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: 03/31/06
Date of reporting period: 04/01/05 - 03/31/06
Item 1 - Report to Stockholders
Annual Report
March 31, 2006
WCMA Money Fund
WCMA Money Fund
Announcement to Shareholders
On February 15, 2006, BlackRock, Inc. ("BlackRock") and Merrill Lynch & Co.,
Inc. ("Merrill Lynch") entered into an agreement to contribute Merrill Lynch's
investment management business, Merrill Lynch Investment Managers, L.P. and
certain affiliates (including Fund Asset Management, L.P. and Merrill Lynch
Investment Managers International Limited), to BlackRock to create a new
independent company that will be one of the world's largest asset management
firms with over $1 trillion in assets under management (based on combined assets
under management as of March 31, 2006). The transaction is expected to close in
the third quarter of 2006, at which time the new company will operate under the
BlackRock name. If approved by the Fund's/Trust's Board of Trustees and
Fund/Trust shareholders, the combined company that results from the transaction
is expected to become the investment adviser of the Fund/Trust.
Important Tax Information
Of the ordinary income distributions paid by WCMA Money Fund during the year
ended March 31, 2006, 10.74% 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.
The following information is provided with respect to the ordinary income
distributions paid by WCMA Money Fund for the fiscal year ended March 31, 2006:
- --------------------------------------------------------------------------------
Interest-Related Dividends for Non-U.S. Residents
- --------------------------------------------------------------------------------
Month Paid: April 2005 - December 2005 .................... 92.89%*
January 2006 - March 2006 ..................... 84.86%*
- --------------------------------------------------------------------------------
Qualified Short-Term Capital Gains for Non-U.S. Residents
- --------------------------------------------------------------------------------
Month Paid: April 2005 - December 2005 .................... 0.03%*
- --------------------------------------------------------------------------------
* Represents the portion of the taxable ordinary income dividends eligible
for exemption from U.S. withholding tax for nonresident aliens and foreign
corporations.
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.
2 WCMA MONEY FUND MARCH 31, 2006
A Letter From the President
Dear Shareholder
You may be aware that changes are on the horizon at Merrill Lynch Investment
Managers ("MLIM"). On February 15, 2006, Merrill Lynch announced plans to
combine the firm's investment advisory business, including MLIM, with another
highly regarded investment manager -- BlackRock, Inc. ("BlackRock").
We believe this merger of asset management strength will benefit our investors.
MLIM is a leading investment management organization with over $576 billion in
assets under management globally and 2,757 employees in 17 countries. It offers
over 100 investment strategies in vehicles ranging from mutual funds to
institutional portfolios. BlackRock is one of the largest publicly traded
investment management firms in the United States with $463.1 billion in assets
under management and 1,839 employees. It manages assets on behalf of
institutional and individual investors worldwide through a variety of equity,
fixed income, liquidity and alternative investment products.
At the completion of the transaction, which is expected in the third quarter of
this year, the resultant firm will be a top-10 investment manager worldwide with
over $1 trillion in assets under management.* The combined company will provide
a wider selection of high-quality investment solutions across a range of asset
classes and investment styles. MLIM and BlackRock possess complementary
capabilities that together create a well-rounded organization uniting some of
the finest money managers in the industry. At the same time, the firms share
similar values and beliefs -- they are focused on delivering excellence on
behalf of clients, and both make investment performance their single most
important mission. In short, the merger only reinforces our commitment to
shareholders.
Most of MLIM's investment products -- including mutual funds, separately managed
accounts, annuities and variable insurance funds -- eventually will carry the
"BlackRock" name. As a shareholder in one or more MLIM-advised mutual funds, you
will receive a proxy package in the coming weeks in connection with this
transaction. After you receive this information, should you have any questions
or concerns, do not hesitate to contact your financial advisor.
As always, we thank you for entrusting us with your investment assets, and we
look forward to continuing to serve your investment needs with even greater
strength and scale as the new BlackRock.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
President and Chief Investment Officer
Merrill Lynch Investment Managers
* $1.039 trillion in assets under management as of March 31, 2006.
Data, including assets under management, are as of March 31, 2006.
WCMA MONEY FUND MARCH 31, 2006 3
A Discussion With Your Fund's Portfolio Manager
We maintained the Fund's average maturity in the 55-day to 65-day range
throughout the year, although our portfolio composition varied as we found
different sectors and asset classes to be attractive.
How did the Fund perform during the fiscal year in light of the existing market
conditions?
For the 12-month period ended March 31, 2006, WCMA Money Fund's Class 1, Class
2, Class 3 and Class 4 Shares paid shareholders net annualized dividends of
2.23%, 2.81%, 3.13% and 3.13%, respectively. For the six-month period ended
March 31, 2006, the Fund's Class 1, Class 2, Class 3 and Class 4 Shares paid
shareholders net annualized dividends of 2.77%, 3.38%, 3.71% and 3.71%,
respectively. The Fund's seven-day yields as of March 31, 2006, were 3.14% for
Class 1, 3.71% for Class 2, 4.04% for Class 3 and 4.04% for Class 4.
The average portfolio maturity of WCMA Money Fund at March 31, 2006 was 60 days
- -- also the average portfolio maturity at September 30, 2005 and March 31, 2005.
Economic growth for the first three quarters of 2005 remained firmly above 3%
before slipping to 1.7% in the final quarter of the year. The combination of
higher oil prices and Hurricanes Katrina and Rita temporarily hindered an
otherwise resilient consumer. However, the economy seemed poised to rebound
sharply in the first quarter of 2006, with most economists anticipating growth
in the 5% range. The Federal Reserve Board (the Fed) continued to raise the
federal funds target rate in 25 basis point (.25%) increments over the past
year, with the most recent hike on March 28 bringing the target rate to 4.75%.
The Treasury yield curve behaved accordingly during the period. In anticipation
of higher interest rates early in 2005, the curve was positively sloped, with
the yield on the two-year note at 3.80% and the 10-year note at 4.50% on March
31, 2005. As the Fed continually removed accommodative policy, yields on shorter
maturities rose to a greater degree than those on longer maturities and the
yield curve flattened. As of March 31, 2006, the spread between two-year and
10-year Treasury issues was a mere four basis points, with yields at 4.82% and
4.86%, respectively. Thus, any investments in the two-year sector made early in
the six-month period would have proved burdensome as short-term rates climbed to
levels exceeding the yields on those holdings. However, in preparation for
higher interest rates, the Fund went into the period with a significant
allocation to the variable rate sector. This strategy was beneficial as the
coupons on these variable instruments were continually reset at higher rates in
conjunction with the rising interest rates.
How did you manage the portfolio during the period?
Throughout the period, our average duration target was consistently in the
55-day to 65-day range, although our portfolio composition varied. As the yield
curve shifted and spreads changed, different sectors and asset classes became
attractive. We were slightly more cautious early in the fiscal year, when it was
apparent that several more interest rate hikes were ahead. Along with variable
rate product, we preferred fixed rate instruments in only the six-month and
nine-month sectors. We believed those areas offered the greatest value from a
risk/reward standpoint, enabling us to capture some steepness in the front end
of the curve while limiting our interest rate exposure.
Toward the second half of 2005, a lack of floating rate note supply in the
market dictated more of a barbelled approach for the Fund. As issuance by the
government-sponsored enterprises dropped, spreads on variable rate notes,
including corporate and bank names, tightened significantly. Having little
interest at those levels, we were then forced to increase our commercial paper
and overnight positions until better buying opportunities arose. To maintain the
Fund's duration target, the balance of our investments was typically in the
12-month to 15-month sector. We were beginning to favor longer maturities than
we had earlier, feeling they offered the greatest potential for capital
appreciation. We also saw value in two-year callable issues, believing
volatility and swap spreads were at attractive levels and would trend lower once
the Fed reached neutral policy. Heading into the fourth quarter, it seemed that
higher home heating costs, when combined with already high gasoline prices,
would soften consumer demand. If this were to occur, the spread between the
federal funds rate and the two-year Treasury yield would likely invert, as the
market would anticipate the end of the monetary tightening cycle.
4 WCMA MONEY FUND MARCH 31, 2006
How would you characterize the portfolio's position at the close of the period?
In the early part of 2006, the employment data remained firm and inflation
seemed well contained. It would seem that the Fed's 15 interest rate hikes over
the past two years may eventually hinder consumption, as home equity borrowing
and refinancing activity has slowed. However, most recently, we have adopted a
slightly more defensive posture, with more than 35% of the portfolio's net
assets in overnight investments.
We believe the Fed is clearly poised for another quarter-point move in May, but
currently the federal funds futures contracts are pricing in only a 56% chance
for an additional move in June. We believe there is a greater risk that the Fed
will overshoot, as it often does, and raise the target interest rate too high.
If that is the case, there is little value in the very front end of the curve.
We have added some one-year fixed rate bank product with yields approaching
5.25%, feeling we are fairly compensated even in the event of two additional
interest rate hikes.
As spreads on variable rate notes have reached more attractive levels, we have
readdressed those sectors. However, we have focused exclusively on the prime and
federal funds indexes, based on our belief that they will outperform the others
over the next 12 months. We still believe the spread on the federal funds rate
to the two-year Treasury note will invert; however, the timing may be further
out than we had originally anticipated. Thus, we will look for the longer
sectors to be more fairly priced before we begin to position the Fund for a
stable-rate, low-volatility environment, which we expect by the second half of
2006.
The portfolio's composition, as a percent of net assets, at the end of March and
as of our last report to shareholders is detailed below:
- --------------------------------------------------------------------------------
3/31/06 9/30/05
- --------------------------------------------------------------------------------
Bank Notes ............................................ 1.3% 3.3%
Certificates of Deposit ............................... 4.9 4.9
Certificates of Deposit--European ..................... 2.1 3.1
Certificates of Deposit--Yankee* ...................... 19.6 12.7
Commercial Paper ...................................... 21.4 33.8
Corporate Notes ....................................... 18.6 3.0
Funding Agreements .................................... 6.7 7.4
Master Notes .......................................... -- 1.0
Medium-Term Notes ..................................... -- 10.2
Promissory Notes ...................................... 1.3 0.7
Time Deposits ......................................... 5.2 --
U.S. Government Agency Obligations--Discount Notes .... -- 0.1
U.S. Government, Agency & Instrumentality
Obligations--Non-Discount Notes ..................... 12.3 16.4
Repurchase Agreements ................................. 6.2 3.1
Short-Term Securities ................................. 0.2 0.6
Liabilities in Excess of Other Assets ................. -- (0.3)
Other Assets Less Liabilities ......................... 0.2 --
-----------------
Total ................................................. 100.0% 100.0%
=================
* U.S. branches of foreign banks.
Richard J. Mejzak
Vice President and Portfolio Manager
April 10, 2006
WCMA MONEY FUND MARCH 31, 2006 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
12b-1 fees, and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on October 1, 2005 and held through
March 31, 2006) 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, 2005 to
October 1, 2005 March 31, 2006 March 31, 2006
=======================================================================================================================
Actual
=======================================================================================================================
Class 1 $ 1,000 $1,013.70 $ 7.38
- -----------------------------------------------------------------------------------------------------------------------
Class 2 $ 1,000 $1,016.70 $ 4.42
- -----------------------------------------------------------------------------------------------------------------------
Class 3 $ 1,000 $1,018.30 $ 2.82
- -----------------------------------------------------------------------------------------------------------------------
Class 4 $ 1,000 $1,018.30 $ 2.82
=======================================================================================================================
Hypothetical (5% annual return before expenses)**
=======================================================================================================================
Class 1 $ 1,000 $1,017.57 $ 7.39
- -----------------------------------------------------------------------------------------------------------------------
Class 2 $ 1,000 $1,020.51 $ 4.43
- -----------------------------------------------------------------------------------------------------------------------
Class 3 $ 1,000 $1,022.11 $ 2.82
- -----------------------------------------------------------------------------------------------------------------------
Class 4 $ 1,000 $1,022.11 $ 2.82
- -----------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.47% for Class 1, .88% for Class 2, .56% for Class 3
and .56% 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 trust 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, 2006
Statement of Assets and Liabilities WCMA Money Fund
As of March 31, 2006
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investment in Master Money Trust (the "Trust"), at value
(identified cost--$7,302,111,508) ......................................... $ 7,295,826,390
Prepaid expenses and other assets .......................................... 728,399
---------------
Total assets ............................................................... 7,296,554,789
---------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payables:
Distributor ............................................................... $ 2,022,398
Administrator ............................................................. 1,438,444
Other affiliates .......................................................... 123,000 3,583,842
---------------
Other liabilities .......................................................... 509
---------------
Total liabilities .......................................................... 3,584,351
---------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ................................................................. $ 7,292,970,438
===============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Class 1 Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ...................................................... $ 86,194,349
Class 2 Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ...................................................... 254,085,883
Class 3 Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ...................................................... 292,401,310
Class 4 Shares of beneficial interest, $.10 par value, unlimited number
of shares authorized ...................................................... 97,244,013
Paid-in capital in excess of par ........................................... 6,569,330,001
Undistributed investment income--net ....................................... $ 104,098
Accumulated realized capital losses allocated from the Trust--net .......... (104,098)
Unrealized depreciation allocated from the Trust--net ...................... (6,285,118)
---------------
Total accumulated losses--net .............................................. (6,285,118)
---------------
Net Assets ................................................................. $ 7,292,970,438
===============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Class 1--Based on net assets of $861,335,930 and 861,943,494 shares of
beneficial interest outstanding ........................................... $ 1.00
===============
Class 2--Based on net assets of $2,538,639,761 and 2,540,858,831 shares of
beneficial interest outstanding ........................................... $ 1.00
===============
Class 3--Based on net assets of $2,921,499,316 and 2,924,013,101 shares of
beneficial interest outstanding ........................................... $ 1.00
===============
Class 4--Based on net assets of $971,495,431 and 972,440,132 shares of
beneficial interest outstanding ........................................... $ 1.00
===============
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 7
Statement of Operations WCMA Money Fund
For the Year Ended March 31, 2006
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest from affiliates ................................................... $ 662,119
Net investment income allocated from the Trust:
Interest and amortization of premium and discount earned ................. 279,214,680
Securities lending--net .................................................. 29,274
Expenses ................................................................. (11,276,722)
---------------
Total income ............................................................... 268,629,351
---------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Administration fees ........................................................ $ 18,896,449
Account maintenance and distribution fees--Class 2 ......................... 18,213,421
Account maintenance and distribution fees--Class 3 ......................... 11,404,594
Account maintenance and distribution fees--Class 1 ......................... 7,416,999
Registration fees .......................................................... 5,068,064
Account maintenance and distribution fees--Class 4 ......................... 3,721,214
Transfer agent fees--Class 3 ............................................... 342,168
Transfer agent fees--Class 2 ............................................... 300,764
Printing and shareholder reports ........................................... 132,844
Transfer agent fees--Class 4 ............................................... 114,378
Professional fees .......................................................... 97,578
Transfer agent fees--Class 1 ............................................... 83,465
Other ...................................................................... 33,985
---------------
Total expenses before waiver ............................................... 65,825,923
Waiver of expenses ......................................................... (18,484,292)
---------------
Total expenses after waiver ................................................ 47,341,631
---------------
Investment income--net ..................................................... 221,287,720
---------------
===================================================================================================================================
Realized & Unrealized Loss Allocated from the Trust--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized loss on investments--net .......................................... (100,558)
Change in unrealized depreciation on investments--net ...................... (75,936)
---------------
Total realized and unrealized loss--net .................................... (176,494)
---------------
Net Increase in Net Assets Resulting from Operations ....................... $ 221,111,226
===============
See Notes to Financial Statements.
8 WCMA MONEY FUND MARCH 31, 2006
Statements of Changes in Net Assets WCMA Money Fund
For the Year Ended
March 31,
-------------------------------------
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net ..................................................... $ 221,287,720 $ 82,206,303
Realized gain (loss)--net .................................................. (100,558) 155,326
Change in unrealized appreciation/depreciation--net ........................ (75,936) (8,910,476)
-------------------------------------
Net increase in net assets resulting from operations ....................... 221,111,226 73,451,153
-------------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net:
Class 1 .................................................................. (16,738,447) (3,473,807)
Class 2 .................................................................. (75,779,223) (25,587,530)
Class 3 .................................................................. (96,383,200) (39,201,342)
Class 4 .................................................................. (32,282,752) (13,943,624)
Realized gain--net:
Class 1 .................................................................. (268) (16,303)
Class 2 .................................................................. (1,213) (56,278)
Class 3 .................................................................. (1,542) (61,601)
Class 4 .................................................................. (517) (21,144)
-------------------------------------
Net decrease in net assets resulting from dividends and distributions to
shareholders .............................................................. (221,187,162) (82,361,629)
-------------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from beneficial interest transactions ... (390,953,320) (729,160,194)
-------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ............................................... (391,029,256) (738,070,670)
Beginning of year .......................................................... 7,683,999,694 8,422,070,364
-------------------------------------
End of year* ............................................................... $ 7,292,970,438 $ 7,683,999,694
=====================================
*Undistributed investment income--net ..................................... $ 104,098 --
=====================================
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 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. 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
Investment income--net .............................. .0224 .0043 .0003 .0003
Realized and unrealized gain (loss)--net ............ (.0008) (.0011) .0005 .0001
------------------------------------------------------------
Total from investment operations .................... .0216 .0032 .0008 .0004
------------------------------------------------------------
Less dividends and distributions:
Investment income--net ........................... (.0224) (.0043) (.0003) (.0003)
Realized gain--net ............................... --* --* (.0001) --
------------------------------------------------------------
Total dividends and distributions ................... (.0224) (.0043) (.0004) (.0003)
------------------------------------------------------------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Total investment return ............................. 2.26% .44% .04% .04%
============================================================
===================================================================================================================================
Ratios to Average Net Assets**
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and/or reimbursement .. 1.47% 1.35% 1.12% .01%
============================================================
Total expenses ...................................... 1.47% 1.47% 1.49% .01%
============================================================
Total investment income and realized gain (loss)--net 2.23% .43% .04% .03%
============================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 861,336 $ 869,839 $ 927,790 $ 25
============================================================
* Amount is less than $(.0001) per share.
** Includes the Fund's share of the Trust's allocated expenses and/or
investment income and realized gain (loss)--net.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
10 WCMA MONEY FUND MARCH 31, 2006
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. 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
Investment income--net .............................. .0281 .0088 .0024 .0003
Realized and unrealized gain (loss)--net ............ (.0008) (.0011) .0006 .0001
------------------------------------------------------------
Total from investment operations .................... .0273 .0077 .0030 .0004
------------------------------------------------------------
Less dividends and distributions:
Investment income--net ........................... (.0281) (.0088) (.0024) (.0003)
Realized gain--net ............................... --* --* (.0001) --
------------------------------------------------------------
Total dividends and distributions ................... (.0281) (.0088) (.0025) (.0003)
------------------------------------------------------------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Total investment return ............................. 2.85% .89% .25% .04%
============================================================
===================================================================================================================================
Ratios to Average Net Assets**
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and/or reimbursement .. .89% .91% .91% .01%
============================================================
Total expenses ...................................... 1.15% 1.15% 1.17% .01%
============================================================
Total investment income and realized gain (loss)--net 2.80% .87% .24% .03%
============================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 2,538,640 $ 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 and/or
investment income and realized gain (loss)--net.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 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. 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
Investment income--net .............................. .0314 .0120 .0056 .0003
Realized and unrealized gain (loss)--net ............ (.0008) (.0011) .0006 .0001
------------------------------------------------------------
Total from investment operations .................... .0306 .0109 .0062 .0004
------------------------------------------------------------
Less dividends and distributions:
Investment income--net ........................... (.0314) (.0120) (.0056) (.0003)
Realized gain--net ............................... --* --* (.0001) --
------------------------------------------------------------
Total dividends and distributions ................... (.0314) (.0120) (.0057) (.0003)
------------------------------------------------------------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Total investment return ............................. 3.18% 1.21% .57% .04%
============================================================
===================================================================================================================================
Ratios to Average Net Assets**
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and/or reimbursement .. .57% .58% .59% .01%
============================================================
Total expenses ...................................... .85% .85% .87% .01%
============================================================
Total investment income and realized gain (loss)--net 3.13% 1.20% .57% .03%
============================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 2,921,499 $ 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 and/or
investment income and realized gain (loss)--net.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
12 WCMA MONEY FUND MARCH 31, 2006
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. 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------
Investment income--net .............................. .0314 .0120 .0056 .0003
Realized and unrealized gain (loss) ................. (.0009) (.0011) .0005 .0001
------------------------------------------------------------
Total from investment operations .................... .0305 .0109 .0061 .0004
------------------------------------------------------------
Less dividends and distributions:
Investment income--net ........................... (.0314) (.0120) (.0056) (.0003)
Realized gain--net ............................... --* --* (.0001) --
------------------------------------------------------------
Total dividends and distributions ................... (.0314) (.0120) (.0057) (.0003)
------------------------------------------------------------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Total investment return ............................. 3.18% 1.21% .57% .04%
============================================================
===================================================================================================================================
Ratios to Average Net Assets**
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, net of waiver and/or reimbursement .. .57% .58% .59% .01%
============================================================
Total expenses ...................................... .84% .84% .87% .01%
============================================================
Total investment income and realized gain (loss)--net 3.15% 1.22% .57% .03%
============================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ............ $ 971,495 $ 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 and/or
investment income and realized gain (loss)--net.
+ Effective date of the Fund's registration.
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 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 interests 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, 2006 was 47.9%. 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 1(a)
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 maintenance
and distribution fees. This arrangement has a one-year term and is renewable.
The
14 WCMA MONEY FUND MARCH 31, 2006
Notes to Financial Statements (continued) WCMA Money Fund
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, 2006, MLPF&S earned fees of
$40,756,228, of which $18,484,292 was waived.
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.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM, to the
investment management business of BlackRock, Inc. The transaction is expected to
close in the third quarter of 2006.
3. Shares of Beneficial Interest:
Net decrease in net assets derived from beneficial interest transactions was
$390,953,320 and $729,160,194 for the years ended March 31, 2006 and March 31,
2005, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- --------------------------------------------------------------------------------
Class 1 Shares for the Year Dollar
Ended March 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 10,804,408,249 $ 10,804,408,249
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 16,738,855 16,738,855
--------------------------------------
Total issued ....................... 10,821,147,104 10,821,147,104
Shares redeemed .................... (10,829,666,981) (10,829,666,981)
--------------------------------------
Net decrease ....................... (8,519,877) $ (8,519,877)
======================================
- --------------------------------------------------------------------------------
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 2 Shares for the Year Dollar
Ended March 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 19,544,017,339 $ 19,544,017,339
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 75,780,480 75,780,480
--------------------------------------
Total issued ....................... 19,619,797,819 19,619,797,819
Shares redeemed .................... (19,804,243,729) (19,804,243,729)
--------------------------------------
Net decrease ....................... (184,445,910) $ (184,445,910)
======================================
- --------------------------------------------------------------------------------
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 3 Shares for the Year Dollar
Ended March 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 30,518,050,529 $ 30,518,050,529
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 96,384,743 96,384,743
--------------------------------------
Total issued ....................... 30,614,435,272 30,614,435,272
Shares redeemed .................... (30,725,504,542) (30,725,504,542)
--------------------------------------
Net decrease ....................... (111,069,270) $ (111,069,270)
======================================
- --------------------------------------------------------------------------------
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 4 Shares for the Year Dollar
Ended March 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold ........................ 19,504,359,859 $ 19,504,359,859
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 32,283,269 32,283,269
--------------------------------------
Total issued ....................... 19,536,643,128 19,536,643,128
Shares redeemed .................... (19,623,561,391) (19,623,561,391)
--------------------------------------
Net decrease ....................... (86,918,263) $ (86,918,263)
======================================
WCMA MONEY FUND MARCH 31, 2006 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)
======================================
4. Distributions to Shareholders:
The tax character of distributions paid during the fiscal years ended March 31,
2006 and March 31, 2005 was as follows:
- --------------------------------------------------------------------------------
3/31/2006 3/31/2005
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income ...................... $221,187,162 $ 82,359,431
Net long-term capital gains .......... -- 2,198
--------------------------------
Total taxable distributions ............ $221,187,162 $ 82,361,629
================================
As of March 31, 2006, the components of accumulated losses on a tax basis were
as follows:
- -------------------------------------------------------------------------------
Undistributed ordinary income--net ....................... $ 159,090
Undistributed long-term capital gains--net ............... --
-----------
Total undistributed earnings--net ........................ 159,090
Capital loss carryforward ................................ --
Unrealized losses--net ................................... (6,444,208)*
-----------
Total accumulated losses--net ............................ $(6,285,118)
===========
* The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales and 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, 2006, 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, 2006, 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 22, 2006
16 WCMA MONEY FUND MARCH 31, 2006
Schedule of Investments Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
================================================================================
Bank Notes--1.3%
================================================================================
HSBC Finance, Inc. $101,000 4.92 (a)% 12/14/2006 $ 101,071
- --------------------------------------------------------------------------------
LaSalle National 100,000 4.00 4/24/2006 99,948
Bank
- --------------------------------------------------------------------------------
Total Bank Notes (Cost--$201,043)................................. 201,019
================================================================================
Certificates of Deposit--4.9%
================================================================================
Wells Fargo 500,000 4.80 (a) 12/18/2006 500,000
Bank, NA 220,000 4.80 (a) 3/09/2007 220,000
20,000 4.80 (a) 3/16/2007 20,000
- --------------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$740,000).................... 740,000
================================================================================
Certificates of Deposit--European--2.1%
================================================================================
BNP Paribas, 200,000 5.20 3/30/2007 200,010
London
- --------------------------------------------------------------------------------
Barclays Bank Plc, 125,000 3.805 6/20/2006 124,667
London
- --------------------------------------------------------------------------------
Total Certificates of Deposit--European
(Cost--$325,010).................................................. 324,677
================================================================================
Certificates of Deposit--Yankee--19.6%
================================================================================
ABN AMRO Bank 248,000 4.607 (a) 12/07/2006 247,975
NV, NY
- --------------------------------------------------------------------------------
BNP Paribas, NY 130,000 4.69 (a) 6/19/2006 129,994
- --------------------------------------------------------------------------------
Banco Bilbao 200,000 4.465 (a) 10/02/2006 199,948
Vizcaya Argentaria
SA, NY
- --------------------------------------------------------------------------------
Barclays Bank Plc, 150,000 4.78 (a) 11/03/2006 150,000
NY 325,000 4.736 (a) 12/22/2006 324,959
- --------------------------------------------------------------------------------
Calyon, NY 300,000 4.797 (a) 3/12/2007 299,993
- --------------------------------------------------------------------------------
Canadian Imperial 98,000 4.761 (a) 9/29/2006 97,992
Bank of 180,000 4.828 (a) 4/16/2007 180,000
Commerce, NY
- --------------------------------------------------------------------------------
Fortis Bank, NY 93,500 3.95 4/20/2006 93,461
66,500 3.97 8/11/2006 66,218
- --------------------------------------------------------------------------------
HBOS Treasury 40,000 4.48 (a) 10/06/2006 39,994
Services Plc, NY
- --------------------------------------------------------------------------------
Nordea North 160,000 4.762 (a) 10/31/2006 159,976
America, Inc., NY
- --------------------------------------------------------------------------------
Royal Bank of 100,000 3.91 9/06/2006 99,459
Canada, NY 100,000 4.805 (a) 11/13/2006 100,003
102,000 4.865 (a) 12/22/2006 101,985
- --------------------------------------------------------------------------------
Royal Bank of 67,000 4.58 (a) 4/05/2006 67,000
Scotland, NY 87,000 4.60 (a) 10/04/2006 86,992
295,000 4.695 (a) 11/16/2006 294,982
- --------------------------------------------------------------------------------
Toronto-Dominion 98,000 3.825 6/26/2006 97,723
Bank, NY 40,000 3.95 7/24/2006 39,857
100,000 5.24 4/04/2007 100,005
- --------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$2,979,799)................................................ 2,978,516
================================================================================
Commercial Paper--21.4%
================================================================================
Amstel Funding 213,902 4.77 4/28/2006 213,108
Corp.
- --------------------------------------------------------------------------------
Amsterdam 300,000 4.64 4/12/2006 299,536
Funding Corp.
- --------------------------------------------------------------------------------
Compass 175,000 4.74 4/24/2006 174,447
Securitization, LLC
- --------------------------------------------------------------------------------
Edison Asset 166,860 4.60 4/05/2006 166,753
Securitization, LLC
- --------------------------------------------------------------------------------
Greyhawk 71,250 4.64 4/11/2006 71,149
Funding, LLC 159,500 4.76 4/25/2006 158,973
100,000 4.78 5/02/2006 99,575
- --------------------------------------------------------------------------------
Jupiter 207,216 4.66 4/13/2006 206,867
Securitization Corp.
- --------------------------------------------------------------------------------
Lehman Brothers 171,000 4.79 (a) 9/01/2006 171,000
Holdings, Inc.
- --------------------------------------------------------------------------------
Morgan Stanley 76,000 4.82 (a) 11/17/2006 76,000
41,300 4.82 (a) 12/01/2006 41,300
- --------------------------------------------------------------------------------
Newport Funding 80,000 4.76 5/04/2006 79,640
Corp.
- --------------------------------------------------------------------------------
Old Line 59,739 4.74 4/21/2006 59,574
Funding, LLC
- --------------------------------------------------------------------------------
Park Avenue 25,000 4.75 4/24/2006 24,921
Receivables Co., LLC
- --------------------------------------------------------------------------------
Preferred 101,411 4.66 4/13/2006 101,240
Receivables
Funding Corp.
- --------------------------------------------------------------------------------
Skandinaviska 142,000 4.77 (a) 1/23/2007 142,000
Enskilda Banken AB
- --------------------------------------------------------------------------------
Sheffield 201,700 4.66 4/12/2006 201,387
Receivables Corp. 100,000 4.66 4/13/2006 99,832
- --------------------------------------------------------------------------------
Solitaire Funding, 100,000 4.61 4/21/2006 99,722
LLC
- --------------------------------------------------------------------------------
Surrey Funding 50,000 4.77 5/02/2006 49,788
Corp.
- --------------------------------------------------------------------------------
UBS Finance 450,000 4.83 4/03/2006 449,819
Delaware, Inc.
- --------------------------------------------------------------------------------
Windmill Funding 278,000 4.64 4/12/2006 277,570
Corp.
- --------------------------------------------------------------------------------
Total Commercial Paper (Cost--$3,264,201)......................... 3,264,201
================================================================================
Corporate Notes--18.6%
================================================================================
ASIF Global 54,000 4.81 (a) 4/23/2007 54,000
Financing
- --------------------------------------------------------------------------------
American Honda 70,000 4.80 (a) 12/06/2006 70,000
Finance Corp.
- --------------------------------------------------------------------------------
Bank of Ireland 43,300 4.746 (a) 4/20/2007 43,300
- --------------------------------------------------------------------------------
Beta Finance Inc. 158,000 4.81 (a) 11/27/2006 157,995
217,000 4.798 (a) 3/20/2007 216,990
- --------------------------------------------------------------------------------
CC (USA) Inc. 145,000 4.775 (a) 2/20/2007 145,000
(Centauri) 150,000 4.798 (a) 3/15/2007 149,993
- --------------------------------------------------------------------------------
Dorada Finance Inc. 75,000 4.699 (a) 11/15/2006 74,995
- --------------------------------------------------------------------------------
General Electric 163,605 4.853 (a) 4/17/2007 163,605
Capital Corp.
- --------------------------------------------------------------------------------
Goldman Sachs 202,600 4.769 (a) 4/13/2007 202,600
Group, Inc.
- --------------------------------------------------------------------------------
HSBC Finance, Inc. 109,000 4.865 (a) 10/19/2006 109,057
47,000 4.69 (a) 10/27/2006 47,017
- --------------------------------------------------------------------------------
JPMorgan 139,000 4.64 (a) 5/16/2006 139,000
Securities Inc.
- --------------------------------------------------------------------------------
MetLife Funding, 50,500 4.809 (a) 4/16/2007 50,500
Inc.
WCMA MONEY FUND MARCH 31, 2006 17
Schedule of Investments (continued) Master Money Trust (in Thousands)
Face Interest Maturity
Issue Amount Rate* Date Value
================================================================================
Corporate Notes (concluded)
================================================================================
Mound $100,000 4.65 (a)% 11/08/2006 $ 100,000
Financing Plc
- --------------------------------------------------------------------------------
Newcastle 40,000 4.839 (a) 9/25/2006 40,000
CDO III, Ltd. 60,000 4.839 (a) 3/24/2007 60,000
- --------------------------------------------------------------------------------
Northern Rock Plc 91,000 4.94 (a) 4/09/2007 91,000
- --------------------------------------------------------------------------------
Permanent 114,000 4.658 (a) 6/12/2006 114,000
Financing (No. 8) Plc
- --------------------------------------------------------------------------------
Permanent 120,000 4.72 (a) 3/10/2007 120,000
Financing (No. 9) Plc
- --------------------------------------------------------------------------------
Restructured Asset 60,000 4.84 (a) 5/02/2006 60,000
Securities with
Enhanced Returns,
Series 1998-MM-7-1
Trust
- --------------------------------------------------------------------------------
Sigma Finance 261,000 4.725 (a) 10/25/2006 260,985
Corp.
- --------------------------------------------------------------------------------
Stanfield Victoria 32,000 4.80 (a) 5/10/2006 31,999
Finance Ltd. 55,500 4.82 (a) 5/15/2006 55,499
75,000 4.11 8/01/2006 74,638
- --------------------------------------------------------------------------------
Toyota Motor 50,000 4.57 (a) 10/03/2006 50,000
Credit Corp. 100,000 4.57 (a) 11/03/2006 100,000
- --------------------------------------------------------------------------------
Westpac Banking 44,000 4.90 (a) 4/11/2007 44,000
Corp.
- --------------------------------------------------------------------------------
Total Corporate Notes (Cost--$2,826,530).......................... 2,826,173
================================================================================
Funding Agreements--6.7%
================================================================================
General Electric 50,000 4.72 (a) 11/01/2006 50,000
Capital Assurance 150,000 4.72 (a) 12/01/2006 150,000
Co. (e)
- --------------------------------------------------------------------------------
ING USA Annuity 50,000 4.846 (a) 8/18/2006 50,000
and Life Insurance
Co. (e)
- --------------------------------------------------------------------------------
Jackson National 15,000 4.71 (a) 5/01/2006 15,000
Life Insurance Co. (e)
- --------------------------------------------------------------------------------
Metropolitan Life 165,000 4.73 (a) 4/03/2006 165,000
Insurance Co. (e) 100,000 4.71 (a) 2/01/2007 100,000
- --------------------------------------------------------------------------------
Monumental Life 145,000 4.775 (a) 11/16/2006 145,000
Insurance Co. (e)
- --------------------------------------------------------------------------------
New York Life 226,000 4.888 (a) 5/26/2006 226,000
Insurance Co. (e)
- --------------------------------------------------------------------------------
The Travelers 25,000 4.69 (a) 5/01/2006 25,000
Insurance Co. (e) 25,000 4.68 (a) 9/15/2006 25,000
70,000 4.68 (a) 3/01/2007 70,000
- --------------------------------------------------------------------------------
Total Funding Agreements (Cost--$1,021,000)....................... 1,021,000
================================================================================
Promissory Notes--1.3%
================================================================================
Goldman Sachs 200,000 4.86 (a) 10/10/2006 200,000
Group, Inc.
- --------------------------------------------------------------------------------
Total Promissory Notes (Cost--$200,000).......................... 200,000
================================================================================
Time Deposits--5.2%
================================================================================
Citibank NA 95,386 4.844 4/03/2006 95,386
Nassau Branch
- --------------------------------------------------------------------------------
Rabobank 700,000 4.84 4/03/2006 700,000
Nederland NV CA
- --------------------------------------------------------------------------------
Total Time Deposits (Cost--$795,386).............................. 795,386
================================================================================
U.S. Government, Agency & Instrumentality Obligations--Non-Discount--12.3%
================================================================================
Fannie Mae 23,000 2.375 5/04/2006 22,951
25,000 4.00 6/29/2007 24,646
225,000 4.875 1/11/2008 223,820
- --------------------------------------------------------------------------------
Federal Farm 136,000 4.73 (a) 10/19/2006 135,985
Credit Banks 68,000 4.74 (a) 4/13/2007 67,993
102,000 4.50 (a) 10/05/2007 101,985
35,000 4.75 (a) 10/26/2007 34,999
- --------------------------------------------------------------------------------
Federal Home 85,000 2.25 5/15/2006 84,720
Loan Bank System 11,955 3.77 8/25/2006 11,722
65,000 3.125 (a) 9/15/2006 64,443
49,500 2.75 11/15/2006 48,786
49,500 3.25 11/29/2006 48,902
25,000 3.75 11/30/2006 24,777
59,235 3.375 12/15/2006 58,554
165,000 3.80 12/29/2006 163,407
54,000 3.45 1/10/2007 53,317
50,500 4.00 6/13/2007 49,804
50,000 4.15 7/05/2007 49,405
33,750 4.25 9/14/2007 33,348
37,250 4.50 12/14/2007 36,880
30,000 4.625 2/01/2008 29,760
- --------------------------------------------------------------------------------
Freddie Mac 27,600 2.55 5/10/2006 27,532
74,500 3.00 11/09/2006 73,460
30,000 3.75 11/15/2006 29,750
15,400 4.125 4/12/2007 15,245
50,000 4.45 9/28/2007 49,533
25,000 4.625 10/05/2007 24,827
100,000 4.705 10/11/2007 99,415
100,000 4.725 10/19/2007 99,437
- --------------------------------------------------------------------------------
U.S. Treasury Notes 50,000 2.50 10/31/2006 49,334
33,000 4.375 (d) 12/31/2007 32,737
- --------------------------------------------------------------------------------
Total U.S. Government, Agency & Instrumentality
Obligations--Non-Discount
(Cost--$1,882,744)................................................ 1,871,474
================================================================================
Face
Amount Issue
================================================================================
Repurchase Agreements--6.2%
================================================================================
$400,000 Barclays Capital Inc., purchased on
3/31/2006 to yield 4.78% to
4/03/2006, repurchase price
of $400,159, collateralized by FNMA,
3.125% to 5% due 7/15/2006 to
7/25/2008, FNMA Discount Note, due
7/26/2006, and Federal Home Loan
Bank System, 4.5% to 4.875%
due 8/08/2008 to 3/12/2010 $ 400,000
- --------------------------------------------------------------------------------
18 WCMA MONEY FUND MARCH 31, 2006
Schedule of Investments (concluded) Master Money Trust (in Thousands)
Face
Amount Issue Value
================================================================================
Repurchase Agreements (concluded)
================================================================================
$550,000 UBS Securities LLC, purchased on
3/31/2006 to yield 4.81% to
4/03/2006, repurchase price
of $550,220, collateralized by Freddie
Mac, 2.75% to 6.875% due
3/15/2008 to 1/18/2011 and
Resolution Funding Corp. STRIPS***,
due 10/15/2012 to 1/15/2019 $ 550,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements
(Cost--$950,000).................................................. 950,000
Beneficial
Interest
================================================================================
Short-Term Securities--0.2%
================================================================================
29,959 Merrill Lynch Liquidity Series, LLC
Money Market Series, 4.75% (b)(c)(f) 29,959
- --------------------------------------------------------------------------------
Total Short-Term Securities (Cost--$29,959)....................... 29,959
- --------------------------------------------------------------------------------
Total Investments
(Cost--$15,215,672**)--99.8%...................................... 15,202,405
Other Assets Less Liabilities--0.2%............................... 32,007
-----------
Net Assets--100.0%................................................ $15,234,412
===========
* Commercial Paper and certain U.S. Government, Agency and Instrumentality
Obligations are traded on a discount basis; the interest rates shown
reflect the discount rates paid at the time of purchase. 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, 2006.
** The cost and unrealized appreciation (depreciation) of investments as of
March 31, 2006, as computed for federal income tax purposes, were as
follows:
Aggregate cost ........................................ $ 15,215,832
============
Gross unrealized appreciation ......................... $ 32
Gross unrealized depreciation ......................... (13,459)
------------
Net unrealized depreciation ........................... $ (13,427)
============
*** Separately Traded Registered Interest and Principal of Securities.
(a) Floating rate note.
(b) Investments in companies considered to be an affiliate of the Trust, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
------------------------------------------------------------------------------------------------
Affiliate Net Activity Interest Income
------------------------------------------------------------------------------------------------
Merrill Lynch Liquidity Series, LLC Money Market Series $29,959 $57
------------------------------------------------------------------------------------------------
(c) Security was purchased with the cash proceeds from securities loans.
(d) Security, or a portion of security, is on loan.
(e) Restricted securities as to resale, representing 6.7% of net assets were
as follows:
----------------------------------------------------------------------------------------------------------------
Issue Acquisition Date Cost Value
----------------------------------------------------------------------------------------------------------------
General Electric Capital Assurance Co.:
4.72% due 11/01/2006 11/01/2005 $ 50,000 $ 50,000
4.72% due 12/01/2006 11/30/2005 150,000 150,000
ING USA Annuity and Life Insurance Co., 4.846% due 8/18/2006 7/18/2005 50,000 50,000
Jackson National Life Insurance Co., 4.71% due 5/01/2006 5/02/2005 15,000 15,000
Metropolitan Life Insurance Co.:
4.73% due 4/03/2006 4/01/2005 165,000 165,000
4.71% due 2/01/2007 2/01/2006 100,000 100,000
Monumental Life Insurance Co., 4.775% due 11/16/2006 11/18/2005 145,000 145,000
New York Life Insurance Co., 4.888% due 5/26/2006 5/27/2005 226,000 226,000
The Travelers Insurance Co.:
4.69% due 5/01/2006 5/02/2005 25,000 25,000
4.68% due 9/15/2006 9/16/2005 25,000 25,000
4.68% due 3/01/2007 2/28/2006 70,000 70,000
----------------------------------------------------------------------------------------------------------------
Total $1,021,000 $1,021,000
========== ==========
(f) Represents the current yield as of March 31, 2006.
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 19
Statement of Assets and Liabilities Master Money Trust
As of March 31, 2006
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (including securities
loaned of $29,066,479) (identified cost--$15,185,713,153) ..................... $ 15,172,445,722
Investments in affiliated securities, at value (identified cost--$29,959,250) .. 29,959,250
Cash ........................................................................... 597
Receivables:
Interest .................................................................... $ 64,412,823
Securities lending .......................................................... 6,716 64,419,539
-----------------
Prepaid expenses ............................................................... 60,216
-----------------
Total assets ................................................................... 15,266,885,324
-----------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned, at value ...................................... 29,959,250
Payables:
Investment adviser .......................................................... 1,532,105
Withdrawals ................................................................. 147,991
Other affiliates ............................................................ 147,540 1,827,636
-----------------
Accrued expenses ............................................................... 686,535
-----------------
Total liabilities .............................................................. 32,473,421
-----------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ..................................................................... $ 15,234,411,903
=================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Investors' capital ............................................................. $ 15,247,679,334
Unrealized depreciation--net ................................................... (13,267,431)
-----------------
Net Assets ..................................................................... $ 15,234,411,903
=================
See Notes to Financial Statements.
20 WCMA MONEY FUND MARCH 31, 2006
Statement of Operations Master Money Trust
For the Year Ended March 31, 2006
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest and amortization of premium and discount earned ....................... $ 543,146,668
Securities lending--net ........................................................ 57,224
-----------------
Total income ................................................................... 543,203,892
-----------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ....................................................... $ 19,257,521
Accounting services ............................................................ 1,822,518
Custodian fees ................................................................. 350,360
Professional fees .............................................................. 134,269
Trustees' fees and expenses .................................................... 110,594
Pricing fees ................................................................... 47,955
Printing and shareholder reports ............................................... 3,718
Other .......................................................................... 209,325
-----------------
Total expenses ................................................................. 21,936,260
-----------------
Investment income--net ......................................................... 521,267,632
-----------------
===================================================================================================================================
Realized & Unrealized Gain (Loss)--Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized loss on investments--net .............................................. (196,097)
Change in unrealized depreciation on investments--net .......................... (38,335)
-----------------
Total realized and unrealized loss--net ........................................ (234,432)
-----------------
Net Increase in Net Assets Resulting from Operations ........................... $ 521,033,200
=================
See Notes to Financial Statements.
WCMA MONEY FUND MARCH 31, 2006 21
Statements of Changes in Net Assets Master Money Trust
For the Year Ended
March 31,
-------------------------------------
Increase (Decrease) in Net Assets: 2006 2005
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income--net ......................................................... $ 521,267,632 $ 275,675,984
Realized gain (loss)--net ...................................................... (196,097) 350,251
Change in unrealized appreciation/depreciation--net ............................ (38,335) (19,014,309)
-------------------------------------
Net increase in net assets resulting from operations ........................... 521,033,200 257,011,926
-------------------------------------
===================================================================================================================================
Capital Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Proceeds from contributions .................................................... 123,778,818,394 128,134,342,599
Fair value of withdrawals ...................................................... (124,494,343,825) (132,249,310,652)
-------------------------------------
Net decrease in net assets derived from capital transactions ................... (715,525,431) (4,114,968,053)
-------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ................................................... (194,492,231) (3,857,956,127)
Beginning of year .............................................................. 15,428,904,134 19,286,860,261
-------------------------------------
End of year .................................................................... $ 15,234,411,903 $ 15,428,904,134
=====================================
See Notes to Financial Statements.
Financial Highlights Master Money Trust
For the Year Ended For the Period
March 31, February 13, 2003+
The following per share data and ratios have been derived --------------------------------------------- to March 31,
from information provided in the financial statements. 2006 2005 2004 2003
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Total investment return ........................... 3.59% 1.64% 1.06% .90%*
==================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses .......................................... .15% .15% .15% .21%*
==================================================================
Investment income and realized gain (loss)--net ... 3.54% 1.60% 1.08% 1.25%*
==================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .......... $15,234,412 $15,428,904 $19,286,860 $23,129,013
==================================================================
* Annualized.
+ Commencement of operations.
See Notes to Financial Statements.
22 WCMA MONEY FUND MARCH 31, 2006
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 interests 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. Valuation of other short-term investment vehicles is generally
based on the net asset value of the underlying investment vehicle or amortized
cost. 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, 2006 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, 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 Merrill Lynch Investment
Managers, L.P. ("MLIM"), an affiliate of FAM. For the year ended March 31, 2006,
MLIM, LLC received $25,045 in securities lending agent fees.
For the year ended March 31, 2006, the Trust reimbursed FAM $335,557 for certain
accounting services.
Certain officers and/or trustees of the Trust are officers and/or directors of
FAM, PSI, ML & Co., MLIM, and/or MLIM, LLC.
In February 2006, ML & Co. and BlackRock, Inc. entered into an agreement to
contribute ML & Co.'s investment management business, including FAM, to the
investment management business of BlackRock, Inc. The transaction is expected to
close in the third quarter of 2006.
24 WCMA MONEY FUND MARCH 31, 2006
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, 2006, 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, 2006, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. 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, 2006, 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 22, 2006
WCMA MONEY FUND MARCH 31, 2006 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 the MLIM/FAM-advised funds since 131 Funds None
Doll, Jr.* Princeton, NJ and present 2005; President of MLIM and FAM since 2001; 177 Portfolios
08543-9011 Trustee Co-Head (Americas Region) thereof from 2000 to
Age: 51 2001 and 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 positions with MLIM, FAM, Princeton Services and Princeton Administrators. 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 2002 to Professor Emeritus of Finance, School of 49 Funds None
Forbes Princeton, NJ present Business, State University of New York at 50 Portfolios
08543-9095 Albany since 2000 and Professor thereof from
Age: 65 1989 to 2000; International Consultant, Urban
Institute, Washington, D.C. from 1995 to 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
Cynthia A. P.O. Box 9095 Trustee 2002 to Professor, Harvard Business School since 1989; 49 Funds Newell
Montgomery Princeton, NJ present Associate Professor, J.L. Kellogg Graduate 50 Portfolios Rubbermaid,
08543-9095 School of Management, Northwestern University Inc.
Age: 53 from 1985 to 1989; Associate Professor, (manufacturing)
Graduate School of Business Administration,
University of Michigan from 1979 to 1985;
Director, Harvard Business School Publishing
since 2005; Director, McLean Hospital since
2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Jean Margo P.O. Box 9095 Trustee 2004 to Self-employed consultant since 2001; Counsel of 49 Funds None
Reid Princeton, NJ present Alliance Capital Management (investment 50 Portfolios
08543-9095 adviser) in 2000; General Counsel, Director and
Age: 60 Secretary of 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; and Director
of Covenant House from 2001 to 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Roscoe S. P.O. Box 9095 Trustee 2002 to President, Middle East Institute from 1995 to 49 Funds None
Suddarth Princeton, NJ present 2001; Foreign Service Officer, United States 50 Portfolios
08543-9095 Foreign Service, from 1961 to 1995 and Career
Age: 70 Minister from 1989 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 2002 to Professor of Finance from 1984 to 1995, Dean 49 Funds Bowne & Co.,
West Princeton, NJ present from 1984 to 1993 and since 1995 Dean Emeritus 50 Portfolios Inc. (financial
08543-9095 of New York University's Leonard N. Stern printers);
Age: 68 School of Business Administration. Vornado Realty
Trust (real
estate company);
Alexander's,
Inc. (real
estate company)
26 WCMA MONEY FUND MARCH 31, 2006
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 2002 to Self-employed financial consultant since 1994; 49 Funds None
Zinbarg Princeton, NJ present Executive Vice President of the Prudential 50 Portfolios
08543-9095 Insurance Company of America from 1988 to 1994;
Age: 71 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.
** Chairman of the Board of Trustees and the Audit Committee.
- ------------------------------------------------------------------------------------------------------------------------------------
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 2002 to First Vice President of MLIM and FAM since 1997 and Treasurer thereof since
Burke Princeton, NJ President present 1999; Senior Vice President and Treasurer of Princeton Services since 1999 and
08543-9011 and Director since 2004; Vice President of FAM Distributors, Inc. ("FAMD") since
Age: 45 Treasurer 1999 and Director since 2004; Vice President of MLIM and FAM from 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 2002 to Director of MLIM since 2000; Vice President of MLIM from 1995 to 2000.
Mejzak Princeton, NJ President present
08543-9011
Age: 37
- ------------------------------------------------------------------------------------------------------------------------------------
Jeffrey P.O. Box 9011 Chief 2004 to Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice President
Hiller Princeton, NJ Compliance present and Chief Compliance Officer of MLIM (Americas Region) since 2004; Chief
08543-9011 Officer Compliance Officer of the IQ Funds since 2004; Global Director of Compliance at
Age: 54 Morgan Stanley 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 Securities and Exchange 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
Pellegrino Princeton, NJ present to 2002; Attorney associated with MLIM since 1997; Secretary of MLIM, FAM, FAMD
08543-9011 and Princeton since 2004.
Age: 46
------------------------------------------------------------------------------------------------------------------------
* 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 1-800-637-3863.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
800-221-7210*
* For inquiries regarding your WCMA account, call 800-262-4636.
Electronic Delivery
The Fund 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.
WCMA MONEY FUND MARCH 31, 2006 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. Refer to www.mlim.ml.com to obtain
performance data current to the most recent month-end. 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 1-800-637-3863; (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 -- 3/06
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, 2006 - $6,600
Fiscal Year Ending March 31, 2005 - $6,500
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2006 - $0
Fiscal Year Ending March 31, 2005 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2006 - $6,000
Fiscal Year Ending March 31, 2005 - $6,300
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2006 - $0
Fiscal Year Ending March 31, 2005 - $0
Master Money Trust
(a) Audit Fees - Fiscal Year Ending March 31, 2006 - $41,600
Fiscal Year Ending March 31, 2005 - $41,000
(b) Audit-Related Fees - Fiscal Year Ending March 31, 2006 - $0
Fiscal Year Ending March 31, 2005 - $0
(c) Tax Fees - Fiscal Year Ending March 31, 2006 - $9,200
Fiscal Year Ending March 31, 2005 - $8,700
The nature of the services include tax compliance, tax advice and tax
planning.
(d) All Other Fees - Fiscal Year Ending March 31, 2006 - $0
Fiscal Year Ending March 31, 2005 - $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, 2006 - $3,754,550
Fiscal Year Ending March 31, 2005 - $10,018,400
(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) - $1,227,000, 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 22, 2006
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 22, 2006
By: /s/ Donald C. Burke
----------------------------------
Donald C. Burke,
Chief Financial Officer of
WCMA Money Fund and Master Money Trust
Date: May 22, 2006