiCorp
Projects), VRDN, 3.71% due 11/01/2024 (a)(j) 6,500
Intermountain Power Agency, Utah, Power Supply
Revenue Bonds, VRDN (a)(j):
10,000 Series F, 3.64% due 7/01/2015 10,000
5,900 Series F, 3.55% due 7/01/2018 5,900
10,000 Intermountain Power Agency, Utah, Power Supply,
Revenue Refunding Bonds, VRDN, Series E, 3.54%
due 7/01/2018 (a)(j) 10,000
Murray City, Utah, Hospital Revenue Bonds (IHC
Health Services, Inc.), VRDN (j):
34,300 Series A, 3.66% due 5/15/2036 34,300
6,000 Series A, 3.71% due 5/15/2037 6,000
20,700 Series D, 3.70% due 5/15/2036 20,700
Utah Transit Authority, Sales Tax Revenue Bonds,
VRDN (e)(j)(p):
5,675 PUTTERS, Series 1107B, 3.71% due 12/15/2013 5,675
3,195 ROCS, Series II-R-609PB, 3.70% due 6/15/2032 3,195
8,300 Utah Water Finance Agency, Tender Option Revenue
Bonds, VRDN, Series A-9, 3.70%
due 7/01/2034 (a)(j) 8,300
30,820 Weber County, Utah, Hospital Revenue Bonds (IHC
Health Services), VRDN, Series C, 3.71%
due 2/15/2035 (j) 30,820
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (continued) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Vermont--0.1%
$ 1,525 Vermont HFA, S/F Revenue Bonds, VRDN, AMT,
Series 16 A, 3.78% due 5/01/2032 (e)(j) $ 1,525
8,000 Vermont State Student Assistance Corporation,
Student Loan Revenue Bonds, FLOATS, VRDN,
3.76% due 1/01/2008 (j) 8,000
Virginia--0.7%
15,460 Clipper Tax-Exempt Certificates Trust, Virginia
Commonwealth Transportation Board Revenue Bonds,
VRDN, Series 2007-7, 3.70% due 5/01/2015 (j)(m) 15,460
6,055 Eagle Tax-Exempt Trust, Richmond, Virginia, Public
Utilities Revenue Bonds, VRDN, Series 2006-0050,
Class A, 3.72% due 1/15/2035 (e)(j) 6,055
6,300 Henrico County, Virginia, Water and Sewer Revenue
Bonds, ROCS, VRDN, Series II-R-753 PB, 3.70%
due 5/01/2031 (f)(j)(p) 6,300
6,570 Morgan Keegan Municipal Products, Inc., Virginia State,
HDA, VRDN, Series E, 3.69% due 12/01/2010 (j) 6,570
Norfolk, Virginia, CP:
20,000 3.65% due 5/04/2007 20,000
15,000 3.66% due 5/08/2007 15,000
3,000 Virginia State, HDA, Revenue Bonds, MERLOTS, VRDN,
AMT, Series B-19, 3.74% due 4/01/2033 (j)(p) 3,000
Washington--2.9%
12,590 Central Puget Sound, Washington, Regional Transit
Authority, Sales and Use Tax Revenue Bonds, ROCS,
VRDN Series II-R-7510, 3.71% due 11/01/2023 (a)(j)(p) 12,590
22,900 Clark County, Washington, Public Utility District
Number 001, Generating System Revenue Refunding
Bonds, MSTR, VRDN, Series SGA-118, 3.72%
due 1/01/2025 (e)(j)(p) 22,900
3,000 Eagle Tax-Exempt Trust, Bellevue, Washington, GO,
Refunding, VRDN, Series 2004-1011, Class A, 3.72%
due 12/01/2043 (f)(j) 3,000
19,000 Energy Northwest, Washington, Electric Revenue
Refunding Bonds (Project Number 3), VRDN,
Series D-3-1, 3.65% due 7/01/2018 (e)(j) 19,000
8,860 Grant County, Washington, Public Utility District Number
002, Electric Revenue Refunding Bonds, ROCS, VRDN,
Series II-R-2039, 3.71% due 1/01/2019 (e)(j)(p) 8,860
5,200 King County, Washington, School District Number 410,
Snoqualmie Valley, GO, ROCS, VRDN, Series II-R-4513,
3.71% due 12/01/2020 (e)(j)(p) 5,200
3,700 King County, Washington, Sewer Revenue Bonds, VRDN,
Junior Lien, Series B, 3.65% due 1/01/2036 (f)(j) 3,700
14,745 King County, Washington, Sewer Revenue Refunding
Bonds, FLOATS, VRDN, Series 554, 3.69%
due 7/01/2009 (b)(j) 14,745
2,255 Lewis County, Washington, Public Utility District
Number 001, Cowlitz Falls Hydroelectric Revenue
Refunding Bonds, VRDN, Series II-R-4026, 3.71%
due 10/01/2023 (f)(j) 2,255
14,070 Municipal Securities Trust Certificates, Washington
State Motor Vehicle Fuel Tax, GO, VRDN,
Series 2001-112, Class A, 3.72% due 1/07/2021 (j) 14,070
4,925 Port of Seattle, Washington, Revenue Bonds, MERLOTS,
VRDN, AMT, Series B04, 3.74% due 9/01/2015 (b)(j)(p) 4,925
30,000 Port of Tacoma, Washington, Subordinate Lien Revenue
Bonds, VRDN, AMT, 3.77% due 12/01/2036 (j)(n) 30,000
4,925 Seattle, Washington, Water System Revenue
Refunding Bonds, ROCS, VRDN, Series II-R-4006,
3.71% due 9/01/2022 (f)(j)(p) 4,925
Face
Amount Municipal Bonds Value
Washington (concluded)
$ 3,450 Spokane County, Washington, Spokane School
District Number 081, GO, ROCS, VRDN,
Series II-R-4000, 3.71% due 12/01/2019 (e)(j)(p) $ 3,450
5,575 Tacoma, Washington, Convention Center and Parking
Revenue Bonds, ROCS, VRDN, Series II-R-2144,
3.71% due 12/01/2022 (f)(j)(p) 5,575
13,930 Tacoma, Washington, Water Revenue Refunding
Bonds, FLOATS, VRDN, Series 555, 3.69%
due 12/01/2009 (b)(j) 13,930
Washington State, GO, PUTTERS, VRDN (j)(p):
15,075 Series 333, 3.71% due 12/01/2014 (f) 15,075
9,545 Series 1312, 3.70% due 1/01/2013 (e) 9,545
11,785 Series 1422, 3.70% due 7/01/2014 (e) 11,785
Washington State, GO, ROCS, VRDN (j)(p):
4,180 Series II-R-4082, 3.71% due 7/01/2023 (e) 4,180
10,350 Series II-R-6061, 3.71% due 1/01/2022 (a) 10,350
4,375 Series II-R-7035, 3.71% due 7/01/2024 (e) 4,375
2,560 Washington State, GO, Refunding, PUTTERS, VRDN,
Series 1399, 3.70% due 1/01/2013 (a)(j)(p) 2,560
2,480 Washington State Health Care Facilities Authority
Revenue Bonds, ROCS, VRDN, Series II-R-669,
3.72% due 12/01/2036 (h)(j)(p) 2,480
6,400 Washington State Housing Finance Commission, M/F
Housing Revenue Bonds (Arbors on the Park Project),
VRDN, AMT, 3.74% due 10/01/2024 (j) 6,400
30,400 Washington State Housing Finance Commission,
Nonprofit Housing Revenue Bonds (Mirabella Project),
VRDN, Series A, 3.72% due 3/01/2036 (j) 30,400
3,000 Washington State Housing Finance Commission,
Nonprofit Revenue Bonds (Eastside Catholic School),
VRDN, Series B, 3.69% due 7/01/2038 (j) 3,000
13,900 Washington State Public Power Supply Systems,
Electric Revenue Refunding Bonds (Project Number 3),
VRDN, Series 3-A, 3.65% due 7/01/2018 (f)(j) 13,900
Washington State University Revenue Bonds,
VRDN (a)(j):
10,590 FLOATS, Series 1406, 3.69% due 10/01/2036 10,590
2,105 ROCS, Series II-R-595PB, 3.70% due 10/01/2031 (p) 2,105
West Virginia--0.2%
10,695 ABN AMRO MuniTops Certificates Trust, West Virginia
State, GO, VRDN, Series 2000-12, 3.68%
due 6/04/2008 (f)(j) 10,695
9,900 Eagle Tax-Exempt Trust, West Virginia Higher Education
Policy Commission, Revenue Refunding Bonds,
Series 2005-0018, Class A, 3.72%
due 4/01/2034 (b)(j) 9,900
Wisconsin--1.9%
1,995 Hartland, Wisconsin, IDR (Commercial Communications,
Inc. Project), VRDN, AMT, 4% due 8/01/2009 (j) 1,995
2,000 Lehman Municipal Trust Receipts, Wisconsin, GO,
Refunding, FLOATS, VRDN, AMT, Series 2006-K40,
3.75% due 5/01/2031 (f)(j) 2,000
2,670 Manitowoc, Wisconsin, Electric Revenue Bonds, ROCS,
VRDN, Series II-R-2177, 3.71% due 10/01/2024 (b)(j)(p) 2,670
3,100 Menomonee Falls, Wisconsin, TRAN, 4.25%
due 8/24/2007 3,107
17,600 Oconomiwoc, Wisconsin, Area School District, GO,
BAN, 3.75% due 11/30/2007 17,606
CMA TAX-EXEMPT FUND MARCH 31, 2007
Schedule of Investments (concluded) Master Tax-Exempt Trust
(in Thousands)
Face
Amount Municipal Bonds Value
Wisconsin (concluded)
$ 42,600 Racine, Wisconsin, Unified School District, TRAN,
4.50% due 7/13/2007 $ 42,690
Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Refunding
Bonds, VRDN, AMT (j):
20,000 Series A, 3.72% due 9/01/2022 20,000
24,125 Series A, 3.72% due 3/01/2035 24,125
5,970 Wisconsin Public Power Inc., Power Supply System
Revenue Bonds, PUTTERS, VRDN, Series 1150,
3.70% due 7/01/2013 (a)(j)(p) 5,970
Wisconsin State, GO, CP:
5,855 3.65% due 4/02/2007 5,855
25,000 3.65% due 5/03/2007 25,000
20,000 3.63% due 5/04/2007 20,000
20,000 3.66% due 6/06/2007 20,000
Face
Amount Municipal Bonds Value
Wyoming--1.5%
$150,000 Wyoming State Education Fund, TRAN, Series A,
4.50% due 6/27/2007 $ 150,285
Puerto Rico--0.3%
10,000 Puerto Rico Commonwealth Aqueduct and Sewer
Authority Revenue Bonds, ROCS, VRDN,
Series II-R-709CE, 3.71% due 12/15/2008 (j)(p) 10,000
3,153 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Revenue Bonds, TOCS,
VRDN, Series Z-6, 3.71% due 6/26/2037 (b)(j)(p) 3,153
12,800 Puerto Rico Electric Power Authority, Power
Revenue Bonds, MSTR, VRDN, Series SGA-43,
3.63% due 7/01/2022 (f)(j)(p) 12,800
Total Investments (Cost--$10,092,069*)--99.5% 10,092,069
Other Assets Less Liabilities--0.5% 51,469
-----------
Net Assets--100.0% $10,143,538
===========
* 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) FNMA/GNMA Collateralized.
(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) Assured Guaranty Insured.
(l) FHA Insured.
(m) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(n) XL Capital Insured.
(o) GNMA Collateralized.
(p) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal
bond securities.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Statement of Assets and Liabilities Master Tax-Exempt Trust
As of March 31, 2007
Assets
Investments in unaffiliated securities, at value (identified cost--$10,092,069,243) $ 10,092,069,243
Cash 96,756
Receivables:
Interest $ 72,497,754
Contributions 748,766 73,246,520
----------------
Prepaid expenses 51,059
----------------
Total assets 10,165,463,578
----------------
Liabilities
Payables:
Securities purchased 20,321,778
Investment adviser 1,127,680
Other affiliates 87,732 21,537,190
----------------
Accrued expenses and other liabilities 388,479
----------------
Total liabilities 21,925,669
----------------
Net Assets
Net assets $ 10,143,537,909
================
Net Assets Consist of
Investors' capital $ 10,143,537,909
----------------
Net Assets $ 10,143,537,909
================
See Notes to Financial Statements.
Statement of Operations Master Tax-Exempt Trust
For the Year Ended March 31, 2007
Investment Income
Interest and amortization of premium and discount earned $ 342,023,393
Expenses
Investment advisory fees $ 12,825,882
Accounting services 868,103
Custodian fees 219,780
Professional fees 97,453
Pricing fees 77,800
Trustees' fees and expenses 54,990
Printing and shareholder reports 2,420
Other 132,479
----------------
Total expenses 14,278,907
----------------
Investment income--net 327,744,486
----------------
Realized Gain--Net
Realized gain on investments--net 864,981
----------------
Net Increase in Net Assets Resulting from Operations $ 328,609,467
================
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Statements of Changes in Net Assets Master Tax-Exempt Trust
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 2007 2006
Operations
Investment income--net $ 327,744,486 $ 247,385,747
Realized gain (loss)--net 864,981 (414,731)
---------------- ----------------
Net increase in net assets resulting from operations 328,609,467 246,971,016
---------------- ----------------
Capital Transactions
Proceeds from contributions 61,520,885,054 52,632,134,510
Fair value of withdrawals (61,230,693,465) (53,104,175,686)
---------------- ----------------
Net increase (decrease) in net assets derived from capital transactions 290,191,589 (472,041,176)
---------------- ----------------
Net Assets
Total increase (decrease) in net assets 618,801,056 (225,070,160)
Beginning of year 9,524,736,853 9,749,807,013
---------------- ----------------
End of year $ 10,143,537,909 $ 9,524,736,853
================ ================
See Notes to Financial Statements.
Financial Highlights Master Tax-Exempt Trust
For the Period
February 13, 2003++
The following per share data and ratios have been derived For the Year Ended March 31, to March 31,
from information provided in the financial statements. 2007 2006 2005 2004 2003
Total Investment Return
Total investment return 3.45% 2.64% 1.33% .94% .68%*
============ ============ ============ ============ ============
Ratios to Average Net Assets
Expenses .15% .15% .15% .15% .21%*
============ ============ ============ ============ ============
Investment income and realized
gain (loss)--net 3.44% 2.61% 1.31% .94% 1.04%*
============ ============ ============ ============ ============
Supplemental Data
Net assets, end of period (in thousands) $ 10,143,538 $ 9,524,737 $ 9,749,807 $ 10,252,630 $ 10,591,179
============ ============ ============ ============ ============
* Annualized.
++ Commencement of operations.
See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007
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
interests 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. 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. Effective April 2, 2007, securities purchased with
a maturity greater than 60 days may be valued at amortized cost. 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 un-
realized 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 trans-actions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Interest income (including amortization of premium and
discount) is recognized on the accrual basis.
(d) Recent accounting pronouncements--In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109." FIN 48 prescribes the minimum recognition threshold a tax position must
meet in connection with accounting for uncertainties in income tax positions
taken or expected to be taken by an entity, including mutual funds, before
being measured and recognized in the financial statements. Adoption of FIN 48
is required for the last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after December
15, 2006. The impact on the Trust's financial statements, if any, is currently
being assessed.
In September 2006, "Statement of Financial Accounting Standards No. 157, Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. At this time, management is evaluating the implications of FAS
157 and its impact on the Trust's financial statements, if any, has not been
determined.
In addition, in February 2007, FASB issued "Statement of Financial Accounting
Standards No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities" ("FAS 159"), which is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also
elects to apply the provisions of FAS 157. FAS 159 permits entities to choose
to measure many financial instruments and certain other items at fair value
that are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is
evaluating the implications of FAS 159 and its impact on the Trust's financial
statements, if any, has not been determined.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc. has
approximately a 34% economic and voting interest. The new company operates
under the BlackRock name and is governed by a board of directors with a
majority of independent members.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Notes to Financial Statements (concluded) Master Tax-Exempt Trust
On September 15, 2006, the shareholders of each of the investors approved a
new Investment Advisory Agreement for the Trust with BlackRock Advisors, Inc.
(the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc.,
which was reorganized into a limited liability company and renamed BlackRock
Advisors, LLC. The new advisory agreement between the Trust and the Manager
became effective on September 29, 2006. Prior to September 29, 2006, FAM was
the Trust's manager. The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch, which is the
limited partner.
The Manager 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 Trust's 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. In addition, the Manager
has entered into a Sub-Advisory Agreement with BlackRock Institutional
Management Corporation, an affiliate of the Manager, under which the Manager
pays the Sub-Adviser for services it provides a monthly fee that is a
percentage of the management fee paid by the Trust to the Manager.
For the year ended March 31, 2007, the Trust reimbursed FAM and the Manager
$102,429 and $87,732, respectively, for certain accounting services.
Prior to September 29, 2006, certain officers and/or trustees of the Trust
were officers and/or directors of FAM, PSI, and/or Merrill Lynch.
Commencing September 29, 2006, certain officers and/or trustees of the Trust
are officers and/or directors of BlackRock, Inc. or its affiliates.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Report of Independent Registered Public Accounting Firm
Master Tax-Exempt Trust
To the Investors and Board of Trustees of
Master Tax-Exempt Trust:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of Master Tax-Exempt Trust as of March
31, 2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the respective periods
then ended. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. The Trust is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Trust's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. Our
procedures included confirmation of securities owned as of March 31, 2007, by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Master Tax-Exempt Trust as of March 31, 2007, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and its financial highlights for each of the
respective periods then ended, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 21, 2007
CMA TAX-EXEMPT FUND MARCH 31, 2007
Officers and Trustees
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Interested Trustee
Robert C. Doll, Jr.* President 2005 to Vice Chairman and Director of BlackRock, Inc., 122 Funds None
P.O. Box 9011 and present Global Chief Investment Officer for Equities, 168 Portfolios
Princeton, Trustee Chairman of the BlackRock Retail Operating
NJ 08543-9011 Committee, and member of the BlackRock
Age: 52 Executive Committee since 2006; President of
the funds advised by Merrill Lynch Investment
Managers, L.P. ("MLIM") and its affiliates
("MLIM/FAM-advised funds") from 2005 to
2006 and Chief Investment Officer thereof from
2001 to 2006; President of MLIM and Fund Asset
Management, L.P. ("FAM") from 2001 to 2006;
Co-Head (Americas Region) thereof from 2000
to 2001 and Senior Vice President from 1999 to
2001; President and Director of Princeton Services,
Inc. ("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc. in
1999 and Executive Vice President thereof from
1991 to 1999.
* Mr. Doll is a director, trustee or member of an advisory board of certain
other investment companies for which BlackRock Advisors, LLC and its affiliates
act as investment adviser. Mr. Doll is an "interested person," as defined in
the Investment Company Act, of the Fund based on his positions with BlackRock,
Inc. and its affiliates. Trustees serve until their resignation, removal or
death, or until December 31 of the year in which they turn 72. As Fund/Trust
President, Mr. Doll serves at the pleasure of the Board of Trustees.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Officers and Trustees (continued)
Number of
Funds and
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name, Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years Trustee Trustee
Independent Trustees*
Ronald W. Forbes** Trustee 1981/2002 Professor Emeritus of Finance, School of 47 Funds None
P.O. Box 9095 to present Business, State University of New York at 49 Portfolios
Princeton, Albany since 2000 and Professor thereof from
NJ 08543-9095 1989 to 2000; International Consultant, Urban
Age: 66 Institute, Washington, D.C. from 1995 to 1999.
Cynthia A. Montgomery++ Trustee 1994/2002 Professor, Harvard Business School since 1989; 47 Funds Newell
P.O. Box 9095 to present Associate Professor, J.L. Kellogg Graduate 49 Portfolios Rubbermaid, Inc.
Princeton, School of Management, Northwestern (manufacturing)
NJ 08543-9095 University from 1985 to 1989; Associate
Age: 54 Professor, Graduate School of Business
Administration, University of Michigan from
1979 to 1985; Director, Harvard Business
School Publishing since 2005; Director,
McLean Hospital since 2005.
Jean Margo Reid Trustee 2004 to Self-employed consultant since 2001; Counsel 47 Funds None
P.O. Box 9095 present of Alliance Capital Management (investment 49 Portfolios
Princeton, adviser) in 2000; General Counsel, Director and
NJ 08543-9095 Secretary of Sanford C. Bernstein & Co., Inc.
Age: 61 (investment adviser/broker-dealer) from 1997 to
2000; Secretary, Sanford C. Bernstein Fund, Inc.
from 1994 to 2000; Director and Secretary of
SCB, Inc. since 1998; Director and Secretary of
SCB Partners, Inc. since 2000; and Director of
Covenant House from 2001 to 2004.
Roscoe S. Suddarth Trustee 2000/2002 President, Middle East Institute, from 1995 to 47 Funds None
P.O. Box 9095 to present 2001; Foreign Service Officer, United States 49 Portfolios
Princeton, Foreign Service, from 1961 to 1995 and Career
NJ 08543-9095 Minister from 1989 to 1995; Deputy Inspector
Age: 71 General, U.S. Department of State, from 1991 to
1994; U.S. Ambassador to the Hashemite Kingdom
of Jordan from 1987 to 1990.
Richard R. West Trustee 1981/2002 Professor of Finance from 1984 to 1995, 47 Funds Bowne & Co.,
P.O. Box 9095 to present Dean from 1984 to 1993 and since 1995 49 Portfolios Inc. (financial
Princeton, Dean Emeritus of New York University's printers);
NJ 08543-9095 Leonard N. Stern School of Business Vornado Realty
Age: 69 Administration. Trust (real
estate company);
Alexander's, Inc.
(real estate
company)
* Trustees serve until their resignation, removal or death, or until December 31
of the year in which they turn 72.
** Chairman of the Board of Trustees and the Audit Committee.
++ Chair of the Nominating Committee.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Officers and Trustees (concluded)
Position(s) Length of
Held with Time
Name, Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years
Fund Officers*
Donald C. Burke Vice 1993/2002 Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President to present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, and and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
NJ 08543-9011 Treasurer 1999 to thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
Age: 46 present
John M. Loffredo Senior 2002 to Managing Director of BlackRock, Inc. since 2006; Managing Director Tax-Exempt
P.O. Box 9011 Vice present Fund Management) of MLIM from 2000 to 2006; Director of MLIM from 1997
Princeton, President to 2000.
NJ 08543-9011
Age: 43
Peter J. Hayes Vice 1989/2002 Managing Director of BlackRock, Inc. since 2006; Managing Director (Tax-Exempt
P.O. Box 9011 President to present Fund Management) of MLIM from 2000 to 2006; Director of MLIM from 1997
Princeton, to 2000; Vice President of MLIM from 1988 to 1997.
NJ 08543-9011
Age: 47
Jeffrey Hiller Fund/Trust 2004 to Managing Director of BlackRock, Inc. and Fund Chief Compliance Officer since
P.O. Box 9011 Chief present 2006; Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice
Princeton, Compliance President and Chief Compliance Officer of MLIM (Americas Region) from 2004 to
NJ 08543-9011 Officer 2006; Chief Compliance Officer of the IQ Funds since 2004; Global Director of
Age: 55 Compliance at Morgan Stanley Investment Management from 2002 to 2004; Managing
Director and Global Director of Compliance at Citigroup Asset Management from
2000 to 2002; Chief Compliance Officer at Soros Fund Management in 2000; Chief
Compliance Officer at Prudential Financial from 1995 to 2000; Senior Counsel in
the Securities and Exchange Commission's Division of Enforcement in Washington,
D.C. from 1990 to 1995.
Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. since 2006; Director (Legal Advisory) of MLIM from
P.O. Box 9011 present 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated with
Princeton, MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
NJ 08543-9011 Princeton Services from 2004 to 2006.
Age: 47
* Officers of the Fund/Trust serve at the pleasure of the Board of Trustees.
Further information about the Fund's Officers and Trustees is available in
the Fund's Statement of Additional Information, which can be obtained without
charge by calling 1-800-441-7762.
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).
Effective January 1, 2007, Edward D. Zinbarg retired as a Trustee of BlackRock
CMA Tax-Exempt Fund and Master Tax-Exempt Trust. The Fund's/Trust's Board of
Trustees wishes Mr. Zinbarg well in his retirement.
Effective April 13, 2007, Jeffrey Hiller resigned his position as Chief
Compliance Officer of the Fund/Trust. Also effective April 13, 2007, Karen
Clark was appointed Chief Compliance Officer of the Fund/Trust. Ms. Clark has
been a Managing Director of BlackRock, Inc. since 2007. She was a Director
thereof from 2005 to 2007. Prior to that, Ms. Clark was a principal and
senior compliance officer at State Street Global Advisors from 2001 to 2005.
Ms. Clark was a principal consultant with PricewaterhouseCoopers, LLP from
1998 to 2001. From 1993 to 1998, Ms. Clark was Branch Chief, Division of
Investment Management and Office of Compliance Inspections and Examinations,
with the U.S. Securities and Exchange Commission.
CMA TAX-EXEMPT FUND MARCH 31, 2007
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
Electronic copies of most financial reports and prospectuses are available on
the Fund's Web site. Shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all
investment advisers, banks or brokerages may offer this service.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former
fund investors and individual clients (collectively, "Clients") and to
safeguarding their nonpublic personal information. The following information
is provided to help you understand what personal information BlackRock
collects, how we protect that information and why in certain cases we share
such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal nonpublic information from and about
you from different sources, including the following: (i) information we
receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your
transactions with us, our affiliates, or others; (iii) information we receive
from a consumer reporting agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to nonaffiliated third parties any
nonpublic personal information about its Clients, except as permitted by law
or as is necessary to service Client accounts. These nonaffiliated third
parties are required to protect the confidentiality and security of this
information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that
may be of interest to you. In addition, BlackRock restricts access to
nonpublic personal information about its Clients to those BlackRock employees
with a legitimate business need for the information. BlackRock maintains
physical, electronic and procedural safeguards that are designed to protect
the nonpublic personal information of its Clients, including procedures
relating to the proper storage and disposal of such information.
CMA TAX-EXEMPT FUND MARCH 31, 2007
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1)
Ronald W. Forbes, (2) Richard R. West, and (3) Edward D. Zinbarg
(retired as of December 31, 2006).
Item 4 - Principal Accountant Fees and Services
CMA Tax-Exempt Fund
(a) Audit Fees - Fiscal Year Ending March 31, 2007 - $6,600
Fiscal Year Ending March 31, 2006 - $6,600
(b) Audit-Related Fees -
Fiscal Year Ending March 31, 2007 - $0
Fiscal Year Ending March 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2007 - $6,100
Fiscal Year Ending March 31, 2006 - $6,000
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2007 - $0
Fiscal Year Ending March 31, 2006 - $0
Master Tax-Exempt Trust
(a) Audit Fees - Fiscal Year Ending March 31, 2007 - $35,500
Fiscal Year Ending March 31, 2006 - $35,500
(b) Audit-Related Fees -
Fiscal Year Ending March 31, 2007 - $0
Fiscal Year Ending March 31, 2006 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2007 - $6,800
Fiscal Year Ending March 31, 2006 - $6,800
The nature of the services include tax compliance, tax advice and
tax planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2007 - $0
Fiscal Year Ending March 31, 2006 - $0
(e)(1) The registrant's audit committee (the "Committee") has
adopted policies and procedures with regard to the pre-approval of
services. Audit, audit-related and tax compliance services provided
to the registrant on an annual basis require specific pre-approval
by the Committee. The Committee also must approve other non-audit
services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that
relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee
believes are a) consistent with the SEC's auditor independence rules
and b) routine and recurring services that will not impair the
independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis
("general pre-approval"). However, such services will only be
deemed pre-approved provided that any individual project does not
exceed $5,000 attributable to the registrant or $50,000 for all of
the registrants the Committee oversees. Any proposed services
exceeding the pre-approved cost levels will require specific pre-
approval by the Committee, as will any other services not subject to
general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to
general pre-approval at the next regularly scheduled in-person board
meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ended March 31, 2007 - $3,016,200
Fiscal Year Ended March 31, 2006 - $3,754,550
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant's
independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $1,739,500, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - 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 - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and sets forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
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 second fiscal half-
year of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
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.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: May 21, 2007
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: May 21, 2007
By: /s/ Donald C. Burke
-------------------
Donald C. Burke,
Chief Financial Officer of
CMA Tax-Exempt Fund and Master Tax-Exempt Trust
Date: May 21, 2007