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 811-21196
811-21299
Name of Fund: WCMA Money Fund
Master Money Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Terry K. Glenn, President, WCMA Money
Fund and Master Money 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 Money Fund
Semi-Annual Report
September 30, 2003
[LOGO] Merrill Lynch Investment Managers
WCMA Money 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
Donald C. Burke, Vice President and Treasurer
Richard J. Mejzak, Vice President
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 MONEY 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 MONEY FUND SEPTEMBER 30, 2003 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
We believe the Federal Reserve Board will maintain lower short-term
interest rates in the near term, and this should present opportunity further out
on the yield curve.
How did the Fund perform in light of the existing market conditions?
For the six-month period ended September 30, 2003, WCMA Money Fund's Class 1,
Class 2, Class 3 and Class 4 Shares paid shareholders net annualized dividends
of .77%, .82%, .89% and .89%, respectively.* As of September 30, 2003, the
Fund's Class 1, Class 2, Class 3 and Class 4 Shares had seven-day yields of
..03%, .23%, .56% and .56%, respectively.
The average portfolio maturity for WCMA Money Fund at September 30, 2003 was 60
days, compared to 59 days at March 31, 2003. The portfolio's average maturity
ranged from 50 days to 65 days during the period.
We strategically reduced the portfolio's duration late in the second quarter of
the year in anticipation of the June Federal Open Market Committee (FOMC)
meeting. At that time, front-end yields continued to favor the likelihood of a
half-point (.50%) rate cut. We believed less aggressive action was warranted. To
avoid investing at these levels, we targeted much shorter maturities, reducing
duration until better opportunities arose. The FOMC ultimately cut interest
rates by only .25%, targeting a Federal Funds level of 1%. In response to this
action, bond yields rose sharply. Notably, the yield on the two-year Treasury
climbed above 1.50%, a fairly significant move when compared to the previous low
of 1.09%. The magnitude of this move presented value in our estimation and we
then extended the Fund's duration into the high 60-day range.
How did you manage the Fund during the period?
The Fund continued to be positioned in a barbelled manner. Investments were
split in the three-month-and-under sector and the longer-than-one-year sector.
We employed this strategy because we saw no pick-up in yield in the three-month
- - one-year sectors. The yield curve was flat in this area, with no increase in
yield until the 15-month to two-year sector.
For the balance of the period, about 50% of the portfolio was invested in
variable rate products, which we consider consistent with the short end of our
investment spectrum. This position served as part of the barbell trade and to
protect the portfolio if interest rates did rise.
In August, a string of favorable economic data sent the yield on the two-year
note even higher, this time over 2%. We viewed this as somewhat of an
overreaction by the market. Although conditions were improving, the economy
still had to wrestle with high unemployment, lackluster capital expenditures and
anemic inflation. Under these circumstances, we felt confident that the Federal
Reserve Board would be inclined to keep interest rates low. Thus, the higher
yields available at this time were particularly attractive. We considered this a
buying opportunity, and extended portfolio duration from the 60-day range to the
70-day range.
In general, sectors with maturities of 12 months or less held firm throughout
the period, offering yields only slightly higher than overnight financing
levels. Seeing minimal value, we sold these sectors and favored the 15-month -
18-month area where the curve became much steeper. Due to the tightening of
quality spreads, our focus was typically on government and agency issues. When
yield volatility rose, we were able to capitalize by adding callable notes that
provided both higher coupons and option-adjusted spreads in this environment.
* 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 MONEY FUND SEPTEMBER 30, 2003
In the final months of the period, with the assumption that the Federal Reserve
Board would remain on the sidelines, we observed the establishment of trading
ranges. Since then, we have been active in selling the lower end and buying the
higher end of the trading range. On the two-year Treasury note, for example, we
would set 1.5% as a sell zone and 2% as a buying opportunity. When interest
rates trend lower, we intend to shorten our average duration to the 55-day
range. As the two-year note reaches that 2% level, we would feel comfortable in
the 65-day - 70-day range.
How would you characterize the Fund's position at the close of the period?
At the close of the period, we were lightening up positions established in the
longer end of the yield curve. The two-year note was approaching 1.5%, which
caused us to lean toward the sell side. We will look for a retracement back to
the 2% level before reestablishing our long positions. In our opinion, the
market is likely to remain range-bound for the next six months - nine months.
With that, we are looking to sell into strength and buy on weakness.
The portfolio's composition at the end of the September period and as of our
last report to shareholders is as follows:
- --------------------------------------------------------------------------------
9/30/03 3/31/03
- --------------------------------------------------------------------------------
Bank Notes ................................... 1.9% 1.5%
Certificates of Deposit--
European ................................... 0.5 1.1
Certificates of Deposit--
Yankee+ .................................... 6.6 10.6
Commercial Paper ............................. 14.3 13.0
Corporate Notes .............................. 2.5 0.4
Funding Agreements ........................... 5.4 4.6
Medium-Term Notes ............................ 6.4 3.3
Municipal--Anticipation Notes ................ -- 0.8
Promissory Notes ............................. 0.4 0.6
U.S. Government Agency
Obligations--Discount Notes ................ 11.9 0.9
U.S. Government
Agency Obligations--
Non-Discount Notes ......................... 46.5 59.1
Repurchase Agreements ........................ 2.6 2.6
U.S. Treasury Bonds & Notes .................. 0.5 1.3
Short-Term Securities ........................ 5.1 0.4
Liabilities in Excess of
Other Assets ............................... (4.6) (0.2)
---------------------
Total ........................................ 100.0% 100.0%
=====================
+ U.S. branches of foreign banks.
Richard J. Mejzak
Vice President and Portfolio Manager
October 16, 2003
WCMA MONEY FUND SEPTEMBER 30, 2003 5
[LOGO] Merrill Lynch Investment Managers
Statement of Assets and Liabilities WCMA Money Fund
As of September 30, 2003
=============================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------
Investment in Master Money Trust, at value
(identified cost--$9,095,917,024) ...................... $9,097,932,537
Other assets ............................................. 1,582,348
--------------
Total assets ............................................. 9,099,514,885
--------------
=============================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------
Payables:
Distributor ............................................ $4,445,420
Other affiliates ....................................... 133,090 4,578,510
----------
Accrued expenses and other liabilities ................... 109,919
--------------
Total liabilities ........................................ 4,688,429
--------------
=============================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------
Net assets ............................................... $9,094,826,456
==============
=============================================================================================================
Net Assets Consist of
- -------------------------------------------------------------------------------------------------------------
Class 1 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. $ 105,537,994
Class 2 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 356,971,564
Class 3 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 341,643,824
Class 4 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................. 105,127,712
Paid-in capital in excess of par ......................... 8,183,529,849
Unrealized appreciation on investments from the Trust--net 2,015,513
--------------
Net Assets ............................................... $9,094,826,456
==============
=============================================================================================================
Net Asset Value
- -------------------------------------------------------------------------------------------------------------
Class 1--Based on net assets of $1,055,564,442 and
1,055,379,940 shares outstanding ....................... $ 1.00
==============
Class 2--Based on net assets of $3,570,529,938 and
3,569,715,639 shares outstanding ....................... $ 1.00
==============
Class 3--Based on net assets of $3,417,251,993 and
3,416,438,244 shares outstanding ....................... $ 1.00
==============
Class 4--Based on net assets of $1,051,480,083 and
1,051,277,121 shares outstanding ....................... $ 1.00
==============
See Notes to Financial Statements.
6 WCMA MONEY FUND SEPTEMBER 30, 2003
Statement of Operations WCMA Money Fund
For the Six Months Ended September 30, 2003
=============================================================================================================
Investment Income from the Trust--Net
- -------------------------------------------------------------------------------------------------------------
Net investment income allocated from the Trust:
Interest ............................................... $ 12,065,843
Securities lending--net ................................ 5,257
Expenses ............................................... (1,435,034)
--------------
Net investment income from the Trust ..................... 10,636,066
--------------
=============================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------
Account maintenance and distribution fees--Class 2 ....... $2,893,392
Administration fees ...................................... 2,688,793
Account maintenance and distribution fees--Class 3 ....... 1,510,728
Account maintenance fees--Class 1 ........................ 1,189,905
Account maintenance and distribution fees--Class 4 ....... 437,755
Registration fees ........................................ 146,444
Offering costs ........................................... 130,260
Transfer agent fees--Class 2 ............................. 39,370
Transfer agent fees--Class 3 ............................. 36,701
Transfer agent fees--Class 1 ............................. 10,922
Transfer agent fees--Class 4 ............................. 10,768
Printing and shareholder reports ......................... 9,728
Professional fees ........................................ 9,299
Other .................................................... 7,914
----------
Total expenses before waiver ............................. 9,121,979
Waiver of expenses ....................................... (2,413,153)
----------
Total expenses after waiver .............................. 6,708,826
--------------
Investment income--net ................................... 3,927,240
--------------
=============================================================================================================
Realized & Unrealized Gain from the Trust--Net
- -------------------------------------------------------------------------------------------------------------
Realized gain on investments from the Trust--net ......... 89,448
Change in unrealized appreciation/depreciation on
investments from the Trust--net ........................ 2,015,526
--------------
Total realized and unrealized gain on investments
from the Trust--net .................................... 2,104,974
--------------
Net Increase in Net Assets Resulting from Operations ..... $ 6,032,214
==============
See Notes to Financial Statements.
WCMA MONEY FUND SEPTEMBER 30, 2003 7
[LOGO] Merrill Lynch Investment Managers
Statements of Changes in Net Assets WCMA Money 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 ............................. $ 3,927,240 $ 86
Realized gain on investments from the Trust--net ... 89,448 --
Change in unrealized appreciation/depreciation on
investments from the Trust--net .................. 2,015,526 (13)
-----------------------------------
Net increase in net assets resulting from operations 6,032,214 73
-----------------------------------
==============================================================================================================
Dividends & Distributions to Shareholders
- --------------------------------------------------------------------------------------------------------------
Investment income--net:
Class 1 .......................................... (32,894) (22)
Class 2 .......................................... (983,652) (22)
Class 3 .......................................... (2,246,199) (21)
Class 4 .......................................... (664,495) (21)
Realized gain on investments--net:
Class 1 .......................................... (10,455) --
Class 2 .......................................... (36,016) --
Class 3 .......................................... (33,169) --
Class 4 .......................................... (9,808) --
-----------------------------------
Net decrease in net assets resulting from dividends
and distributions to shareholders ................ (4,016,688) (86)
-----------------------------------
==============================================================================================================
Beneficial Interest Transactions
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial
interest transactions ............................ 9,092,710,857 86
-----------------------------------
==============================================================================================================
Net Assets
- --------------------------------------------------------------------------------------------------------------
Total increase in net assets ....................... 9,094,726,383 73
Beginning of period ................................ 100,073 100,000
-----------------------------------
End of period ...................................... $ 9,094,826,456 $ 100,073
===================================
+ Commencement of operations.
See Notes to Financial Statements.
8 WCMA MONEY FUND SEPTEMBER 30, 2003
Financial Highlights WCMA Money 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 .................... --** .0003 .0003 .0003
Realized and unrealized gain on investments
from the Trust--net ..................... .0002 .0001 .0002 .0001
------------------------------------------------------------------
Total from investment operations .......... .0002 .0004 .0005 .0004
------------------------------------------------------------------
Less dividends and distributions:
Investment income--net ................. --*** (.0003) (.0003) (.0003)
Realized gain on investments--net ...... --*** -- --*** --
------------------------------------------------------------------
Total dividends and distributions ......... --*** (.0003) (.0003) --
------------------------------------------------------------------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
==================================================================
Total Investment Return ................... .77%* .04% .82%* .04%
==================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver++ ........... 1.10%* .01% .88%* .01%
==================================================================
Total expenses++ .......................... 1.42%* .01% 1.09%* .01%
==================================================================
Total investment income and realized gain
on investments--net ..................... .04%* .03% .24%* .03%
==================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .. $1,055,564 $ 25 $3,570,530 $ 25
==================================================================
* Annualized.
** Amount is less than $.0001 per share.
*** 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.
WCMA MONEY FUND SEPTEMBER 30, 2003 9
[LOGO] Merrill Lynch Investment Managers
Financial Highlights (concluded) WCMA Money 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 .................... .0007 .0003 .0007 .0003
Realized and unrealized gain on investments
from the Trust--net ..................... .0002 .0001 .0002 .0001
------------------------------------------------------------------
Total from investment operations .......... .0009 .0004 .0009 .0004
------------------------------------------------------------------
Less dividends and distributions:
Investment income--net ................. (.0007) (.0003) (.0007) (.0003)
Realized gain on investments--net ...... --** -- --** --
------------------------------------------------------------------
Total dividends and distributions ......... (.0007) (.0003) (.0007) --
------------------------------------------------------------------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
==================================================================
Total Investment Return ................... .89%* .04% .89%* .04%
==================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver++ ........... .56%* .01% .56%* .01%
==================================================================
Total expenses++ .......................... .79%* .01% .79%* .01%
==================================================================
Total investment income and realized gain
on investments--net ..................... .56%* .03% .56%* .03%
==================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .. $3,417,252 $ 25 $1,051,480 $ 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 MONEY FUND SEPTEMBER 30, 2003
Notes to Financial Statements WCMA Money Fund
1. Significant Accounting Policies:
WCMA Money 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 Money 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 43.4%. 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 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%
- --------------------------------------------------------------------------------
WCMA MONEY FUND SEPTEMBER 30, 2003 11
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (continued) WCMA Money Fund
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 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 Money Fund, and Class 3 and Class 4 Shares is equal to that of
CMA Money 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
$6,031,780, of which $2,413,153 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. Shares of Beneficial Interest:
Net increase in net assets derived from beneficial interest transactions was
$9,092,710,857 and $86 for the six months ended September 30, 2003 and for the
period March 3, 2003 to March 31, 2003, respectively.
- -------------------------------------------------------------------------------
Class 1 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 1,360,095,689 $ 1,360,095,689
Shares issued to shareholders in
reinvestment of dividends
and distributions .................. 43,333 43,333
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ................. 1,048,508,399 1,048,508,399
-----------------------------------
Total issued ......................... 2,408,647,421 2,408,647,421
Shares redeemed ...................... (1,353,292,503) (1,353,292,503)
-----------------------------------
Net increase ......................... 1,055,354,918 $ 1,055,354,918
===================================
- -------------------------------------------------------------------------------
Class 1 Shares for the
Period March 3, 2003+ to Dollar
March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 22 $ 22
-----------------------------------
Net increase ......................... 22 $ 22
===================================
+ 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 .......................... 2,545,588,568 $ 2,545,588,568
Shares issued to shareholders in
reinvestment of dividends
and distributions .................. 1,018,839 1,018,839
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ................. 3,683,173,722 3,683,173,722
-----------------------------------
Total issued ......................... 6,229,781,129 6,229,781,129
Shares redeemed ...................... (2,660,090,512) (2,660,090,512)
-----------------------------------
Net increase ......................... 3,569,690,617 $ 3,569,690,617
===================================
- -------------------------------------------------------------------------------
Class 2 Shares for the
Period March 3, 2003+ to Dollar
March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 22 $ 22
-----------------------------------
Net increase ......................... 22 $ 22
===================================
- -------------------------------------------------------------------------------
+ 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 .......................... 3,359,561,312 $ 3,359,561,312
Shares issued to shareholders in
reinvestment of dividends
and distributions .................. 2,279,367 2,279,367
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ................. 3,260,895,036 3,260,895,036
-----------------------------------
Total issued ......................... 6,622,735,715 6,622,735,715
Shares redeemed ...................... (3,206,322,493) (3,206,322,493)
-----------------------------------
Net increase ......................... 3,416,413,222 $ 3,416,413,222
===================================
- -------------------------------------------------------------------------------
Class 3 Shares for the
Period March 3, 2003+ to Dollar
March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 21 $ 21
-----------------------------------
Net increase ......................... 21 $ 21
===================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
12 WCMA MONEY FUND SEPTEMBER 30, 2003
Notes to Financial Statements (concluded) WCMA Money Fund
- -------------------------------------------------------------------------------
Class 4 Shares for the Six Months Dollar
Ended September 30, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 2,117,806,072 $ 2,117,806,072
Shares issued to shareholders in
reinvestment of dividends
and distributions .................. 674,303 674,303
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ................. 959,243,343 959,243,343
-----------------------------------
Total issued ......................... 3,077,723,718 3,077,723,718
Shares redeemed ...................... (2,026,471,618) (2,026,471,618)
-----------------------------------
Net increase ......................... 1,051,252,100 $ 1,051,252,100
===================================
- -------------------------------------------------------------------------------
Class 3 Shares for the
Period March 3, 2003+ to Dollar
March 31, 2003 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .......................... 21 $ 21
-----------------------------------
Net increase ......................... 21 $ 21
===================================
+ Prior to March 3, 2003 (commencement of operations), the Fund issued
25,000 shares to FAM for $25,000.
WCMA MONEY FUND SEPTEMBER 30, 2003 13
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
======================================================================================
Bank Notes--1.9%
======================================================================================
National City $300,000 1.065+% 6/23/2004 $ 299,945
Bank of Indiana
- --------------------------------------------------------------------------------------
National City 50,000 1.07+ 3/03/2004 50,004
Bank of Ohio
- --------------------------------------------------------------------------------------
Putnam Structured 40,000 1.22+ 10/15/2004 40,000
Products
- --------------------------------------------------------------------------------------
Total Bank Notes (Cost--$389,949) ........................................ 389,949
======================================================================================
Certificates of Deposit--European--0.5%
======================================================================================
HBOS Treasury 100,000 1.08 12/12/2003 99,998
Services
- --------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$100,000) ......................................................... 99,998
======================================================================================
Certificates of Deposit--Yankee--6.6%
======================================================================================
BNP Paribas, NY 300,000 1.04+ 3/08/2004 299,993
90,000 1.05+ 6/23/2004 89,983
- --------------------------------------------------------------------------------------
Deutsche Bank 500,000 1.05+ 10/20/2003 500,000
AG, NY 250,000 1.25 6/21/2004 250,529
- --------------------------------------------------------------------------------------
Societe 250,000 1.05+ 2/12/2004 249,995
Generale, NY
- --------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$1,389,975) ....................................................... 1,390,500
======================================================================================
Commercial Paper--14.3%
======================================================================================
Amsterdam 50,000 1.05 10/21/2003 49,969
Funding Corp. 50,000 1.05 10/24/2003 49,965
41,316 1.07 10/27/2003 41,283
- --------------------------------------------------------------------------------------
Aspen Funding 97,000 1.07 10/06/2003 96,983
Corp.
- --------------------------------------------------------------------------------------
Asset Securitization 65,000 1.05 10/16/2003 64,970
Cooperative Corp.
- --------------------------------------------------------------------------------------
Barton Capital 78,500 1.05 10/08/2003 78,482
Corporation 47,613 1.07 11/14/2003 47,549
- --------------------------------------------------------------------------------------
Blue Ridge Asset 25,000 1.07 10/03/2003 24,998
Funding Corp.
- --------------------------------------------------------------------------------------
Clipper 70,000 1.07 10/15/2003 69,969
Receivables Corp. 75,000 1.05 11/06/2003 74,919
- --------------------------------------------------------------------------------------
Edison Asset 75,000 1.06 11/20/2003 74,887
Securitization, LLC 65,611 1.05 11/21/2003 65,511
- --------------------------------------------------------------------------------------
Eureka 98,050 1.08 10/09/2003 98,024
Securitization Inc.
- --------------------------------------------------------------------------------------
Falcon Asset 68,468 1.05 10/07/2003 68,454
Securitization
- --------------------------------------------------------------------------------------
Fortis Funding LLC 51,496 1.06 11/14/2003 51,426
- --------------------------------------------------------------------------------------
Goldman Sachs 20,000 1.11+ 10/09/2003 19,995
Group, Inc. 130,000 1.12+ 10/10/2003 130,000
- --------------------------------------------------------------------------------------
Greyhawk 72,000 1.07 11/10/2003 71,911
Funding, LLC 54,000 1.07 11/13/2003 53,929
- --------------------------------------------------------------------------------------
HBOS Treasury 100,000 1.08 11/04/2003 99,895
Services 100,000 1.06 11/07/2003 99,888
- --------------------------------------------------------------------------------------
Jupiter 47,085 1.07 10/07/2003 47,075
Securitization 115,000 1.07 10/29/2003 114,901
87,425 1.07 10/30/2003 87,347
- --------------------------------------------------------------------------------------
Mont Blanc 89,000 1.07 10/16/2003 88,958
Capital Corp. 72,501 1.07 11/13/2003 72,405
- --------------------------------------------------------------------------------------
Morgan Stanley 55,000 1.205+ 1/09/2004 55,000
Dean Witter & Co. 5,000 1.13+ 2/20/2004 5,000
- --------------------------------------------------------------------------------------
Nordea North 85,000 1.08 11/19/2003 84,873
America Inc. 100,000 1.07 11/21/2003 99,846
45,000 1.08 12/23/2003 44,885
- --------------------------------------------------------------------------------------
PB Finance 75,000 1.08 11/12/2003 74,903
(Delaware)
- --------------------------------------------------------------------------------------
Park Avenue 69,096 1.05 10/23/2003 69,050
Receivables Corp. 49,739 1.07 11/03/2003 49,689
- --------------------------------------------------------------------------------------
Preferred 50,000 1.05 10/10/2003 49,985
Receivables 50,000 1.07 11/05/2003 49,946
Funding Corp.
- --------------------------------------------------------------------------------------
Santander Central 100,000 1.03 10/10/2003 99,970
Hispano Finance
(Delaware), Inc.
- --------------------------------------------------------------------------------------
Sheffield 99,000 1.06 10/06/2003 98,983
Receivables
Corporation
- --------------------------------------------------------------------------------------
Sigma Finance 87,500 1.07+ 12/05/2003 87,497
Corporation 175,000 1.08+ 5/17/2004 174,989
- --------------------------------------------------------------------------------------
Societe Generale 70,790 1.06 12/03/2003 70,654
NA
- --------------------------------------------------------------------------------------
Variable Funding 50,000 1.06 11/17/2003 49,929
Capital Corp.
- --------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$3,008,905) ................................ 3,008,892
======================================================================================
Corporate Notes--2.5%
======================================================================================
General Electric 290,605 1.15+ 10/15/2004 290,605
Capital Corp.
- --------------------------------------------------------------------------------------
Hancock II Corp. 125,000 1.12+ 1/12/2004 125,004
- --------------------------------------------------------------------------------------
Holmes Financing 52,650 1.12+ 10/15/2003 52,650
Corporation
Number 6
- --------------------------------------------------------------------------------------
Metropolitan Life 50,500 1.13+ 10/14/2004 50,500
Insurance Company
- --------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$518,755) ................................... 518,759
- --------------------------------------------------------------------------------------
14 WCMA MONEY FUND SEPTEMBER 30, 2003
Schedule of Investments (continued) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
======================================================================================
Funding Agreements--5.4%
======================================================================================
Allstate Life $ 45,000 1.215+% 11/03/2003 $ 45,000
Insurance Co. 45,000 1.195+ 7/01/2004 45,000
- --------------------------------------------------------------------------------------
GE Life and 50,000 1.175+ 11/03/2003 50,000
Annuity 150,000 1.179+ 12/01/2003 150,000
Assurance Co.
- --------------------------------------------------------------------------------------
Jackson National 15,000 1.199+ 5/03/2004 15,000
Life Insurance Co.
- --------------------------------------------------------------------------------------
Metropolitan 68,000 1.229+ 2/02/2004 68,000
Life Insurance 165,000 1.229+ 4/01/2004 165,000
Company
- --------------------------------------------------------------------------------------
Monumental Life 135,000 1.264+ 8/13/2004 135,000
Insurance
Company
- --------------------------------------------------------------------------------------
New York Life 216,000 1.174+ 5/28/2004 216,000
Insurance
Company
- --------------------------------------------------------------------------------------
Pacific Life 40,000 1.199+ 10/01/2003 40,000
Insurance Co. 40,000 1.199+ 6/02/2004 40,000
40,000 1.20+ 10/01/2004 40,000
- --------------------------------------------------------------------------------------
The Travelers 70,000 1.175+ 3/01/2004 70,000
Insurance 25,000 1.179+ 5/03/2004 25,000
Company 25,000 1.17+ 9/17/2004 25,000
- --------------------------------------------------------------------------------------
Total Funding Agreements (Cost--$1,129,000) .............................. 1,129,000
======================================================================================
Medium-Term Notes--6.4%
======================================================================================
American Honda 25,000 1.08+ 10/06/2003 25,000
Finance Corp. 25,000 1.34+ 11/10/2003 25,007
- --------------------------------------------------------------------------------------
BMW US Capital 75,000 1.12+ 12/10/2003 75,000
Group
- --------------------------------------------------------------------------------------
BP Amoco Capital 50,000 1.045+ 3/08/2004 50,000
PLC
- --------------------------------------------------------------------------------------
Bank of New York 25,000 1.18+ 10/30/2003 24,999
Co., Inc.
- --------------------------------------------------------------------------------------
Beta Finance Inc. 167,000 1.06+ 6/07/2004 166,988
200,000 1.055+ 7/15/2004 200,000
- --------------------------------------------------------------------------------------
CC (USA) Inc. 200,000 1.06+ 6/10/2004 200,000
(Centauri)
- --------------------------------------------------------------------------------------
Canadian 180,000 1.14+ 10/15/2004 180,000
Imperial Bank
of Commerce
- --------------------------------------------------------------------------------------
Dorada Finance Inc. 75,000 1.06+ 6/10/2004 75,000
- --------------------------------------------------------------------------------------
Goldman Sachs 118,000 1.356+ 10/12/2004 118,000
Group, Inc.
- --------------------------------------------------------------------------------------
Household 99,000 1.13+ 8/18/2004 98,978
Finance Corp.
- --------------------------------------------------------------------------------------
Northern Rock PLC 120,000 1.13+ 11/19/2003 120,007
- --------------------------------------------------------------------------------------
Total Medium-Term Notes
(Cost--$1,358,997) ....................................................... 1,358,979
======================================================================================
Promissory Notes--0.4%
======================================================================================
Morgan Stanley 95,000 1.285+ 2/02/2004 95,000
Group, Inc.
- --------------------------------------------------------------------------------------
Total Promissory Notes (Cost--$95,000) ................................... 95,000
======================================================================================
U.S. Government Agency Obligations--
Discount Notes--11.9%
======================================================================================
Fannie Mae 106,252 1.05 11/05/2003 106,149
100,000 1.075 11/21/2003 99,860
26,895 1.05 12/03/2003 26,846
150,371 1.36 8/20/2004 148,822
- --------------------------------------------------------------------------------------
Freddie Mac 366,263 1.083 10/31/2003 365,957
177,785 1.04 11/12/2003 177,564
86,700 1.08 11/26/2003 86,564
62,705 1.08 12/04/2003 62,589
360,387 1.082 12/04/2003 359,720
448,090 1.058 12/11/2003 447,171
261,843 1.093 12/15/2003 261,275
236,500 1.058 12/18/2003 235,967
110,965 1.08 12/22/2003 110,702
- --------------------------------------------------------------------------------------
U.S. Government Agency Obligations --
Discount Notes (Cost--$2,488,878) ........................................ 2,489,186
======================================================================================
U.S. Government Agency Obligations--
Non-Discount Notes--46.5%
======================================================================================
Fannie Mae 480,000 0.936+ 1/16/2004 479,988
188,000 0.988+ 1/20/2004 187,981
413,000 0.95+ 1/22/2004 412,960
635,000 0.988+ 1/22/2004 634,926
135,860 2.50 10/01/2004 135,860
46,745 2.25 10/21/2004 46,774
18,400 2.40 10/29/2004 18,417
50,330 2.20 12/30/2004 50,440
72,500 2.20 1/14/2005 72,704
500,000 1.02+ 1/18/2005 499,655
1,000,000 1.035+ 1/28/2005 999,281
32,550 2.00 2/10/2005 32,642
55,000 2.00 2/18/2005 55,159
28,750 2.125 8/19/2005 28,984
16,100 2.28 8/19/2005 16,261
36,000 2.06 8/26/2005 36,269
97,000 2.11 8/26/2005 97,788
- --------------------------------------------------------------------------------------
Federal Farm 260,000 0.975+ 10/01/2003 260,000
Credit Banks 200,000 0.975+ 11/03/2003 199,994
130,000 0.97+ 11/14/2003 129,994
450,000 0.98+ 12/15/2003 449,967
145,000 0.98+ 12/24/2003 144,990
200,000 0.985+ 1/26/2004 199,981
97,000 1.00+ 2/23/2004 96,992
99,750 0.995+ 3/01/2004 99,737
300,000 0.99+ 3/16/2004 299,945
240,000 0.995+ 4/07/2004 239,945
390,000 0.99+ 6/21/2004 389,930
100,000 1.009+ 8/02/2004 99,983
65,000 1.02+ 8/10/2004 64,994
200,000 1.04+ 11/24/2004 200,000
250,000 1.03+ 1/27/2005 250,000
127,000 1.00+ 2/07/2005 126,965
200,000 1.03+ 2/11/2005 200,000
175,000 1.03+ 2/24/2005 174,971
82,000 1.04+ 2/21/2006 81,961
44,950 1.035+ 4/04/2007 44,895
54,750 1.07+ 2/20/2008 54,726
- --------------------------------------------------------------------------------------
WCMA MONEY FUND SEPTEMBER 30, 2003 15
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (concluded) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
======================================================================================
U.S. Government Agency Obligations--
Non-Discount Notes (concluded)
======================================================================================
Federal Home $ 260,500 0.975+% 12/29/2003 $260,472
Loan Banks 74,700 0.951+ 1/02/2004 74,701
130,000 3.75 4/15/2004 131,796
71,800 0.97+ 7/06/2004 71,783
66,700 3.875 12/15/2004 68,690
245,000 4.125 1/14/2005 253,664
700,000 1.055+ 3/15/2005 699,789
177,900 1.50 5/13/2005 177,844
- --------------------------------------------------------------------------------------
Freddie Mac 50,000 3.75 4/15/2004 50,696
56,300 2.35 10/08/2004 56,312
63,600 2.125 4/28/2005 63,640
- --------------------------------------------------------------------------------------
Student Loan 230,000 1.173+ 2/12/2004 229,983
Marketing
Association
- --------------------------------------------------------------------------------------
U.S. Government Agency Obligations --
Non-Discount Notes (Cost--$9,751,613) .................................... 9,755,429
======================================================================================
U.S. Treasury Bonds & Notes--0.5%
======================================================================================
U.S. Treasury Notes 104,000 1.25 5/31/2005 103,939
- --------------------------------------------------------------------------------------
U.S. Treasury Bonds & Notes
(Cost--$104,263) ......................................................... 103,939
- --------------------------------------------------------------------------------------
Face
Amount Issue Value
======================================================================================
Repurchase Agreements--2.6%
======================================================================================
$539,238 UBS Warburg Corp. LLC, purchased on
9/30/2003 to yield 1.08% to
10/01/2003, repurchase price $539,254,
collateralized by Request for Competitive
Sealed Proposals, 8.125% to 9.375% due
10/15/2019 to 1/15/2021 ................................... $ 539,238
- --------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost--$539,238) ......................................................... 539,238
- --------------------------------------------------------------------------------------
Shares
Held
======================================================================================
Short-Term Securities--5.1%
======================================================================================
1,062,277 Merrill Lynch Premier Institutional Fund (a)(b) ........... 1,062,277
- --------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$1,062,277) ....................................................... 1,062,277
- --------------------------------------------------------------------------------------
Total Investments
(Cost--$21,936,850)--104.6% .............................................. 21,941,146
Liabilities in Excess of Other Assets--(4.6%) ............................ (969,786)
-----------
Net Assets--100.0% ....................................................... $20,971,360
===========
* Commercial Paper and certain U.S. Government Agency Obligations are traded
on a discount basis; the interest rates shown reflect the discount rates
paid at the time of purchase by the Trust. Other securities bear interest
at the rates shown, payable at fixed dates through maturity. Interest
rates on variable rate securities are adjusted periodically based upon
appropriate indexes. The interest rates shown are the rates in effect at
September 30, 2003.
+ Variable rate notes.
(a) Investment 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)
--------------------------------------------------------------------------
Dividend/
Net Interest
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC
Money Market Series -- $15
Merrill Lynch Premier Institutional Fund 1,023,469 $31
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
See Notes to Financial Statements.
16 WCMA MONEY FUND SEPTEMBER 30, 2003
Statement of Assets and Liabilities Master Money Trust
As of September 30, 2003
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments, at value (including securities loaned of--$1,035,915,780)
(identified cost--$21,936,850,037+) ................................. $ 21,941,146,112
Cash .................................................................. 799
Receivables:
Securities sold .................................................... $ 102,412,387
Interest ........................................................... 22,997,203
Contributions ...................................................... 7,463,752 132,873,342
----------------
Prepaid expenses ...................................................... 68,391
----------------
Total assets .......................................................... 22,074,088,644
----------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ............................. 1,062,277,000
Payables:
Securities purchased ............................................... 40,000,000
Investment adviser ................................................. 304,307
Other affiliates ................................................... 144,597 40,448,904
----------------
Accrued expenses and other liabilities ................................ 3,193
----------------
Total liabilities ..................................................... 1,102,729,097
----------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ............................................................ $ 20,971,359,547
================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Investors' capital .................................................... $ 20,967,063,472
Unrealized appreciation on investments--net ........................... 4,296,075
----------------
Net Assets ............................................................ $ 20,971,359,547
================
+ Cost for Federal income tax purposes was $21,936,850,037. As of September
30, 2003, net unrealized appreciation for Federal income tax purposes
amounted to $4,296,075, of which $5,419,578 related to appreciated
securities and $1,123,503 related to depreciated securities.
See Notes to Financial Statements.
WCMA MONEY FUND SEPTEMBER 30, 2003 17
[LOGO] Merrill Lynch Investment Managers
Statement of Operations Master Money Trust
For the Six Months Ended September 30, 2003
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned .............. $ 138,512,159
Securities lending--net ............................................... 46,560
----------------
Total income .......................................................... 138,558,719
----------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .............................................. $ 14,004,482
Accounting services ................................................... 1,024,672
Custodian fees ........................................................ 241,289
Professional fees ..................................................... 83,285
Trustees' fees and expenses ........................................... 55,027
Pricing fees .......................................................... 30,880
Other ................................................................. 66,475
----------------
Total expenses ........................................................ 15,506,110
----------------
Investment income--net ................................................ 123,052,609
----------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) on Investments--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain from investments--net ................................... 1,946,205
Change in unrealized appreciation on investments--net ................. (7,283,914)
----------------
Total realized and unrealized loss on investments--net ................ (5,337,709)
----------------
Net Increase in Net Assets Resulting from Operations .................. $ 117,714,900
================
See Notes to Financial Statements.
18 WCMA MONEY FUND SEPTEMBER 30, 2003
Statements of Changes in Net Assets Master Money 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 ................................................ $ 123,052,609 $ 37,401,278
Realized gain on investments--net ..................................... 1,946,205 172,930
Change in unrealized appreciation on investments--net ................. (7,283,914) (4,939,558)
-------------------------------------
Net increase in net assets resulting from operations .................. 117,714,900 32,634,650
-------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ........................................... 70,349,993,728 16,259,862,771
Fair value of net assets contributions ................................ -- 23,085,923,316
Fair value of withdrawals ............................................. (72,625,362,095) (16,249,507,723)
-------------------------------------
Net increase (decrease) in net assets derived from capital transactions (2,275,368,367) 23,096,278,364
-------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................... (2,157,653,467) 23,128,913,014
Beginning of period ................................................... 23,129,013,014 100,000
-------------------------------------
End of period ......................................................... $ 20,971,359,547 $ 23,129,013,014
=====================================
+ Commencement of operations.
See Notes to Financial Statements.
WCMA MONEY FUND SEPTEMBER 30, 2003 19
[LOGO] Merrill Lynch Investment Managers
Financial Highlights Master Money 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 in the financial statements 2003 2003
===============================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------------
Total investment return ............................... 1.14%* .90%*
===========================================
===============================================================================================================================
Ratios to Average Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
Expenses .............................................. .14%* .21%*
===========================================
Investment income and realized gain on investments--net 1.14%* 1.25%*
===========================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .............. $ 20,971,360 $ 23,129,013
===========================================
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
20 WCMA MONEY FUND SEPTEMBER 30, 2003
Notes to Financial Statements Master Money Trust
1. Significant Accounting Policies:
Master Money 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 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.
(e) Securities lending -- The Trust may lend securities to financial
institutions that provide cash or securities issued or guaranteed by the U.S.
government as collateral, which will be maintained at all times in an amount
equal to at least 100% of the current market value of the loaned securities. The
market value of the loaned securities is determined at the close of business of
the Trust and any additional required collateral is delivered to the Trust on
the next business day. Where the Trust receives securities as collateral for the
loaned securities, it collects a fee from the borrower. The Trust typically
receives the income on the loaned securities but does not receive the income on
the collateral. Where the Trust receives cash collateral, it may invest such
collateral and retain the amount earned on such investment, net of any amount
rebated to the borrower. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within five
business days. The Trust may pay reasonable finder's, lending agent,
administrative and custodial fees in connection with its loans. In the event
that the borrower defaults on its obligation to return borrowed securities
because of insolvency or for any other reason, the Trust could experience delays
and costs in gaining access to the collateral. The Trust also could suffer a
loss where the value of the collateral falls below the market value of the
borrowed securities, in the event of borrower default or in the event of losses
on investments made with cash collateral.
WCMA MONEY FUND SEPTEMBER 30, 2003 21
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (concluded) Master Money Trust
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.
The Trust has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") or its affiliates. Pursuant to that
order, the Trust also has retained Merrill Lynch Investment Managers, LLC
("MLIM, LLC"), an affiliate of FAM, as the securities lending agent for a fee
based on a share of the returns on investment of cash collateral. MLIM, LLC may,
on behalf of the Trust, invest cash collateral received by the Trust for such
loans, among other things, in a private investment company managed by MLIM, LLC
or in registered money market funds advised by FAM or its affiliates. For the
six months ended September 30, 2003, MLIM, LLC received $53,746 in securities
lending agent fees.
For the six months ended September 30, 2003, the Trust reimbursed FAM $83,247
for certain accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
3. Reverse Repurchase Agreements:
Under a reverse repurchase agreement, the Trust sells securities to repurchase
them at a mutually agreed upon date and price. At the time the Trust enters into
a reverse repurchase agreement, it will establish a segregated account with the
custodian containing cash, cash equivalents of liquid high grade debt securities
having a value at least equal to the repurchase price.
The Trust had no reverse repurchase agreements outstanding as of September 30,
2003.
22 WCMA MONEY FUND SEPTEMBER 30, 2003
[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 Money Fund
Box 9011
Princeton, NJ
08543-9011
#WCMAM -- 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 Money Fund and Master Money Trust
By: /s/ Terry K. Glenn
---------------------------
Terry K. Glenn,
President of
WCMA Money Fund and Master Money 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 Money Fund and Master Money Trust
Date: November 21, 2003
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
WCMA Money Fund and Master Money Trust
Date: November 21, 2003
Attached hereto as a furnished exhibit are the certifications pursuant
to Section 906 of the Sarbanes-Oxley Act.