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 811-5011
Name of Fund: CMA California Municipal Money Fund
CMA Multi-State Municipal Series Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, CMA California
Municipal Money Fund of CMA Multi-State Municipal Series 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 - 03/31/04
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
CMA California
Municipal Money Fund
Annual Report
March 31, 2004
[LOGO] Merrill Lynch Investment Managers
CMA California Municipal Money Fund
Important Tax Information (unaudited)
All of the net investment income distributions paid by CMA California Municipal
Money Fund of CMA Multi-State Municipal Series Trust during the taxable year
ended March 31, 2004 qualify as tax-exempt interest dividends for Federal income
tax purposes.
Please retain this information for your records.
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this 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 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
A Letter From the President
Dear Shareholder
Index returns during the most recent six-month and 12-month reporting periods
indicate that fixed income markets -- both taxable and tax-exempt -- continued
to reward those investors who were willing to accept greater risk. The high
yield market, as measured by the Credit Suisse First Boston High Yield Index,
provided a six-month return of +8.65% and a 12-month return of +22.86% as of
March 31, 2004. By comparison, the Lehman Brothers Aggregate Bond Index returned
+2.98% and +5.40% and the Lehman Brothers Municipal Bond Index returned +3.12%
and +5.86% for the six-month and 12-month periods ended March 31, 2004,
respectively.
As of March month-end, the Federal Reserve Board maintained its accommodative
policy stance, pledging "patience" in raising interest rates. As a result,
short-term interest rates remained at historic lows and kept the short end of
the yield curve relatively flat, making it increasingly difficult to find
attractive income opportunities. Market watchers continue to monitor the
economic data and Federal Reserve Board language for indications of interest
rate direction. Having said that, if the economy continues to grow at its recent
pace, many believe it is just a matter of time before interest rates move
upward.
Equity markets, in the meantime, continued to provide attractive returns. For
the six-month and 12-month periods ended March 31, 2004, the Standard & Poor's
500 Index returned +14.08% and +35.12%, respectively. Much of the boost came
from improving economic conditions throughout the past year. Significant fiscal
and monetary stimulus, including the low interest rates and tax cuts, has opened
the door to consumer spending, capital spending, increases in exports and
long-awaited job growth. As expected, these positive developments have led the
way to improvements in corporate earnings -- a positive for stock markets.
The events and efforts of the past year leave us with a much stronger economy
today. With all of this in mind, we believe it is time for investors to consider
what can go right in 2004. We encourage you to revisit your portfolio and your
asset allocation strategy to ensure you are well positioned to take advantage of
the opportunities that lie ahead. Your financial advisor can help you develop a
strategy designed to perform through all types of market and economic cycles.
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
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
We extended the Fund's average maturity based on our belief that
short-term borrowing rates were likely to remain stable at least through the
first quarter of 2004.
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended March 31, 2004, CMA California Municipal Money
Fund paid shareholders a net annualized yield of .49%.* As of March 31, 2004,
the Fund's seven-day yield was .49%.
Our principal investment strategy was to maintain the Fund's average portfolio
maturity at or above its peer group average. We implemented this strategy based
on our belief that short-term borrowing rates would remain stable, at least
through the first quarter of 2004. We believed that fixed-coupon securities such
as municipal notes and puts, which have effective maturities up to 13 months,
would outperform variable rate demand products during this period given the
relative stability of short-term interest rates. This, in fact, was the case as
the average yield on the one-year note, as measured by the Bond Buyer One-Year
Note Index, was 1.08% for the 12-month period ended March 31, 2004. The average
seven-day variable rate yield, as measured by the BMA Municipal Swap Index, was
1.00% during the same period.
Our purchase of $460 million in California tax-exempt municipal notes and puts
through December 2003 was the key driver in implementing our overall investment
strategy. The purchases, which provided yields ranging from .92% to 1.58%,
benefited Fund performance while also affording us excellent asset
diversification and solid credit quality.
For its part, the Federal Reserve Board remained accommodative throughout the
year. The last in a series of interest rate cuts came in June 2003, as the
Federal Reserve Board looked to stimulate economic growth and ward off the
potential for deflation. Although economic growth began to accelerate later in
the year, concerns over weak job growth persisted in the market. Investors tried
to anticipate when the Federal Reserve Board would restore interest rates to
more neutral levels. The constant interest rate analysis translated into
widespread volatility, which created opportunities in the fixed income markets.
Describe conditions in the State of California during the period.
It was a turbulent 12 months for California. The state's political situation was
especially noteworthy. In October 2003, voters emphatically recalled Democratic
Governor Gray Davis and replaced him with Republican Governor Arnold
Schwarzenegger. Prior to that special election, the uncertainty over the vote
temporarily paralyzed state budget negotiations. The stalemate led major rating
agencies to downgrade California's credit rating to historically low levels.
Ongoing fiscal challenges forced the state to issue a record amount of
short-term municipal debt over the past 12 months. This issuance, which included
$11 billion worth of revenue anticipation warrants (RAWs) and $1.9 billion in
revenue anticipation notes (RANs) -- both backed by financial institutions --
allowed the state to meet its financial obligations through June 2004. During
the period, the Fund was an active buyer of the RAWs, which performed very well
and provided yields ranging from 1.07% to 1.58%.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
4 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
During the final month of the period, California's short-term financial outlook
brightened considerably. Voters approved $15 billion worth of bonds to finance
the state's deficit and retire the outstanding RAWs and RANs once they come due
in June. The approval also will provide legislators much-needed time to address
California's continued budget imbalance.
What changes were made to the portfolio during the period?
As mentioned earlier, the primary change made during the 12-month period was our
decision to reallocate a portion of the Fund's assets out of variable rate
demand products and into fixed-coupon securities. The goal was to extend the
portfolio's average maturity. Given that short-term interest rates were at
historic lows and seemingly in a holding pattern, longer-dated fixed rate
securities presented the more attractive investment opportunity in our view. Our
expectations about the yield advantages of fixed rate notes were met, as
indicated by the figures referenced earlier.
We accomplished this reallocation of assets primarily through the purchase of
municipal notes and puts. During the period, we increased the Fund's weighting
in notes and puts by 10%, bringing our allocation to 31% of net assets as of
March 31, 2004. We decreased the Fund's weighting in variable rate securities by
a similar percentage.
How would you characterize the portfolio's position at the close of the period?
We believe the Fund is well positioned for the current interest rate
environment. We will continue to monitor the tone and actions of the Federal
Reserve Board to determine the potential for an increase in short-term interest
rates. We plan to maintain the current flexibility in the portfolio's structure
and react as needed to any changes in market conditions.
One likely area of focus in the months ahead will be on our municipal note
holdings. We plan to seek attractive opportunities to reinvest a significant
portion of the Fund's note positions maturing before September 30, 2004. As a
result of the successful passage of California's deficit-financing referendum,
we expect a substantial reduction this year in the state's tax-exempt note
issuance. The referendum will make it unnecessary for California to issue RAWs,
which traditionally are used to bridge the state's short-term financing needs
over a fiscal year-end. Nevertheless, we do expect California counties and
municipalities to issue annual short-term financing notes in June, although the
large reduction in state issuance is likely to place downward pressure on
short-term note yields. As always, we will continue to monitor developments in
the State of California and gauge their potential impact on Fund holdings.
Steven T. Lewis
Vice President and Portfolio Manager
April 8, 2004
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 5
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
California--94.2%
- ------------------------------------------------------------------------------------------------------------------------------------
$ 6,495 ABN Amro Munitops Certificates Trust, California, GO, Refunding, VRDN,
Series 2003-1, 1% due 2/01/2010 (a)(d) $ 6,495
-------------------------------------------------------------------------------------------------------------
ABN Amro Munitops Certificates Trust, California, VRDN (a):
10,045 GO, Series 2003-9, 1.14% due 9/01/2011 (b) 10,045
16,912 Series 1998-17, 1.05% due 7/05/2006 (c) 16,912
5,000 Series 1998-25, 1.05% due 7/05/2006 (c) 5,000
5,373 Series 1999-7, 1.05% due 7/04/2007 (b) 5,373
-------------------------------------------------------------------------------------------------------------
10,000 Abag Finance Authority For Non-Profit Corporations, California, Lease
Revenue Bonds, Pass-Thru Obligations, VRDN, AMT, Series A, 1.05%
due 7/01/2008 (a) 10,000
-------------------------------------------------------------------------------------------------------------
9,995 Abag Finance Authority For Non-Profit Corporations, California, M/F Revenue
Bonds (Southport Apartments), VRDN, Series A, 1.04% due 1/15/2036 (a) 9,995
-------------------------------------------------------------------------------------------------------------
15,000 Auburn, California, Union School District, COP, Refunding, VRDN, 1.02%
due 12/01/2032 (a)(e) 15,000
-------------------------------------------------------------------------------------------------------------
16,415 Bakersfield, California, Hospital Revenue Refunding Bonds, FLOATS,
Series 788, 1.07% due 3/01/2019 (a)(b) 16,415
-------------------------------------------------------------------------------------------------------------
3,000 California Community College Financing Authority, TRAN, Series A, 2%
due 6/30/2004 3,007
-------------------------------------------------------------------------------------------------------------
California Educational Facilities Authority Revenue Bonds, VRDN (a):
10,600 (Life Chiropractic College), 1.01% due 1/01/2025 10,600
1,445 (Pepperdine University), Series B, 0.99% due 11/01/2029 1,445
6,200 (San Francisco Conservatory), 1% due 3/01/2025 6,200
-------------------------------------------------------------------------------------------------------------
6,800 California HFA, Home Mortgage Revenue Bonds, VRDN, AMT, Series B, 1.16%
due 8/01/2033 (a)(e) 6,800
-------------------------------------------------------------------------------------------------------------
62,300 California HFA, M/F Housing Revenue Bonds, VRDN, AMT, Series C, 1.16%
due 2/01/2033 (a) 62,300
-------------------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority Revenue Bonds, FLOATS (a)(b):
20,793 Series 591, 1.07% due 3/01/2014 20,793
26,855 Series 592, 1.07% due 3/01/2021 26,855
-------------------------------------------------------------------------------------------------------------
2,500 California Infrastructure and Economic Development Bank Empowerment Revenue
Bonds (Gold Coast Baking Company Project), VRDN, AMT, 1.15% due 4/01/2012 (a) 2,500
-------------------------------------------------------------------------------------------------------------
California Infrastructure and Economic Development Bank, Revenue Refunding
Bonds, VRDN (a):
4,100 (Guided Discoveries Inc. Project), 1% due 6/01/2032 4,100
31,700 (Independent System Operation Corporation Project), Series A, 1.01%
due 4/01/2008 (b) 31,700
36,800 (Independent System Operation Corporation Project), Series C, 1%
due 4/01/2009 (b) 36,800
-------------------------------------------------------------------------------------------------------------
5,600 California Pollution Control Financing Authority, Environmental Improvement
Revenue Bonds (Atlantic Richfield Co. Project), VRDN, AMT, 1.03%
due 12/01/2032 (a) 5,600
-------------------------------------------------------------------------------------------------------------
California Pollution Control Financing Authority, PCR, Refunding (Pacific
Gas and Electric), VRDN (a):
148,550 AMT, Series B, 1.11% due 11/01/2026 148,550
9,000 Series C, 1.11% due 11/01/2026 9,000
-------------------------------------------------------------------------------------------------------------
5,500 California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Waste Management Inc. Project), VRDN, AMT, Series A, 1.08%
due 11/01/2038 (a) 5,500
-------------------------------------------------------------------------------------------------------------
4,000 California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Refunding Bonds (Waste Management Inc. Project), VRDN, AMT,
Series A, 1.05% due 1/01/2022 (a) 4,000
-------------------------------------------------------------------------------------------------------------
40,610 California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue
Refunding Bonds, VRDN, AMT, 1.113% due 7/25/2004 (a) 40,610
Portfolio Abbreviations for CMA California Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
FLOATS Floating Rate Securities
GAN Grant Anticipation Notes
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MERLOTS Municipal Extendible Receipt
Liquidity Option Tender Securities
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
RAW Revenue Anticipation Warrants
ROCS Reset Option Certificates
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
6 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
California (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
California State Department of Water Resources, Power Supply Revenue Bonds,
VRDN (a):
$ 20,000 Series C-4, 1.03% due 5/01/2022 $ 20,000
26,800 Series C-14, 1.02% due 5/01/2022 26,800
-------------------------------------------------------------------------------------------------------------
1,300 California State Economic Development Financing Authority, IDR (Harvel
Plastics Inc. Project), VRDN, AMT, 1.15% due 3/01/2010 (a) 1,300
-------------------------------------------------------------------------------------------------------------
California State, GO, MERLOTS (a):
100,240 Series A43, 1.48% due 6/02/2004 100,240
35,051 Series A47, 1.58% due 6/02/2004 35,051
9,955 Series B-45, 1.04% due 10/01/2029 9,955
-------------------------------------------------------------------------------------------------------------
California State, GO, MSTR, VRDN (a):
8,555 Series SGA-7, 1.04% due 9/01/2018 (e) 8,555
9,600 Series SGA-39, 1.04% due 6/01/2014 (b) 9,600
2,990 Series SGA-40, 1.04% due 6/01/2013 (c) 2,990
9,370 Series SGA-72, 1.04% due 6/01/2017 (c) 9,370
-------------------------------------------------------------------------------------------------------------
California State, GO, Refunding (a):
9,115 MERLOTS, Series A-17, 1.04% due 2/01/2018 (d) 9,115
3,150 MERLOTS, Series A-47, 1.04% due 2/01/2011 (b) 3,150
2,100 MSTR, VRDN, Series SGA-136, 1.15% due 12/01/2030 (g) 2,100
-------------------------------------------------------------------------------------------------------------
140,000 California State, RAW, Series A, 2% due 6/16/2004 140,247
-------------------------------------------------------------------------------------------------------------
25,000 California Statewide Communities Development Authority, COP, FLOATS,
Refunding, Series 909, 1.07% due 8/15/2023 (a)(b) 25,000
-------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority, M/F Housing Revenue
Bonds, VRDN, AMT (a):
10,000 (Canyon Creek Apartments), Series C, 1.04% due 6/15/2025 (f) 10,000
6,420 (Hallmark Housing Apartments), Series ZZ, 1.04% due 12/15/2036 (f) 6,420
6,700 (Hermosa Vista Apartments), Series XX, 1.04% due 5/15/2036 (f) 6,700
4,200 (Kimberly Woods), Series B, 1.04% due 6/15/2025 (f) 4,200
13,205 (Knolls at Green Valley), Series FF, 1.04% due 7/15/2036 (f) 13,205
15,100 (Oakmont Chino Hills), Series P, 1.04% due 6/01/2036 15,100
3,285 (Olen Jones Senior Apartments), Series BB, 1.08% due 11/01/2034 3,285
5,335 (Second Street Senior Apartments), Series TT, 1.04% due 12/15/2036 (f) 5,335
7,300 (Vineyard Creek LP), Series W, 1.04% due 12/01/2036 7,300
-------------------------------------------------------------------------------------------------------------
California Statewide Communities Development Authority Revenue Bonds,
VRDN (a):
11,400 (Kaiser Permanente), Series A, 1.14% due 10/01/2013 11,400
17,000 (Kaiser Permanente), Series B, 1.14% due 11/01/2030 17,000
8,300 Series L, 1.10% due 4/01/2038 8,300
14,000 Series M, 1.10% due 4/01/2038 14,000
-------------------------------------------------------------------------------------------------------------
55,900 California Statewide Communities Development Authority, TRAN (Riverside
County Projects), Series A-3, 2% due 6/30/2004 56,034
-------------------------------------------------------------------------------------------------------------
20,000 Carlsbad, California, M/F Housing Revenue Bonds (The Greens Apartments),
VRDN, AMT, Series A, 1.05% due 6/01/2046 (a) 20,000
-------------------------------------------------------------------------------------------------------------
12,764 Clipper Tax-Exempt Trust, California, COP, VRDN, AMT, Series 98-9, 1.12%
due 6/01/2005 (a) 12,764
-------------------------------------------------------------------------------------------------------------
15,525 Contra Costa, California, Water District Revenue Bonds, MSTR, VRDN, Series
SGA 24, 1.04% due 10/01/2019 (a)(b) 15,525
-------------------------------------------------------------------------------------------------------------
7,165 Contra Costa, California, Water District Water Revenue Refunding Bonds,
FLOATS, Series 850, 1.05% due 10/01/2019 (a)(e) 7,165
-------------------------------------------------------------------------------------------------------------
14,500 Contra Costa County, California, M/F Housing Revenue Bonds (Creekview
Apartments), VRDN, AMT, Series B, 1.04% due 7/01/2036 (a)(h) 14,500
-------------------------------------------------------------------------------------------------------------
5,800 Dublin, California, M/F Housing Authority Revenue Bonds (Park Sierra), VRDN,
AMT, Series A, 1.07% due 6/01/2028 (a) 5,800
-------------------------------------------------------------------------------------------------------------
21,000 Eagle Tax-Exempt Trust, California Infrastructure and Economic Development
Bank Revenue Bonds, VRDN, Series 2003-0042, Class A, 1.05%
due 7/01/2037 (a)(d) 21,000
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 7
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
California (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 18,320 Eagle Tax-Exempt Trust, California State Department of Water Resources,
Power Supply Revenue Bonds, VRDN, Series 2002-6017, Class A, 1.05%
due 5/01/2018 (a)(d) $ 18,320
-------------------------------------------------------------------------------------------------------------
29,700 Eagle Tax-Exempt Trust, California, VRDN, Series 2000-0501, Class A, 1.07%
due 10/01/2028 (a) 29,700
-------------------------------------------------------------------------------------------------------------
4,800 Eagle Tax-Exempt Trust, Los Angeles, California, Unified School District,
GO, VRDN, Series 2003-0043, Class A, 1.05% due 1/01/2028 (a)(b) 4,800
-------------------------------------------------------------------------------------------------------------
2,545 East Bay, California, Municipal Utility District, Water System Revenue
Refunding Bonds, ROCS, Series RR-II-R-2073, 1.05% due 6/01/2019 (a)(b) 2,545
-------------------------------------------------------------------------------------------------------------
8,970 Fresno, California, Airport Revenue Bonds, MERLOTS, AMT, Series B2, 1.09%
due 7/01/2030 (a)(e) 8,970
-------------------------------------------------------------------------------------------------------------
4,685 Fresno, California, Water System Revenue Refunding Bonds, MSTR, VRDN, Series
SGA 76, 1.04% due 6/01/2024 (a)(c) 4,685
-------------------------------------------------------------------------------------------------------------
20,000 Fresno County, California, TRAN, 2% due 6/30/2004 (e) 20,047
-------------------------------------------------------------------------------------------------------------
14,789 Glendale, California, Hospital Revenue Refunding Bonds, FLOATS, Series 590,
1.07% due 3/01/2014 (a)(b) 14,789
-------------------------------------------------------------------------------------------------------------
6,620 Highland, California, Redevelopment Agency, M/F Housing Revenue Bonds
(Jeffrey Court Senior Apartments), VRDN, AMT, 1.03% due 3/01/2028 (a) 6,620
-------------------------------------------------------------------------------------------------------------
19,430 Loma Linda, California, M/F Housing Revenue Refunding Bonds (Loma Linda
Springs), VRDN, AMT, 1.05% due 12/15/2031 (a)(f) 19,430
-------------------------------------------------------------------------------------------------------------
Los Angeles, California, Community Redevelopment Agency, M/F Housing Revenue
Bonds, VRDN, AMT, Series A (a):
14,740 (Rowan Lofts Project), 1.04% due 12/01/2034 14,740
18,585 (Wilshire Station Apartments), 1.15% due 4/01/2004 18,585
-------------------------------------------------------------------------------------------------------------
47,000 Los Angeles, California, Convention and Exhibition Center Authority, Lease
Revenue Refunding Bonds, Series D, VRDN, 0.97% due 6/16/2004 (a)(d) 47,000
-------------------------------------------------------------------------------------------------------------
3,000 Los Angeles, California, Department of Airports, Airport Municipal Trust
Revenue Bonds, FLOATS, Series SG 61, 1.06% due 5/15/2020 (a)(c) 3,000
-------------------------------------------------------------------------------------------------------------
3,120 Los Angeles, California, Department of Water and Power, Waterworks Revenue
Refunding Bonds, MERLOTS, Series A24, 1.04% due 7/01/2030 (a)(b) 3,120
-------------------------------------------------------------------------------------------------------------
5,000 Los Angeles, California, Harbor Department Revenue Bonds, FLOATS, Series
SG-59, 1.06% due 8/01/2026 (a)(b) 5,000
-------------------------------------------------------------------------------------------------------------
28,000 Los Angeles, California, S/F Home Mortgage Revenue Bonds, 1.10% due 10/01/2004 28,000
-------------------------------------------------------------------------------------------------------------
Los Angeles, California, Unified School District, GO, MERLOTS (a):
24,970 Series A-22, 1.04% due 7/01/2022 (e) 24,970
9,990 Series A-33, 1.04% due 7/01/2028 (c) 9,990
4,990 Series B-12, 1.04% due 1/01/2027 (b) 4,990
-------------------------------------------------------------------------------------------------------------
Los Angeles, California, Unified School District, GO, TRAN:
25,000 Series A, 2% due 7/01/2004 25,067
60,000 Series B, 1.50% due 7/01/2004 60,085
-------------------------------------------------------------------------------------------------------------
16,000 Los Angeles, California, Wastewater System Revenue Refunding Bonds, VRDN,
Sub-Series B, 1.15% due 12/09/2004 (a)(c) 16,000
-------------------------------------------------------------------------------------------------------------
6,880 Los Angeles, California, Water and Power Revenue Refunding Bonds, ROCS,
Series II-R-4510, 1.05% due 7/01/2021 (a)(b) 6,880
-------------------------------------------------------------------------------------------------------------
18,030 Los Angeles County, California, Capital Asset Leasing Corporation, Lease
Revenue Tax-Exempt, CP, 0.94% due 6/03/2004 18,030
-------------------------------------------------------------------------------------------------------------
13,100 Los Angeles County, California, Housing Authority, M/F Housing Revenue Bonds
(Park Sierra), VRDN, Series A, 1.05% due 9/01/2030 (a) 13,100
-------------------------------------------------------------------------------------------------------------
Los Angeles County, California, Metropolitan Transportation Authority,
Revenue Refunding Bonds, MSTR, VRDN (a)(e):
40,000 Series SGB 1, 1.05% due 7/01/2025 40,000
40,850 Series SGB 2, 1.05% due 7/01/2021 40,850
-------------------------------------------------------------------------------------------------------------
6,000 Los Angeles County, California, Metropolitan Transportation Authority, Sales
Tax Revenue Bonds, FLOATS, Series SG-46, 1.04% due 7/01/2017 (a)(d) 6,000
-------------------------------------------------------------------------------------------------------------
20,000 Milpitas, California, M/F Housing Revenue Bonds (Crossing at Montague),
VRDN, AMT, Series A, 1.04% due 8/15/2033 (a)(f) 20,000
8 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
California (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 7,435 Monrovia, California, Unified School District, GO, MSTR, VRDN, Series
SGA 70, 1.04% due 8/01/2022 (a)(b) $ 7,435
-------------------------------------------------------------------------------------------------------------
24,550 Municipal Securities Trust Certificates, California, GO, VRDN, Series
2000-97, Class A, 1.04% due 9/01/2016 (a)(c) 24,550
-------------------------------------------------------------------------------------------------------------
6,010 National City, California, Community Development Commission, Tax Allocation
Revenue Bonds (Redevelopment Project), VRDN, Series B, 1.10%
due 8/01/2025 (a)(d) 6,010
-------------------------------------------------------------------------------------------------------------
Newport Beach, California, Revenue Bonds (Hoag Memorial Presbyterian
Hospital), VRDN (a):
12,500 Series A, 1.07% due 12/01/2029 12,500
20,000 Series C, 1.07% due 12/01/2029 20,000
-------------------------------------------------------------------------------------------------------------
27,165 Oakland, California, TRAN, 2% due 7/29/2004 27,256
-------------------------------------------------------------------------------------------------------------
14,200 Peninsula Corridor, California, Joint Powers Board Revenue Bonds, GAN,
Series C, 1.45% due 9/03/2004 14,219
-------------------------------------------------------------------------------------------------------------
6,405 Pittsburg, California, Redevelopment Agency, Tax Allocation Refunding Bonds,
ROCS, Series RR-II-R-2070, 1.05% due 8/01/2020 (a)(b) 6,405
-------------------------------------------------------------------------------------------------------------
13,570 Port Oakland, California, Port Revenue Bonds, MSTR, VRDN, Series SG 112,
1.08% due 11/01/2025 (a)(b) 13,570
-------------------------------------------------------------------------------------------------------------
13,440 Port Oakland, California, Revenue Refunding Bonds, MERLOTS, AMT, Series
B-36, 1.09% due 11/01/2021 (a)(c) 13,440
-------------------------------------------------------------------------------------------------------------
9,700 Rescue, California, Union School District, COP, VRDN, 1.01%
due 10/01/2025 (a)(e) 9,700
-------------------------------------------------------------------------------------------------------------
3,300 Riverside County, California, IDA, IDR (Universal Forest Products), VRDN,
AMT, 1.11% due 8/01/2029 (a) 3,300
-------------------------------------------------------------------------------------------------------------
Sacramento, California, Housing Authority, M/F Housing Revenue Bonds, VRDN,
AMT (a):
12,100 (Greenfair Apartments), Series G, 1.08% due 12/01/2030 12,100
15,490 (Lofts at Natomas Apartments), Series F, 1.04% due 4/15/2036 (f) 15,490
-------------------------------------------------------------------------------------------------------------
5,760 Sacramento, California, Municipal Utility District, Electric Revenue Bonds,
MSTR, VRDN, Series SGB 4, 1.05% due 8/15/2021 (a)(d) 5,760
-------------------------------------------------------------------------------------------------------------
12,910 Sacramento, California, Municipal Utility District, Electric Revenue
Refunding Bonds, FLOATS, Series 748, 1.05% due 8/15/2028 (a)(e) 12,910
-------------------------------------------------------------------------------------------------------------
6,345 Sacramento County, California, COP, ROCS, Series II-R-5007, 1.05%
due 12/01/2023 (a)(d) 6,345
-------------------------------------------------------------------------------------------------------------
10,000 San Diego, California, County and School District, RAN, Series B, 1.75%
due 6/30/2004 10,020
-------------------------------------------------------------------------------------------------------------
7,000 San Diego, California, Sewer Revenue Bonds, FLOATS, Series SG 14, 1.04%
due 5/15/2020 (a)(d) 7,000
-------------------------------------------------------------------------------------------------------------
22,134 San Diego, California, United Port District, CP, 1% due 6/01/2004 22,134
-------------------------------------------------------------------------------------------------------------
29,260 San Diego County and School District Notes, California, RAN, Series A, 1.75%
due 6/30/2004 29,312
-------------------------------------------------------------------------------------------------------------
6,500 San Diego County, California, COP (San Diego Jewish Academy), VRDN, 1.01%
due 12/01/2028 (a) 6,500
-------------------------------------------------------------------------------------------------------------
San Francisco, California, City and County Airport Commission, International
Airport Revenue Bonds, MSTR, VRDN (a):
7,705 AMT, Series SGA-56, 1.07% due 5/01/2026 (b) 7,705
28,005 Series SG-115, 1.12% due 5/01/2020 (c) 28,005
16,555 Series SG-116, 1.12% due 5/01/2026 (b) 16,555
-------------------------------------------------------------------------------------------------------------
35,000 San Francisco, California, City and County Unified School District, GO,
TRAN, 2% due 12/03/2004 35,200
-------------------------------------------------------------------------------------------------------------
5,595 San Joaquin County, California, COP, ROCS, Series II-R-2030, 1.05%
due 4/01/2020 (a)(b) 5,595
-------------------------------------------------------------------------------------------------------------
2,680 San Jose, California, Airport Revenue Refunding Bonds, ROCS, Series
II-R-2004, 1.05% due 3/01/2016 (a)(e) 2,680
-------------------------------------------------------------------------------------------------------------
San Jose, California, M/F Housing Revenue Bonds, VRDN (a):
12,000 (Carlton Homes), AMT, Series A, 1.05% due 10/15/2032 12,000
26,400 (Siena Renaissance Square Apartments), 1.04% due 12/01/2029 26,400
-------------------------------------------------------------------------------------------------------------
9,935 Santa Clara, California, Electric Revenue Refunding Bonds, MSTR, VRDN,
Series SGA-75, 1.04% due 7/01/2027 (a)(d) 9,935
-------------------------------------------------------------------------------------------------------------
3,230 Shafter, California, IDA, IDR (Building Materials Manufacturing Corporation
Project), VRDN, AMT, 1.01% due 6/01/2029 (a) 3,230
-------------------------------------------------------------------------------------------------------------
Simi Valley, California, M/F Housing Revenue Bonds, VRDN (a):
12,500 (Parker Ranch Project), AMT, Series A, 1.04% due 7/15/2036 12,500
12,000 (Shadowridge Apartments), 1.04% due 9/01/2019 12,000
-------------------------------------------------------------------------------------------------------------
2,665 University of California Revenue Bonds, ROCS, Series II-R-3007, 1.05%
due 9/01/2020 (a)(e) 2,665
-------------------------------------------------------------------------------------------------------------
8,600 Upland, California, Apartment Development Revenue Refunding Bonds (Mountain
Springs--Issue A), VRDN, 1.01% due 11/15/2028 (a)(f) 8,600
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 9
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
Puerto Rico--5.4%
- ------------------------------------------------------------------------------------------------------------------------------------
$ 4,900 Municipal Securities Trust Certificates, Puerto Rico, Revenue Bonds, VRDN,
Series 2000-107, Class A, 1.02% due 5/19/2009 (a)(e) $ 4,900
-------------------------------------------------------------------------------------------------------------
4,000 Puerto Rico Commonwealth, FLOATS, Series PMD-8, 1.12% due 7/01/2026 (a)(b) 4,000
-------------------------------------------------------------------------------------------------------------
3,450 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Bonds, FLOATS, Series PMD-9, 1.12% due 7/01/2026 (a)(e) 3,450
-------------------------------------------------------------------------------------------------------------
16,000 Puerto Rico Commonwealth Revenue Bonds, FLOATS, Series 03-L39J, 1.08%
due 7/30/2004 (a) 16,000
-------------------------------------------------------------------------------------------------------------
54,555 Puerto Rico Commonwealth, TRAN, 2% due 7/30/2004 54,734
-------------------------------------------------------------------------------------------------------------
8,635 Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN,
Series SGA 44, 1.02% due 7/01/2023 (a) 8,635
-------------------------------------------------------------------------------------------------------------
Puerto Rico Government Development Bank, CP:
15,687 0.95% due 6/01/2004 15,687
10,213 1% due 6/04/2004 10,213
7,700 0.97% due 6/07/2004 7,700
====================================================================================================================================
Total Investments (Cost--$2,329,759*)--99.6% 2,329,759
Other Assets Less Liabilities--0.4% 9,141
----------
Net Assets--100.0% $2,338,900
==========
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at March 31,
2004.
(b) MBIA Insured.
(c) FGIC Insured.
(d) AMBAC Insured.
(e) FSA Insured.
(f) FNMA Collateralized.
(g) XL Capital Insured.
(h) FHLMC Collateralized.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
10 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Statement of Assets and Liabilities
As of March 31, 2004
===============================================================================================================
Assets
- ---------------------------------------------------------------------------------------------------------------
Investments, at value (identified cost--$2,329,759,486) $ 2,329,759,486
Cash ................................................... 172,728
Interest receivable .................................... 9,680,342
Prepaid expenses and other assets ...................... 24,659
---------------
Total assets ........................................... 2,339,637,215
---------------
===============================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------
Payables:
Distributor ......................................... $ 471,547
Investment adviser .................................. 134,905
Other affiliates .................................... 43,187
Beneficial interest redeemed ........................ 3,141 652,780
---------
Accrued expenses ....................................... 84,621
---------------
Total liabilities ...................................... 737,401
---------------
===============================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------
Net assets ............................................. $ 2,338,899,814
===============
===============================================================================================================
Net Assets Consist of
- ---------------------------------------------------------------------------------------------------------------
Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ........................... $ 233,950,294
Paid-in capital in excess of par ....................... 2,105,177,430
Accumulated realized capital losses--net ............... (227,910)
---------------
Net Assets--Equivalent to $1.00 per share based on
2,339,502,939 shares of beneficial interest outstanding $ 2,338,899,814
===============
See Notes to Financial Statements.
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 11
[LOGO] Merrill Lynch Investment Managers
Statement of Operations
For the Year Ended March 31, 2004
==================================================================================================================
Investment Income
- ------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned $ 27,815,533
==================================================================================================================
Expenses
- ------------------------------------------------------------------------------------------------------------------
Investment advisory fees ............................... $10,651,507
Distribution fees ...................................... 3,232,703
Accounting services .................................... 381,644
Transfer agent fees .................................... 187,202
Custodian fees ......................................... 72,984
Professional fees ...................................... 72,057
Registration fees ...................................... 51,546
Printing and shareholder reports ....................... 50,196
Trustees' fees and expenses ............................ 23,492
Pricing fees ........................................... 18,624
Other .................................................. 42,740
-----------
Total expenses ......................................... 14,784,695
----------------
Investment income--net ................................. 13,030,838
----------------
==================================================================================================================
Realized Loss on Investments--Net
- ------------------------------------------------------------------------------------------------------------------
Realized loss on investments--net ...................... (4,247)
----------------
Net Increase in Net Assets Resulting from Operations ... $ 13,026,591
================
See Notes to Financial Statements.
12 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Statements of Changes in Net Assets
For the Year Ended
March 31,
-------------------------------------
Increase (Decrease) in Net Assets: 2004 2003
======================================================================================================================
Operations
- ----------------------------------------------------------------------------------------------------------------------
Investment income--net ............................... $ 13,030,838 $ 22,521,346
Realized gain (loss) on investments--net ............. (4,247) 37,457
-------------------------------------
Net increase in net assets resulting from operations . 13,026,591 22,558,803
-------------------------------------
======================================================================================================================
Dividends to Shareholders
- ----------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from investment income--net (13,030,838) (22,521,346)
-------------------------------------
======================================================================================================================
Beneficial Interest Transactions
- ----------------------------------------------------------------------------------------------------------------------
Net proceeds from sale of shares ..................... 9,936,029,044 7,783,871,053
Value of shares issued to shareholders in reinvestment
of dividends ........................................ 13,029,976 22,522,100
-------------------------------------
9,949,059,020 7,806,393,153
Cost of shares redeemed .............................. (10,277,005,962) (7,854,465,498)
-------------------------------------
Net decrease in net assets derived from beneficial
interest transactions ............................... (327,946,942) (48,072,345)
-------------------------------------
======================================================================================================================
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ......................... (327,951,189) (48,034,888)
Beginning of year .................................... 2,666,851,003 2,714,885,891
-------------------------------------
End of year .......................................... $ 2,338,899,814 $ 2,666,851,003
=====================================
See Notes to Financial Statements
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 13
[LOGO] Merrill Lynch Investment Managers
Financial Highlights
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended March 31,
----------------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 2004 2003 2002 2001 2000
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------
Investment income--net ................... --+ .01 .02 .03 .03
Realized gain (loss) on investments--net . --++ --+ --+ --++ --+
----------------------------------------------------------------------
Total from investment operations ......... --+ .01 .02 .03 .03
----------------------------------------------------------------------
Less dividends from investment income--net --++ (.01) (.02) (.03) (.03)
----------------------------------------------------------------------
Net asset value, end of year ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
Total investment return .................. .49% .85% 1.61% 3.02% 2.59%
======================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses ................................. .57% .57% .57% .58% .58%
======================================================================
Investment income--net ................... .50% .85% 1.58% 2.98% 2.56%
======================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ... $2,338,900 $2,666,851 $2,714,886 $2,429,174 $2,312,154
======================================================================
+ Amount is less than $.01 per share.
++ Amount is less than $(.01) per share.
See Notes to Financial Statements.
14 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Notes to Financial Statements
1. Significant Accounting Policies:
CMA California Municipal Money Fund (the "Fund") is part of CMA Multi-State
Municipal Series Trust (the "Trust"). The Fund is registered under the
Investment Company Act of 1940, as amended, as a non-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 -- Investments are valued at amortized cost, which
approximates market value. For the purpose of valuation, the maturity of a
variable rate demand instrument is deemed to be the demand notice payment
period. In the case of a floating rate instrument, the remaining maturity is the
next coupon date on which the interest rate is to be adjusted.
(b) Income taxes -- 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.
(c) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Interest income (including amortization of premium and
discount) is recognized on the accrual basis.
(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 withheld
and backup withholding tax withheld) in additional fund shares at net asset
value. Dividends are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized capital
gains, if any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more frequently than
annually in order to maintain the Fund's net asset value at $1.00 per share.
(f) Expenses -- Certain expenses have been allocated to the individual Funds in
the Trust on a pro rata basis based upon the respective aggregate net asset
value of each Fund included in the Trust.
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.
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.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") receives a distribution fee from the Fund
at the end of each month at the annual rate of .125% of average daily net assets
of the Fund. The distribution fee is to compensate MLPF&S financial advisors and
other directly involved branch office personnel for selling shares of the Fund
and for providing direct personal services to shareholders. The distribution fee
is not compensation for the administrative and operational services rendered to
the Fund by MLPF&S in processing share orders and administering shareholder
accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
For the year ended March 31, 2004, the Fund reimbursed FAM $52,231 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.
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 15
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (concluded)
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the periods
corresponds to the amounts included in the Statements of Changes in Net Assets
for net proceeds from sale of shares, value of shares reinvested and cost of
shares redeemed, respectively, since shares are recorded at $1.00 per share.
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended March 31,
2004 and March 31, 2003 was as follows:
- --------------------------------------------------------------------------------
3/31/2004 3/31/2003
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income .................... $13,030,838 $22,521,346
-------------------------------
Total distributions .................... $13,030,838 $22,521,346
===============================
As of March 31, 2004, there were no significant differences between the book and
tax components of net assets.
5. Capital Loss Carryforward:
At March 31, 2004, the Fund had a net capital loss carryforward of $118,826, all
of which expires in 2009. This amount will be available to offset like amounts
of any future taxable gains.
16 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Independent Auditors' Report
To the Shareholders and Board of Trustees
of CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CMA California Municipal Money Fund of CMA
Multi-State Municipal Series Trust (the "Trust") as of March 31, 2004, and the
related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with 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 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 as of March 31, 2004, 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 CMA
California Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 2004, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the five years in the period then
ended, in conformity with accounting principles generally accepted in the United
States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 14, 2004
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 17
[LOGO] Merrill Lynch Investment Managers
Officers and Trustees (unaudited)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Terry K. P.O. Box 9011 President 1999 to President of the Merrill Lynch Investment Managers, 124 Funds None
Glenn* Princeton, NJ and present L.P. ("MLIM")/Fund Asset Management, L.P. ("FAM") 160 Portfolios
08543-9011 Trustee and --Advised Funds since 1999; Chairman (Americas
Age: 63 1997 to Region) of MLIM from 2000 to 2002; Executive Vice
present 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 1989 to 2002; Director of
Financial Data Services, Inc. since 1985.
------------------------------------------------------------------------------------------------------------------------
* Mr. Glenn is a director, trustee or member of an advisory board of certain other investment companies for which MLIM
or FAM 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 MLIM, FAM, FAMD, Princeton Services and Princeton Administrators, L.P.
The Trustee's term is unlimited. Trustees serve until their resignation, removal, or death, or until December 31 of
the year in which they turn 72. As Fund President, Mr. Glenn serves at the pleasure of the Board of Trustees.
====================================================================================================================================
Independent Trustees*
- ------------------------------------------------------------------------------------------------------------------------------------
Ronald W. P.O. Box 9095 Trustee 1988 to Professor Emeritus of Finance, School of Business, 51 Funds None
Forbes Princeton, NJ present State University of New York at Albany since 2000 50 Portfolios
08543-9095 and Professor thereof from 1989 to 2000;
Age: 63 International Consultant at the Urban Institute from
1995 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. P.O. Box 9095 Trustee 1994 to Professor, Harvard Business School since 1989. 51 Funds Newell
Montgomery Princeton, NJ present 50 Portfolios Rubbermaid,
08543-9095 Inc.
Age: 51
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin A. P.O. Box 9095 Trustee 1992 to Director Emeritus of The Boston University Center 51 Funds None
Ryan Princeton, NJ present for the Advancement of Ethics and Character from 50 Portfolios
08543-9095 1989 to 1999; Professor of Education at Boston
Age: 71 University from 1982 to 1999 and Professor Emeritus
thereof since 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. P.O. Box 9095 Trustee 2000 to President of Middle East Institute from 1995 to 51 Funds None
Suddarth Princeton, NJ present 2001; Foreign Service Officer of United States 50 Portfolios
08543-9095 Foreign Service from 1961 to 1995 and Career
Age: 68 Minister thereof from 1989 to 1995; Deputy
Inspector General of U.S. Department of State from
1991 to 1994; U.S. Ambassador to the Hashemite
Kingdom of Jordan from 1987 to 1990.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard R. P.O. Box 9095 Trustee 1988 to Professor of Finance, New York University, 51 Funds Bowne & Co.,
West Princeton, NJ present Leonard N. Stern School of Business Administration 50 Portfolios Inc.; Vornado
08543-9095 from 1982 to 1994 and Dean Emeritus thereof Operating
Age: 66 since 1994. Company;
Vornado
Realty Trust
and
Alexander's,
Inc.
18 CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004
Officers and Trustees (unaudited) (concluded)
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Fund Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Independent Trustees* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Edward D. P.O. Box 9095 Trustee 2000 to Self-employed financial consultant since 1994; 51 Funds None
Zinbarg Princeton, NJ present Executive Vice President of The Prudential 50 Portfolios
08543-9095 Insurance Company of America from 1988 to
Age: 69 1994; Former Director of Prudential Reinsurance
Company and former Trustee of The Prudential
Foundation.
------------------------------------------------------------------------------------------------------------------------
* The Trustee's term is unlimited. Trustees serve until their resignation, removal or death, or until December 31 of
the year in which they turn 72.
- ------------------------------------------------------------------------------------------------------------------------------------
Position(s) Length of
Held with Time
Name Address & Age Fund Served* Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 1993 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof since 1999;
Burke Princeton, NJ President present Senior Vice President and Treasurer of Princeton Services since 1999; Vice
08543-9011 and and President of FAMD since 1999; Director of MLIM Taxation since 1990.
Age: 43 Treasurer 1999 to
present
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management)
Jacob Princeton, NJ President present of MLIM from 1997 to 2000.
08543-9011
Age: 53
- ------------------------------------------------------------------------------------------------------------------------------------
John M. P.O. Box 9011 Senior Vice 2002 to Managing Director of MLIM since 2000; Director (Tax-Exempt Fund Management)
Loffredo Princeton, NJ President present of MLIM from 1998 to 2000.
08543-9011
Age: 40
- ------------------------------------------------------------------------------------------------------------------------------------
Steven T. P.O. Box 9011 Vice 1996 to Vice President of MLIM since 1998.
Lewis Princeton, NJ President present
08543-9011
Age: 40
- ------------------------------------------------------------------------------------------------------------------------------------
Phillip S. P.O. Box 9011 Secretary 2000 to First Vice President of MLIM since 2001; Director (Legal Advisory) from 2000 to
Gillespie Princeton, NJ present 2001; Vice President from 1999 to 2000; Attorney associated with MLIM since 1998.
08543-9011
Age: 40
------------------------------------------------------------------------------------------------------------------------
* 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.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust
Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-221-7210**
** For inquiries regarding your CMA account, call 800-CMA-INFO or
800-262-4636.
- --------------------------------------------------------------------------------
Charles C. Reilly, Trustee of CMA California Municipal Money Fund, has recently
retired. The Fund's Board of Trustees wishes Mr. Reilly well in his retirement.
- --------------------------------------------------------------------------------
CMA CALIFORNIA MUNICIPAL MONEY FUND MARCH 31, 2004 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.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
on www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
website at http://www.sec.gov.
CMA California Municipal Money Fund
of CMA Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
#11211 -- 3/04
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of the
end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial officer
and principal accounting officer, or persons performing similar
functions. A copy of the code of ethics is available without charge
upon request by calling toll-free 1-800-MER-FUND (1-800-637-3863).
Item 3 - Audit Committee Financial Expert - The registrant's board of directors
has determined that (i) the registrant has the following audit
committee financial experts serving on its audit committee and (ii)
each audit committee financial expert is independent: (1) Ronald W.
Forbes, (2) Richard R. West, and (3) Edward D. Zinbarg.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees - Fiscal Year Ending March 31, 2004 - $33,200
Fiscal Year Ending March 31, 2003 - $35,164
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2004 - $5,200
Fiscal Year Ending March 31, 2003 - $4,800
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(e)(1) The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the
registrant's affiliated service providers that relate directly to the
operations and the financial reporting of the registrant. Certain of
these non-audit services that the Committee believes are a) consistent
with the SEC's auditor independence rules and b) routine and recurring
services that will not impair the independence of the independent
accountants may be approved by the Committee without consideration on a
specific case-by-case basis ("general pre-approval"). However, such
services will only be deemed pre-approved provided that any individual
project does not exceed $5,000 attributable to the registrant or
$50,000 for the project as a whole. Any proposed services exceeding the
pre-approved cost levels will require specific pre-approval by the
Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The
Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending March 31, 2004 - $16,708,160
Fiscal Year Ending March 31, 2003 - $17,378,427
(h) The registrant's audit committee has considered and determined that
the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling, controlled
by, or under common control with the investment adviser that provides
ongoing services to the registrant that were not pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $541,640, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 9 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 10 - Controls and Procedures
10(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
10(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the second fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 11 - Exhibits attached hereto
11(a)(1) - Code of Ethics - See Item 2
11(a)(2) - Certifications - Attached hereto
11(a)(3) - Not Applicable
11(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CMA California Municipal Money Fund of CMA Multi-State Municipal Series
Trust
By: /s/ Terry K. Glenn
----------------------
Terry K. Glenn,
President of
CMA California Municipal Money Fund of CMA Multi-State Municipal
Series Trust
Date: May 21, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities
and on the dates indicated.
By: /s/ Terry K. Glenn
----------------------
Terry K. Glenn,
President of
CMA California Municipal Money Fund of CMA Multi-State Municipal
Series Trust
Date: May 21, 2004
By: /s/ Donald C. Burke
----------------------
Donald C. Burke,
Chief Financial Officer of
CMA California Municipal Money Fund of CMA Multi-State Municipal
Series Trust
Date: May 21, 2004