UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21196
811-21299
Name of Fund: WCMA Money Fund
Master Money Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, WCMA Money Fund and Master Money Trust, 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 03/31/05
Date of reporting period: 04/01/04 - 03/31/05
Item 1 - Report to Stockholders
WCMA Money Fund
Annual Report
March 31, 2005
WCMA Money Fund
Important Tax Information
Of the ordinary income distributions paid by WCMA Money Fund during the year
ended March 31, 2005, 16.45% 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 taxes.
Additionally, the Fund paid long-term capital gain distributions of $.0000003
per share to shareholders of record on March 30, 2005.
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 at http://www.icsdelivery.com/live and follow the instructions. When you
visit this site, you will obtain a personal identification number (PIN). You
will need this PIN should you wish to update your e-mail address, choose to
discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
2 WCMA MONEY FUND MARCH 31, 2005
A Letter From the President
Dear Shareholder
Financial markets broadly posted positive returns over the most recent reporting
period, with international equities providing some of the most impressive
results.
Total Returns as of March 31, 2005 6-month 12-month
===============================================================================================
U.S. equities (Standard & Poor's 500 Index) + 6.88% + 6.69%
- -----------------------------------------------------------------------------------------------
Small-cap U.S. equities (Russell 2000 Index) + 8.00 + 5.41
- -----------------------------------------------------------------------------------------------
International equities (MSCI Europe Australasia Far East Index) +15.13 +15.06
- -----------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) + 0.47 + 1.15
- -----------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.21 + 2.67
- -----------------------------------------------------------------------------------------------
High yield bonds (Credit Suisse First Boston High Yield Index) + 3.39 + 7.84
- -----------------------------------------------------------------------------------------------
The U.S. economy continued to show resilience in the face of the Federal Reserve
Board's (the Fed's) continued interest rate hikes and, more recently, higher oil
prices. The Fed's measured tightening program brought the federal funds rate to
2.75% by period-end as the central bank continued its campaign to combat
emergent inflation. In fact, business costs have been rising, which is beginning
to put pressure on corporate profit margins. Consumer prices have been moving up
as well, particularly in the areas of gasoline prices, healthcare costs, housing
and education.
U.S. equities ended 2004 in a strong rally, but stumbled into negative territory
in the first quarter of 2005. On the positive side, corporations have been
accelerating their hiring plans, capital spending remains reasonably robust and
merger-and-acquisition activity has increased. Offsetting the positives are
slowing corporate earnings growth, renewed energy price concerns and the
potential for an economic slowdown later this year. International equities,
especially in Asia, have benefited from higher economic growth rates. China, in
particular, recorded growth of more than 9% in 2004.
In the bond market, long-term interest rates finally began to inch higher while
significant increases have been recorded on the short end. This resulted in a
flattening of the yield curve throughout much of the current reporting period.
At March 31, 2005, the two-year Treasury note yielded 3.80% and the 10-year note
yielded 4.50%, a difference of 70 basis points (.70%). This compared to a spread
of 151 basis points six months earlier and 226 basis points 12 months ago.
Looking ahead, the environment is likely to be a challenging one for investors,
with diversification and selectivity becoming increasingly important themes.
With this in mind, we encourage you to meet with your financial advisor to
review your goals and asset allocation and to rebalance your portfolio, as
necessary, to ensure it remains aligned with your objectives and risk tolerance.
As always, 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/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
President and Trustee
WCMA MONEY FUND MARCH 31, 2005 3
A Discussion With Your Fund's Portfolio Manager
As short-term interest rates rose throughout the period, we maintained an
ample exposure to floating rate securities, which allowed us to protect the
Fund's underlying value and maintain a more neutral duration.
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended March 31, 2005, WCMA Money Fund's Class 1, Class
2, Class 3 and Class 4 Shares paid shareholders net annualized dividends of
..44%, .88%, 1.21% and 1.21%, respectively. For the six-month period ended March
31, 2005, the Fund's Class 1, Class 2, Class 3 and Class 4 Shares paid
shareholders net annualized dividends of .80%, 1.34%, 1.67% and 1.67%,
respectively. The Fund's seven-day yields as of March 31, 2005 were 1.19% for
Class 1, 1.89% for Class 2, 2.22% for Class 3 and 2.22% for Class 4.
The average portfolio maturity for WCMA Money Fund at March 31, 2005 was 60
days, compared to 66 days as of September 30, 2004 and March 31, 2004. The
Fund's average maturity during the past 12 months ranged from a low of 53 days
to a high of 78 days.
During the 12-month period, solid economic growth and improving job creation
prompted the Federal Reserve Board (the Fed) to begin targeting a more "neutral"
federal funds rate. Gross domestic product (GDP), which grew at an annualized
rate of 4.5% in the first quarter of 2004, slowed to 3.3% in the second quarter
before increasing to 4% in the third quarter and 3.8% in the fourth quarter. A
similar level of growth is expected in the first quarter of 2005. Since June
2004, the Fed has continued to remove its overly accommodative monetary policy
in a "measured" manner. Over a 10-month period, the Fed increased the federal
funds rate 25 basis points (.25%) at each Federal Open Market Committee meeting,
bringing the federal funds level from a historic low of 1% to 2.75% by
period-end.
As short-term interest rates rose in accordance with the Fed rate hikes,
long-term rates remained stubbornly low, producing what Fed Chairman Alan
Greenspan in February described as a "conundrum." The result was a considerable
flattening of the yield curve, with the two-year Treasury note yield increasing
220 basis points while the 10-year Treasury note yield increased just 65 basis
points during the past 12 months. Notably, the short end of the curve has
remained quite steep, with a 100 basis point spread between three-month and
two-year Treasury securities at period-end. In this environment, concentrating
on shorter sectors and maintaining an overweight to the variable rate sectors
proved beneficial.
How did you manage the portfolio during the period?
In an effort to promote market stability, the Fed made a concerted effort to
increase the transparency of future monetary policy changes, sending fairly
clear signals as to its intentions. Thus, the bond market had time to anticipate
the period of higher interest rates, and the yield curve began to flatten out in
a predictable manner. While interest rates ultimately climbed higher across all
maturity ranges, the front end of the yield curve saw yields rise more severely
than did the 10-year and 30-year sectors of the curve. The two-year Treasury
note yield increased from 1.58% on March 31, 2004 to 3.78% one year later.
Heading into the fiscal year, the Trust had a large overweight position in
floating rate securities (approximately 65% of portfolio assets). Because their
coupons continuously reset, floating rate securities provide significant
protection in a rising rate environment. We were then able to maintain a more
neutral duration, when typically such a scenario might call for a slightly short
duration posture. With the remainder of the portfolio, we generally focused on
the six-month and nine-month areas of the yield curve -- sectors we believed
were priced correctly given our view that we would likely see 25 basis point
interest rate hikes at every Federal Open Market Committee meeting through the
second quarter of 2005. We were unwilling to venture any further out on the
curve, as we saw little value from a risk/reward standpoint.
How would you characterize the portfolio's position at the close of the period?
We continue to target an average portfolio duration in the 60-day range,
reflecting our cautiously constructive view that there are sectors of the yield
curve that represent value. Although the federal funds rate is sure to increase
over the near term, we believe that future policy decisions in the third and
fourth quarters will become more dependent on the economic data releases.
Several factors appear to be threatening the consumer, and could ultimately
threaten sustainable economic growth: Higher interest rates may curtail the
wealth effect generated by housing prices and mortgage refinancing; job creation
has not proved consistent enough to support wage growth; and oil prices, while
possibly inflationary, seem to pose a greater risk in reducing discretionary
spending.
4 WCMA MONEY FUND MARCH 31, 2005
While our strategy had called for significant exposure to variable rate notes,
the continued tightening of credit spreads throughout the period has served to
make that asset class less attractive. As an alternative, our efforts have
shifted into short-dated commercial paper as we await better buying
opportunities. We find value in the six-month, nine-month and 12-month sectors,
as they are fairly priced, in our view, and provide extremely attractive yields
given the steepness of the curve in the front end. We believe the federal funds
target will be in the 3.5% - 4% range by year-end, and we may shift our bias to
be slightly longer should forward rates price in anything more aggressive.
The Trust's portfolio composition, as a percent of net assets, at the end of
March and as of our last report to shareholders is detailed below:
- --------------------------------------------------------------------------------
3/31/05 9/30/04
- --------------------------------------------------------------------------------
Bank Notes ......................................... 2.4% 2.3%
Certificates of Deposit ............................ 4.1 1.8
Certificates of Deposit--European .................. 0.6 3.5
Certificates of Deposit--Yankee* ................... 8.4 5.6
Commercial Paper ................................... 17.9 9.0
Corporate Notes .................................... 3.9 2.2
Funding Agreements ................................. 6.8 6.1
Master Notes ....................................... 0.9 0.8
Medium-Term Notes .................................. 13.4 9.9
Promissory Notes ................................... 0.8 0.8
Short-Term Securities .............................. -- 0.2
U.S. Government Agency Obligations--
Discount Notes ................................... -- 4.9
U.S. Government & Agency Obligations--
Non-Discount Notes ............................... 40.5 52.9
Other Assets Less Liabilities ...................... 0.3 --
---------------------
Total .............................................. 100.0% 100.0%
=====================
* U.S. branches of foreign banks.
Richard J. Mejzak
Vice President and Portfolio Manager
April 11, 2005
WCMA MONEY FUND MARCH 31, 2005 5
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 October 1, 2004 and held through
March 31, 2005) 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 October 1, 2004 to
October 1, 2004 March 31, 2005 March 31, 2005
======================================================================================================
Actual
======================================================================================================
Class 1 $1,000 $1,004.00 $7.19
- ------------------------------------------------------------------------------------------------------
Class 2 $1,000 $1,006.70 $4.50
- ------------------------------------------------------------------------------------------------------
Class 3 $1,000 $1,008.30 $2.90
- ------------------------------------------------------------------------------------------------------
Class 4 $1,000 $1,008.30 $2.90
======================================================================================================
Hypothetical (5% annual return before expenses)**
======================================================================================================
Class 1 $1,000 $1,017.75 $7.24
- ------------------------------------------------------------------------------------------------------
Class 2 $1,000 $1,020.44 $4.53
- ------------------------------------------------------------------------------------------------------
Class 3 $1,000 $1,022.04 $2.92
- ------------------------------------------------------------------------------------------------------
Class 4 $1,000 $1,022.04 $2.92
- ------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.44% for Class 1, .90% for Class 2, .58% for Class 3
and .58% for Class 4), multiplied by the average account value over the
period, multiplied by 182/365 (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 WCMA MONEY FUND MARCH 31, 2005
Statement of Assets and Liabilities WCMA Money Fund
As of March 31, 2005
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Master Money Trust (the "Trust"), at value (identified
cost--$7,692,980,048) $ 7,686,770,866
Prepaid expenses .................................................... 1,740,987
---------------
Total assets ........................................................ 7,688,511,853
---------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor ........................................................ $ 1,509,695
Administrator ...................................................... 1,448,861
Other affiliates ................................................... 251,953 3,210,509
---------------
Accrued expenses and other liabilities .............................. 1,301,650
---------------
Total liabilities ................................................... 4,512,159
---------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets .......................................................... $ 7,683,999,694
===============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Class 1 Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ........................................ $ 87,046,337
Class 2 Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ........................................ 272,530,474
Class 3 Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ........................................ 303,508,237
Class 4 Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ........................................ 105,935,840
Paid-in capital in excess of par .................................... 6,921,187,988
Unrealized depreciation allocated from the Trust--net ............... (6,209,182)
---------------
Net Assets .......................................................... $ 7,683,999,694
===============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Class 1--Based on net assets of $869,838,822 and 870,463,371 shares
of beneficial interest outstanding ................................. $ 1.00
===============
Class 2--Based on net assets of $2,723,114,070 and 2,725,304,741
shares of beneficial interest outstanding .......................... $ 1.00
===============
Class 3--Based on net assets of $3,032,612,372 and 3,035,082,371
shares of beneficial interest outstanding .......................... $ 1.00
===============
Class 4--Based on net assets of $1,058,434,430 and 1,059,358,395
shares of beneficial interest outstanding .......................... $ 1.00
===============
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 7
Statement of Operations WCMA Money Fund
For the Year Ended March 31, 2005
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest ............................................................ $ 187,900
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned ........... 145,415,742
Securities lending--net ............................................ 196,231
Expenses ........................................................... (12,105,746)
---------------
Total income ........................................................ 133,694,127
---------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Administration fees ................................................. $ 20,494,064
Account maintenance and distribution fees--Class 2 .................. 19,970,769
Account maintenance and distribution fees--Class 3 .................. 12,222,154
Account maintenance and distribution fees--Class 1 .................. 8,137,724
Registration fees ................................................... 5,149,074
Account maintenance and distribution fees--Class 4 .................. 4,182,927
Transfer agent fees--Class 3 ........................................ 345,631
Transfer agent fees--Class 2 ........................................ 314,630
Printing and shareholder reports .................................... 136,755
Transfer agent fees--Class 4 ........................................ 119,603
Transfer agent fees--Class 1 ........................................ 87,487
Professional fees ................................................... 56,550
Offering costs ...................................................... 22,200
Other ............................................................... 41,098
---------------
Total expenses before waiver and reimbursement ...................... 71,280,666
Waiver and reimbursement of expenses ................................ (19,792,842)
---------------
Total expenses after waiver and reimbursement ....................... 51,487,824
---------------
Investment income--net .............................................. 82,206,303
---------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) Allocated from the Trust--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain--net .................................................. 155,326
Change in unrealized appreciation/depreciation--net ................. (8,910,476)
---------------
Total realized and unrealized loss--net ............................. (8,755,150)
---------------
Net Increase in Net Assets Resulting from Operations ................ $ 73,451,153
===============
See Notes to Financial Statements.
8 WCMA MONEY FUND MARCH 31, 2005
Statements of Changes in Net Assets WCMA Money Fund
For the Year Ended
March 31,
-----------------------------------
Increase (Decrease) in Net Assets: 2005 2004
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net .............................................. $ 82,206,303 $ 21,014,267
Realized gain--net .................................................. 155,326 488,395
Change in unrealized appreciation/depreciation--net ................. (8,910,476) 2,701,307
-----------------------------------
Net increase in net assets resulting from operations ................ 73,451,153 24,203,969
-----------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net:
Class 1 ............................................................ (3,473,807) (180,321)
Class 2 ............................................................ (25,587,530) (4,872,869)
Class 3 ............................................................ (39,201,342) (11,843,803)
Class 4 ............................................................ (13,943,624) (4,117,277)
Realized gain--net:
Class 1 ............................................................ (16,303) (51,699)
Class 2 ............................................................ (56,278) (185,723)
Class 3 ............................................................ (61,601) (188,743)
Class 4 ............................................................ (21,144) (62,230)
-----------------------------------
Net decrease in net assets resulting from dividends and distributions
to shareholders ..................................................... (82,361,629) (21,502,665)
-----------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from beneficial
interest transactions ............................................... (729,160,194) 8,419,268,987
-----------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................. (738,070,670) 8,421,970,291
Beginning of year ................................................... 8,422,070,364 100,073
-----------------------------------
End of year ......................................................... $ 7,683,999,694 $ 8,422,070,364
===================================
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 9
Financial Highlights WCMA Money Fund
Class 1
-------------------------------------------------------
For the Year Ended For the Period
March 31, March 20, 2003+
The following per share data and ratios have been derived -------------------------------- to March 31,
from information provided in the financial statements. 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------
Investment income--net .......................... .0043 .0003 .0003
Realized and unrealized gain (loss)--net ........ (.0011) .0005 .0001
-------------------------------------------------------
Total from investment operations ................ .0032 .0008 .0004
-------------------------------------------------------
Less dividends and distributions:
Investment income--net ......................... (.0043) (.0003) (.0003)
Realized gain--net ............................. --* (.0001) --
-------------------------------------------------------
Total dividends and distributions ............... (.0043) (.0004) (.0003)
-------------------------------------------------------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00
=======================================================
Total Investment Return ......................... .44% .04% .04%
=======================================================
====================================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement** 1.35% 1.12% .01%
=======================================================
Total expenses** ................................ 1.47% 1.49% .01%
=======================================================
Total investment income and realized gain--net .. .43% .04% .03%
=======================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $ 869,839 $ 927,790 $ 25
=======================================================
* Amount is less than $(.0001) per share.
** Includes the Fund's share of the Trust's allocated expenses.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
10 WCMA MONEY FUND MARCH 31, 2005
Financial Highlights (continued) WCMA Money Fund
Class 2
-------------------------------------------------------
For the Year Ended For the Period
March 31, March 20, 2003+
The following per share data and ratios have been derived -------------------------------- to March 31,
from information provided in the financial statements. 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------
Investment income--net .......................... .0088 .0024 .0003
Realized and unrealized gain (loss)--net ........ (.0011) .0006 .0001
-------------------------------------------------------
Total from investment operations ................ .0077 .0030 .0004
-------------------------------------------------------
Less dividends and distributions:
Investment income--net ......................... (.0088) (.0024) (.0003)
Realized gain--net ............................. --* (.0001) --
-------------------------------------------------------
Total dividends and distributions ............... (.0088) (.0025) (.0003)
-------------------------------------------------------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00
=======================================================
Total Investment Return ......................... .89% .25% .04%
=======================================================
====================================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement** .91% .91% .01%
=======================================================
Total expenses** ................................ 1.15% 1.17% .01%
=======================================================
Total investment income and realized gain--net .. .87% .24% .03%
=======================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $2,723,114 $3,041,555 $ 25
=======================================================
* Amount is less than $(.0001) per share.
** Includes the Fund's share of the Trust's allocated expenses.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 11
Financial Highlights (continued) WCMA Money Fund
Class 3
-------------------------------------------------------
For the Year Ended For the Period
March 31, March 20, 2003+
The following per share data and ratios have been derived -------------------------------- to March 31,
from information provided in the financial statements. 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------
Investment income--net .......................... .0120 .0056 .0003
Realized and unrealized gain (loss)--net ........ (.0011) .0006 .0001
-------------------------------------------------------
Total from investment operations ................ .0109 .0062 .0004
-------------------------------------------------------
Less dividends and distributions:
Investment income--net ......................... (.0120) (.0056) (.0003)
Realized gain--net ............................. --* (.0001) --
-------------------------------------------------------
Total dividends and distributions ............... (.0120) (.0057) (.0003)
-------------------------------------------------------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00
=======================================================
Total Investment Return ......................... 1.21% .57% .04%
=======================================================
====================================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement** .58% .59% .01%
=======================================================
Total expenses** ................................ .85% .87% .01%
=======================================================
Total investment income and realized gain--net .. 1.20% .57% .03%
=======================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $3,032,612 $3,337,395 $ 25
=======================================================
* Amount is less than $(.0001) per share.
** Includes the Fund's share of the Trust's allocated expenses.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
12 WCMA MONEY FUND MARCH 31, 2005
Financial Highlights (concluded) WCMA Money Fund
Class 4
-------------------------------------------------------
For the Year Ended For the Period
March 31, March 20, 2003+
The following per share data and ratios have been derived -------------------------------- to March 31,
from information provided in the financial statements. 2005 2004 2003
====================================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------
Investment income--net .......................... .0120 .0056 .0003
Realized and unrealized gain (loss)--net ........ (.0011) .0005 .0001
-------------------------------------------------------
Total from investment operations ................ .0109 .0061 .0004
-------------------------------------------------------
Less dividends and distributions:
Investment income--net ......................... (.0120) (.0056) (.0003)
Realized gain--net ............................. --* (.0001) --
-------------------------------------------------------
Total dividends and distributions ............... (.0120) (.0057) (.0003)
-------------------------------------------------------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00
=======================================================
Total Investment Return ......................... 1.21% .57% .04%
=======================================================
====================================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and reimbursement** .58% .59% .01%
=======================================================
Total expenses** ................................ .84% .87% .01%
=======================================================
Total investment income and realized gain--net .. 1.22% .57% .03%
=======================================================
====================================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........ $1,058,434 $1,115,330 $ 25
=======================================================
* Amount is less than $(.0001) per share.
** Includes the Fund's share of the Trust's allocated expenses.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 13
Notes to Financial Statements WCMA Money Fund
1. Significant Accounting Policies:
WCMA Money Fund (the "Fund") is registered under the Investment Company Act of
1940, as amended, as a no load, diversified, open-end management investment
company. The Fund seeks to achieve its investment objective by investing all of
its assets in the Master Money Trust (the "Trust"), which has the same
investment objective and strategies 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. The percentage of the Trust
owned by the Fund at March 31, 2005 was 49.8%. The Fund is divided into multiple
classes, designated Class 1, Class 2, Class 3 and Class 4. Each Class 1, Class
2, Class 3 and Class 4 Share represents interests in the same assets of the Fund
and has identical voting, dividend, liquidation and other rights and the same
terms and conditions, except that each class bears certain expenses related to
the distribution of such shares and the incremental transfer agency costs
resulting from the conversion of shares and has exclusive voting rights with
respect to matters relating to such account maintenance and distribution
expenditures. Income, expenses (other than expenses attributed to a specific
class) and realized and unrealized gains and losses are allocated daily to each
class based on its relative net assets. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments -- The Fund records its investments in the Trust at
fair value. Valuation of securities held by the Trust is discussed in Note 1a of
the Trust's Notes to Financial Statements, which are included elsewhere in this
report.
(b) Investment income and expenses -- The Fund records daily its proportionate
share of the Trust's income, expenses and realized and unrealized gains and
losses. In addition, the Fund accrues its own income and expenses.
(c) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
backup withholding tax withheld) in additional fund shares at net asset value.
Dividends and distributions are declared from the total of net investment income
and net realized gain or loss on investments.
(f) Investment transactions -- Investment transactions in the Trust are
accounted for on a trade date basis.
2. Transactions with Affiliates:
The Fund has entered into an Administration Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), a wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."),
which is the limited partner. The Fund pays a monthly fee at an annual rate of
..25% of the Fund's average daily net assets for the performance of
administrative services (other than investment advice and related portfolio
activities) necessary for the operation of the Fund.
The Fund has adopted Distribution Plans in compliance with Rule 12b-1 under the
Investment Company Act of 1940, pursuant to which Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("MLPF&S"), an affiliate of FAM, receives account
maintenance and distribution fees from the Fund. The fees are accrued daily and
paid monthly at annual rates based upon the average daily net assets of the
shares of the Fund as follows:
- --------------------------------------------------------------------------------
Account Distribution
Maintenance Fee Fee
- --------------------------------------------------------------------------------
Class 1 ....................................... .25% .75%
Class 2 ....................................... .25% .425%
Class 3 ....................................... .25% .125%
Class 4 ....................................... .25% .125%
- --------------------------------------------------------------------------------
The ongoing account maintenance fee compensates MLPF&S for providing account
maintenance services to shareholders. The ongoing distribution fee compensates
MLPF&S for providing shareholder and distribution related services to
shareholders. The Fund has entered into a contractual arrangement with FAM and
MLPF&S to waive and/or reimburse a portion of the Fund's fees and expenses to
ensure that the net expenses for the Fund's Class 2 Shares is .32% higher than
that of CMA Money Fund, and Class 3 and Class 4 Shares is equal to that of CMA
Money Fund. The fee/expense waiver or reimbursement includes account
14 WCMA MONEY FUND MARCH 31, 2005
Notes to Financial Statements (continued) WCMA Money Fund
maintenance and distribution fees. This arrangement has a one-year term and is
renewable. The Distributor has voluntarily agreed to waive a portion of its
distribution fees in order to ensure that each class of shareholders receives a
positive yield on each daily dividend. For the year ended March 31, 2005, FAM
and MLPF&S have earned fees of $20,494,064 and $44,513,574, respectively, of
which $19,792,842 was waived and/or reimbursed.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent. Interest is earned by the Fund from FDS based on the
difference, if any, between estimated and actual daily beneficial share
activity, which results in uninvested net proceeds from sales of Fund shares.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $(729,160,194) and $8,419,268,987 for the years ended March 31,
2005 and March 31, 2004, respectively.
- -------------------------------------------------------------------------------
Class 1 Shares for the Year Dollar
Ended March 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 10,727,013,888 $ 10,727,013,888
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 3,489,645 3,489,645
--------------------------------------
Total issued ....................... 10,730,503,533 10,730,503,533
Shares redeemed .................... (10,787,610,308) (10,787,610,308)
--------------------------------------
Net decrease ....................... (57,106,775) $ (57,106,775)
======================================
- -------------------------------------------------------------------------------
Class 1 Shares for the Year Dollar
Ended March 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 6,775,681,192 $ 6,775,681,192
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 232,421 232,421
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ............... 1,048,508,399 1,048,508,399
--------------------------------------
Total issued ....................... 7,824,422,012 7,824,422,012
Shares redeemed .................... (6,896,876,888) (6,896,876,888)
--------------------------------------
Net increase ....................... 927,545,124 $ 927,545,124
======================================
- -------------------------------------------------------------------------------
Class 2 Shares for the Year Dollar
Ended March 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 19,076,403,931 $ 19,076,403,931
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 25,642,525 25,642,525
--------------------------------------
Total issued ....................... 19,102,046,456 19,102,046,456
Shares redeemed .................... (19,417,249,369) (19,417,249,369)
--------------------------------------
Net decrease ....................... (315,202,913) $ (315,202,913)
======================================
- -------------------------------------------------------------------------------
Class 2 Shares for the Year Dollar
Ended March 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 12,579,429,498 $ 12,579,429,498
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 5,059,246 5,059,246
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ............... 3,683,173,722 3,683,173,722
--------------------------------------
Total issued ....................... 16,267,662,466 16,267,662,466
Shares redeemed .................... (13,227,179,833) (13,227,179,833)
--------------------------------------
Net increase ....................... 3,040,482,633 $ 3,040,482,633
======================================
- -------------------------------------------------------------------------------
Class 3 Shares for the Year Dollar
Ended March 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 29,412,629,830 $ 29,412,629,830
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 39,261,452 39,261,452
--------------------------------------
Total issued ....................... 29,451,891,282 29,451,891,282
Shares redeemed .................... (29,753,093,570) (29,753,093,570)
--------------------------------------
Net decrease ....................... (301,202,288) $ (301,202,288)
======================================
- -------------------------------------------------------------------------------
Class 3 Shares for the Year Dollar
Ended March 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 17,340,918,355 $ 17,340,918,355
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 12,034,036 12,034,036
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ............... 3,260,895,036 3,260,895,036
--------------------------------------
Total issued ....................... 20,613,847,427 20,613,847,427
Shares redeemed .................... (17,277,587,789) (17,277,587,789)
--------------------------------------
Net increase ....................... 3,336,259,638 $ 3,336,259,638
======================================
WCMA MONEY FUND MARCH 31, 2005 15
Notes to Financial Statements (concluded) WCMA Money Fund
- -------------------------------------------------------------------------------
Class 4 Shares for the Year Dollar
Ended March 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 19,173,357,780 $ 19,173,357,780
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 13,964,268 13,964,268
--------------------------------------
Total issued ....................... 19,187,322,048 19,187,322,048
Shares redeemed .................... (19,242,970,266) (19,242,970,266)
--------------------------------------
Net decrease ....................... (55,648,218) $ (55,648,218)
======================================
- -------------------------------------------------------------------------------
Class 4 Shares for the Year Dollar
Ended March 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold ........................ 12,538,154,675 $ 12,538,154,675
Shares issued to shareholders
in reinvestment of dividends
and distributions ................ 4,180,008 4,180,008
Shares issued in connection with
the bulk transfer of WCMA
shareholder assets ............... 959,243,343 959,243,343
--------------------------------------
Total issued ....................... 13,501,578,026 13,501,578,026
Shares redeemed .................... (12,386,596,434) (12,386,596,434)
--------------------------------------
Net increase ....................... 1,114,981,592 $ 1,114,981,592
======================================
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended March 31,
2005 and March 31, 2004 was as follows:
- -------------------------------------------------------------------------------
3/31/2005 3/31/2004
- -------------------------------------------------------------------------------
Distributions paid from:
Ordinary income .................. $ 82,359,431 $ 21,452,437
Net long-term capital gains ...... 2,198 50,228
--------------------------------------
Total taxable distributions ........ $ 82,361,629 $ 21,502,665
======================================
As of March 31, 2005, the components of accumulated losses on a tax basis were
as follows:
- ------------------------------------------------------------------------------
Undistributed ordinary income--net ........................ $ 3,540
Undistributed long-term capital gains--net ................ --
-----------
Total undistributed earnings--net ......................... 3,540
Capital loss carryforward ................................. --
Unrealized losses--net .................................... (6,212,722)*
-----------
Total accumulated losses--net ............................. $(6,209,182)
===========
* The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the deferral of post-October capital losses for
tax purposes.
Report of Independent Registered Public Accounting Firm WCMA Money Fund
To the Shareholders and Board of
Trustees of WCMA Money Fund:
We have audited the accompanying statement of assets and liabilities of WCMA
Money Fund as of March 31, 2005, 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
respective periods 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 the standards of the Public Company
Accounting Oversight Board (United States). 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. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, 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 WCMA
Money Fund as of March 31, 2005, 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 respective periods then
ended, in conformity with U.S. generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 20, 2005
16 WCMA MONEY FUND MARCH 31, 2005
Schedule of Investments Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
===============================================================================================================
Bank Notes--2.4%
===============================================================================================================
Bank of $375,000 2.815+% 2/22/2006 $ 375,000
America, NA
- ---------------------------------------------------------------------------------------------------------------
Total Bank Notes (Cost--$375,000) ........................................................... 375,000
===============================================================================================================
Certificates of Deposit--4.1%
===============================================================================================================
First Tennessee 125,000 2.77 5/06/2005 125,000
Bank NA
- ---------------------------------------------------------------------------------------------------------------
Wells Fargo 500,000 2.80+ 12/13/2005 500,000
Bank, NA
- ---------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$625,000) .............................................. 625,000
===============================================================================================================
Certificates of Deposit--European--0.6%
===============================================================================================================
Calyon 100,000 3.27 11/30/2005 99,828
- ---------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$100,000) ............................................................................ 99,828
===============================================================================================================
Certificates of Deposit--Yankee--8.4%
===============================================================================================================
ABN AMRO 250,000 1.25 4/05/2005 249,952
Bank NV 99,000 2.691+ 2/13/2006 98,972
- ---------------------------------------------------------------------------------------------------------------
Barclays Capital Inc. 150,000 2.75 5/03/2005 150,000
- ---------------------------------------------------------------------------------------------------------------
Canadian Imperial 97,000 2.955 12/30/2005 96,513
Bank of Commerce 180,000 2.87+ 4/14/2006 180,000
- ---------------------------------------------------------------------------------------------------------------
DEPFA-Bank 75,000 3.02 10/21/2005 74,828
Europe Plc
- ---------------------------------------------------------------------------------------------------------------
HBOS Treasury 61,000 2.95 12/30/2005 60,691
Services Plc 184,000 3.05 12/30/2005 183,216
- ---------------------------------------------------------------------------------------------------------------
Toronto-Dominion 100,000 2.95 12/30/2005 99,494
Bank 98,000 3.03 12/30/2005 97,566
- ---------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$1,293,342) .......................................................................... 1,291,232
===============================================================================================================
Commercial Paper--17.9%
===============================================================================================================
American Honda 70,000 2.76 4/27/2005 69,855
Finance Corp.
- ---------------------------------------------------------------------------------------------------------------
Amstel Funding 75,000 3.01 6/30/2005 74,431
Corp.
- ---------------------------------------------------------------------------------------------------------------
Amsterdam 20,700 2.67 4/14/2005 20,678
Funding Corp. 94,300 2.77 4/25/2005 94,119
- ---------------------------------------------------------------------------------------------------------------
Chariot 73,221 2.76 4/12/2005 73,153
Funding LLC 25,676 2.77 4/13/2005 25,650
- ---------------------------------------------------------------------------------------------------------------
Compass 75,000 2.74 4/14/2005 74,920
Securitization LLC
- ---------------------------------------------------------------------------------------------------------------
Edison Asset 127,673 2.74 5/04/2005 127,343
Securitization, LLC
- ---------------------------------------------------------------------------------------------------------------
Falcon Asset 104,336 2.65 4/07/2005 104,282
Securitization 148,197 2.73 4/14/2005 148,039
Corp. 41,261 2.76 4/18/2005 41,204
36,477 2.78 4/26/2005 36,404
- ---------------------------------------------------------------------------------------------------------------
Fortis 100,000 3.47 12/22/2005 97,371
Funding LLC
- ---------------------------------------------------------------------------------------------------------------
HBOS Treasury 5,390 3.00 6/30/2005 5,349
Services Plc
- ---------------------------------------------------------------------------------------------------------------
Jupiter 75,319 2.72 4/13/2005 75,245
Securitization 21,384 2.76 4/14/2005 21,361
Corp. 75,000 2.76 4/18/2005 74,896
- ---------------------------------------------------------------------------------------------------------------
Kitty Hawk 100,000 2.76 4/18/2005 99,862
Funding Corp.
- ---------------------------------------------------------------------------------------------------------------
Lehman Brothers 125,000 2.81+ 5/06/2005 125,000
Holdings Inc. 46,000 2.80+ 12/05/2005 46,000
- ---------------------------------------------------------------------------------------------------------------
New Center 68,727 2.63 4/01/2005 68,722
Asset Trust
- ---------------------------------------------------------------------------------------------------------------
Park Avenue 30,272 2.76 4/18/2005 30,230
Receivables Co. LLC
- ---------------------------------------------------------------------------------------------------------------
Preferred 30,127 2.64 4/04/2005 30,118
Receivables 130,944 2.73 4/14/2005 130,805
Funding Corp. 117,929 2.79 4/28/2005 117,673
- ---------------------------------------------------------------------------------------------------------------
SEB AB 150,000 2.82+ 1/20/2006 150,000
- ---------------------------------------------------------------------------------------------------------------
Societe Generale 75,098 2.78 4/21/2005 74,976
North America, Inc.
- ---------------------------------------------------------------------------------------------------------------
Spintab AB 143,000 3.00 6/29/2005 141,928
- ---------------------------------------------------------------------------------------------------------------
Thunder Bay 35,000 2.61 4/11/2005 34,971
Funding LLC
- ---------------------------------------------------------------------------------------------------------------
Westdeutsche 300,000 2.75 5/04/2005 299,221
Landesbank
Girozentrale
- ---------------------------------------------------------------------------------------------------------------
Windmill Funding 250,000 2.78 4/26/2005 249,498
Corp.
- ---------------------------------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$2,763,368) ................................................... 2,763,304
===============================================================================================================
Corporate Notes--3.9%
===============================================================================================================
Blue Heron 93,000 2.88+ 2/22/2006 93,000
Funding IX Ltd.
- ---------------------------------------------------------------------------------------------------------------
Newcastle 60,000 2.88+ 3/24/2006 60,000
CDO III, Ltd.
- ---------------------------------------------------------------------------------------------------------------
Permanent 94,000 2.75+ 6/10/2005 94,000
Financing Plc 178,000 2.74+ 9/10/2005 178,000
114,000 2.81+ 3/10/2006 114,000
- ---------------------------------------------------------------------------------------------------------------
Putnam Structured 40,000 2.89+ 10/17/2005 40,000
Products 26,000 2.89+ 11/15/2005 26,000
- ---------------------------------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$605,000) ...................................................... 605,000
- ---------------------------------------------------------------------------------------------------------------
WCMA MONEY FUND MARCH 31, 2005 17
Schedule of Investments (continued) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
===============================================================================================================
Funding Agreements--6.8%
===============================================================================================================
Allstate Life $ 45,000 2.79+% 11/01/2005 $ 45,000
Insurance Co. (a)
- ---------------------------------------------------------------------------------------------------------------
General Electric 50,000 2.78+ 11/01/2005 50,000
Capital Assurance 150,000 2.75+ 12/01/2005 150,000
Co. (a)
- ---------------------------------------------------------------------------------------------------------------
ING USA Annuity 45,000 2.904+ 7/18/2005 45,000
and Life Insurance
Co. (a)
- ---------------------------------------------------------------------------------------------------------------
Jackson National 15,000 2.77+ 5/02/2005 15,000
Life Insurance Co. (a)
- ---------------------------------------------------------------------------------------------------------------
Metropolitan Life 165,000 2.80+ 4/01/2005 165,000
Insurance Co. (a) 88,000 2.79+ 2/01/2006 88,000
- ---------------------------------------------------------------------------------------------------------------
Monumental Life 145,000 2.835+ 2/15/2006 145,000
Insurance Co. (a)
- ---------------------------------------------------------------------------------------------------------------
New York Life 226,000 2.91+ 5/27/2005 226,000
Insurance Co. (a)
- ---------------------------------------------------------------------------------------------------------------
The Travelers 25,000 2.75+ 5/02/2005 25,000
Insurance Co. (a) 25,000 2.74+ 9/16/2005 25,000
45,000 2.75+ 3/01/2006 45,000
25,000 2.76+ 3/01/2006 25,000
- ---------------------------------------------------------------------------------------------------------------
Total Funding Agreements
(Cost--$1,049,000) .......................................................................... 1,049,000
===============================================================================================================
Master Notes--0.9%
===============================================================================================================
J.P. Morgan 140,000 2.77+ 8/19/2005 140,000
Securities Inc.
- ---------------------------------------------------------------------------------------------------------------
Total Master Notes (Cost--$140,000) ......................................................... 140,000
===============================================================================================================
Medium-Term Notes--13.4%
===============================================================================================================
ASIF Global 54,000 2.84+ 4/21/2006 54,000
Financing
- ---------------------------------------------------------------------------------------------------------------
American Honda 50,000 2.73+ 11/09/2005 49,987
Finance Corp.
- ---------------------------------------------------------------------------------------------------------------
General Electric 37,500 2.743+ 10/24/2005 37,521
Capital Corp. 290,605 2.93+ 4/17/2006 290,605
- ---------------------------------------------------------------------------------------------------------------
Goldman Sachs 202,600 2.80+ 4/14/2006 202,619
Group, Inc.
- ---------------------------------------------------------------------------------------------------------------
HSBC 200,000 2.706+ 7/05/2005 200,000
Finance Corp. 143,125 2.84+ 4/24/2006 143,125
- ---------------------------------------------------------------------------------------------------------------
MetLife Global 60,000 2.736+ 4/06/2006 60,000
Funding, Inc. 50,500 2.85+ 4/13/2006 50,500
- ---------------------------------------------------------------------------------------------------------------
Morgan Stanley 85,000 2.75+ 4/04/2006 85,000
51,000 2.81+ 4/13/2006 51,000
76,000 2.89+ 4/27/2006 76,000
- ---------------------------------------------------------------------------------------------------------------
Nationwide 52,500 3.12+ 4/28/2006 52,500
Building Society
- ---------------------------------------------------------------------------------------------------------------
Northern Rock Plc 91,000 3.00+ 4/07/2006 91,000
- ---------------------------------------------------------------------------------------------------------------
Restructured Asset 60,000 2.86+ 2/27/2006 60,000
Securities with
Enhanced Returns,
Series 1998-
MM-7-1 Trust
- ---------------------------------------------------------------------------------------------------------------
Sigma Finance 87,500 2.815+ 5/05/2005 87,499
Corp. 175,000 2.696+ 8/08/2005 174,991
- ---------------------------------------------------------------------------------------------------------------
Toyota Motor 100,000 2.711+ 8/11/2005 100,000
Credit Corp. 50,000 2.70+ 4/07/2006 50,000
- ---------------------------------------------------------------------------------------------------------------
Wells Fargo & Co. 55,145 3.10+ 9/12/2005 55,174
(Cayman Island)
- ---------------------------------------------------------------------------------------------------------------
Westpac 44,000 2.99+ 4/11/2006 43,999
Banking Corp.
- ---------------------------------------------------------------------------------------------------------------
White Pine 50,000 2.81+ 1/25/2006 49,992
Finance LLC
- ---------------------------------------------------------------------------------------------------------------
Total Medium-Term Notes
(Cost--$2,065,501) .......................................................................... 2,065,512
===============================================================================================================
Promissory Notes--0.8%
===============================================================================================================
Goldman Sachs 125,000 2.87+ 4/18/2005 125,000
Group, Inc.
- ---------------------------------------------------------------------------------------------------------------
Total Promissory Notes
(Cost--$125,000) ............................................................................ 125,000
===============================================================================================================
U.S. Government & Agency Obligations--
Non-Discount Notes--40.5%
===============================================================================================================
Fannie Mae 26,800 1.85 6/03/2005 26,745
400,000 2.87+ 6/09/2005 399,912
20,000 1.50 6/17/2005 19,935
540,000 2.73+ 8/17/2005 539,938
36,000 2.06 8/26/2005 35,861
97,000 2.11 8/26/2005 96,618
984,000 2.733+ 8/29/2005 983,805
492,000 2.82+ 9/06/2005 491,803
53,400 2.32 9/30/2005 53,105
55,000 2.07 10/21/2005 54,594
55,000 2.10 10/21/2005 54,603
52,510 2.375 5/04/2006 51,719
- ---------------------------------------------------------------------------------------------------------------
Federal Farm 82,000 2.77+ 2/21/2006 81,985
Credit Banks 50,000 2.78+ 5/24/2006 49,971
50,000 2.72+ 11/24/2006 49,984
44,950 2.635+ 4/04/2007 44,919
50,000 2.78+ 9/27/2007 49,982
54,750 2.80+ 2/20/2008 54,734
- ---------------------------------------------------------------------------------------------------------------
18 WCMA MONEY FUND MARCH 31, 2005
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 $125,900 1.50 % 5/13/2005 $ 125,692
Loan Banks 250,000 1.50 8/26/2005 248,481
466,000 2.765+ 8/26/2005 465,906
84,000 2.875+ 9/12/2005 83,992
170,000 2.505+ 10/03/2005 170,004
250,000 2.656+ 5/10/2006 249,894
85,000 2.25 5/15/2006 83,574
500,000 2.74+ 8/21/2006 499,586
49,500 3.25 11/29/2006 48,968
54,000 3.45 1/10/2007 53,541
- ---------------------------------------------------------------------------------------------------------------
Freddie Mac 75,000 2.15 10/28/2005 74,455
49,000 2.41 11/04/2005 48,703
533,000 2.725+ 11/07/2005 533,079
100,000 2.30 11/17/2005 99,274
36,185 2.375 11/25/2005 35,847
102,000 2.35 12/09/2005 101,191
27,600 2.55 5/10/2006 27,230
74,500 3.00 11/09/2006 73,185
- ---------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes 32,000 1.50 3/31/2006 31,394
50,000 2.50 10/31/2006 49,086
- ---------------------------------------------------------------------------------------------------------------
Total U.S. Government & Agency
Obligations--Non-Discount Notes
(Cost--$6,254,189) .......................................................................... 6,243,295
- ---------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$15,395,400**)--99.7% .............................................. 15,382,171
Other Assets Less Liabilities--0.3% ......................................................... 46,733
-----------
Net Assets--100.0% .......................................................................... $15,428,904
===========
* 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 March 31, 2005.
** The cost and unrealized appreciation (depreciation) of investments as of
March 31, 2005, as computed for federal income tax purposes, were as
follows:
(in Thousands)
-------------------------------------------------------------------------
Aggregate cost ............................................ $15,395,400
===========
Gross unrealized appreciation ............................. $ 200
Gross unrealized depreciation ............................. (13,429)
-----------
Net unrealized depreciation ............................... $ (13,229)
===========
+ Variable rate notes.
(a) Restricted securities as to resale, representing 6.8% of net assets, were
as follows:
(in Thousands)
-----------------------------------------------------------------------------------------------------------------------
Issue Acquisition Date Cost Value
-----------------------------------------------------------------------------------------------------------------------
Allstate Life Insurance Co., 2.79% due 11/01/2005 11/01/2004 $ 45,000 $ 45,000
General Electric Capital Assurance Co.:
2.78% due 11/01/2005 11/01/2004 50,000 50,000
2.75% due 12/01/2005 12/01/2004 150,000 150,000
ING USA Annuity and Life Insurance Co., 2.904% due 7/18/2005 6/17/2004 45,000 45,000
Jackson National Life Insurance Co., 2.77% due 5/02/2005 5/03/2004 15,000 15,000
Metropolitan Life Insurance Co.:
2.80% due 4/01/2005 4/01/2004 165,000 165,000
2.79% due 2/01/2006 2/01/2005 88,000 88,000
Monumental Life Insurance Co., 2.835% due 2/15/2006 2/17/2005 145,000 145,000
New York Life Insurance Co., 2.91% due 5/27/2005 5/28/2004 226,000 226,000
The Travelers Insurance Co.:
2.75% due 5/02/2005 5/03/2004 25,000 25,000
2.74% due 9/16/2005 9/16/2004 25,000 25,000
2.75% due 3/01/2006 3/01/2005 45,000 45,000
2.76% due 3/01/2006 3/01/2005 25,000 25,000
-----------------------------------------------------------------------------------------------------------------------
Total $1,049,000 $1,049,000
========== ==========
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)
----------------------------------------------------------------------------------------------------
Net Interest/Dividend
Affiliate Activity Income
----------------------------------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC Money Market Series $ (61,612) $ 20
Merrill Lynch Premier Institutional Fund (554,449) $409
----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 19
Statement of Assets and Liabilities Master Money Trust
As of March 31, 2005
==============================================================================================================================
Assets
- ------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified
cost--$15,395,399,967) ........................................... $15,382,170,871
Cash ............................................................. 631
Receivables:
Interest ...................................................... $ 36,868,723
Contributions ................................................. 11,757,205 48,625,928
-------------
Prepaid expenses ................................................. 52,097
---------------
Total assets ..................................................... 15,430,849,527
---------------
==============================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------
Payables:
Investment adviser ............................................ 1,512,749
Other affiliates .............................................. 170,234 1,682,983
-------------
Accrued expenses ................................................. 262,410
---------------
Total liabilities ................................................ 1,945,393
---------------
==============================================================================================================================
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Net assets ....................................................... $15,428,904,134
===============
==============================================================================================================================
Net Assets Consist of
- ------------------------------------------------------------------------------------------------------------------------------
Investors' capital ............................................... $15,442,133,230
Unrealized depreciation--net ..................................... (13,229,096)
---------------
Net Assets ....................................................... $15,428,904,134
===============
See Notes to Financial Statements.
20 WCMA MONEY FUND MARCH 31, 2005
Statement of Operations Master Money Trust
For the Year Ended March 31, 2005
==============================================================================================================================
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned ......... $ 300,694,847
Securities lending--net .......................................... 429,102
-------------
Total income ..................................................... 301,123,949
-------------
==============================================================================================================================
Expenses
- ------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ......................................... $ 22,428,317
Accounting services .............................................. 2,111,458
Custodian fees ................................................... 423,905
Professional fees ................................................ 140,051
Trustees' fees and expenses ...................................... 115,237
Pricing fees ..................................................... 53,772
Printing and shareholder reports ................................. 26,605
Other ............................................................ 148,620
-------------
Total expenses ................................................... 25,447,965
-------------
Investment income--net ........................................... 275,675,984
-------------
==============================================================================================================================
Realized & Unrealized Gain (Loss)--Net
- ------------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net ................................ 350,251
Change in unrealized appreciation/depreciation on investments--net (19,014,309)
-------------
Total realized and unrealized loss--net .......................... (18,664,058)
-------------
Net Increase in Net Assets Resulting from Operations ............. $ 257,011,926
=============
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2005 21
Statements of Changes in Net Assets Master Money Trust
For the Year Ended
March 31,
--------------------------------------
Increase (Decrease) in Net Assets: 2005 2004
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ $ 275,675,984 $ 224,167,606
Realized gain--net ................................................ 350,251 2,862,817
Change in unrealized appreciation/depreciation--net ............... (19,014,309) (5,794,776)
--------------------------------------
Net increase in net assets resulting from operations .............. 257,011,926 221,235,647
--------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions ....................................... 128,134,342,599 135,901,777,616
Fair value of withdrawals ......................................... (132,249,310,652) (139,965,166,016)
--------------------------------------
Net decrease in net assets derived from capital transactions ...... (4,114,968,053) (4,063,388,400)
--------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ...................................... (3,857,956,127) (3,842,152,753)
Beginning of year ................................................. 19,286,860,261 23,129,013,014
--------------------------------------
End of year ....................................................... $ 15,428,904,134 $ 19,286,860,261
======================================
See Notes to Financial Statements.
Financial Highlights Master Money Trust
For the Year Ended For the Period
March 31, February 13, 2003+
The following ratios have been derived from ---------------------------------- to March 31,
information provided in the financial statements. 2005 2004 2003
=========================================================================================================================
Total Investment Return
- -------------------------------------------------------------------------------------------------------------------------
Total investment return ................ 1.64% 1.06% .90%*
====================================================
=========================================================================================================================
Ratios to Average Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Expenses ............................... .15% .15% .21%*
====================================================
Investment income and realized gain--net 1.60% 1.08% 1.25%*
====================================================
=========================================================================================================================
Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 15,428,904 $ 19,286,860 $ 23,129,013
====================================================
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
22 WCMA MONEY FUND MARCH 31, 2005
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. 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.
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.
WCMA MONEY FUND MARCH 31, 2005 23
Notes to Financial Statements (concluded) Master Money Trust
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"), an affiliate of FAM, 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, 2005, MLIM, LLC
received $181,229 in securities lending agent fees.
For the year ended March 31, 2005, the Trust reimbursed FAM $364,193 for certain
accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, and/or ML & Co.
24 WCMA MONEY FUND MARCH 31, 2005
Report of Independent Registered Public Accounting Firm 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, 2005, 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 the respective periods then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). 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. The Trust
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Trust's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of March 31, 2005, by correspondence with the custodian.
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, 2005, 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 the respective periods then
ended, in conformity with U.S. generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 20, 2005
WCMA MONEY FUND MARCH 31, 2005 25
Officers and Trustees
Number of
Portfolios in Other Public
Position(s) Length of Fund Complex Directorships
Held with Time Overseen by Held by
Name Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. P.O. Box 9011 President 2005 to President of MLIM/FAM-advised funds since 2005; 124 Funds None
Doll, Jr.* Princeton, NJ and present President of MLIM and FAM since 2001; Co-Head 163 Portfolios
08543-9011 Trustee (Americas Region) thereof from 2000 to 2001 and
Age: 50 Senior Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc. ("Princeton
Services") since 2001; President of Princeton
Administrators, L.P. ("Princeton Administrators") since
2001; Chief Investment Officer of Oppenheimer
Funds, Inc. in 1999 and Executive Vice President
thereof from 1991 to 1999.
------------------------------------------------------------------------------------------------------------------------
* Mr. Doll 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. Doll is an "interested person," as defined in the Investment Company Act, of the
Fund based on his current positions with MLIM, FAM, Princeton Services and Princeton Administrators, L.P. Trustees
serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. As Fund/Trust
President, Mr. Doll serves at the pleasure of the Board of Trustees.
====================================================================================================================================
Independent Trustees*
- ------------------------------------------------------------------------------------------------------------------------------------
Ronald W. P.O. Box 9095 Trustee 2003 to Professor Emeritus of Finance, School of Business, 48 Funds None
Forbes Princeton, NJ present State University of New York at Albany since 2000 48 Portfolios
08543-9095 and Professor thereof from 1989 to 2000;
Age: 64 International Consultant at the Urban Institute
from 1995 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. P.O. Box 9095 Trustee 2003 to Professor, Harvard Business School since 1989; 48 Funds Newell
Montgomery Princeton, NJ present Associate Professor, J.L. Kellogg Graduate School of 48 Portfolios Rubbermaid,
08543-9095 Management, Northwestern University from 1985 Inc. (manu-
Age: 52 to 1989; Associate Professor, Graduate School of facturing)
Business Administration, University of Michigan
from 1979 to 1985; Director, Harvard Business
School of Publishing since 2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Jean Margo P.O. Box 9095 Trustee 2004 to Self-employed consultant since 2001; Counsel of 48 Funds None
Reid Princeton, NJ present Alliance Capital Management (investment adviser) 48 Portfolios
08543-9095 in 2000; General Counsel, Director and Secretary of
Age: 59 Sanford C. Bernstein & Co., Inc. (investment adviser/
broker-dealer) from 1997 to 2000; Secretary, Sanford
C. Bernstein Fund, Inc. from 1994 to 2000; Director
and Secretary of SCB, Inc. since 1998; Director and
Secretary of SCB Partners, Inc. since 2000; Director
of Covenant House from 2001 to 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. P.O. Box 9095 Trustee 2003 to President, Middle East Institute from 1995 to 2001; 48 Funds None
Suddarth Princeton, NJ present Foreign Service Officer, United States Foreign 48 Portfolios
08543-9095 Service from 1961 to 1995, Career Minister, from 1989
Age: 69 to 1995; Deputy Inspector General, 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 from 1984 to 1995, Dean from 48 Funds Bowne &
West Princeton, NJ present 1984 to 1993 and since 1995 Dean Emeritus of 48 Portfolios Co., Inc.
08543-9095 New York University Leonard N. Stern School of (financial
Age: 67 Business Administration. printers);
Vornado
Realty Trust
(real estate
company);
Alexander's,
Inc. (real
estate
company)
26 WCMA MONEY FUND MARCH 31, 2005
Officers and Trustees (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/Trust Served Principal Occupation(s) During Past 5 Years Trustee Trustee
====================================================================================================================================
Independent Trustees* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Edward D. P.O. Box 9095 Trustee 2003 to Self-employed financial consultant since 1994; 48 Funds None
Zinbarg Princeton, NJ present Executive Vice President of The Prudential 48 Portfolios
08543-9095 Insurance Company of America from 1988 to
Age: 70 1994; former Director of Prudential Reinsurance
Company and former Trustee of The Prudential
Foundation.
------------------------------------------------------------------------------------------------------------------------
* 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/Trust Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Fund Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. P.O. Box 9011 Vice 2003 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 and Director
08543-9011 and since 2004; Vice President of FAMD since 1999; Vice President of MLIM and FAM from
Age: 44 Treasurer 1990 to 1997; Director of Taxation of MLIM from 1990 to 2001; Vice President,
Treasurer and Secretary of the IQ Funds since 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard J. P.O. Box 9011 Vice 2003 to Director of MLIM since 2000; Vice President of MLIM from 1995 to 2000.
Mejzak Princeton, NJ President present
08543-9011
Age: 36
- ------------------------------------------------------------------------------------------------------------------------------------
Jeffrey P.O. Box 9011 Chief 2004 to Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice President and
Hiller Princeton, NJ Compliance present Chief Compliance Officer of MLIM (Americas Region) since 2004; Chief Compliance
08543-9011 Officer Officer of the IQ Funds since 2004; Global Director of Compliance at Morgan Stanley
Age: 53 Investment Management from 2002 to 2004; Managing Director and Global Director of
Compliance at Citigroup Asset Management from 2000 to 2002; Chief Compliance
Officer at Soros Fund Management in 2000; Chief Compliance Officer at Prudential
Financial from 1995 to 2000; Senior Counsel in the Commission's Division of
Enforcement in Washington, D.C. from 1990 to 1995.
- ------------------------------------------------------------------------------------------------------------------------------------
Alice A. P.O. Box 9011 Secretary 2004 to Director (Legal Advisory) of MLIM since 2002; Vice President of MLIM from 1999 to
Pellegrino Princeton, NJ present 2002; Attorney associated with MLIM since 1997; Secretary of MLIM, FAM, FAMD and
08543-9011 Princeton Services since 2004.
Age: 45
------------------------------------------------------------------------------------------------------------------------
* Officers of the Fund/Trust 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 WCMA account, call 800-262-4636.
- --------------------------------------------------------------------------------
Effective January 1, 2005, Terry K. Glenn, President and Trustee and Kevin A.
Ryan, Trustee of WCMA Money Fund and Master Money Trust retired. The
Fund's/Trust's Board of Trustees wishes Messrs. Glenn and Ryan well in their
retirements.
Effective January 1, 2005, Robert C. Doll, Jr. became President and Trustee of
the Fund and the Trust.
- --------------------------------------------------------------------------------
WCMA MONEY FUND MARCH 31, 2005 27
[LOGO] Merrill Lynch Investment Managers
www.mlim.ml.com
- --------------------------------------------------------------------------------
Mercury Advisors
A Division of Merrill Lynch Investment Managers
www.mercury.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.
WCMA Money Fund
Box 9011
Princeton, NJ
08543-9011
#WCMAM -- 3/05
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
WCMA Money Fund
(a) Audit Fees - Fiscal Year Ending March 31, 2005 - $6,500
Fiscal Year Ending March 31, 2004 - $6,200
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2005 - $0
Fiscal Year Ending March 31, 2004 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2005 - $6,300
Fiscal Year Ending March 31, 2004 - $5,800
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2005 - $0
Fiscal Year Ending March 31, 2004 - $0
Master Money Trust
(a) Audit Fees - Fiscal Year Ending March 31, 2005 - $41,000
Fiscal Year Ending March 31, 2004 - $42,000
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2005 - $0
Fiscal Year Ending March 31, 2004 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2005 - $8,700
Fiscal Year Ending March 31, 2004 - $8,000
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2005 - $0
Fiscal Year Ending March 31, 2004 - $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 all of the registrants the Committee oversees. Any proposed
services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject
to general pre-approval (e.g., unanticipated but permissible services).
The Committee is informed of each service approved subject to general
pre-approval at the next regularly scheduled in-person board meeting.
(e)(2) 0%
(f) Not Applicable
(g) Fiscal Year Ending March 31, 2005 - $10,018,400
Fiscal Year Ending March 31, 2004 - $16,708,160
(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) - $945,000, 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 - Portfolio Managers of Closed-End Management Investment Companies - Not
Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(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.
11(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 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(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.
WCMA Money Fund and Master Money Trust
By: /s/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
WCMA Money Fund and Master Money Trust
Date: May 23, 2005
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/ Robert C. Doll, Jr.
---------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
WCMA Money Fund and Master Money Trust
Date: May 23, 2005
By: /s/ Donald C. Burke
---------------------------
Donald C. Burke,
Chief Financial Officer of
WCMA Money Fund and Master Money Trust
Date: May 23, 2005