UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
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: 04/01/04 - 09/30/04
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
CMA Money Fund
Semi-Annual Report
September 30, 2004
[LOGO] Merrill Lynch Investment Managers
CMA Money Fund
Officers and Trustees
Terry K. Glenn, President and Trustee
Ronald W. Forbes, Trustee
Cynthia A. Montgomery, Trustee
Jean Margo Reid, Trustee
Kevin A. Ryan, Trustee
Roscoe S. Suddarth, Trustee
Richard R. West, Trustee
Edward D. Zinbarg, Trustee
Richard J. Mejzak, Vice President
Donald C. Burke, Vice President and Treasurer
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, 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 CMA account, call 800-CMA-INFO
(800-262-4636).
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
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 Web
site 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 SEPTEMBER 30, 2004
A Letter From the President
Dear Shareholder
As we ended the current reporting period, the financial markets were facing a
number of uncertainties. At the top of investors' minds were questions about
economic expansion, corporate earnings, interest rates and inflation, politics,
oil prices and terrorism.
After benefiting from aggressive monetary and fiscal policy stimulus, some fear
the U.S. economy has hit a "soft patch." In fact, economic expansion has slowed
somewhat in recent months, but we believe it is easing into a pace of growth
that is sustainable and healthy. The favorable economic environment has served
to benefit American corporations. Although the most impressive earnings results
were seen earlier in the year, solid productivity, improved revenue growth and
cost discipline all point to a vital corporate sector.
In terms of inflation and interest rates, the Federal Reserve Board (the Fed)
has signaled its confidence in the economic recovery by increasing the Federal
Funds target rate three times in the past several months, from 1% to 1.75%.
Inflation, for its part, has remained in check. Investors and economists are
focused on how quickly Fed policy will move from here.
While any market jitters associated with the presidential election should
subside after November, the effect of oil prices is more difficult to predict.
At around $50 per barrel, the price of oil is clearly a concern. However, on an
inflation-adjusted basis and considering modern usage levels, the situation is
far from the crisis proportions we saw in the 1980s. Finally, although terrorism
and geopolitical crises are realities we are forced to live with today, history
has shown us that the financial effects of any single event tend to be
short-lived.
Amid the uncertainty, fixed income markets provided modestly positive results.
For the six-month and 12-month periods ended September 30, 2004, the Lehman
Brothers Aggregate Bond Index returned +.68% and +3.68%, respectively; the
Credit Suisse First Boston High Yield Index returned +4.30% and +13.32%; and the
Citigroup Three-Month Treasury Bill Index returned +.56% and +1.04%. In terms of
yield, the 10-year Treasury note recorded a yield of 4.14% at September 30,
2004, versus 3.96% at September 30, 2003. The three-month Treasury bill's yield
was 1.71% at period-end, compared to .95% a year earlier.
The key during uncertain times is to remain focused on the big picture.
Investment success comes not from reacting to short-term volatility, but from
maintaining a long-term perspective and adhering to the disciplines of asset
allocation, diversification and rebalancing. We encourage you to work with your
financial advisor to ensure these time-tested techniques are incorporated into
your investment plan. 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 SEPTEMBER 30, 2004 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
In anticipation of a series of interest rate hikes by the Federal Reserve
Board, the Fund began to target shorter sectors of the yield curve, gradually
reduced duration, and continued to focus on variable rate securities.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended September 30, 2004, CMA Money Fund paid
shareholders a net annualized dividend of .77%. The Fund's seven-day yield as of
September 30, 2004, was 1.17%.
The average portfolio maturity of CMA Money Fund at September 30, 2004 was 66
days. The average portfolio maturity, although the same at period-end as on
March 31, 2004, ranged during the six-month period from a low of 59 days to a
high of 78 days.
After a prolonged period of unchanged monetary policy, the Federal Reserve Board
(the Fed) began a tightening cycle with 25 basis point (.25%) interest rate
hikes at its June, August and September meetings. At period-end, the Federal
Funds target rate stood at 1.75%, after remaining at 1% for slightly more than
one year. The Fed policy change was primarily prompted by three consecutive
months of robust payroll data for March, April and May. This sector of the
economy had lagged considerably in the recovery, until the positive payroll
reports showed clear signs that adequate job creation was underway. Accordingly,
yields rose steadily throughout the period. In this environment, we found that
concentrating on shorter sectors of the yield curve and maintaining an
overweight position in the variable rate sectors proved beneficial.
How did you manage the portfolio during the period?
The market was given ample warning of the Fed's first interest rate hike in late
June, as the first in a series of strong employment reports was released in
early April. Although a move to higher interest rates was imminent, the Fed
clearly telegraphed its intention to increase rates at a "measured" pace.
In our view, the appropriate strategy was not necessarily to aggressively
shorten the portfolio's overall duration, but rather to target shorter sectors
of the yield curve while still maintaining a slightly shorter, although still
fairly constructive, total duration (typically 65 days to 70 days). Our belief
in this strategy was reflected in our concentration in variable rate securities,
which made up approximately 65% of the Trust's net assets. Because the coupons
on variable rate securities are continually resetting, that portion of the
portfolio offers protection in a period of rising rates, enabling us to be
slightly more active with the remainder of our investments.
As expected, the front end of the curve was fairly steep. Thus, we found both
higher yields and greater value in maturities as short as six months. In the
early stages of a rising interest rate environment, such as the current cycle,
the two-year sector typically underperforms the rest of the yield curve. For
that reason, we were extremely wary of the longer sectors. Fair value for the
two-year Treasury historically has been considered to be approximately +75 basis
points to the Federal Funds level. With a current yield of 2.65%, we see limited
value, as we expect the Fed Funds level will be over 2% in two years' time.
4 CMA MONEY FUND SEPTEMBER 30, 2004
How would you characterize the portfolio's position at the close of the period?
We maintain our belief that, from a risk/reward perspective, greater value
exists in the shorter sectors of the yield curve versus the one-year and longer
sectors. Interest rate futures, which determine the yields for money market
securities in the three-month and six-month sectors, are currently pricing in 25
basis point rate hikes at both the November and December Federal Open Market
Committee meetings. Although we believe the long-term trend clearly points to
higher interest rates, we feel that these sectors are fairly valued. The
uncertainty of the November election, high oil prices, and the continued fear of
a terror strike pose legitimate threats to a sustainable recovery. Thus, we have
been active in these sectors. As a result, our variable rate holdings recently
dipped to 55% of net assets, as unattractive spreads to commercial paper give us
little reason to add any floaters at current levels. Our duration target is
presently a moderately more conservative 55 days to 65 days, allowing us some
flexibility should a sudden spike in yields occur.
The Trust's portfolio composition as a percent of net assets at the end of
September and as of our last report to shareholders is detailed below:
- --------------------------------------------------------------------------------
9/30/04 3/31/04
- --------------------------------------------------------------------------------
Bank Notes ........................................ 2.3% 3.5%
Certificates of Deposit ........................... 1.8 --
Certificates of Deposit--European ................. 3.5 1.6
Certificates of Deposit--Yankee* .................. 5.6 2.4
Commercial Paper .................................. 9.0 16.7
Corporate Notes ................................... 2.2 1.4
Funding Agreements ................................ 6.1 5.6
Master Notes ...................................... 0.8 --
Medium-Term Notes ................................. 9.9 8.3
Promissory Notes .................................. 0.8 1.3
Repurchase Agreements ............................. -- 1.0
Short-Term Securities ............................. 0.2 3.2
U.S. Government Agency Obligations--
Discount Notes .................................. 4.9 4.0
U.S. Government Agency Obligations--
Non-Discount Notes .............................. 52.9 53.6
Liabilities in Excess of Other Assets ............. -- (2.6)
-------------------
Total ............................................. 100.0% 100.0%
===================
* U.S. branches of foreign banks.
Richard J. Mejzak
Vice President and Portfolio Manager
October 11, 2004
CMA MONEY FUND SEPTEMBER 30, 2004 5
[LOGO] Merrill Lynch Investment Managers
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses, including advisory fees, distribution fees including
12(b)-1 fees, and other Fund expenses. The following example (which is based on
a hypothetical investment of $1,000 invested on April 1, 2004 and held through
September 30, 2004) is intended to assist shareholders both in calculating
expenses based on an investment in the Fund and in comparing these expenses with
similar costs of investing in other mutual funds.
The first table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid during the
period covered by this report, shareholders can divide their account value by
$1,000 and then multiply the result by the number in the first line under the
heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical account values
and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in this Fund and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees, or exchange fees. Therefore, the second table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value April 1, 2004 to
April 1, 2004 September 30, 2004 September 30, 2004
==========================================================================================================
Actual
==========================================================================================================
CMA Money Fund $1,000 $1,003.80 $ 2.91
==========================================================================================================
Hypothetical (5% annual return before expenses)**
==========================================================================================================
CMA Money Fund $1,000 $1,022.16 $ 2.94
- ----------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of .58%,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the one-half year period shown). Because the Fund is a
feeder fund, the expense table example reflects the expenses of both the
feeder fund and the master fund in which it invests.
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half-year divided by 365.
6 CMA MONEY FUND SEPTEMBER 30, 2004
Statement of Assets and Liabilities CMA Money Fund
As of September 30, 2004
=========================================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------------------
Investment in Master Money Trust, at value (identified
cost--$8,604,638,783) .................................. $ 8,600,998,158
Prepaid expenses and other assets ....................... 271,164
----------------
Total assets ............................................ 8,601,269,322
----------------
=========================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor .......................................... $ 4,028,077
Other affiliates ..................................... 784,582
Administrator ........................................ 362,066 5,174,725
----------------
Accrued expenses and other liabilities .................. 553,475
----------------
Total liabilities ....................................... 5,728,200
----------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Net assets .............................................. $ 8,595,541,122
================
=========================================================================================================================
Net Assets Consist of
- -------------------------------------------------------------------------------------------------------------------------
Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ............................ $ 859,918,175
Paid-in capital in excess of par ........................ 7,739,263,572
Unrealized depreciation allocated from the Trust--net ... (3,640,625)
----------------
Net Assets--Equivalent to $1.00 per share based on
8,599,181,750 shares of beneficial interest outstanding $ 8,595,541,122
================
See Notes to Financial Statements.
CMA MONEY FUND SEPTEMBER 30, 2004 7
[LOGO] Merrill Lynch Investment Managers
Statement of Operations CMA Money Fund
For the Six Months Ended September 30, 2004
=========================================================================================================================
Investment Income--Net
- -------------------------------------------------------------------------------------------------------------------------
Interest ................................................ $ 14,881
Net investment income allocated from the Trust:
Interest and amortization of premium and discount
earned .............................................. 67,509,808
Securities lending--net .............................. 205,733
Expenses ............................................. (7,490,874)
----------------
Total income and net investment income allocated from the
Trust .................................................. 60,239,548
----------------
=========================================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------------------
Administration fees ..................................... $ 12,724,192
Distribution fees ....................................... 6,335,281
Transfer agent fees ..................................... 2,582,610
Registration fees ....................................... 311,649
Printing and shareholder reports ........................ 141,407
Professional fees ....................................... 88,340
Other ................................................... 50,672
----------------
Total expenses .......................................... 22,234,151
----------------
Investment income--net .................................. 38,005,397
----------------
=========================================================================================================================
Realized & Unrealized Gain (Loss) Allocated from the Trust--Net
- -------------------------------------------------------------------------------------------------------------------------
Realized gain on investments allocated from the
Trust--net ............................................. 177,159
Change in unrealized appreciation/depreciation on
investments allocated from the Trust--net .............. (6,724,544)
----------------
Total realized and unrealized loss allocated from the
Trust--net ............................................. (6,547,385)
----------------
Net Increase in Net Assets Resulting from Operations .... $ 31,458,012
================
See Notes to Financial Statements.
8 CMA MONEY FUND SEPTEMBER 30, 2004
Statements of Changes in Net Assets CMA Money Fund
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2004 2004
=========================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................. $ 38,005,397 $ 103,011,358
Realized gain allocated from the Trust--net ............. 177,159 2,374,422
Change in unrealized appreciation/depreciation allocated
from the Trust--net .................................... (6,724,544) (8,496,083)
-------------------------------------
Net increase in net assets resulting from operations .... 31,458,012 96,889,697
-------------------------------------
=========================================================================================================================
Dividends & Distributions to Shareholders
- -------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................. (38,005,397) (103,011,361)
Realized gain allocated from the Trust--net ............. (177,159) (2,374,422)
-------------------------------------
Net decrease in net assets resulting from dividends and
distributions to shareholders .......................... (38,182,556) (105,385,783)
-------------------------------------
=========================================================================================================================
Beneficial Interest Transactions
- -------------------------------------------------------------------------------------------------------------------------
Net proceeds from sale of shares ........................ 27,274,367,804 86,540,708,066
Value of shares issued to shareholders in reinvestment of
dividends and distributions ............................ 38,186,635 105,377,119
-------------------------------------
Total shares issued ..................................... 27,312,554,439 86,646,085,185
-------------------------------------
Cost of shares redeemed ................................. (29,570,642,583) (89,944,767,474)
Shares redeemed in connection with the bulk transfer of
WCMA shareholder assets ................................ -- (8,951,820,500)
-------------------------------------
Total shares redeemed ................................... (29,570,642,583) (98,896,587,974)
-------------------------------------
Net decrease in net assets derived from beneficial
interest transactions .................................. (2,258,088,144) (12,250,502,789)
-------------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ............................ (2,264,712,688) (12,258,998,875)
Beginning of period ..................................... 10,860,353,810 23,119,352,685
-------------------------------------
End of period ........................................... $ 8,595,541,122 $ 10,860,353,810
=====================================
See Notes to Financial Statements.
CMA MONEY FUND SEPTEMBER 30, 2004 9
[LOGO] Merrill Lynch Investment Managers
Financial Highlights CMA Money Fund
The following per share data and ratios have been derived For the Six
from information provided in the financial statements. Months Ended For the Year Ended March 31,
September 30, -----------------------------------------------------
Increase (Decrease) in Net Asset Value: 2004 2004 2003+++ 2002 2001
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------
Investment income--net ........................... .0038 .0063 .0127 .0307 .0586
Realized and unrealized gain (loss) and allocated
from the Trust--net ............................. (.0007) (.0004) --+ (.0008) .0019
--------------------------------------------------------------------
Total from investment operations ................. .0031 .0059 .0127 .0299 .0605
--------------------------------------------------------------------
Less dividends and distributions:
Investment income--net ........................ (.0038) (.0063) (.0127) (.0307) (.0586)
Realized gain and allocated from the Trust--net --++ (.0001) (.0001) (.0005) (.0001)
--------------------------------------------------------------------
Total dividends and distributions ................ (.0038) (.0064) (.0128) (.0312) (.0587)
--------------------------------------------------------------------
Net asset value, end of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====================================================================
Total investment return .......................... .38%** .64% 1.29% 3.11% 6.02%
====================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses ......................................... .58%*@ .57%@ .56%@ .55% .56%
====================================================================
Investment income and realized gain and allocated
from the Trust--net ............................. .75%* .68% 1.30% 3.14% 5.87%
====================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ......... $8,595,541 $10,860,354 $23,119,353 $27,802,150 $31,505,456
====================================================================
* Annualized.
** Aggregate total investment return.
+ Amount is less than $.0001 per share.
++ Amount is less than $(.0001) per share.
+++ 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.
@ Includes the Fund's share of the Trust's allocated expenses.
See Notes to Financial Statements.
10 CMA MONEY FUND SEPTEMBER 30, 2004
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 U.S. generally accepted accounting
principles, which may require the use of management accruals and estimates.
Actual results may differ from these estimates. These unaudited financial
statements reflect all adjustments, which are, in the opinion of management,
necessary to present a fair statement of the results for the interim period. All
such adjustments are of a normal, recurring nature. The percentage of the Trust
owned by the Fund at September 30, 2004 was 51.8%. 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.
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.
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 periods
corresponds to the amounts included in the Statements of Changes in Net Assets
for net proceeds from sale of shares, value of shares reinvested, cost of shares
redeemed and shares redeemed in connection with the bulk transfer of WCMA
shareholder assets, respectively, since shares are recorded at $1.00 per share.
CMA MONEY FUND SEPTEMBER 30, 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 -- 2.3%
======================================================================================================
Bank of $ 375,000 1.80+% 1/28/2005 $ 374,995
America, NA
- ------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost--$375,000) ....................................................... 374,995
======================================================================================================
Certificate of Deposit -- 1.8%
======================================================================================================
Citibank, NA 300,000 1.87 12/20/2004 299,932
- ------------------------------------------------------------------------------------------------------
Total Certificate of Deposit (Cost--$300,000) ........................................... 299,932
======================================================================================================
Certificates of Deposit -- European -- 3.5%
======================================================================================================
Credit Agricole 300,000 1.265 12/31/2004 299,442
Indosuez
- ------------------------------------------------------------------------------------------------------
DEPFA-Bank 75,000 1.79 11/09/2004 75,000
Europe PLC
- ------------------------------------------------------------------------------------------------------
Societe Generale 202,000 2.00 3/07/2005 201,879
- ------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$577,004) ........................................................................ 576,321
======================================================================================================
Certificates of Deposit -- Yankee -- 5.6%
======================================================================================================
ABN AMRO 250,000 1.25 4/05/2005 248,809
Bank NV, NY
- ------------------------------------------------------------------------------------------------------
BNP Paribas, New 295,500 2.06 3/31/2005 295,348
York Branch, NY
- ------------------------------------------------------------------------------------------------------
Canadian Imperial 180,000 1.81+ 10/14/2005 180,000
Bank of
Commerce, NY
- ------------------------------------------------------------------------------------------------------
HBOS Treasury 200,000 2.025 3/29/2005 199,868
Services PLC, NY
- ------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$925,505) ........................................................................ 924,025
======================================================================================================
Commercial Paper -- 9.0%
======================================================================================================
Amsterdam Funding 125,000 1.78 11/02/2004 124,796
Corporation
- ------------------------------------------------------------------------------------------------------
Blue Ridge Asset 21,000 1.78 11/03/2004 20,965
Funding Corporation 69,729 1.78 11/04/2004 69,608
- ------------------------------------------------------------------------------------------------------
Falcon Asset 31,444 1.78 10/21/2004 31,411
Securitization 300,000 1.77 10/28/2004 299,587
- ------------------------------------------------------------------------------------------------------
General Electric 300,000 1.77 10/26/2004 299,616
Capital Corporation
- ------------------------------------------------------------------------------------------------------
Jupiter 72,608 1.69 10/13/2004 72,563
Securitization 64,180 1.78 10/25/2004 64,101
Corporation 4,300 1.78 10/26/2004 4,294
- ------------------------------------------------------------------------------------------------------
Lehman Brothers 125,000 1.81+ 5/06/2005 125,000
Holdings Inc.
- ------------------------------------------------------------------------------------------------------
Morgan Stanley 81,000 1.83+ 10/28/2004 81,000
- ------------------------------------------------------------------------------------------------------
Nordea North 55,000 1.76 10/25/2004 54,933
America, Inc.
- ------------------------------------------------------------------------------------------------------
PB Finance 75,000 1.64 10/22/2004 74,918
(Delaware), Inc.
- ------------------------------------------------------------------------------------------------------
Preferred 11,062 1.78 10/15/2004 11,054
Receivables 60,000 1.78 10/26/2004 59,923
Funding
Corporation
- ------------------------------------------------------------------------------------------------------
Variable Funding 100,375 1.70 10/12/2004 100,318
Capital Corp.
- ------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$1,494,087) ............................................... 1,494,087
======================================================================================================
Corporate Notes -- 2.2%
======================================================================================================
Blue Heron 93,000 1.87+ 2/23/2005 93,000
Funding IX Ltd.
- ------------------------------------------------------------------------------------------------------
Newcastle CDO III, 60,000 1.87+ 3/24/2005 60,000
Limited
- ------------------------------------------------------------------------------------------------------
Permanent 94,000 1.72+ 6/10/2005 94,000
Financing PLC
- ------------------------------------------------------------------------------------------------------
Putnam Structured 40,000 1.85+ 4/15/2005 40,000
Products CDO 26,000 1.85+ 5/16/2005 26,000
- ------------------------------------------------------------------------------------------------------
Restructured Asset 60,000 1.823+ 8/19/2005 60,000
Securities with
Enhanced Returns,
Series 1998-MM-7-1
Trust
- ------------------------------------------------------------------------------------------------------
Total Corporate Notes
(Cost--$373,000) ........................................................................ 373,000
======================================================================================================
Funding Agreements -- 6.1%
======================================================================================================
Allstate Life 45,000 1.75+ 11/01/2004 45,000
Insurance Co.
- ------------------------------------------------------------------------------------------------------
GE Life and Annuity 50,000 1.71+ 11/01/2004 50,000
Assurance Co. 150,000 1.71+ 12/01/2004 150,000
- ------------------------------------------------------------------------------------------------------
ING USA Annuity 45,000 1.881+ 7/18/2005 45,000
and Life Insurance
Company
- ------------------------------------------------------------------------------------------------------
Jackson National 15,000 1.73+ 5/02/2005 15,000
Life Insurance
Company
- ------------------------------------------------------------------------------------------------------
Metropolitan Life 68,000 1.76+ 2/01/2005 68,000
Insurance Company 165,000 1.76+ 4/01/2005 165,000
- ------------------------------------------------------------------------------------------------------
Monumental Life 135,000 1.795+ 5/16/2005 135,000
Insurance Company
- ------------------------------------------------------------------------------------------------------
New York Life 226,000 1.71+ 5/27/2005 226,000
Insurance Company
- ------------------------------------------------------------------------------------------------------
The Travelers 70,000 1.71+ 3/01/2005 70,000
Insurance Company 25,000 1.71+ 5/02/2005 25,000
25,000 1.838+ 9/16/2005 25,000
- ------------------------------------------------------------------------------------------------------
Total Funding Agreements
(Cost--$1,019,000) ...................................................................... 1,019,000
- ------------------------------------------------------------------------------------------------------
12 CMA MONEY FUND SEPTEMBER 30, 2004
Schedule of Investments (continued) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
======================================================================================================
Master Notes -- 0.8%
======================================================================================================
J.P. Morgan $ 140,000 1.72+% 11/23/2004 $ 140,000
Securities Inc.
- ------------------------------------------------------------------------------------------------------
Total Master Notes (Cost--$140,000) ..................................................... 140,000
======================================================================================================
Medium-Term Notes -- 9.9%
======================================================================================================
American Honda 56,400 2.19+ 3/11/2005 56,494
Finance Corporation
- ------------------------------------------------------------------------------------------------------
General Electric 290,605 1.888+ 10/17/2005 290,605
Capital Corporation
- ------------------------------------------------------------------------------------------------------
Goldman Sachs 202,600 1.75+ 10/14/2005 202,600
Group, Inc.
- ------------------------------------------------------------------------------------------------------
Household Finance 200,000 1.656+ 7/05/2005 200,000
Corporation
- ------------------------------------------------------------------------------------------------------
J.P. Morgan 85,000 2.07+ 3/07/2005 85,112
Securities Inc.
- ------------------------------------------------------------------------------------------------------
MetLife Funding, Inc. 50,500 1.80+ 10/14/2005 50,500
- ------------------------------------------------------------------------------------------------------
Morgan Stanley 85,000 1.696+ 10/04/2005 85,000
51,000 1.76+ 10/14/2005 51,000
76,000 1.85+ 10/27/2005 76,000
- ------------------------------------------------------------------------------------------------------
Nationwide Building 52,500 1.96+ 10/28/2005 52,500
Society
- ------------------------------------------------------------------------------------------------------
Northern Rock PLC 91,000 1.87+ 10/07/2005 91,000
- ------------------------------------------------------------------------------------------------------
Sigma Finance 87,500 1.815+ 5/05/2005 87,492
Inc. 175,000 1.646+ 8/08/2005 174,949
- ------------------------------------------------------------------------------------------------------
Toyota Motor 100,000 1.69+ 8/11/2005 100,000
Credit Corporation
- ------------------------------------------------------------------------------------------------------
Westpac Banking 44,000 1.85+ 10/11/2005 44,000
Corporation
- ------------------------------------------------------------------------------------------------------
Total Medium-Term Notes (Cost--$1,647,259) .............................................. 1,647,252
======================================================================================================
Promissory Notes -- 0.8%
======================================================================================================
Goldman Sachs 125,000 1.87+ 4/18/2005 125,000
Group, Inc.
- ------------------------------------------------------------------------------------------------------
Total Promissory Notes
(Cost--$125,000) ........................................................................ 125,000
- ------------------------------------------------------------------------------------------------------
======================================================================================================
U.S. Government Agency Obligations --
Discount Notes -- 4.9%
======================================================================================================
Federal Home 203,015 1.73 10/20/2004 202,820
Loan Banks
- ------------------------------------------------------------------------------------------------------
Federal Home 125,000 6.22 1/11/2005 124,312
Loan Mortgage 20,000 1.32 3/08/2005 19,822
Corporation
- ------------------------------------------------------------------------------------------------------
Federal National 144,600 1.233 10/27/2004 144,434
Mortgage 77,511 1.278 11/03/2004 77,399
Association 64,000 1.21 1/07/2005 63,661
79,241 1.88 3/02/2005 78,567
100,000 1.85+ 3/10/2005 99,100
- ------------------------------------------------------------------------------------------------------
Total U.S. Government Agency Obligations--
Discount Notes (Cost--$810,697) ......................................................... 810,115
======================================================================================================
U.S. Government Agency Obligations --
Non-Discount Notes -- 52.9%
======================================================================================================
Federal Farm 200,000 1.76+ 11/24/2004 200,000
Credit Banks 250,000 1.75+ 1/27/2005 250,000
127,000 1.75+ 2/07/2005 126,991
200,000 1.66+ 2/11/2005 200,000
175,000 1.75+ 2/24/2005 175,016
82,000 1.74+ 2/21/2006 81,977
54,000 1.663+ 3/08/2006 54,000
50,000 1.65+ 5/24/2006 49,959
44,950 1.601+ 4/04/2007 44,911
50,000 1.77+ 9/27/2007 49,978
54,750 1.761+ 2/20/2008 54,731
- ------------------------------------------------------------------------------------------------------
Federal Home 66,700 3.875 12/15/2004 66,967
Loan Banks 325,000 1.795+ 3/15/2005 324,916
125,900 1.50 5/13/2005 125,349
250,000 1.50 8/26/2005 248,203
466,000 1.635+ 8/26/2005 465,840
84,000 1.745+ 9/12/2005 83,977
- ------------------------------------------------------------------------------------------------------
Federal Home 900,000 1.675+ 12/15/2004 899,964
Loan Mortgage 75,000 2.15 10/28/2005 74,800
Corporation 49,000 2.41 11/04/2005 49,002
533,000 1.665+ 11/07/2005 533,087
CMA MONEY FUND SEPTEMBER 30, 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 (continued)
======================================================================================================
Federal Home $ 100,000 2.30 % 11/17/2005 $ 99,852
Loan Mortgage 36,185 2.375 11/25/2005 36,013
Corporation 102,000 2.35 12/09/2005 101,863
(concluded) 27,600 2.55 5/10/2006 27,553
- ------------------------------------------------------------------------------------------------------
Federal National 500,000 1.51+ 1/18/2005 499,915
Mortgage 1,000,000 1.755+ 1/28/2005 999,942
Association 26,800 1.85 6/03/2005 26,733
400,000 1.77+ 6/09/2005 399,931
20,000 1.50 6/17/2005 19,894
540,000 1.688+ 8/17/2005 539,857
36,000 2.06 8/26/2005 35,918
97,000 2.11 8/26/2005 96,788
984,000 1.723+ 8/29/2005 983,571
492,000 1.68+ 9/06/2005 491,588
53,400 2.32 9/30/2005 53,350
55,000 2.07 10/21/2005 54,811
55,000 2.10 10/21/2005 54,828
52,510 2.375 5/04/2006 52,313
21,000 3.17 8/23/2006 21,033
- ------------------------------------------------------------------------------------------------------
U.S. Treasury Notes 32,000 1.50 3/31/2006(c) 31,582
- ------------------------------------------------------------------------------------------------------
Total U.S. Government Agency
Obligations--Non-Discount
Notes (Cost--$8,790,582) ................................................................ 8,787,003
- ------------------------------------------------------------------------------------------------------
Shares
Held Issue
======================================================================================================
Short-Term Securities -- 0.2%
======================================================================================================
32,480 Merrill Lynch Premier Institutional
Fund (a)(b) ........................................................... 32,480
- ------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost--$32,480) ......................................................................... 32,480
- ------------------------------------------------------------------------------------------------------
Total Investments
(Cost--$16,609,614**)--100.0% ........................................................... 16,603,210
Liabilities in Excess of Other Assets--0.0% ............................................. (1,937)
-----------
Net Assets--100.0% ...................................................................... $16,601,273
===========
* 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 adjustable periodically based upon
appropriate indexes. The interest rates shown are the rates in effect at
September 30, 2004.
** The cost and unrealized appreciation/depreciation of investments as of
September 30, 2004, as computed for federal income tax purposes, were as
follows:
(in Thousands)
-------------------------------------------------------------------------
Aggregate cost .......................... $ 16,609,614
============
Gross unrealized appreciation ........... $ 230
Gross unrealized depreciation ........... (6,634)
------------
Net unrealized depreciation ............. $ (6,404)
============
+ 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) were as follows:
(in Thousands)
--------------------------------------------------------------------------
Interest/
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC
Money Market Series $ (61,612) $ 20
Merrill Lynch Premier Institutional Fund (521,969) $ 353
--------------------------------------------------------------------------
(b) Security was purchased with the cash proceeds from securities loans.
(c) Security, or portion of security, is on loan.
See Notes to Financial Statements.
14 CMA MONEY FUND SEPTEMBER 30, 2004
Statement of Assets and Liabilities Master Money Trust
As of September 30, 2004
=========================================================================================================================
Assets
- -------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value
(including securities loaned of $31,582,400)
(identified cost--$16,577,133,983) ..................... $ 16,570,729,824
Investments in affiliated securities, at value
(identified cost--$32,480,000) ......................... 32,480,000
Cash .................................................... 2,130
Receivables:
Interest ............................................. $ 25,311,660
Contributions ........................................ 5,903,661
Securities lending--net .............................. 34,721 31,250,042
----------------
Prepaid expenses ........................................ 66,750
----------------
Total assets ............................................ 16,634,528,746
----------------
=========================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ............... 32,480,000
Payables:
Investment adviser ................................... 360,542
Other affiliates ..................................... 98,622 459,164
----------------
Accrued expenses ........................................ 316,168
----------------
Total liabilities ....................................... 33,255,332
----------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Net assets .............................................. $ 16,601,273,414
================
=========================================================================================================================
Net Assets Consist of
- -------------------------------------------------------------------------------------------------------------------------
Investors' capital ...................................... $ 16,607,677,573
Unrealized depreciation--net ............................ (6,404,159)
----------------
Net Assets .............................................. $ 16,601,273,414
================
See Notes to Financial Statements.
CMA MONEY FUND SEPTEMBER 30, 2004 15
[LOGO] Merrill Lynch Investment Managers
Statement of Operations Master Money Trust
For the Six Months Ended September 30, 2004
=========================================================================================================================
Investment Income
- -------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned $ 123,034,590
Securities lending--net ................................. 373,491
----------------
Total income ............................................ 123,408,081
----------------
=========================================================================================================================
Expenses
- -------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ................................ $ 11,995,365
Accounting services ..................................... 1,135,629
Custodian fees .......................................... 234,449
Professional fees ....................................... 72,093
Trustees' fees and expenses ............................. 56,595
Pricing fees ............................................ 29,617
Printing and shareholder reports ........................ 4,238
Other ................................................... 82,202
----------------
Total expenses .......................................... 13,610,188
----------------
Investment income--net .................................. 109,797,893
----------------
=========================================================================================================================
Realized & Unrealized Gain (Loss)--Net
- -------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net ....................... 315,847
Change in unrealized appreciation/depreciation on
investments--net ....................................... (12,189,372)
----------------
Total realized and unrealized loss--net ................. (11,873,525)
----------------
Net Increase in Net Assets Resulting from Operations .... $ 97,924,368
================
See Notes to Financial Statements.
16 CMA MONEY FUND SEPTEMBER 30, 2004
Statements of Changes in Net Assets Master Money Trust
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 2004 2004
=========================================================================================================================
Operations
- -------------------------------------------------------------------------------------------------------------------------
Investment income--net .................................. $ 109,797,893 $ 224,167,606
Realized gain--net ...................................... 315,847 2,862,817
Change in unrealized appreciation/depreciation--net ..... (12,189,372) (5,794,776)
-------------------------------------
Net increase in net assets resulting from operations .... 97,924,368 221,235,647
-------------------------------------
=========================================================================================================================
Capital Transactions
- -------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ............................. 64,269,485,679 135,901,774,616
Fair value of withdrawals ............................... (67,052,996,894) (139,965,163,016)
-------------------------------------
Net decrease in net assets derived from capital
transactions ........................................... (2,783,511,215) (4,063,388,400)
-------------------------------------
=========================================================================================================================
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ............................ (2,685,586,847) (3,842,152,753)
Beginning of period ..................................... 19,286,860,261 23,129,013,014
-------------------------------------
End of period ........................................... $ 16,601,273,414 $ 19,286,860,261
=====================================
See Notes to Financial Statements.
Financial Highlights Master Money Trust
For the Six For the For the Period
Months Ended Year Ended February 13, 2003+
The following ratios have been derived from September 30, March 31, to March 31,
information provided in the financial statements. 2004 2004 2003
===============================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------------
Total investment return ................ .60%** 1.06% .90%*
=====================================================
===============================================================================================================================
Ratios to Average Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
Expenses ............................... .15%* .15% .21%*
=====================================================
Investment income and realized gain--net 1.19%* 1.08% 1.25%*
=====================================================
===============================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 16,601,273 $ 19,286,860 $ 23,129,013
=====================================================
* Annualized.
** Aggregate total investment return.
+ Commencement of operations.
See Notes to Financial Statements.
CMA MONEY FUND SEPTEMBER 30, 2004 17
[LOGO] Merrill Lynch Investment Managers
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 U.S. generally accepted accounting principles, which
may require the use of management accruals and estimates. Actual results may
differ from these estimates. These unaudited financial statements reflect all
adjustments, which are, in the opinion of management, necessary to present a
fair statement of the results for the interim period. 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 purposes of valuation, the maturity of a variable rate
security is deemed to be the next coupon date on which the interest rate is to
be adjusted. Other investments and assets for which market value quotations are
not available are valued at fair value as determined in good faith by or under
the direction of the Board of Trustees.
(b) Repurchase agreements -- The Trust may invest 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.
18 CMA MONEY FUND SEPTEMBER 30, 2004
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. As of September 30,
2004, the Trust lent securities with a value of $31,582,400 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 six months ended September 30, 2004,
MLIM, LLC received $157,415 in securities lending agent fees.
For the six months ended September 30, 2004, the Trust reimbursed FAM $197,562
for certain accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
CMA MONEY FUND SEPTEMBER 30, 2004 19
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the Fund. Past performance
results shown in this report should not be considered a representation of future
performance, which will fluctuate. Statements and other information herein are
as dated and are subject to change.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
at www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
Web site at http://www.sec.gov. Information about how the Fund voted proxies
relating to securities held in the Fund's portfolio during the most recent
12-month period ended June 30 is available (1) at www.mutualfunds.ml.com and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
CMA Money Fund
Box 9011
Princeton, NJ
08543-9011
#11213 -- 9/04
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
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 last 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 - Not Applicable to this semi-annual report
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: November 19, 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: November 19, 2004
By: /s/ Donald C. Burke
---------------------------------
Donald C. Burke,
Chief Financial Officer of
CMA Money Fund and Master Money Trust
Date: November 19, 2004