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 811-3703
Name of Fund: CBA Money Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, CBA Money
Fund, 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: 02/28/03
Date of reporting period: 03/01/02 - 2/28/03
Item 1 - Attach shareholder report
[LOGO] Merrill Lynch Investment Managers
Annual Report
February 28, 2003
CBA Money Fund
www.mlim.ml.com
CBA Money Fund
Dear Shareholder:
- --------------------------------------------------------------------------------
For the year ended February 28, 2003, CBA Money Fund paid shareholders a net
annualized dividend of 1.13%.* The Fund's 7-day yield as of February 28, 2003
was .87%.
The average portfolio maturity for CBA Money Fund at February 28, 2003 was 43
days, compared to 57 days at August 31, 2002.
The Environment
During the six-month period ended February 28, 2003, the U.S. economy
experienced a slowdown in growth that was more pronounced than many had
anticipated. Fourth quarter of 2002 gross domestic product rate declined to 1.4%
from a relatively strong 4% in the third quarter. Consumer spending trailed off
in the fourth quarter after supporting the economy during the first three
quarters of 2002, and the slowing trend continued into the first quarter of
2003. Job losses, concerns about a military conflict with Iraq and a heightened
fear of terrorist attacks were key factors that led a large drop in consumer
confidence. Corporations have been trimming expenses to achieve profitability,
but few have seen top-line growth. The expected increase in business capital
expenditures has not materialized, since there is still overcapacity in many
sectors.
Low mortgage rates have supported the strength in the housing market, and
mortgage refinancing has provided consumers with some financial flexibility.
However, hopes that lower interest rates will be sufficient to stimulate
economic growth later this year are fading, as job creation remains a major
problem.
The U.S. Treasury market has been subject to a safe-haven trade during the past
several months as sluggish economic data combined with the geopolitical risks
have yields approaching historical lows. During this period of extreme
uncertainty, the equity market has been unable to sustain a rally. Concerns over
corporate misdeeds have been sufficiently addressed to bring investors back to
the corporate bond market, resulting in a significant tightening of credit
spreads. Nevertheless, the most recent economic slowdown has led to increased
speculation that the Federal Reserve Board may have to lower interest rates
again before the cycle is over.
Portfolio Matters
The past six months have seen short-end yields fall steadily as evidenced by
nearly a 75 basis point (.75%) drop in two-year Treasury issues. Earlier in the
period, we were more comfortable adding longer-dated fixed rate securities,
given the likelihood of further interest rate cuts and the positive slope of the
yield curve. We were able to gain additional yield by targeting callable notes,
as in periods of high volatility these bonds offer both superior yields and
option-adjusted spreads.
During the past few months, we have exercised caution in adding new fixed rate
notes. With the yield curve flat and interest rates at historical lows, the
risk/reward ratio seems out of balance. Our focus has turned to variable rate
product, which in this current environment provides yields equal to or exceeding
those of one-year fixed rate bank paper. Most importantly, we are able to incur
minimal interest rate risk, which could prove vital if market sentiment is to
shift and interest rates do begin to head higher. As a result, the Fund's
average life was in a relatively narrow range between 55 days - 65 days for a
majority of the period. Although, more recently, we have been content to let our
average life drift lower during periods when external events have driven yields
excessively low. With little value currently available in longer sectors of the
curve, we want to have the flexibility to add positions when a steeper yield
curve provides better opportunities for yield enhancement.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
The portfolio's composition at the end of the February period and as of our last
report is as follows:
2/28/03 8/31/02
------- -------
Bank Notes ...................................... 4.6% 3.6%
Certificates of Deposit ......................... -- 1.9
Certificates of Deposit--
European ...................................... 5.0 2.1
Certificates of Deposit--Yankee+ ............... 7.3 7.6
Commercial Paper ................................ 12.9 32.4
Corporate Notes ................................. 0.5 0.4
Funding Agreements .............................. 11.6 9.1
Medium-Term Notes ............................... 11.1 13.0
Municipal Bonds ................................. 1.0 --
Repurchase Agreements ........................... -- 0.5
U.S. Government &
Agency Obligations --
Non-Discount Notes ............................ 45.9 30.8
Other Assets Less Liabilities ................... 0.1 --
Liabilities in Excess of
Other Assets .................................. -- (1.4)
----- -----
Total ........................................... 100.0% 100.0%
===== =====
+ U.S. branches of foreign banks.
In Conclusion
We appreciate your continued support of CBA Money Fund, and we look forward to
assisting you with your financial needs in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Richard J. Mejzak
Richard J. Mejzak
Vice President and Portfolio Manager
March 25, 2003
2
CBA Money Fund
Schedule of Investments as of February 28, 2003 (in Thousands)
- --------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
- --------------------------------------------------------------------
Bank Notes--4.6%
- --------------------------------------------------------------------
Fleet National Bank $10,000 1.54+ % 7/31/2003 $ 9,998
- --------------------------------------------------------------------
National City Bank of 4,000 1.41+ 5/23/2003 4,001
Indiana
- --------------------------------------------------------------------
Total Bank Notes (Cost--$14,009) ...................... 13,999
- --------------------------------------------------------------------
Certificates of Deposit--European--5.0%
- --------------------------------------------------------------------
Barclays Bank PLC 5,000 2.11 6/30/2003 5,014
- --------------------------------------------------------------------
HBO Treasury 10,000 1.34 3/17/2003 10,000
Services PLC
- --------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$14,998) ....................................... 15,014
- --------------------------------------------------------------------
Certificates of Deposit--Yankee--7.3%
- --------------------------------------------------------------------
Canadian Imperial 8,000 1.356+ 3/15/2004 8,000
Bank of Commerce
- --------------------------------------------------------------------
Societe Generale, NY 7,000 1.30+ 2/12/2004 7,000
- --------------------------------------------------------------------
SwedBank Inc., NY 3,000 1.27+ 6/20/2003 3,000
- --------------------------------------------------------------------
Toronto-Dominion 2,500 1.276+ 9/26/2003 2,500
Bank, NY
- --------------------------------------------------------------------
UBS AG, Stamford 1,760 2.78 3/24/2003 1,761
- --------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$22,259) ....................................... 22,261
- --------------------------------------------------------------------
Commercial Paper--12.9%
- --------------------------------------------------------------------
Clipper Receivables 4,333 1.27 3/10/2003 4,331
Corp.
- --------------------------------------------------------------------
Goldman Sachs 10,000 1.388+ 10/09/2003 9,922
Group, Inc.
- --------------------------------------------------------------------
Morgan Stanley 9,000 1.393+ 4/15/2003 9,000
- --------------------------------------------------------------------
Newport Funding Corp. 5,000 1.27 3/14/2003 4,998
- --------------------------------------------------------------------
Salomon, Smith 10,000 1.31+ 5/08/2003 10,000
Barney Holdings, Inc.
- --------------------------------------------------------------------
Tulip Funding 658 1.28 3/04/2003 658
Corporation
- --------------------------------------------------------------------
Total Commercial Paper (Cost--$38,987) ................ 38,909
- --------------------------------------------------------------------
Corporate Notes--0.5%
- --------------------------------------------------------------------
Wal-Mart Stores, Inc. $ 1,500 4.878 % 6/01/2003 $ 1,512
- --------------------------------------------------------------------
Total Corporate Notes (Cost--$1,509) .................. 1,512
- --------------------------------------------------------------------
Funding Agreements--11.6%
- --------------------------------------------------------------------
Jackson National 15,000 1.42+ 5/01/2003 15,000
Life Insurance Co.
- --------------------------------------------------------------------
Monumental Life 10,000 1.485+ 11/14/2003 10,000
Insurance Company
- --------------------------------------------------------------------
New York Life 10,000 1.40+ 5/30/2003 10,000
Insurance Company
- --------------------------------------------------------------------
Total Funding Agreements
(Cost--$35,000) ....................................... 35,000
- --------------------------------------------------------------------
Medium-Term Notes--11.1%
- --------------------------------------------------------------------
American Honda 3,000 1.35+ 10/06/2003 3,001
Finance Corp. 3,000 1.55+ 11/10/2003 3,002
- --------------------------------------------------------------------
BMW US Capital 1,000 1.34+ 12/10/2003 1,000
Group
- --------------------------------------------------------------------
Bank of Scotland 5,000 1.379+ 1/20/2004 5,000
PLC
- --------------------------------------------------------------------
General Electric 4,000 1.369+ 3/16/2004 4,000
Capital Corp.
- --------------------------------------------------------------------
Goldman Sachs 2,000 1.87+ 3/03/2003 2,000
Group, Inc. 5,000 1.626+ 3/16/2004 5,000
- --------------------------------------------------------------------
Holmes Financing 1,500 1.34+ 10/15/2003 1,500
PLC
- --------------------------------------------------------------------
Morgan Stanley, 6,000 1.51+ 9/19/2003 6,003
Dean Witter & Co.
- --------------------------------------------------------------------
Northern Rock PLC 3,000 1.34+ 11/19/2003 2,999
- --------------------------------------------------------------------
Total Medium-Term Notes (Cost--$33,508) ............... 33,505
- --------------------------------------------------------------------
Municipal Bonds--1.0%
- --------------------------------------------------------------------
California State, 3,000 1.337+ 6/20/2003 3,000
Revenue Anticipation
Notes
- --------------------------------------------------------------------
Total Municipal Bonds (Cost--$3,000) .................. 3,000
- --------------------------------------------------------------------
3
CBA Money Fund
Schedule of Investments as of February 28, 2003 (concluded) (in Thousands)
- --------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
- --------------------------------------------------------------------
U.S. Government & Agency Obligations--
Non-Discount Notes--45.9%
- --------------------------------------------------------------------
Federal Farm $10,000 1.20+ % 10/01/2003 $ 9,997
Credit Bank 2,500 1.20+ 11/14/2003 2,499
3,000 1.198+ 12/24/2003 2,999
2,000 1.25+ 2/23/2004 2,000
1,500 1.22+ 3/01/2004 1,500
8,000 1.215+ 4/07/2004 7,996
7,000 1.25+ 6/21/2004 7,001
14,000 1.25+ 2/07/2005 13,995
5,000 1.248+ 2/24/2005 4,999
1,300 1.26+ 2/21/2006 1,299
750 1.29+ 2/20/2008 750
- --------------------------------------------------------------------
Federal Home 5,000 1.208+ 3/06/2003 5,000
Loan Bank 3,000 1.20+ 3/21/2003 3,000
10,000 1.25+ 9/15/2003 10,001
2,300 1.235+ 12/29/2003 2,300
2,000 3.75 4/15/2004 2,053
2,200 1.24+ 7/06/2004 2,199
- --------------------------------------------------------------------
Federal Home Loan 3,000 2.50 8/20/2004 3,015
Mortgage Corporation
- --------------------------------------------------------------------
U.S. Government & Agency Obligations--
Non-Discount Notes (concluded)
- --------------------------------------------------------------------
Federal National $ 5,000 2.80 % 3/03/2003 $ 5,000
Mortgage Association 12,000 4.625 5/15/2003 12,080
7,000 1.198+ 6/09/2003 6,999
1,250 4.00 8/15/2003 1,266
15,000 1.206+ 1/16/2004 14,998
2,000 3.75 5/12/2004 2,009
1,000 2.46 8/19/2004 1,005
1,250 2.50 10/01/2004 1,258
1,500 2.20 1/14/2005 1,512
- --------------------------------------------------------------------
Student Loan 10,000 1.415+ 2/12/2004 9,998
Marketing
Association
- --------------------------------------------------------------------
Total U.S. Government & Agency
Obligations--Non-Discount Notes
(Cost--$138,602) ...................................... 138,728
- --------------------------------------------------------------------
Total Investments (Cost--$301,872)--99.9% ............. 301,928
Other Assets Less Liabilities--0.1% ................... 443
--------
Net Assets--100.0% .................................... $302,371
========
* Commercial Paper and certain U.S. Government & Agency Obligations are
traded on a discount basis; the interest rates shown reflect the discount
rates paid at the time of purchase by the Fund. Other securities bear
interest at the rates shown, payable at fixed dates or upon maturity.
Interest rates on variable rate securities are adjusted periodically based
upon appropriate indexes; the interest rates shown are those in effect at
February 28, 2003.
+ Variable rate notes.
See Notes to Financial Statements.
4
CBA Money Fund
Statement of Assets and Liabilities as of February 28, 2003
- --------------------------------------------------------------------------------
Assets:
Investments, at value (identified cost--$301,872,458*) ............................. $301,927,873
Cash ............................................................................... 415
Interest receivable ................................................................ 763,870
Prepaid registration fees and other assets ......................................... 103,858
------------
Total assets ....................................................................... 302,796,016
------------
Liabilities:
Payables:
Distributor ..................................................................... $ 156,673
Investment adviser .............................................................. 118,655 275,328
---------
Accrued expenses and other liabilities ............................................. 149,603
------------
Total liabilities .................................................................. 424,931
------------
Net Assets ......................................................................... $302,371,085
============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 30,231,567
Paid-in capital in excess of par ................................................... 272,084,103
Unrealized appreciation on investments--net ........................................ 55,415
------------
Net Assets--Equivalent to $1.00 per share based on 302,315,669 shares of beneficial
interest outstanding ............................................................... $302,371,085
============
* Cost for Federal income tax purposes. As of February 28, 2003, net
unrealized appreciation for Federal income tax purposes amounted to
$55,415, of which $147,509 related to appreciated securities and $92,094
related to depreciated securities.
See Notes to Financial Statements.
5
CBA Money Fund
Statement of Operations for the Year Ended February 28, 2003
- --------------------------------------------------------------------------------
Investment Income:
Interest and amortization of premium and discount earned $ 7,991,617
Expenses:
Investment advisory fees ............................... $2,005,415
Transfer agent fees .................................... 635,184
Distribution fees ...................................... 493,313
Accounting services .................................... 92,965
Professional fees ...................................... 86,831
Trustees' fees and expenses ............................ 47,145
Registration fees ...................................... 39,118
Printing and shareholder reports ....................... 36,527
Custodian fees ......................................... 23,255
Pricing expenses ....................................... 1,489
Other .................................................. 20,071
----------
Total expenses ......................................... 3,481,313
-----------
Investment Income--Net ................................. 4,510,304
-----------
Realized Gain on Investments--Net ...................... 129,256
Change in Unrealized Appreciation on Investments--Net .. (424,398)
-----------
Total Realized and Unrealized Loss on Investments--Net . (295,142)
-----------
Net Increase in Net Assets Resulting from Operations ... $ 4,215,162
===========
See Notes to Financial Statements.
6
CBA Money Fund
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
For the Year Ended
February 28,
---------------------------------
Increase (Decrease) in Net Assets: 2003 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Operations:
Investment income--net ........................................................................ $ 4,510,304 $ 27,732,655
Realized gain on investments--net ............................................................. 129,256 262,187
Change in unrealized appreciation on investments--net ......................................... (424,398) (1,941,150)
--------------- ---------------
Net increase in net assets resulting from operations .......................................... 4,215,162 26,053,692
--------------- ---------------
Dividends & Distributions to Shareholders:
Investment income--net ........................................................................ (4,510,304) (27,732,655)
Realized gain on investments--net ............................................................. (129,256) (262,187)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders ......... (4,639,560) (27,994,842)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares .............................................................. 151,189,174 138,391,142
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions 4,639,560 27,909,974
--------------- ---------------
155,828,734 166,301,116
Cost of shares redeemed ....................................................................... (393,702,095) (823,240,954)
--------------- ---------------
Net decrease in net assets derived from beneficial interest transactions ...................... (237,873,361) (656,939,838)
--------------- ---------------
Net Assets:
Total decrease in net assets .................................................................. (238,297,759) (658,880,988)
Beginning of year ............................................................................. 540,668,844 1,199,549,832
--------------- ---------------
End of year ................................................................................... $ 302,371,085 $ 540,668,844
=============== ===============
See Notes to Financial Statements.
7
CBA Money Fund
Financial Highlights
- --------------------------------------------------------------------------------
For the
The following per share data and ratios have been derived Year Ended For the For the
from information provided in the financial statements. February 28, Year Ended Year Ended
--------------------------------------- February 29, February 28,
Increase (Decrease) in Net Asset Value: 2003 2002 2001 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Per Share Operating Performance:
Net asset value, beginning of year ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Investment income--net ................................ .0110 .0331 .0567 .0473 .0478
Realized and unrealized gain (loss) on investments--net (.0007) (.0020) .0021 (.0003) (.0002)
----------- ----------- ----------- ----------- -----------
Total from investment operations ......................... .0103 .0311 .0588 .0470 .0476
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net ................................ (.0110) (.0331) (.0567) (.0473) (.0478)
Realized gain on investments--net ..................... (.0003) (.0003) (.0001) -- (.0001)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ........................ (.0113) (.0334) (.0568) (.0473) (.0479)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return+ ................................. 1.13% 3.35% 5.83% 5.09% 4.91%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ........................... .87% .83% .75% .70% .70%
=========== =========== =========== =========== ===========
Expenses ................................................. .87% .83% .75% .70% .73%
=========== =========== =========== =========== ===========
Investment income and realized gain on
investments--net ......................................... 1.16% 3.53% 5.67% 4.68% 4.79%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of year (in thousands) ................... $ 302,371 $ 540,669 $ 1,199,550 $ 2,425,888 $ 2,557,289
=========== =========== =========== =========== ===========
+ If applicable, the Fund's Investment Adviser waived a portion of its
management fee. Without such waiver, the Fund's performance would have
been lower.
See Notes to Financial Statements.
8
CBA Money Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
1. Significant Accounting Policies:
CBA Money Fund (the "Fund") is a money market fund whose shares are offered to
subscribers to the Capital Builder Account service of Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") and to subscribers to the Broadcort
Capital Account service of Broadcort Capital Corp. ("Broadcort"). Shares may
also be purchased by individual investors not subscribing to these services, but
such investors will not receive any of the special features offered as a part of
such services. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund's financial
statements are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments -- Portfolio securities with remaining maturities
of greater than sixty days, for which market quotations are readily available,
are valued at market value. As securities transition from sixty-one to sixty
days to maturity, the difference between the valuation existing on the
sixty-first day before maturity and maturity value is amortized on a
straight-line basis to maturity. Securities maturing sixty days or less from
their date of acquisition are valued at amortized cost, which approximates
market value. For purposes of valuation, the maturity of a variable rate
security is deemed to be the next coupon date on which the interest rate is to
be adjusted. Other investments and assets for which market quotations are not
available are valued at their fair value as determined in good faith by or under
the direction of the Fund's Board of Trustees.
(b) Repurchase agreements -- The Fund invests in money market securities
pursuant to repurchase agreements. Under such agreements, the counterparty
agrees to repurchase the security at a mutually agreed upon time and price. The
Fund takes possession of the underlying securities, marks to market such
securities and, if necessary, receives additional securities daily to ensure
that the contract is fully collateralized. If the counterparty defaults and the
fair value of the collateral declines, liquidation of the collateral by the Fund
may be delayed or limited.
(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 all of its taxable income to its shareholders. Therefore, no Federal
income tax provision is required.
(d) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Interest income (including amortization of premium and
discount) is recognized on the accrual basis.
(e) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(f) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
backup withholding tax withheld) in additional fund shares at net asset value.
Dividends and distributions are declared from the total of net investment income
and net realized gain or loss on investments.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML
& Co."), which is the limited partner.
9
Notes to Financial Statements
(concluded)
- --------------------------------------------------------------------------------
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets at the following
annual rates: .50% of the first $500 million of average daily net assets, .425%
of average daily net assets in excess of $500 million but not exceeding $1
billion, and .375% of average daily net assets in excess of $1 billion.
The Fund has adopted a Distribution and Shareholder Servicing Plan in compliance
with Rule 12b-1 under the Investment Company Act of 1940, pursuant to which
MLPF&S and Broadcort each receive a distribution fee under the Distribution
Agreement from the Fund at the end of each month at the annual rate of .125% of
average daily net assets of the Fund attributable to subscribers to the
respective Capital Builder Account and Broadcort Capital Account programs. The
MLPF&S distribution fee is to compensate MLPF&S financial advisors and other
directly involved branch office personnel for selling shares of the Fund and for
providing direct personal services to shareholders. The Broadcort distribution
fee is to compensate selected dealers for activities and services related to the
sale, promotion and marketing of shares of the Fund. The distribution fee is not
compensation for the administrative and operational services rendered to the
Fund by MLPF&S or Broadcort in processing share orders and administering
shareholder accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
For the year ended February 28, 2003, the Fund reimbursed FAM $9,066 for certain
accounting services.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Beneficial Interest 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 February
28, 2003 and February 28, 2002 was as follows:
- --------------------------------------------------------------------------------
2/28/2003 2/28/2002
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ...................... $ 4,639,560 $27,992,581
Net long-term
capital gains ...................... -- 2,261
----------- -----------
Total taxable
distributions ......................... $ 4,639,560 $27,994,842
=========== ===========
- --------------------------------------------------------------------------------
As of February 28, 2003, there were no significant differences between the book
and tax components of net assets.
10
CBA Money Fund
Independent Auditors' Report
- --------------------------------------------------------------------------------
The Board of Trustees and Shareholders,
CBA Money Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CBA Money Fund as of February 28, 2003, the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended,
and the financial highlights for each of the five years in the period then
ended. These financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at February 28, 2003 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of CBA
Money Fund as of February 28, 2003, the results of its operations for the period
then ended, the changes in its 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, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
April 8, 2003
11
CBA Money Fund
Officers and Trustees
- --------------------------------------------------------------------------------
Number of
Portfolios
in Fund Other
Position(s) Length Complex Directorships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Interested Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Terry K. Glenn* President 1999 to President and Chairman of Merrill Lynch 120 Funds None
P.O. Box 9011 and present Investment Managers, L.P. ("MLIM")/Fund 162 Portfolios
Princeton, NJ 08543-9011 Trustee and 1985 Asset Management, L.P. ("FAM")--Advised
Age: 62 to present Funds since 1999; Chairman (Americas
Region) of MLIM from 2000 to 2002;
Executive Vice President of MLIM and FAM
(which terms as used herein include their
corporate predecessors) from 1983 to 2002;
President of FAM Distributors, Inc. ("FAMD")
from 1986 to 2002 and Director thereof
from 1991 to 2002; Executive Vice President
and Director of Princeton Services, Inc.
("Princeton Services") from 1993 to 2002;
President of Princeton Administrators, L.P.
from 1988 to 2002; Director of Financial
Data Services, Inc. from 1985 to 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which FAM or MLIM
acts as investment adviser. Mr. Glenn is an "interested person," as described in the Investment Company Act, of the Fund based
on his former positions with FAM, MLIM, FAMD, Princeton Services and Princeton Administrators, L.P. The Trustee's term is
unlimited. As Fund President, Mr. Glenn serves at the pleasure of the Board of Trustees.
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios
in Fund Other
Position(s) Length Complex Directorships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Independent Trustees
- -----------------------------------------------------------------------------------------------------------------------------------
Ronald W. Forbes Trustee 1984 to Professor Emeritus of Finance, School of 47 Funds None
P.O. Box 9095 present Business, State University of New York at 52 Portfolios
Princeton, NJ 08543-9095 Albany since 2000 and Professor thereof
Age: 62 from 1989 to 2000.
- -----------------------------------------------------------------------------------------------------------------------------------
Cynthia A. Montgomery Trustee 1993 to Professor, Harvard Business School 47 Funds Unum Provident
P.O. Box 9095 present since 1989; Director, Unum Provident 52 Portfolios Corporation;
Princeton, NJ 08543-9095 Corporation since 1990; Director, Newell Newell
Age: 50 Inc. since 1995. Rubbermaid,
Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
Charles C. Reilly Trustee 1990 to Self-employed financial consultant since 47 Funds None
P.O. Box 9095 present 1990. 52 Portfolios
Princeton, NJ 08543-9095
Age: 71
- -----------------------------------------------------------------------------------------------------------------------------------
Kevin A. Ryan Trustee 1992 to Founder and Director Emeritus of 47 Funds None
P.O. Box 9095 present The Boston University Center for the 52 Portfolios
Princeton, NJ 08543-9095 Advancement of Ethics and Character;
Age: 70 Professor of Education at Boston University
from 1982 to 1999 and Professor Emeritus
since 1999.
- -----------------------------------------------------------------------------------------------------------------------------------
12
CBA Money Fund
Officers and Trustees (concluded)
- --------------------------------------------------------------------------------
Number of
Portfolios
in Fund Other
Position(s) Length Complex Directorships
Held of Time Overseen by Held by
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years Trustee Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Trustees (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. Suddarth Trustee 2000 to President, Middle East Institute from 47 Funds None
P.O. Box 9095 present 1995 to 2001; Foreign Service Officer, 52 Portfolios
Princeton, NJ 08543-9095 United States Foreign Service from 1961
Age: 67 to 1995; Career Minister from 1989 to 1995;
Deputy Inspector 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 1984 to Dean Emeritus of New York University, 47 Funds Bowne & Co., Inc.;
P.O. Box 9095 present Leonard N. Stern School of Business 52 Portfolios Vornado Operating
Princeton, NJ 08543-9095 Administration since 1994. Company; Vornado
Age: 65 Realty Trust;
Alexander's, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Edward D. Zinbarg Trustee 2000 to Self-employed financial consultant 47 Funds None
P.O. Box 9095 present since 1994. 52 Portfolios
Princeton, NJ 08543-9095
Age: 68
- ------------------------------------------------------------------------------------------------------------------------------------
* The Trustee's term is unlimited.
- ------------------------------------------------------------------------------------------------------------------------------------
Position(s) Length
Held of Time
Name, Address & Age with Fund Served* Principal Occupation(s) During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 1993 to First Vice President of FAM and MLIM since 1997 and Treasurer thereof
P.O. Box 9011 President present since 1999; Senior Vice President and Treasurer of Princeton Services
Princeton, NJ 08543-9011 and and 1999 since 1999; Vice President of FAMD since 1999; Director of MLIM Taxation
Age: 42 Treasurer to present since 1990.
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin J. McKenna Senior 2000 to Managing Director of MLIM and Head of MLIM Americas Fixed Income since
P.O. Box 9011 Vice present 2000; Director (Global Fixed Income) of MLIM from 1997 to 2000.
Princeton, NJ 08543-9011 President
Age: 46
- ------------------------------------------------------------------------------------------------------------------------------------
Richard J. Mejzak Vice 2001 to Director (Global Fixed Income) of MLIM since 2000; Vice President of MLIM
P.O. Box 9011 President present from 1995 to 2000.
Princeton, NJ 08543-9011
Age: 34
- ------------------------------------------------------------------------------------------------------------------------------------
Phillip S. Gillespie Secretary 2000 to First Vice President of MLIM since 2001; Director from 2000 to 2001; Vice
P.O. Box 9011 present President from 1999 to 2000 and Attorney associated with MLIM since 1998;
Princeton, NJ 08543-9011 Assistant General Counsel of Chancellor LGT Asset Management, Inc. from
Age: 39 1997 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
* Officers of the Fund serve at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Fund's Officers and Trustees is available in the
Fund's Statement of Additional Information, which can be obtained without charge
by calling 1-800-MER-FUND.
13
CBA Money Fund
Important Tax Information (unaudited)
- --------------------------------------------------------------------------------
Of the ordinary income dividends paid by CBA Money Fund during the year ended
February 28, 2003, 17.51% was attributable to Federal obligations. In
calculating the foregoing percentage, expenses of the Fund have been allocated
on a pro-rata basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax adviser to determine if any portion of the
dividends you received is exempt from state income tax.
Please retain this information for your records.
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 CBA account, call 800-247-6400.
[LOGO] Merrill Lynch Investment Managers
[GRAPHICS OMITTED]
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve 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.
CBA Money Fund
Box 9011
Princeton, NJ
08543-9011
[RECYCLED LOGO] Printed on post-consumer recycled paper #11676--2/03
Item 2 - Did registrant adopt a code of ethics, as of the end of the period
covered by this report, that applies to the registrant's principal
executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant
or a third party? If not, why not? Briefly describe any amendments or
waivers that occurred during the period. State here if code of
ethics/amendments/waivers are on website and give website address-.
State here if fund will send code of ethics to shareholders without
charge upon request-- N/A (not answered until July 15, 2003 and only
annually for funds)
Item 3 - Did the registrant's board of directors determine that the registrant
either: (i) has at least one audit committee financial expert serving
on its audit committee; or (ii) does not have an audit committee
financial expert serving on its audit committee? If yes, disclose name
of financial expert and whether he/she is "independent," (fund may, but
is not required, to disclose name/independence of more than one
financial expert) If no, explain why not. -N/A (not answered until July
15, 2003 and only annually for funds)
Item 4 - Disclose annually only (not answered until December 15, 2003)
(a) Audit Fees - Disclose aggregate fees billed for each of the last two
fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's
annual financial statements or services that are
normally provided by the accountant in connection with
statutory and regulatory filings or engagements for
those fiscal years. N/A.
(b) Audit-Related Fees - Disclose aggregate fees billed in each of the
last two fiscal years for assurance and related
services by the principal accountant that are
reasonably related to the performance of the
audit of the registrant's financial statements
and are not reported under paragraph (a) of this
Item. Registrants shall describe the nature of
the services comprising the fees disclosed under
this category. N/A.
(c) Tax Fees - Disclose aggregate fees billed in each of the last two
fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and
tax planning. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A.
(d) All Other Fees - Disclose aggregate fees billed in each of the last
two fiscal years for products and services provided
by the principal accountant, other than the services
reported in paragraphs (a) through (c) of this Item.
Registrants shall describe the nature of the
services comprising the fees disclosed under this
category. N/A.
(e)(1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. N/A.
(e)(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. N/A.
(f) If greater than 50%, disclose the percentage of hours expended on
the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were
attributed to work performed by persons other than the principal
accountant's full-time, permanent employees. N/A.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the registrant for each of the
last two fiscal years of the registrant. N/A.
(h) Disclose whether the registrant's audit committee has considered
whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity
controlling, controlled by, or under common control with the
investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence. N/A.
Items 5-6 - Reserved
Item 7 - For closed-end funds that contain voting securities in their portfolio,
describe the policies and procedures that it uses to determine how to
vote proxies relating to those portfolio securities. N/A (not answered
until July 1, 2003)
Item 8 -- Reserved
Item 9(a) - Disclose the conclusions of the registrant's principal executive
officer or officers and principal financial officer or officers, or
persons performing similar functions, about the effectiveness of the
registrant's disclosure controls and procedures (as defined in Rule
30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their
evaluation of these controls and procedures as of a date within 90
days of the filing date of the report that includes the disclosure
required by this paragraph. N/A (not answered until July 15, 2003
and only annually for funds)
Item 9(b) -- There were no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 - Exhibits
10(a) - Attach code of ethics or amendments/waivers, unless code of ethics or
amendments/waivers is on website or offered to shareholders upon request
without charge. N/A.
10(b) - Attach certifications (4 in total pursuant to Sections 302 and 906 for
CEO/CFO). 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.
CBA Money Fund
By: /s/ Terry K. Glenn
---------------------------
Terry K. Glenn,
President of
CBA Money Fund
Date: April 21, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Terry K. Glenn
---------------------------
Terry K. Glenn,
President of
CBA Money Fund
Date: April 21, 2003
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
CBA Money Fund
Date: April 21, 2003