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 811-2752
811-21299
Name of Fund: CMA 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, CMA 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 - 03/31/04
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
CMA Money Fund
Annual Report
March 31, 2004
[LOGO] Merrill Lynch Investment Managers
CMA Money Fund
Important Tax Information (unaudited)
Of the ordinary income distributions paid by CMA Money Fund during the year
ended March 31, 2004, 32.6% was attributable to Federal obligations. In
calculating the foregoing percentage, Fund expenses have been allocated on a pro
rata basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax adviser to determine if any portion of the
dividends you received is exempt from state income tax.
Additionally the Fund paid long-term capital gain distributions of $0.0000063
per share to shareholders of record on March 30, 2004.
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 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 MONEY FUND MARCH 31, 2004 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
The Fund maintained a longer-than-average portfolio maturity for most of
the 12-month period in order to take advantage of higher yields at the longer
end of the money market yield curve.
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the year ended March 31, 2004, CMA Money Fund paid shareholders a net
annualized dividend of .64%.* The Fund's seven-day yield as of March 31, 2004
was .57%.
The average portfolio maturity for CMA Money Fund at March 31, 2004 was 66 days,
the same average maturity as reported at August 31, 2003. The Fund's average
portfolio maturity during the 12-month period ranged from a low of 48 days to a
high of 74 days.
Although interest rates experienced significant relative volatility over the
past 12 months, yields at period end were only modestly higher than March 2003
levels. Specifically, the yield on the two-year Treasury note opened the year at
1.49% and closed it at 1.59%, but hit extremes of 1.09% and 2.10% throughout the
fiscal year.
The Federal Reserve Board reduced the Federal Funds target rate from 1.25% to 1%
in June 2003, its lowest level since 1958. Because of this, the Fund's
performance for the fiscal year benefited from its longer-than-average portfolio
maturity versus many of its peers and a significant position in floating rate
securities.
How did you manage the portfolio during the 12-month period?
Early in the period, we believed the Federal Reserve Board would leave
short-term interest rates low as long as the employment situation was weak and
deflation remained a concern. With that in mind, we added some longer-dated
callable U.S. agency securities to the portfolio because they offered yield
enhancement and the potential for price appreciation. Yield spreads on callable
agency securities relative to straight bullet issues were wide, as interest rate
volatility remained at the higher end of the historical range for most of the
fiscal year.
We continued to position the portfolio in a barbelled manner. Investments were
split in the longer-dated callable U.S. agency securities and the
three-month-and-under sector. We employed this strategy because there was no
pickup 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 - two-year sector.
For the balance of the period, almost 70% 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 as an
effort to protect the portfolio in case an unforeseen rise in interest rates did
occur.
During the second half of 2003, the two-year Treasury note generally traded
between 1.50% and 2%. Assessing greater value at the higher end of the trading
range and minimal value at the lower end, we adjusted our portfolio duration
accordingly. When interest rates would trend lower, we would look to actively
reduce our exposure and target a duration in the 55-day range. This provided the
ability to extend duration back into the 70-day range if interest rates rose and
re-approached the 2% level.
* 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 MONEY FUND MARCH 31, 2004
How would you characterize the portfolio's position at the close of the period?
In light of the low yields in the short end of the money market yield curve, the
portfolio's position at the close of the period was relatively aggressive (with
an average portfolio maturity of 66 days). In general, sectors with maturities
of 12 months or less have held firm throughout the period, offering yields only
slightly higher than overnight financing levels. Seeing minimal value, we sought
to sell these sectors and continue to favor the 15-month - 18-month area where
the yield curve becomes much steeper.
Given the tightening of quality spreads, our focus remains on government and
agency issues. When yield volatility rises, we are able to capitalize by adding
callable notes that provide both higher coupons and option-adjusted spreads in
this environment. Because of the yield advantage that floating rate securities
offer, we ended the period with a significant position in these securities and a
small allocation in commercial paper.
The portfolio's composition at the end of the period and as of our last report
to shareholders is detailed below:
- --------------------------------------------------------------------------------
3/31/04 9/30/03
- --------------------------------------------------------------------------------
Bank Notes ........................................ 3.5% 1.9%
Certificates of Deposit--European ................. 1.6 0.5
Certificates of Deposit--Yankee* .................. 2.4 6.6
Commercial Paper .................................. 16.7 14.3
Corporate Notes ................................... 1.4 2.5
Funding Agreements ................................ 5.6 5.4
Medium-Term Notes ................................. 8.3 6.4
Promissory Notes .................................. 1.3 0.4
Repurchase Agreements ............................. 1.0 2.6
Short-Term Securities ............................. 3.2 5.1
U.S. Government Agency Obligations--
Discount Notes ................................. 4.0 11.9
U.S. Government Agency Obligations--
Non-Discount Notes ............................. 53.6 46.5
U.S. Treasury Bonds & Notes ....................... -- 0.5
Liabilities in Excess of Other Assets ............. (2.6) (4.6)
--------------------
Total ............................................. 100.0% 100.0%
====================
* U.S. branches of foreign banks.
Richard J. Mejzak
Vice President and Portfolio Manager
April 13, 2004
CMA MONEY FUND MARCH 31, 2004 5
[LOGO] Merrill Lynch Investment Managers
Statement of Assets and Liabilities CMA Money Fund
As of March 31, 2004
===============================================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------------------------
Investment in Master Money Trust, at value
(identified cost--$10,861,356,696) ............................ $ 10,864,440,615
Prepaid expenses ................................................ 269,689
-----------------
Total assets .................................................... 10,864,710,304
-----------------
===============================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor .................................................. $ 3,015,097
Other affiliates ............................................. 812,120
Administrator ................................................ 368,987 4,196,204
-----------------
Accrued expenses and other liabilities .......................... 160,290
-----------------
Total liabilities ............................................... 4,356,494
-----------------
===============================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
Net assets ...................................................... $ 10,860,353,810
-----------------
===============================================================================================================================
Net Assets Consist of
- -------------------------------------------------------------------------------------------------------------------------------
Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ................................... $ 1,085,726,989
Paid-in capital in excess of par ................................ 9,771,542,902
Unrealized appreciation on investments from the Trust--net ...... 3,083,919
-----------------
Net Assets--Equivalent to $1.00 per share based on
10,857,269,894 shares of beneficial interest outstanding ...... $ 10,860,353,810
=================
See Notes to Financial Statements.
6 CMA MONEY FUND MARCH 31, 2004
Statement of Operations CMA Money Fund
For the Year Ended March 31, 2004
===============================================================================================================================
Investment Income
- -------------------------------------------------------------------------------------------------------------------------------
Interest ........................................................ $ 28,724
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned ..... 191,394,101
Securities lending--net ...................................... 309,157
Expenses ..................................................... (22,572,599)
-----------------
Total income and net investment income allocated from the Trust . 169,159,383
-----------------
===============================================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------------------------
Administration fees ............................................. $ 38,819,325
Distribution fees ............................................... 19,267,405
Transfer agent fees ............................................. 5,887,705
Registration fees ............................................... 1,514,727
Printing and shareholder reports ................................ 285,768
Professional fees ............................................... 271,921
Accounting services ............................................. 4,395
Pricing fees .................................................... 142
Other ........................................................... 96,637
-----------------
Total expenses .................................................. 66,148,025
-----------------
Investment income--net .......................................... 103,011,358
-----------------
===============================================================================================================================
Realized & Unrealized Gain (Loss) on Investments Allocated from the Trust
- -------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments allocated from the Trust--net ...... 2,374,422
Change in unrealized appreciation on investments allocated
from the Trust--net ........................................... (8,496,083)
-----------------
Total realized and unrealized loss on investments allocated
from the Trust--net ........................................... (6,121,661)
-----------------
Net Increase in Net Assets Resulting from Operations ............ $ 96,889,697
=================
See Notes to Financial Statements.
CMA MONEY FUND MARCH 31, 2004 7
[LOGO] Merrill Lynch Investment Managers
Statements of Changes in Net Assets CMA Money Fund
For the Year Ended
March 31,
---------------------------------------
Increase (Decrease) in Net Assets: 2004 2003+
===============================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------------
Investment income--net .......................................... $ 103,011,358 $ 330,192,998
Realized gain on investments and allocated from the
Trust--net .................................................... 2,374,422 3,828,205
Change in unrealized appreciation on investments and
allocated from the Trust--net ................................. (8,496,083) (3,177,329)
---------------------------------------
Net increase in net assets resulting from operations ............ 96,889,697 330,843,874
---------------------------------------
===============================================================================================================================
Dividends & Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------------------------------
Investment income--net .......................................... (103,011,361) (330,192,998)
Realized gain on investments and allocated from the
Trust--net .................................................... (2,374,422) (3,828,204)
---------------------------------------
Net decrease in net assets resulting from dividends and
distributions to shareholders ................................. (105,385,783) (334,021,202)
---------------------------------------
===============================================================================================================================
Beneficial Interest Transactions
- -------------------------------------------------------------------------------------------------------------------------------
Net proceeds from sale of shares ................................ 86,540,708,066 126,463,096,594
Value of shares issued to shareholders in reinvestment of
dividends and distributions ................................... 105,377,119 334,036,129
---------------------------------------
Total shares issued ............................................. 86,646,085,185 126,797,132,723
---------------------------------------
Cost of shares redeemed ......................................... (89,944,767,474) (131,476,752,450)
Shares redeemed in connection with the bulk transfer of
WCMA shareholder assets ....................................... (8,951,820,500) --
---------------------------------------
Total shares redeemed ........................................... (98,896,587,974) (131,476,752,450)
---------------------------------------
Net decrease in net assets derived from beneficial interest
transactions .................................................. (12,250,502,789) (4,679,619,727)
---------------------------------------
===============================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets .................................... (12,258,998,875) (4,682,797,055)
Beginning of year ............................................... 23,119,352,685 27,802,149,740
---------------------------------------
End of year ..................................................... $ 10,860,353,810 $ 23,119,352,685
=======================================
+ On February 13, 2003, the Fund converted from a stand-alone investment
company to a "feeder" fund that seeks to achieve its investment objective
by investing all of its assets in the Trust, which has the same investment
objective as the Fund. All investments will be made at the Trust level.
This structure is sometimes called a "master/feeder" structure.
See Notes to Financial Statements.
8 CMA MONEY FUND MARCH 31, 2004
Financial Highlights CMA Money Fund
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 ............... .0063 .0127 .0307 .0586 .0491
Realized and unrealized gain (loss) on
investments and allocated from the
Trust--net ......................... (.0004) --@@ (.0008) .0019 (.0004)
-----------------------------------------------------------------------
Total from investment operations ..... .0059 .0127 .0299 .0605 .0487
-----------------------------------------------------------------------
Less dividends and distributions:
Investment income--net ............ (.0063) (.0127) (.0307) (.0586) (.0491)
Realized gain on investments and
allocated from the Trust--net ... (.0001) (.0001) (.0005) (.0001) --++
-----------------------------------------------------------------------
Total dividends and distributions .... (.0064) (.0128) (.0312) (.0587) (.0491)
-----------------------------------------------------------------------
Net asset value, end of year ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=======================================================================
Total investment return .............. .64% 1.29% 3.11% 6.02% 5.02%
=======================================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses, excluding interest expense . .57%@ .56%@ .55% .56% .55%
=======================================================================
Expenses ............................. .57%@ .56%@ .55% .56% .56%
=======================================================================
Investment income and realized gain on
investments and allocated from the
Trust--net ......................... .68% 1.30% 3.14% 5.87% 4.92%
=======================================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) $10,860,354 $23,119,353 $27,802,150 $31,505,456 $67,788,051
=======================================================================
+ On February 13, 2003, the Fund converted from a stand-alone investment
company to a "feeder" fund that seeks to achieve its investment objective
by investing all of its assets in the Trust, which has the same investment
objective as the Fund. All investments will be made at the Trust level.
This structure is sometimes called a "master/feeder" structure.
++ Amount is less than $(.0001) per share.
@ Includes the Fund's share of the Trust's allocated expenses.
@@ Amount is less than $.0001 per share.
See Notes to Financial Statements.
CMA MONEY FUND MARCH 31, 2004 9
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements CMA Money Fund
1. Significant Accounting Policies:
CMA 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. The percentage of the Trust owned by the Fund
at March 31, 2004 was 56.3%. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments -- The Fund records its investment in the Trust at
fair value. Valuation of securities held by the Trust is discussed in Note 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.
(g) Reclassification -- Accounting principles generally accepted in the United
States of America require that certain components of net assets be adjusted to
reflect permanent differences between financial and tax reporting. These
reclassifications have no effect on net assets or net asset value per share.
There were no significant reclassifications in the current year.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Administration Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund pays a monthly fee at an annual rate of
..25% of the Fund's average daily net assets for the performance of
administrative services (other than investment advice and related portfolio
activities) necessary for the operation of the Fund.
The Fund has adopted a Distribution and Shareholder Servicing Plan 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 a distribution fee from the Fund. The fee is accrued daily
and paid monthly at the annual rate of .125% of average daily net assets of the
Fund for shareholders who maintain their accounts through MLPF&S. 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.
For the year ended March 31, 2004, the Fund reimbursed FAM $4,395 for certain
accounting services.
10 CMA MONEY FUND MARCH 31, 2004
Notes to Financial Statements (concluded) CMA Money Fund
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. Transactions in Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the years corresponds
to the amounts included in the Statements of Changes in Net Assets for net
proceeds from sale of shares, value of shares reinvested and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per share. In
addition, on August 18, 2003, $8,951,820,500 was transferred to WCMA Money Fund
as planned, following the formation of that Fund.
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:
Ordinary income ..................... $105,316,021 $334,005,464
Net long-term capital gains ......... 69,762 15,738
--------------------------------
Total taxable distributions ............ $105,385,783 $334,021,202
================================
As of March 31, 2004, there were no significant differences between the book and
tax components of net assets.
Independent Auditors' Report CMA Money Fund
To the Shareholders and Board of Trustees of
CMA Money Fund:
We have audited the accompanying statement of assets and liabilities of CMA
Money Fund 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 Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with 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. 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
Money Fund 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 MONEY FUND MARCH 31, 2004 11
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
- ---------------------------------------------------------------------------------------------------------
Bank Notes--3.5%
- ---------------------------------------------------------------------------------------------------------
Bank of $375,000 1.05+% 1/28/2005 $ 374,930
America, NA
- ---------------------------------------------------------------------------------------------------------
National City 300,000 1.035+ 6/23/2004 299,983
Bank of Indiana
- ---------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost--$674,983) ............................................... 674,913
- ---------------------------------------------------------------------------------------------------------
Certificates of Deposit--European--1.6%
- ---------------------------------------------------------------------------------------------------------
Credit Agricole 300,000 1.265 12/31/2004 300,222
Indosuez
- ---------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$300,011) ................................................................ 300,222
- ---------------------------------------------------------------------------------------------------------
Certificates of Deposit--Yankee--2.4%
- ---------------------------------------------------------------------------------------------------------
BNP Paribas 90,000 1.05+ 6/23/2004 89,990
Securities
Corporation, NY
- ---------------------------------------------------------------------------------------------------------
Canadian Imperial 180,000 1.14+ 4/15/2005 180,000
Bank of Commerce,
NY
- ---------------------------------------------------------------------------------------------------------
Credit Suisse 200,000 1.04 5/28/2004 200,000
First Boston Corp.,
NY
- ---------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$469,995) ................................................................ 469,990
- ---------------------------------------------------------------------------------------------------------
Commercial Paper--16.7%
- ---------------------------------------------------------------------------------------------------------
Amstel Funding 48,199 1.04 5/17/2004 48,134
Corp.
- ---------------------------------------------------------------------------------------------------------
Amsterdam 125,000 1.03 4/12/2004 124,957
Funding Corporation 26,300 1.02 4/19/2004 26,286
- ---------------------------------------------------------------------------------------------------------
Aspen Funding 75,000 1.04 5/12/2004 74,909
Corp.
- ---------------------------------------------------------------------------------------------------------
Barton Capital 40,082 1.04 4/05/2004 40,076
Corporation
- ---------------------------------------------------------------------------------------------------------
Clipper Receivables 75,000 1.02 4/16/2004 74,966
Corp.
- ---------------------------------------------------------------------------------------------------------
Delaware Funding 101,167 1.03 4/06/2004 101,150
Corp. 80,175 1.02 4/16/2004 80,139
75,072 1.02 4/19/2004 75,032
- ---------------------------------------------------------------------------------------------------------
Deutsche Bank AG 76,660 1.03 4/13/2004 76,631
- ---------------------------------------------------------------------------------------------------------
Dexia Delaware 150,000 1.02 4/19/2004 149,919
LLC
- ---------------------------------------------------------------------------------------------------------
Edison Asset 304,045 1.05 4/01/2004 304,036
Securitization, LLC 70,000 1.02 4/12/2004 69,976
- ---------------------------------------------------------------------------------------------------------
Eureka 70,000 1.03 4/01/2004 69,998
Securitization Inc.
- ---------------------------------------------------------------------------------------------------------
Falcon Asset 120,000 1.03 4/02/2004 119,993
Securitization
- ---------------------------------------------------------------------------------------------------------
Greyhawk 150,000 1.03 4/26/2004 149,888
Funding, LLC 100,000 1.03 4/27/2004 99,923
50,000 1.05 5/11/2004 49,940
- ---------------------------------------------------------------------------------------------------------
HBOS Treasury 48,000 1.035 5/19/2004 47,932
Services PLC
- ---------------------------------------------------------------------------------------------------------
Jupiter 25,000 1.03 4/07/2004 24,995
Securitization
- ---------------------------------------------------------------------------------------------------------
Kitty Hawk 50,000 1.02 4/08/2004 49,989
Funding Corp.
- ---------------------------------------------------------------------------------------------------------
Mont Blanc Capital 45,262 1.04 4/20/2004 45,236
Corp.
- ---------------------------------------------------------------------------------------------------------
Morgan Stanley 81,000 1.143+ 10/28/2004 81,000
Dean Witter & Co.
- ---------------------------------------------------------------------------------------------------------
New Center Asset 92,000 1.02 4/29/2004 91,924
Trust
- ---------------------------------------------------------------------------------------------------------
Newport Funding 50,000 1.03 4/01/2004 49,999
Corp. 35,000 1.03 4/20/2004 34,980
- ---------------------------------------------------------------------------------------------------------
Old Line Funding 36,574 1.03 4/01/2004 36,573
Corp. 41,006 1.03 4/07/2004 40,998
65,729 1.021 4/26/2004 65,681
- ---------------------------------------------------------------------------------------------------------
PB Finance 75,000 1.04 4/19/2004 74,958
(Delaware)
- ---------------------------------------------------------------------------------------------------------
Park Avenue 45,164 1.02 4/13/2004 45,147
Receivables Corp.
- ---------------------------------------------------------------------------------------------------------
Rio Tinto 51,544 1.02 4/02/2004 51,541
Limited
- ---------------------------------------------------------------------------------------------------------
Sheffield 70,000 1.02 4/06/2004 69,988
Receivables 150,000 1.03 4/21/2004 149,910
Corporation
- ---------------------------------------------------------------------------------------------------------
Sigma Finance 175,000 1.05+ 5/17/2004 174,998
Corporation 87,500 1.043+ 6/10/2004 87,498
- ---------------------------------------------------------------------------------------------------------
Svenska 100,000 1.03 4/13/2004 99,963
Handelsbanken
AB
- ---------------------------------------------------------------------------------------------------------
Windmill Funding 50,000 1.03 4/08/2004 49,989
Corporation 100,000 1.02 4/28/2004 99,921
- ---------------------------------------------------------------------------------------------------------
Total Commercial Paper
(Cost--$3,209,172) .............................................................. 3,209,173
- ---------------------------------------------------------------------------------------------------------
Corporate Notes--1.4%
- ---------------------------------------------------------------------------------------------------------
Blue Heron 93,000 1.12+ 2/23/2005 93,000
Funding IX
Ltd.
- ---------------------------------------------------------------------------------------------------------
Newcastle CDO III, 60,000 1.12+ 3/24/2005 60,000
Limited
- ---------------------------------------------------------------------------------------------------------
Putnam Structured 26,000 1.193+ 6/10/2004 26,000
Products 40,000 1.19+ 10/15/2004 40,000
- ---------------------------------------------------------------------------------------------------------
Restructured Asset 60,000 1.20+ 2/08/2005 60,000
Securities with
Enhanced Returns
- ---------------------------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$279,000) .......................................... 279,000
- ---------------------------------------------------------------------------------------------------------
12 CMA MONEY FUND MARCH 31, 2004
Schedule of Investments (continued) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
- --------------------------------------------------------------------------------------------------------
Funding Agreements--5.6%
- --------------------------------------------------------------------------------------------------------
Allstate Life $ 45,000 1.176+% 7/01/2004 $ 45,000
Insurance Co. 45,000 1.196+ 11/01/2004 45,000
- --------------------------------------------------------------------------------------------------------
GE Life and Annuity 50,000 1.156+ 11/01/2004 50,000
Assurance Co. 150,000 1.156+ 12/01/2004 150,000
- --------------------------------------------------------------------------------------------------------
Jackson National 15,000 1.176+ 5/03/2004 15,000
Life Insurance Co.
- --------------------------------------------------------------------------------------------------------
Metropolitan Life 165,000 1.206+ 4/01/2004 165,000
Insurance 68,000 1.206+ 2/01/2005 68,000
Company
- --------------------------------------------------------------------------------------------------------
Monumental Life 135,000 1.241+ 8/13/2004 135,000
Insurance Company
- --------------------------------------------------------------------------------------------------------
New York Life 216,000 1.158+ 5/28/2004 216,000
Insurance Company
- --------------------------------------------------------------------------------------------------------
Pacific Life 80,000 1.176+ 4/08/2004 80,000
Insurance Co.
- --------------------------------------------------------------------------------------------------------
The Travelers 25,000 1.156+ 5/03/2004 25,000
Insurance Company 25,000 1.146+ 9/17/2004 25,000
70,000 1.16+ 3/01/2005 70,000
- --------------------------------------------------------------------------------------------------------
Total Funding Agreements
(Cost--$1,089,000) ............................................................. 1,089,000
- --------------------------------------------------------------------------------------------------------
Medium-Term Notes--8.3%
- --------------------------------------------------------------------------------------------------------
American Honda 56,400 1.43+ 3/11/2005 56,601
Finance Corp.
- --------------------------------------------------------------------------------------------------------
Beta Finance Inc. 167,000 1.06+ 6/07/2004 166,997
200,000 1.055+ 7/15/2004 200,000
- --------------------------------------------------------------------------------------------------------
CC (USA) Inc. 200,000 1.06+ 6/10/2004 200,000
(Centauri)
- --------------------------------------------------------------------------------------------------------
Dorada Finance Inc. 75,000 1.06+ 6/10/2004 75,000
- --------------------------------------------------------------------------------------------------------
General Electric 290,605 1.17+ 4/15/2005 290,605
Capital Corp.
- --------------------------------------------------------------------------------------------------------
Goldman Sachs 118,000 1.37+ 3/15/2005 118,000
Group, Inc.
- --------------------------------------------------------------------------------------------------------
Household Finance 99,000 1.12+ 8/18/2004 99,023
Corporation
- --------------------------------------------------------------------------------------------------------
Metropolitan Life 50,500 1.10+ 4/15/2005 50,500
Insurance
Company
- --------------------------------------------------------------------------------------------------------
Morgan Stanley 85,000 1.10+ 4/04/2005 85,000
Dean Witter & Co.
- --------------------------------------------------------------------------------------------------------
Morgan Stanley 76,000 1.10+ 4/27/2005 76,000
Group, Inc.
- --------------------------------------------------------------------------------------------------------
Nationwide 52,500 1.11+ 4/28/2005 52,500
Building Society
- --------------------------------------------------------------------------------------------------------
Northern Rock PLC 91,000 1.13+ 4/08/2005 91,000
- --------------------------------------------------------------------------------------------------------
Westpac Banking 44,000 1.10+ 3/11/2005 44,000
Corp.
- --------------------------------------------------------------------------------------------------------
Total Medium-Term Notes
(Cost--$1,605,202) ............................................................. 1,605,226
- --------------------------------------------------------------------------------------------------------
Promissory Notes--1.3%
- --------------------------------------------------------------------------------------------------------
Goldman Sachs 100,000 1.133+ 9/07/2004 100,000
Group, Inc.
- --------------------------------------------------------------------------------------------------------
J.P. Morgan 140,000 1.166+ 11/23/2004 140,000
Securities Inc.
- --------------------------------------------------------------------------------------------------------
Total Promissory Notes (Cost--$240,000) ........................................ 240,000
- --------------------------------------------------------------------------------------------------------
U.S. Government Agency Obligations--
Discount Notes--4.0%
- --------------------------------------------------------------------------------------------------------
Fannie Mae 36,710 1.36 8/20/2004 36,563
100,000 1.20 12/01/2004 99,260
64,000 1.21 1/07/2005 63,443
- --------------------------------------------------------------------------------------------------------
Freddie Mac 205,691 1.21 12/02/2004 204,169
378,661 1.23 1/11/2005 375,328
- --------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations--
Discount Notes (Cost--$778,063) ................................................ 778,763
- --------------------------------------------------------------------------------------------------------
U.S. Government Agency Obligations--
Non-Discount Notes--53.6%
- --------------------------------------------------------------------------------------------------------
Fannie Mae 534,000 1.02+ 12/15/2004 533,932
500,000 1.01+ 1/18/2005 499,876
1,000,000 1.005+ 1/28/2005 999,691
400,000 1.03+ 6/09/2005 399,964
20,000 1.50 6/17/2005 20,013
540,000 0.99+ 8/17/2005 539,776
28,750 2.125 8/19/2005 28,849
16,100 2.28 8/19/2005 16,165
36,000 2.06 8/26/2005 36,117
97,000 2.11 8/26/2005 97,333
984,000 0.973+ 8/29/2005 983,335
492,000 0.99+ 9/06/2005 491,472
55,000 2.07 10/21/2005 55,258
55,000 2.10 10/21/2005 55,275
- --------------------------------------------------------------------------------------------------------
Federal Farm 240,000 0.975+ 4/07/2004 239,998
Credit Banks 390,000 0.96+ 6/21/2004 390,000
100,000 0.988+ 8/02/2004 99,993
65,000 0.993+ 8/10/2004 64,998
200,000 1.01+ 11/24/2004 200,000
250,000 1.00+ 1/27/2005 250,000
127,000 1.00+ 2/07/2005 126,978
200,000 1.00+ 2/11/2005 200,000
175,000 1.00+ 2/24/2005 175,006
82,000 1.01+ 2/21/2006 81,969
50,000 1.03+ 5/24/2006 49,946
44,950 1.015+ 4/04/2007 44,903
54,750 1.04+ 2/20/2008 54,729
- --------------------------------------------------------------------------------------------------------
CMA MONEY FUND MARCH 31, 2004 13
[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 $180,000 3.75 % 4/15/2004 $ 180,191
Loan Banks 71,800 1.01+ 7/06/2004 71,794
66,700 3.875 12/15/2004 68,001
700,000 1.025+ 3/15/2005 699,847
125,900 1.50 5/13/2005 126,175
466,000 0.995+ 8/26/2005 465,870
84,000 0.985+ 9/12/2005 83,972
- --------------------------------------------------------------------------------------------------------
Freddie Mac 900,000 1.005+ 12/15/2004 899,876
75,000 2.15 10/28/2005 75,415
100,000 2.29 10/28/2005 100,081
49,000 2.41 11/04/2005 49,200
533,000 1.085+ 11/07/2005 533,133
100,000 2.30 11/17/2005 100,707
36,185 2.375 11/25/2005 36,374
102,000 2.35 12/09/2005 102,835
- --------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations--
Non-Discount Notes (Cost--$10,324,123) .......................................... 10,329,047
- --------------------------------------------------------------------------------------------------------
Face
Amount Issue Value
- --------------------------------------------------------------------------------------------------------
Repurchase Agreements--1.0%
- --------------------------------------------------------------------------------------------------------
$191,147 UBS Warburg Corp. LLC, purchased on
3/31/2004 to yield 1.06% to 4/01/2004,
repurchase price $191,148, collateralized
by Resolution Funding Strip, 0% due
10/15/2012 to 1/15/2018 ...................................... $ 191,147
- --------------------------------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost--$191,147) ............................................................... 191,147
- --------------------------------------------------------------------------------------------------------
Beneficial Interest/
Shares Held
- --------------------------------------------------------------------------------------------------------
Short-Term Securities - 3.2%
- --------------------------------------------------------------------------------------------------------
$ 61,612 Merrill Lynch Liquidity Series, LLC Money
Market Series (a)(b) ......................................... 61,612
554,449 Merrill Lynch Premier Institutional
Fund (a)(b) .................................................. 554,449
- --------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost--$616,061) ................................... 616,061
- --------------------------------------------------------------------------------------------------------
Total Investments
(Cost--$19,776,757)--102.6% .................................................... 19,782,542
Liabilities in Excess of Other Assets - (2.6%) ................................. (495,682)
-----------
Net Assets--100.0% ............................................................. $19,286,860
===========
- --------------------------------------------------------------------------------------------------------
* 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
March 31, 2004.
+ Variable rate notes.
(a) Investments in companies considered to be an affiliate of the Trust (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) are as follows:
(in Thousands)
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC
Money Market Series $ 3,401 $ 46
Merrill Lynch Premier Institutional Fund 515,641 $ 478
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
See Notes to Financial Statements.
14 CMA MONEY FUND MARCH 31, 2004
Statement of Assets and Liabilities Master Money Trust
As of March 31, 2004
===========================================================================================================================
Assets
- ---------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities at value (including
securities loaned of--$597,180,210)
(identified cost--$19,160,695,421*) ....................... $ 19,166,480,634
Investments in affiliated securities at value (identified
cost--$616,061,250*) ...................................... 616,061,250
Cash ........................................................ 448
Receivables:
Securities sold .......................................... $ 98,119,716
Interest ................................................. 19,836,061
Contributions ............................................ 3,191,352
Securities lending--net .................................. 80,113 121,227,242
-----------------
Prepaid expenses ............................................ 66,750
-----------------
Total assets ................................................ 19,903,836,324
-----------------
===========================================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ................... 616,061,250
Payables:
Investment adviser ....................................... 342,545
Other affiliates ......................................... 100,683 443,228
-----------------
Accrued expenses and other liabilities ...................... 471,585
-----------------
Total liabilities ........................................... 616,976,063
-----------------
===========================================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Net assets .................................................. $ 19,286,860,261
=================
===========================================================================================================================
Net Assets Consist of
- ---------------------------------------------------------------------------------------------------------------------------
Investors' capital .......................................... $ 19,281,075,048
Unrealized appreciation on investments--net ................. 5,785,213
-----------------
Net Assets .................................................. $ 19,286,860,261
=================
* Cost for Federal income tax purposes was $19,776,756,671. As of March 31,
2004, net unrealized appreciation for Federal income tax purposes amounted
to $5,785,213, of which $6,092,875 related to appreciated securities and
$307,662 related to depreciated securities.
See Notes to Financial Statements.
CMA MONEY FUND MARCH 31, 2004 15
[LOGO] Merrill Lynch Investment Managers
Statement of Operations Master Money Trust
For the Year Ended March 31, 2004
===========================================================================================================================
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned .... $ 254,292,064
Securities lending--net ..................................... 524,185
-----------------
Total income ................................................ 254,816,249
-----------------
===========================================================================================================================
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .................................... $ 27,155,091
Accounting services ......................................... 2,493,916
Custodian fees .............................................. 475,397
Professional fees ........................................... 144,923
Trustees' fees and expenses ................................. 123,674
Pricing fees ................................................ 68,121
Printing and shareholder reports ............................ 20,624
Other ....................................................... 166,897
-----------------
Total expenses .............................................. 30,648,643
-----------------
Investment income--net ...................................... 224,167,606
-----------------
===========================================================================================================================
Realized & Unrealized Gain (Loss) on Investments--Net
- ---------------------------------------------------------------------------------------------------------------------------
Realized gain from investments--net ......................... 2,862,817
Change in unrealized appreciation on investments--net ....... (5,794,776)
-----------------
Total realized and unrealized loss on investments--net ...... (2,931,959)
-----------------
Net Increase in Net Assets Resulting from Operations ........ $ 221,235,647
=================
See Notes to Financial Statements.
16 CMA MONEY FUND MARCH 31, 2004
Statements of Changes in Net Assets Master Money Trust
For the For the Period
Year Ended February 13, 2003+
March 31, to March 31,
Increase (Decrease) in Net Assets: 2004 2003
===========================================================================================================================
Operations
- ---------------------------------------------------------------------------------------------------------------------------
Investment income--net ...................................... $ 224,167,606 $ 37,401,278
Realized gain on investments--net ........................... 2,862,817 172,930
Change in unrealized appreciation on investments--net ....... (5,794,776) (4,939,558)
---------------------------------------
Net increase in net assets resulting from operations ........ 221,235,647 32,634,650
---------------------------------------
===========================================================================================================================
Capital Transactions
- ---------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ................................. 135,901,774,616 16,259,862,771
Fair value of net assets contributions ...................... -- 23,085,923,316
Fair value of withdrawals ................................... (139,965,163,016) (16,249,507,723)
---------------------------------------
Net increase (decrease) in net assets derived from
capital transactions ...................................... (4,063,388,400) 23,096,278,364
---------------------------------------
===========================================================================================================================
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ..................... (3,842,152,753) 23,128,913,014
Beginning of period ......................................... 23,129,013,014 100,000
---------------------------------------
End of period ............................................... $ 19,286,860,261 $ 23,129,013,014
=======================================
+ Commencement of operations.
See Notes to Financial Statements.
CMA MONEY FUND MARCH 31, 2004 17
[LOGO] Merrill Lynch Investment Managers
Financial Highlights Master Money Trust
For the For the Period
Year Ended February 13, 2003+
March 31, to March 31,
2004 2003
=================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------
Total investment return ............................... 1.06% .90%*
===================================
=================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------
Expenses .............................................. .15% .21%*
===================================
Investment income and realized gain on investments--net 1.08% 1.25%*
===================================
=================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .............. $ 19,286,860 $ 23,129,013
===================================
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
18 CMA MONEY FUND MARCH 31, 2004
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. 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) 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.
(d) 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.
(e) 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.
(f) 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
CMA MONEY FUND MARCH 31, 2004 19
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (concluded) Master Money Trust
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.
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. As of March 31, 2004,
the Trust lent securities with a value of $50,109,000 to 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 year ended March 31, 2004, MLIM, LLC
received $236,018 in securities lending agent fees.
For the year ended March 31, 2004, the Trust reimbursed FAM $421,565 for certain
accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
20 CMA MONEY FUND MARCH 31, 2004
Independent Auditors' Report Master Money Trust
To the Investors and Board of Trustees of
Master Money Trust:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Master Money Trust as of March 31, 2004, and the
related statement of operations for the year then ended and the statements of
changes in net assets and the financial highlights for the year then ended and
for the period February 13, 2003 (commencement of operations) through March 31,
2003. 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 and
brokers; where replies were not received from brokers, we performed other
auditing procedures. 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 Master
Money Trust as of March 31, 2004, the results of its operations for the year
then ended, and the changes in its net assets and its financial highlights for
the year then ended and for the period February 13, 2003 through March 31, 2003,
in conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 14, 2004
CMA MONEY FUND MARCH 31, 2004 21
[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 Merrill Lynch Investment Managers, 124 Funds None
Glenn* Princeton, NJ and present L.P. ("MLIM")/Fund Asset Management, L.P. 160 Portfolios
08543-9011 Trustee and ("FAM")--Advised Funds since 1999; Chairman
Age: 63 1997 to (Americas Region) of MLIM from 2000 to 2002;
present Executive Vice President of MLIM and FAM (which
terms as used herein include their corporate
predecessors) from 1983 to 2002; President of FAM
Distributors, Inc. ("FAMD") from 1986 to 2002 and
Director thereof from 1991 to 2002; Executive Vice
President and Director of Princeton Services, Inc.
("Princeton Services") from 1993 to 2002; President
of Princeton Administrators, L.P. from 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 1981 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 1979 to Professor of Finance, New York University, Leonard 51 Funds Bowne & Co.,
West Princeton, NJ present N. Stern School of Business Administration from 50 Portfolios Inc.; Vornado
08543-9095 1982 to 1994 and Dean Emeritus thereof since 1994. Operating
Age: 66 Company;
Vornado
Realty Trust;
Alexander's,
Inc.
22 CMA 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
- ------------------------------------------------------------------------------------------------------------------------------------
Richard J. P.O. Box 9011 Vice 2001 to Director (Global Fixed Income) of MLIM since 2000; Vice President of MLIM
Mejzak Princeton, NJ President present from 1996 to 2000.
08543-9011
Age: 35
- ------------------------------------------------------------------------------------------------------------------------------------
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 Money Fund, has recently retired. The Fund's
Board of Trustees wishes Mr. Reilly well in his retirement.
- --------------------------------------------------------------------------------
CMA MONEY FUND MARCH 31, 2004 23
[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 Money Fund
Box 9011
Princeton, NJ
08543-9011
#11213 -- 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
CMA Money Fund Fiscal Year Ending March 31, 2004 - $11,400
Fiscal Year Ending March 31, 2003 - $16,067
Master Money Trust Fiscal Year Ending March 31, 2004 - $50,000
Fiscal Year Ending March 31, 2003 - $57,213
(b) Audit-Related Fees
CMA Money Fund Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
Master Money Trust Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
(c) Tax Fees
CMA Money Fund Fiscal Year Ending March 31, 2004 - $5,800
Fiscal Year Ending March 31, 2003 - $5,400
The nature of the services include tax compliance, tax advice and tax
planning.
Master Money Trust Fiscal Year Ending March 31, 2004 - $8,000
Fiscal Year Ending March 31, 2003 - $5,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees
CMA Money Fund Fiscal Year Ending March 31, 2004 - $0
Fiscal Year Ending March 31, 2003 - $0
Master Money Trust 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)
CMA Money Fund Fiscal Year Ending March 31, 2004 - $16,708,160
Fiscal Year Ending March 31, 2003 - $17,378,427
Master Money Trust 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 Money Fund and Master Money Trust
By: /s/ Terry K. Glenn
-----------------------------
Terry K. Glenn,
President of
CMA Money Fund and Master Money 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 Money Fund and Master Money Trust
Date: May 21, 2004
By: /s/ Donald C. Burke
-----------------------------
Donald C. Burke,
Chief Financial Officer of
CMA Money Fund and Master Money Trust
Date: May 21, 2004