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 811-21197
811-21300
Name of Fund: WCMA Government Securities Fund
Master Government Securities Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, WCMA
Government Securities Fund and Master Government Securities Trust, 800
Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box
9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 03/31/04
Date of reporting period: 04/01/03 - 09/30/03
Item 1 - Attach shareholder report
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
WCMA Government
Securities Fund
Semi-Annual Report
September 30, 2003
[LOGO] Merrill Lynch Investment Managers
WCMA Government Securities Fund
Officers and Trustees
Terry K. Glenn, President and Trustee
Ronald W. Forbes, Trustee
Cynthia A. Montgomery, Trustee
Charles C. Reilly, Trustee
Kevin A. Ryan, Trustee
Roscoe S. Suddarth, Trustee
Richard R. West, Trustee
Edward D. Zinbarg, Trustee
John Ng, Vice President
Donald C. Burke, Vice President and Treasurer
Phillip S. Gillespie, Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-221-7210*
* For inquiries regarding your WCMA account, call 800-262-4636.
Electronic Delivery
The Fund is now offering electronic delivery of communications to its
shareholders. In order to receive this service, you must register your account
and provide us with e-mail information. To sign up for this service, simply
access this website http://www.icsdelivery.com/live and follow the instructions.
When you visit this site, you will obtain a personal identification number
(PIN). You will need this PIN should you wish to update your e-mail address,
choose to discontinue this service and/or make any other changes to the service.
This service is not available for certain retirement accounts at this time.
2 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
A Letter From the President
Dear Shareholder
Now in its final quarter, 2003 has been a meaningful year in many respects.
After one of the most significant equity market downturns in many investors'
memories, this year finally brought hopeful signs for a sustainable economic
recovery. Sub par economic growth of 1.4% in the first quarter of 2003 increased
to projected growth of more than 4% in the second half of the year. With that
good news, fixed income investments, which had become the asset class of choice
during the long equity market decline, faced new challenges.
Earlier in the year, the Federal Reserve Board continued its accommodative
monetary policy, lowering the Federal Funds rate in June to 1%, its lowest level
since 1958. With this move, long-term interest rates continued to be volatile,
as investors began to anticipate the impact of future Federal Reserve Board
moves and economic revitalization. As of September 30, 2003, the ten-year
Treasury bond was yielding 3.96%. This compared to a yield of 3.83% six months
earlier and 3.63% one year ago.
Against this backdrop, our portfolio managers continued to work diligently to
deliver on our commitment to provide superior performance within reasonable
expectations for risk and return. With that said, remember also that the advice
and guidance of a skilled financial advisor often can mean the difference
between successful and unsuccessful investing. A financial professional can help
you choose those investments that will best serve you as you plan for your
financial future.
Finally, I am proud to premiere a new look to our shareholder communications.
Our portfolio manager commentaries have been trimmed and organized in such a way
that you can get the information you need at a glance, in plain language.
Today's markets are confusing enough. We want to help you put it all in
perspective. The report's new size also allows us certain mailing efficiencies.
Any cost savings in production or postage are passed on to the Fund and,
ultimately, to Fund shareholders.
We thank you for trusting Merrill Lynch Investment Managers with your investment
assets, and we look forward to serving you in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
We took advantage of declining interest rates during the period by
increasing our holdings in the longer end of the yield curve.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended September 30, 2003, WCMA Government Securities
Fund's Class 1, Class 2, Class 3 and Class 4 Shares paid shareholders net
annualized dividends of .69%, .71%, .79% and .79%, respectively.* As of
September 30, 2003, the Fund's Class 1, Class 2, Class 3 and Class 4 Shares had
seven-day yields of .07%, .15%, .47% and .47%, respectively.
The average portfolio maturity for the Fund at September 30, 2003 was 64 days,
compared to 60 days at March 31, 2003.
Fund positioning during the period hinged largely on the shape of the yield
curve. The Federal Reserve Board maintained its accommodative monetary policy
throughout the period, cutting the Federal Funds rate to 1% in June, its lowest
level since 1958. As short-term interest rates declined, we extended out on the
yield curve to take advantage of longer-dated securities with higher yields.
Although we were confident that the Federal Reserve Board would leave interest
rates at their current level for some time, we were aware that market
conditions, such as a change in the dismal employment picture, could force rates
to rise. As a result, throughout the period, we readjusted the Fund's average
life, extending it when interest rates rose and reducing average life when we
believed interest rates had bottomed.
Adding to the general market and economic dynamics during the period were supply
factors. At the beginning of the period, the U.S. Treasury was issuing more
front-end Treasury bills and Treasury notes than ever before to cover a growing
deficit. This, and the reintroduction of the three-year Treasury note in the
refunding cycle, led to a steeper yield curve, with higher yields on the longer
end of the curve.
How did you manage the Fund during the period?
We focused on the fulcrum point of the curve and remained cognizant of where
interest rates were with respect to financing levels. Ultimately, the sector of
choice became the 12-month - 15-month area of the curve. While we expected
interest rates would remain stable for the near term, we were encouraged to
increase our holdings in repurchase agreements modestly, which allowed us to
extend on the yield curve.
The Fund's average life throughout the period was a good indicator of how we
felt about the market. Our lowest average life occurred during the latter part
of May through early June when the spread between three-month Treasury bills and
two-year Treasury notes narrowed to 18 basis points (.18%). As interest rates
rose in August and the curve grew steeper, we extended the portfolio's average
life out to the 70-day range by adding 13-month - 14-month bills. Our sentiment
at this time was that the market was overdone on the upside. In the front end,
we added some Treasury bills in the six-month area as the yields on these
securities became positive to financing levels. By the end of September, we
started to bring the Fund's average life in as we saw the yield curve begin to
flatten, which gave us less enthusiasm for going further out on the curve.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
4 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
How would you characterize the Fund's position at the close of the period?
We believe the Fund is well positioned going forward. As the period closed, we
remained focused on the 13-month - 14-month sector for yield enhancement and
price appreciation. We plan to maintain a longer average life, as the Federal
Reserve Board has stated it will be slow to increase interest rates to ensure
the economy's recovery. Our high liquidity base offers us opportunities to
become more involved if interest rates move higher. Recent gains in employment
are starting to materialize and other economic statistics have suggested a more
broad-based recovery.
The majority of our interest rate exposure currently is in the 12-month -
15-month sector. This area has been the pivotal point of the yield curve, which
has allowed us to "roll down" the yield curve and extend at higher levels as
opportunities present themselves. As the two-year sector approaches 1.75% - 2%,
we may add some positions in that area as well.
John Ng
Vice President and Portfolio Manager
October 16, 2003
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 5
[LOGO] Merrill Lynch Investment Managers
Statement of Assets and Liabilities WCMA Government Securities Fund
As of September 30, 2003
=========================================================================================================
Assets
- ---------------------------------------------------------------------------------------------------------
Investment in Master Government Securities Trust, at value
(identified cost--$584,287,864) ........................ $584,364,178
Prepaid expenses and other assets ........................ 195,118
------------
Total assets ............................................. 584,559,296
------------
=========================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------
Payables:
Distributor ........................................... $244,766
Other affiliates ...................................... 3,750 248,516
--------
Other liabilities ........................................ 34
------------
Total liabilities ........................................ 248,550
------------
=========================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------
Net assets ............................................... $584,310,746
============
=========================================================================================================
Net Assets Consist of
- ---------------------------------------------------------------------------------------------------------
Class 1 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. $ 2,267,853
Class 2 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 14,625,673
Class 3 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 27,713,520
Class 4 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 13,816,397
Paid-in capital in excess of par ......................... 525,810,989
Unrealized appreciation on investments from the Trust--net 76,314
------------
Net Assets ............................................... $584,310,746
============
=========================================================================================================
Net Asset Value
- ---------------------------------------------------------------------------------------------------------
Class 1--Based on net assets of $22,680,975 and
22,678,532 shares outstanding .......................... $ 1.00
============
Class 2--Based on net assets of $146,276,727 and
146,256,727 shares outstanding ......................... $ 1.00
============
Class 3--Based on net assets of $277,173,115 and
277,135,200 shares outstanding ......................... $ 1.00
============
Class 4--Based on net assets of $138,179,929 and
138,163,973 shares outstanding ......................... $ 1.00
============
See Notes to Financial Statements.
6 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Statement of Operations WCMA Government Securities Fund
For the Six Months Ended September 30, 2003
=========================================================================================================
Investment Income from the Trust--Net
- ---------------------------------------------------------------------------------------------------------
Net investment income allocated from the Trust:
Interest .............................................. $ 778,907
Expenses .............................................. (156,149)
------------
Net investment income from the Trust ..................... 622,758
------------
=========================================================================================================
Expenses
- ---------------------------------------------------------------------------------------------------------
Administration fees ...................................... $175,770
Account maintenance and distribution fees--Class 2 ....... 121,454
Account maintenance and distribution fees--Class 3 ....... 112,654
Account maintenance and distribution fees--Class 4 ....... 70,733
Offering costs ........................................... 30,664
Account maintenance and distribution fees--Class 1 ....... 26,991
Registration fees ........................................ 8,849
Professional fees ........................................ 5,201
Printing and shareholder reports ......................... 1,794
Transfer agent fees--Class 3 ............................. 1,368
Transfer agent fees--Class 4 ............................. 867
Transfer agent fees--Class 2 ............................. 816
Pricing fees ............................................. 144
Transfer agent fees--Class 1 ............................. 125
Other .................................................... 913
--------
Total expenses before waiver ............................. 558,343
Waiver of expenses ....................................... (202,548)
--------
Total expenses after waiver .............................. 355,795
------------
Investment income--net ................................... 266,963
------------
=========================================================================================================
Realized & Unrealized Gain on Investments from the Trust--Net
- ---------------------------------------------------------------------------------------------------------
Realized gain on investments from the Trust--net ......... 2,685
Unrealized appreciation on investments from the Trust--net 76,314
------------
Total realized and unrealized gain on investments from
the Trust--net ........................................... 78,999
------------
Net Increase in Net Assets Resulting from Operations ..... $ 345,962
============
See Notes to Financial Statements.
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 7
[LOGO] Merrill Lynch Investment Managers
Statements of Changes in Net Assets WCMA Government Securities Fund
For the Six For the Period
Months Ended March 3, 2003+
September 30, to March 31,
Increase (Decrease) in Net Assets: 2003 2003
=================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------
Investment income--net .................................... $ 266,963 $ 74
Realized gain on investments from the Trust--net .......... 2,685 --
Unrealized appreciation on investments from the Trust--net 76,314 --
-------------------------------
Net increase in net assets resulting from operations ...... 345,962 74
-------------------------------
=================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------
Investment income--net:
Class 1 ................................................ (1,156) (18)
Class 2 ................................................ (28,414) (18)
Class 3 ................................................ (145,106) (19)
Class 4 ................................................ (92,287) (19)
Realized gain on investments--net:
Class 1 ................................................ (97) --
Class 2 ................................................ (688) --
Class 3 ................................................ (1,184) --
Class 4 ................................................ (716) --
-------------------------------
Net decrease in net assets resulting from dividends and
distributions to shareholders ........................... (269,648) (74)
-------------------------------
=================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest
transactions ............................................ 584,134,358 74
-------------------------------
=================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------
Total increase in net assets .............................. 584,210,672 74
Beginning of period ....................................... 100,074 100,000
-------------------------------
End of period ............................................. $ 584,310,746 $ 100,074
===============================
+ Commencement of operations.
See Notes to Financial Statements.
8 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Financial Highlights WCMA Government Securities Fund
Class 1 Class 2
--------------------------------------------------------------
For the For the
For the Period For the Period
The following per share data and ratios have been derived Six Months March 20, Six Months March 20,
from information provided in the financial statements. Ended 2003+ to Ended 2003+ to
Sept. 30, March 31, Sept. 30, March 31,
Increase (Decrease) in Net Asset Value: 2003 2003 2003 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------
Investment income--net ..................... .0038 .0003 .0038 .0003
Realized and unrealized gain on investments
from the Trust--net ...................... .0082 .0002 .0027 .0002
--------------------------------------------------------------
Total from investment operations ........... .0120 .0005 .0065 .0005
--------------------------------------------------------------
Less dividends and distributions:
Investment income--net .................. (.0038) (.0003) (.0038) (.0003)
Realized gain on investments--net ....... (.0003) -- (.0001) --
--------------------------------------------------------------
Total dividends and distributions .......... (.0041) (.0003) (.0039) (.0003)
--------------------------------------------------------------
Net asset value, end of period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================
Total Investment Return .................... .69%* .05% .71%* .05%
==============================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver++ ............ 1.06%* .02% .93%* .02%
==============================================================
Total expenses++ ........................... 1.51%* .02% 1.21%* .02%
==============================================================
Total investment income and realized gain on
investments--net ......................... .04%* .03% .16%* .03%
==============================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 22,681 $ 25 $ 146,277 $ 25
==============================================================
* Annualized.
+ Effective date of the Fund's registration.
++ Includes the Fund's share of the Trust's allocated expenses.
See Notes to Financial Statements
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 9
[LOGO] Merrill Lynch Investment Managers
Financial Highlights (concluded) WCMA Government Securities Fund
Class 3 Class 4
--------------------------------------------------------------
For the For the
For the Period For the Period
The following per share data and ratios have been derived Six Months March 20, Six Months March 20,
from information provided in the financial statements. Ended 2003+ to Ended 2003+ to
Sept. 30, March 31, Sept. 30, March 31,
Increase (Decrease) in Net Asset Value: 2003 2003 2003 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------
Investment income--net ..................... .0038 .0003 .0038 .0003
Realized and unrealized gain on investments
from the Trust--net ...................... .0010 .0002 .0006 .0002
--------------------------------------------------------------
Total from investment operations ........... .0048 .0005 .0044 .0005
--------------------------------------------------------------
Less dividends and distributions:
Investment income--net .................. (.0038) (.0003) (.0038) (.0003)
Realized gain on investments--net ....... --** -- --** --
--------------------------------------------------------------
Total dividends and distributions .......... (.0038) (.0003) (.0038) (.0003)
--------------------------------------------------------------
Net asset value, end of period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
==============================================================
Total Investment Return .................... .79%* .05% .79%* .05%
==============================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver++ ............ .61%* .02% .61%* .02%
==============================================================
Total expenses++ ........................... .92%* .02% .91%* .02%
==============================================================
Total investment income and realized gain on
investments--net ......................... .49%* .03% .48%* .03%
==============================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ... $ 277,173 $ 25 $ 138,180 $ 25
==============================================================
* Annualized.
** Amount is less than $(.0001) per share.
+ Effective date of the Fund's registration.
++ Includes the Fund's share of the Trust's allocated expenses.
See Notes to Financial Statements.
10 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Notes to Financial Statements WCMA Government Securities Fund
1. Significant Accounting Policies:
WCMA Government Securities 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 Government Securities Trust (the
"Trust"), which has the same investment objective as the Fund. The value of the
Fund's investment in the Trust reflects the Fund's proportionate interest in the
net assets of the Trust. The performance of the Fund is directly affected by the
performance of the Trust. The financial statements of the Trust, including the
Schedule of Investments, are included elsewhere in this report and should be
read in conjunction with the Fund's financial statements. The Fund's financial
statements are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use of
management accruals and estimates. These unaudited financial statements reflect
all adjustments, which are, in the opinion of management, necessary to a fair
statement of the results for the interim period presented. All such adjustments
are of a normal, recurring nature. The percentage of the Fund owned by the Trust
at September 30, 2003 was 43.5%. The Fund is divided into four classes,
designated Class 1, Class 2, Class 3 and Class 4. Each Class 1, Class 2, Class 3
and Class 4 Share represents interests in the same assets of the Fund and have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears certain expenses related to account
maintenance and the distribution of such shares and the additional incremental
transfer agency costs resulting from the conversion of shares and have exclusive
voting rights with respect to matters relating to such account maintenance and
distribution expenditures. Income, expenses (other than expenses attributed to a
specific class) and realized and unrealized gains and losses on investments are
allocated daily to each class based on its relative net assets. The following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- The Fund records its investments in the Trust at
fair value. Valuation of securities held by the Trust is discussed in Note 1a of
the Trust's Notes to Financial Statements, which are included elsewhere in this
report.
(b) Investment income and expenses -- The Fund records daily its proportionate
share of the Trust's income, expenses and realized and unrealized gains and
losses. In addition, the Fund accrues its own expenses.
(c) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
backup withholding tax withheld) in additional fund shares at net asset value.
Dividends and distributions are declared from the total of net investment income
and net realized gain or loss on investments.
(f) Investment transactions -- Investment transactions in the Trust are
accounted for on a trade date basis.
2. Transactions with Affiliates:
The Fund has entered into an Administration Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund pays a monthly fee at an annual rate of
..25% of the Fund's average daily net assets for the performance of
administrative services (other than investment advice and related portfolio
activities) necessary for the operation of the Fund.
The Fund has adopted Distribution Plans in compliance with Rule 12b-1 under the
Investment Company Act of 1940, pursuant to which Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("MLPF&S"), a subsidiary of ML & Co., receives account
maintenance and distribution fees from the Fund. The fees are accrued daily and
paid monthly at annual rates based upon the average daily net assets of the
shares of the Fund as follows:
- --------------------------------------------------------------------------------
Account Distribution
Maintenance Fee Fee
- --------------------------------------------------------------------------------
Class 1 ............................... .25% .75%
Class 2 ............................... .25% .425%
Class 3 ............................... .25% .125%
Class 4 ............................... .25% .125%
- --------------------------------------------------------------------------------
The ongoing account maintenance fee compensates MLPF&S for providing account
maintenance services to respective shareholders. The ongoing distribution fee
compensates MLPF&S for providing shareholder and distribution-related
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 11
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (concluded) WCMA Government Securities Fund
services to respective shareholders. FAM and MLPF&S have entered into a
contractual arrangement to waive and/or reimburse a portion of the Fund's fees
and expenses to ensure that the net expenses for the Fund's Class 2 Shares is
..32% higher than that of CMA Government Securities Fund, and Class 3 and Class 4
Shares is equal to that of CMA Government Securities Fund. The fee/expense
waiver or reimbursement includes account maintenance and distribution fees. This
arrangement has a one-year term, which began on the commencement date of
operations and is renewable. The Distributor has voluntarily agreed to waive a
portion of its distribution fees in order to ensure that each class of
shareholders receive a positive yield on each daily dividend. For the six months
ended September 30, 2003, MLPF&S has earned fees of $331,832, of which $202,548
was waived.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Beneficial Interest Transactions:
Net increase in net assets derived from beneficial interest transactions was
$584,134,358 and $74 for the six months ended September 30, 2003 and for the
period March 3, 2003 to March 31, 2003, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- -------------------------------------------------------------------------------
Class 1 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 40,917,224 $ 40,917,224
Shares issued to shareholders in
reinvestment of dividends ............ 1,253 1,253
Shares issued in connection
with the bulk transfer of
WCMA shareholder assets .............. 24,197,893 24,197,893
--------------------------------
Total issued ........................... 65,116,370 65,116,370
Shares redeemed ........................ (42,462,856) (42,462,856)
--------------------------------
Net increase ........................... 22,653,514 $ 22,653,514
================================
- -------------------------------------------------------------------------------
Class 1 Shares for the
Period March 3, 2003+ Dollar
to March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 18 $ 18
--------------------------------
Net increase ........................... 18 $ 18
================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class 2 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 87,353,891 $ 87,353,891
Shares issued to shareholders in
reinvestment of dividends ............ 29,068 29,068
Shares issued in connection
with the bulk transfer of
WCMA shareholder assets .............. 153,348,889 153,348,889
--------------------------------
Total issued ........................... 240,731,848 240,731,848
Shares redeemed ........................ (94,500,139) (94,500,139)
--------------------------------
Net increase ........................... 146,231,709 $ 146,231,709
================================
- -------------------------------------------------------------------------------
Class 2 Shares for the
Period March 3, 2003+ Dollar
to March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 18 $ 18
--------------------------------
Net increase ........................... 18 $ 18
================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class 3 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 197,244,033 $ 197,244,033
Shares issued to shareholders in
reinvestment of dividends ............ 146,291 146,291
Shares issued in connection
with the bulk transfer of
WCMA shareholder assets .............. 232,545,615 232,545,615
--------------------------------
Total issued ........................... 429,935,939 429,935,939
Shares redeemed ........................ (152,825,758) (152,825,758)
--------------------------------
Net increase ........................... 277,110,181 $ 277,110,181
================================
- -------------------------------------------------------------------------------
Class 3 Shares for the
Period March 3, 2003+ Dollar
to March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 19 $ 19
--------------------------------
Net increase ........................... 19 $ 19
================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
- -------------------------------------------------------------------------------
Class 4 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 138,284,968 $ 138,284,968
Shares issued to shareholders in
reinvestment of dividends ............ 93,003 93,003
Shares issued in connection
with the bulk transfer of
WCMA shareholder assets .............. 168,910,427 168,910,427
--------------------------------
Total issued ........................... 307,288,398 307,288,398
Shares redeemed ........................ (169,149,444) (169,149,444)
--------------------------------
Net increase ........................... 138,138,954 $ 138,138,954
================================
- -------------------------------------------------------------------------------
Class 4 Shares for the
Period March 3, 2003+ Dollar
to March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ............................ 19 $ 19
--------------------------------
Net increase ........................... 19 $ 19
================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
12 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Schedule of Investments
Master Government Securities Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate Date Value
======================================================================================================
U.S. Government Obligations*--25.9%
======================================================================================================
U.S. Treasury Bills $10,000 0.90 % 12/26/2003 $ 9,978
41,000 1.01-
1.012 1/29/2004 40,870
10,500 1.005-
1.01 2/05/2004 10,464
- ------------------------------------------------------------------------------------------------------
U.S. Treasury Notes 10,000 2.75 10/31/2003 10,014
57,600 3.25 12/31/2003 57,924
21,900 3.625 3/31/2004 22,184
30,000 3.375 4/30/2004 30,409
24,200 2.875 6/30/2004 24,533
10,875 2.25 7/31/2004 10,982
40,100 2.125 8/31/2004 40,488
67,400 1.875 9/30/2004 67,940
5,200 2.125 10/31/2004 5,258
10,000 2.00 11/30/2004 10,103
4,400 1.75 12/31/2004 4,434
2,200 1.50 2/28/2005 2,210
- ------------------------------------------------------------------------------------------------------
Total U.S. Government Obligations
(Cost--$346,866) ......................................................................... 347,791
- ------------------------------------------------------------------------------------------------------
Face
Amount Issue
======================================================================================================
Repurchase Agreements--73.8%
======================================================================================================
$66,000 ABN AMRO Inc., purchased on 9/30/2003 to
yield 0.94% to 10/01/2003, repurchase price
$66,002, collateralized by U.S. Treasury Notes,
3% due 1/31/2004 ....................................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Banc of America Securities LLC, purchased
on 9/29/2003 to yield 1.04% to 10/06/2003,
repurchase price $66,013, collateralized
by GNMA, 4.50% to 6.50% due 8/15/2018
to 9/15/2033 ........................................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Barclays Capital Inc., purchased on 9/30/2003
to yield 0.97% to 10/01/2003, repurchase price
$66,002, collateralized by U.S. Treasury Bills, 0%
to 4.75% due 2/15/2004 to 2/19/2004 .................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Bear Stearns & Co., Inc., purchased on 9/30/2003
to yield 0.94% to 10/01/2003, repurchase price
$66,002, collateralized by U.S. Treasury Strips,
0% due 8/15/2008 ....................................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Citigroup Global Markets Inc., purchased on
9/30/2003 to yield 0.94% to 10/07/2003,
repurchase price $66,012, collateralized
by GNMA, 4.50% to 10.50% due 12/15/2003
to 9/15/2033 ........................................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Credit Suisse First Boston Corp., purchased
on 9/30/2003 to yield 1.02% to 10/07/2003,
repurchase price $66,013, collateralized by
GNMA, 4.50% to 13% due 6/15/2003 to
8/15/2039 .............................................................. 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Deutsche Bank Securities Inc., purchased
on 9/30/2003 to yield 0.95% to 10/01/2003,
repurchase price $66,002, collateralized
by GNMA, 5.50% to 6% due 5/20/2033
to 7/15/2033 ........................................................... 66,000
- ------------------------------------------------------------------------------------------------------
68,000 Goldman Sachs & Company, purchased on
9/19/2003 to yield 0.99% to 10/17/2003,
repurchase price $68,052, collateralized
by GNMA, 4.25% to 9.50% due 8/15/2008
to 9/15/2033 ........................................................... 68,000
- ------------------------------------------------------------------------------------------------------
66,000 Greenwich Capital Markets, Inc., purchased
on 9/25/2003 to yield 1.01% to 10/02/2003,
repurchase price $66,012, collateralized
by GNMA, 4.50% to 5% due 8/15/2033
to 9/15/2033 ........................................................... 66,000
- ------------------------------------------------------------------------------------------------------
63,357 HSBC Securities (USA) Inc., purchased on
9/30/2003 to yield 0.97% to 10/01/2003,
repurchase price $63,359, collateralized
by U.S. Treasury Strips, 0% to 11.75% due
2/15/2004 to 2/15/2031 ................................................. 63,357
- ------------------------------------------------------------------------------------------------------
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 13
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (concluded)
Master Government Securities Trust (in Thousands)
Face
Amount Issue Value
======================================================================================================
Repurchase Agreements (continued)
======================================================================================================
$66,000 J.P. Morgan Securities Inc., purchased on
9/25/2003 to yield 1.01% to 10/02/2003,
repurchase price $66,013, collateralized
by GNMA, 5% to 9% due 3/15/2006
to 11/15/2045 .......................................................... $ 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Lehman Brothers Inc., purchased on
9/30/2003 to yield 1.02% to 10/07/2003,
repurchase price $66,013, collateralized
by GNMA, 3% to 13% due 2/15/2005
to 2/15/2036 ........................................................... 66,000
- ------------------------------------------------------------------------------------------------------
66,000 Merrill Lynch Government Securities, Inc., purchased
on 9/25/2003 to yield 1.01% to 10/02/2003,
repurchase price $66,013, collateralized
by GNMA, 5.50% to 8% due 10/15/2003
to 2/15/2043** ......................................................... 66,000
- ------------------------------------------------------------------------------------------------------
67,000 Morgan Stanley & Co., Inc., purchased on
9/26/2003 to yield 1.02% to 10/03/2003,
repurchase price $67,013, collateralized
by GNMA, 3.25% to 5% due 5/20/2030
to 8/20/2033 ........................................................... 67,000
- ------------------------------------------------------------------------------------------------------
66,000 UBS Warburg LLC, purchased on 9/24/2003
to yield 0.99% to 10/01/2003, repurchase
price $66,013, collateralized by GNMA, 6.50%
to 7.50% due 2/15/2026 to 10/15/2032 ................................... 66,000
- ------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost--$990,357) ......................................................................... 990,357
- ------------------------------------------------------------------------------------------------------
Total Investments
(Cost--$1,337,223)--99.7% ................................................................ 1,338,148
Other Assets Less Liabilities--0.3% ...................................................... 4,352
----------
Net Assets--100.0% ....................................................................... $1,342,500
==========
* U.S. Treasury Bills are traded on a discount basis; the interest rates
shown are the range of the discount rates paid at the time of purchase by
the Trust. U.S. Treasury Notes bear interest at the rates shown, payable
at fixed dates until maturity.
** Investments in companies considered to be an affiliate of the Trust (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) are as follows:
(in Thousands)
--------------------------------------------------------------------------
Net Interest
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Government Securities, Inc. $(11,000) $385
Merrill Lynch & Co. -- $ 19
--------------------------------------------------------------------------
See Notes to Financial Statements.
14 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Statement of Assets and Liabilities Master Government Securities Trust
As of September 30, 2003
===============================================================================================================
Assets
- ---------------------------------------------------------------------------------------------------------------
Investments, at value
(identified cost--$1,337,223,100*) ................ $ 1,338,148,062
Cash ................................................ 5,294
Receivables:
Contributions .................................... $ 2,925,175
Interest ......................................... 1,455,351 4,380,526
---------------
Prepaid expenses and other assets ................... 10,607
---------------
Total assets ........................................ 1,342,544,489
---------------
===============================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------
Payable to investment adviser ....................... 28,486
Other affiliates .................................... 16,166
---------------
Total liabilities ................................... 44,652
---------------
===============================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------
Net assets .......................................... $ 1,342,499,837
===============
===============================================================================================================
Net Assets Consist of
- ---------------------------------------------------------------------------------------------------------------
Investors' capital .................................. $ 1,341,574,875
Unrealized appreciation on investments--net ......... 924,962
---------------
Net Assets .......................................... $ 1,342,499,837
===============
* Cost for Federal income tax purposes was $1,337,223,100. As of September
30, 2003, net unrealized appreciation for Federal income tax purposes
amounted to $924,962, all of which related to appreciated securities.
See Notes to Financial Statements.
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 15
[LOGO] Merrill Lynch Investment Managers
Statement of Operations Master Government Securities Trust
For the Six Months Ended September 30, 2003
===============================================================================================================
Investment Income
- ---------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount
earned ............................................ $ 8,820,814
===============================================================================================================
Expenses
- ---------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................ $ 1,360,743
Accounting services ................................. 131,820
Custodian fees ...................................... 37,925
Professional fees ................................... 21,803
Trustees' fees and expenses ......................... 19,748
Pricing fees ........................................ 2,392
Printing and shareholder reports .................... 504
Other ............................................... 13,670
---------------
Total expenses ...................................... 1,588,605
---------------
Investment income--net .............................. 7,232,209
---------------
===============================================================================================================
Realized & Unrealized Gain (Loss) on Investments--Net
- ---------------------------------------------------------------------------------------------------------------
Realized gain on investments--net ................... 41,038
Change in unrealized appreciation on investments--net (158,712)
---------------
Total realized and unrealized loss on
investments--net .................................. (117,674)
---------------
Net Increase in Net Assets Resulting from Operations $ 7,114,535
===============
See Notes to Financial Statements.
16 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Statements of Changes in Net Assets Master Government Securities Trust
For the Six For the Period
Months Ended February 13, 2003+
September 30, to March 31,
Increase (Decrease) in Net Assets: 2003 2003
===============================================================================================================
Operations
- ---------------------------------------------------------------------------------------------------------------
Investment income--net .............................. $ 7,232,209 $ 2,258,188
Realized gain on investments--net ................... 41,038 8,057
Change in unrealized appreciation on investments--net (158,712) (2,060)
-----------------------------------
Net increase in net assets resulting from operations 7,114,535 2,264,185
-----------------------------------
===============================================================================================================
Capital Transactions
- ---------------------------------------------------------------------------------------------------------------
Proceeds from contributions ......................... 2,982,156,851 712,600,848
Fair value of net assets contributions .............. -- 1,599,940,901
Fair value of withdrawals ........................... (3,231,965,503) (729,711,980)
-----------------------------------
Net increase (decrease) in net assets derived from
capital transactions .............................. (249,808,652) 1,582,829,769
-----------------------------------
===============================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............. (242,694,117) 1,585,093,954
Beginning of period ................................. 1,585,193,954 100,000
-----------------------------------
End of period ....................................... $ 1,342,499,837 $ 1,585,193,954
===================================
+ Commencement of operations.
See Notes to Financial Statements.
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 17
[LOGO] Merrill Lynch Investment Managers
Financial Highlights Master Government Securities Trust
For the Six For the Period
Months Ended February 13, 2003+
The following ratios have been derived from September 30, to March 31,
information provided in the financial statements. 2003 2003
==========================================================================================================================
Total Investment Return
- --------------------------------------------------------------------------------------------------------------------------
Total Investment Return ............................... .97%* .75%*
======================================
==========================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------
Expenses .............................................. .22%* .26%*
======================================
Investment income and realized gain on investments--net .99%* 1.08%*
======================================
==========================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .............. $ 1,342,500 $ 1,585,194
======================================
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
18 WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003
Notes to Financial Statements Master Government Securities Trust
1. Significant Accounting Policies:
Master Government Securities Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, and is organized as a Delaware
statutory trust. The Declaration of Trust permits the Trustees to issue
nontransferable interest in the Trust, subject to certain limitations. The
Trust's financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America, which may require
the use of management accruals and estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of management,
necessary to a fair statement of the results for the interim period presented.
All such adjustments are of a normal, recurring nature. The following is a
summary of significant accounting policies followed by the Trust.
(a) Valuation of investments -- 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 the purpose 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 for which market value quotations are not
available are valued at their fair value as determined in good faith by or under
the direction of the Trust's Board of Trustees.
(b) Repurchase agreements -- The Trust invests in U.S. government securities
pursuant to repurchase agreements. Under such agreements, the counterparty
agrees to repurchase the security at a mutually agreed upon time and price. The
Trust 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
Trust may be delayed or limited.
(c) Income taxes -- The Trust is classified as a partnership for Federal income
tax purposes. As such, each investor in the Trust is treated as owner of its
proportionate share of the net assets, income, expenses and realized and
unrealized gains and losses of the Trust. Therefore, no Federal income tax
provision is required. It is intended that the Trust's assets will be managed so
an investor in the Trust can satisfy the requirements of subchapter M of the
Internal Revenue Code.
(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.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Trust has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect, wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML
& Co."), which is the limited partner.
FAM is responsible for the management of the Trust's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Trust. For such services, the Trust pays a monthly fee
based upon the average daily value of the Trust's net assets, at the following
annual rates: .25% of the Trust's average daily net assets not exceeding $500
million; .175% of the average daily net assets in excess of $500 million but not
exceeding $1 billion; and .125% of the average daily net assets in excess of $1
billion.
For the six months ended September 30, 2003, the Trust reimbursed FAM $14,731
for certain accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
WCMA GOVERNMENT SECURITIES FUND SEPTEMBER 30, 2003 19
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
WCMA Government Securities Fund
Box 9011
Princeton, NJ
08543-9011
#WCMAGS -- 9/03
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 (annual requirement only)
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 (annual requirement
only)
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.
Item 5 - If the registrant is a listed issuer as defined in Rule 10A-3 under the
Exchange Act, state whether or not the registrant has a
separately-designated standing audit committee established in
accordance with Section 3(a)(58)(A) of the Exchange Act. If the
registrant has such a committee, however designated, identify each
committee member. If the entire board of directors is acting as the
registrant's audit committee in Section 3(a)(58)(B) of the Exchange
Act, so state.
If applicable, provide the disclosure required by Rule 10A-3(d) under
the Exchange Act regarding an exemption from the listing standards for
audit committees. N/A
(Listed issuers must be in compliance with the new listing rules by the
earlier of their first annual shareholders meeting after January 2004,
or October 31, 2004 (annual requirement))
Item 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
Item 8 -- Reserved
Item 9(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.
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 pursuant to Section 302 of the Sarbanes-Oxley Act.
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.
WCMA Government Securities Fund and Master Government Securities Trust
By: /s/ Terry K. Glenn
-----------------------------
Terry K. Glenn,
President of
WCMA Government Securities Fund and Master Government Securities
Trust
Date: November 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
WCMA Government Securities Fund and Master Government Securities
Trust
Date: November 21, 2003
By: /s/ Donald C. Burke
-----------------------------
Donald C. Burke,
Chief Financial Officer of
WCMA Government Securities Fund and Master Government Securities
Trust
Date: November 21, 2003
Attached hereto as a furnished exhibit are the certifications pursuant
to Section 906 of the Sarbanes-Oxley Act.