-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EaiW5+i/x148sNoY0LeP82NQN1m9iW2SD69JtwGVDpexFEBZCIOvfpTZ8czRcEQP 8NulJBG9hYWVHjMG44RPBQ== 0000900092-07-000148.txt : 20070606 0000900092-07-000148.hdr.sgml : 20070606 20070606131912 ACCESSION NUMBER: 0000900092-07-000148 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070606 DATE AS OF CHANGE: 20070606 EFFECTIVENESS DATE: 20070606 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CMA TAX EXEMPT FUND/ CENTRAL INDEX KEY: 0000320281 IRS NUMBER: 136789904 STATE OF INCORPORATION: WI FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03111 FILM NUMBER: 07903453 BUSINESS ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08546 BUSINESS PHONE: 6092823319 MAIL ADDRESS: STREET 1: 800 SCUDDERS MILL RD CITY: PLAINSBORO STATE: NJ ZIP: 08536 FORMER COMPANY: FORMER CONFORMED NAME: CMA TAX EXEMPT TRUST DATE OF NAME CHANGE: 19910505 FORMER COMPANY: FORMER CONFORMED NAME: CMA TAX EXEMPT FUND DATE OF NAME CHANGE: 19870802 0000320281 S000002959 CMA TAX EXEMPT FUND/ C000008095 CMA TAX EXEMPT FUND/ N-CSR 1 br7492.txt CMA TAX EXEMPT 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 811-03111 811-21301 Name of Fund: CMA Tax-Exempt Fund Master Tax-Exempt 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, CMA Tax-Exempt Fund and Master Tax-Exempt 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: 03/31/07 Date of reporting period: 04/01/06 - 03/31/07 Item 1 - Report to Stockholders Annual Report March 31, 2007 CMA Tax-Exempt Fund This report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless accompanied or preceded by the Fund's current prospectus. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Past performance results shown in this report should not be considered a representation of future performance, which will fluctuate. Statements and other information herein are as dated and are subject to change. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free 1-800-441-7762; (2) at www.blackrock.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.blackrock.com and (2) on the Securities and Exchange Commission's Web site at http://www.sec.gov. CMA Tax-Exempt Fund P.O. Box 9011 Princeton, NJ 08543-9011 (GO PAPERLESS... logo) It's Fast, Convenient, & Timely! CMA Tax-Exempt Fund Portfolio Holdings* Put Bonds--3.1% Fixed Rate Notes--8.9% Tax-Exempt Commercial Paper--9.0% Variable Rate Demand Obligations--79.0% * Based on total market value of Master Tax-Exempt Trust as of March 31, 2007. Investments are valued at amortized cost, which approximates market value. CMA TAX-EXEMPT FUND MARCH 31, 2007 A Letter to Shareholders Dear Shareholder For most financial markets, 2007 opened just as 2006 ended - on a positive trajectory. At the end of February and into March, however, global equity markets registered their first significant decline since last summer. The market jitters were triggered by a significant setback in the Chinese market and were exacerbated by several concerns, notably a weakening economy, some disappointing corporate earnings announcements, escalating geopolitical concerns in the Middle East and increasing delinquencies in the subprime mortgage market. Despite the recent spate of volatility, underlying stock market fundamentals appear quite sound, supported by a generally favorable global economic backdrop, tame inflation, relatively low interest rates and attractive valuations. Not unlike the equity market, the bond market also has seen volatility recently as observers have attempted to interpret mixed economic signals. A bond market rally late last year reversed itself early in 2007 as economic data strengthened. Prices improved (and yields fell) again in February as equities struggled, but retrenched slightly in March. Notably, the Treasury curve remained inverted for much of 2006 and into 2007. The 30-year Treasury yield stood at 4.84% at the end of March 2007, while the one-month Treasury offered the highest yield on the curve at 5.07%. For its part, the Federal Reserve Board (the Fed) has left the target short- term interest rate on hold at 5.25% since first pausing in its interest rate- hiking campaign on August 8, 2006. Although the central bankers continue to express concern about potential inflationary pressures, they also have made reference to signs of economic weakness in their public statements. Most observers expect the Fed to keep interest rates on hold for now. Notwithstanding some recent volatility, most major market indexes managed to post positive returns for the annual and semi-annual reporting periods ended March 31, 2007:
Total Returns as of March 31, 2007 6-month 12-month U.S. equities (Standard & Poor's 500 Index) + 7.38% +11.83% Small cap U.S. equities (Russell 2000 Index) +11.02 + 5.91 International equities (MSCI Europe, Australasia, Far East Index) +14.85 +20.20 Fixed income (Lehman Brothers Aggregate Bond Index) + 2.76 + 6.59 Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) + 1.93 + 5.43 High yield bonds (Credit Suisse High Yield Index) + 7.59 +11.82
If recent market movements are any guide, 2007 could be a year of enhanced market volatility. As you navigate the uncertainties of the financial markets, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more reflection on the markets, please ask your financial professional for the latest issue of "What's Ahead in 2007: First Quarter Update," or view it online at www.blackrock.com/funds. We thank you for trusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead. Sincerely, (Robert C. Doll, Jr.) Robert C. Doll, Jr. Fund/Trust President and Trustee CMA TAX-EXEMPT FUND MARCH 31, 2007 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, 2006 and held through March 31, 2007) 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, 2006 October 1, March 31, to March 31, 2006 2007 2007 Actual CMA Tax-Exempt Fund $1,000 $1,015.10 $2.81 Hypothetical (5% annual return before expenses)** CMA Tax-Exempt Fund $1,000 $1,022.11 $2.82 * Expenses are equal to the Fund's annualized expense ratio of .56%, 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.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Statement of Assets and Liabilities CMA Tax-Exempt Fund
As of March 31, 2007 Assets Investment in Master Tax-Exempt Trust (the "Trust"), at value (identified cost--$9,260,701,553) $ 9,260,701,553 Prepaid expenses 521,736 --------------- Total assets 9,261,223,289 --------------- Liabilities Payables: Administrator $ 1,926,587 Distributor 1,362,736 3,289,323 --------------- Accrued expenses and other liabilities 304,775 --------------- Total liabilities 3,594,098 --------------- Net Assets Net assets $ 9,257,629,191 =============== Net Assets Consist of Shares of beneficial interests, $.10 par value, unlimited number of shares authorized $ 925,953,505 Paid-in capital in excess of par 8,332,611,491 Accumulated realized capital losses allocated from the Trust--net (935,805) --------------- Net Assets--Equivalent to $1.00 per share based on 9,259,535,047 shares of beneficial interests outstanding $ 9,257,629,191 =============== See Notes to Financial Statements.
Statement of Operations CMA Tax-Exempt Fund
For the Year Ended March 31, 2007 Investment Income Interest from affiliates $ 3,362 Net investment income allocated from the Trust: Interest and amortization of premium and discount earned 311,783,148 Expenses (13,017,813) --------------- Total income 298,768,697 --------------- Expenses Administration fees $ 21,794,326 Distribution fees 10,816,176 Transfer agent fees 1,469,838 Registration fees 875,431 Printing and shareholder reports 114,318 Professional fees 69,281 Other 22,760 --------------- Total expenses 35,162,130 --------------- Investment income--net 263,606,567 --------------- Realized Gain Allocated from the Trust--Net Realized gain on investments--net 789,164 --------------- Net Increase in Net Assets Resulting from Operations $ 264,395,731 =============== See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Statements of Changes in Net Assets CMA Tax-Exempt Fund
For the Year Ended March 31, Increase (Decrease) in Net Assets: 2007 2006 Operations Investment income--net $ 263,606,567 $ 192,840,950 Realized gain (loss)--net 789,164 (386,763) ---------------- ---------------- Net increase in net assets resulting from operations 264,395,731 192,454,187 ---------------- ---------------- Dividends to Shareholders Dividends to shareholders from investment income--net (263,606,567) (192,840,950) ---------------- ---------------- Beneficial Interests Transactions Net proceeds from sale of shares 48,483,788,131 42,771,723,313 Value of shares issued to shareholders in reinvestment of dividends 263,607,070 192,841,208 ---------------- ---------------- Total shares issued 48,747,395,201 42,964,564,521 Cost of shares redeemed (48,251,663,564) (43,232,343,557) ---------------- ---------------- Net increase (decrease) in net assets derived from beneficial interests transactions 495,731,637 (267,779,036) ---------------- ---------------- Net Assets Total increase (decrease) in net assets 496,520,801 (268,165,799) Beginning of year 8,761,108,390 9,029,274,189 ---------------- ---------------- End of year $ 9,257,629,191 $ 8,761,108,390 ================ ================ See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Financial Highlights CMA Tax-Exempt Fund
The following per share data and ratios have been derived For the Year Ended March 31, from information provided in the financial statements. 2007 2006 2005 2004 2003++++++ Per Share Operating Performance Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ ------------ Investment income--net .03 .02 .01 .01 .01 Realized gain (loss)--net --++++ --++ --++ --++ --++ ------------ ------------ ------------ ------------ ------------ Total from investment operations .03 .02 .01 .01 .01 ------------ ------------ ------------ ------------ ------------ Less dividends from investment income--net (.03) (.02) (.01) (.01) (.01) ------------ ------------ ------------ ------------ ------------ Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ ============ Total investment return 3.05% 2.24% .93% .54% .93% ============ ============ ============ ============ ============ Ratios to Average Net Assets* Expenses .55% .55% .55% .55% .55% ============ ============ ============ ============ ============ Investment income and realized gain (loss)--net 3.03% 2.21% .91% .55% .93% ============ ============ ============ ============ ============ Supplemental Data Net assets, end of year (in thousands) $ 9,257,629 $ 8,761,108 $ 9,029,274 $ 9,522,055 $ 10,587,794 ============ ============ ============ ============ ============ * Includes the Fund's share of the Trust's allocated expenses and/or investment income and realized gain (loss)--net. ++ Amount is less than $(.01) per share. ++++ Amount is less than $.01 per share. ++++++ On February 13, 2003, the Fund converted from a stand-alone investment company to a "feeder" fund that seeks to achieve its investment objective by investing all of its assets in the Trust, which has the same investment objective as the Fund. All investments will be made at the Trust level. This structure is sometimes called a "master/feeder" structure. See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Notes to Financial Statements CMA Tax-Exempt Fund 1. Significant Accounting Policies: CMA Tax-Exempt 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 Tax-Exempt Trust (the "Trust"), which has the same investment objective and strategies as the Fund. The value of the Fund's investment in the Trust reflects the Fund's proportionate interest in the net assets of the Trust. The performance of the Fund is directly affected by the performance of the Trust. The financial statements of the Trust, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund's financial statements. The Fund's financial statements are prepared in conformity with U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The percentage of the Trust owned by the Fund at March 31, 2007 was 91.3%. The following is a summary of significant accounting policies followed by the Fund. (a) Valuation of investments--The Fund records its investment in the Trust at fair value. Valuation of securities held by the Trust is discussed in Note 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 are declared from the total of net investment income. Distributions of net realized gain, if any, on investments are paid at least annually. (f) Investment transactions--Investment transactions are accounted for on a trade date basis. (g) Recent accounting pronouncements--In July 2006, the Financial Accounting Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109." FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including mutual funds, before being measured and recognized in the financial statements. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. The impact on the Fund's financial statements, if any, is currently being assessed. In September 2006, "Statement of Financial Accounting Standards No. 157, Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Fund's financial statements, if any, has not been determined. In addition, in February 2007, FASB issued "Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), which is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Fund's financial statements, if any, has not been determined. CMA TAX-EXEMPT FUND MARCH 31, 2007 Notes to Financial Statements (concluded) CMA Tax-Exempt Fund 2. Investment Advisory Agreement and Transactions with Affiliates: On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill Lynch") combined Merrill Lynch's investment management business, Merrill Lynch Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest in the combined company and The PNC Financial Services Group, Inc. has approximately a 34% economic and voting interest. The new company operates under the BlackRock name and is governed by a board of directors with a majority of independent members. On September 15, 2006, the shareholders of the Fund approved a new Investment Advisory Agreement for the Trust with BlackRock Advisors, Inc., an indirect, wholly owned subsidiary of BlackRock, Inc., which was reorganized into a limited liability company and renamed BlackRock Advisors, LLC. The Investment Advisory Agreement became effective on September 29, 2006. Prior to September 29, 2006, FAM was the Trust's manager. The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch, which is the limited partner. The Fund has entered into an Administration Agreement with BlackRock Advisors, LLC (the "Administrator"). 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. Prior to September 29, 2006, FAM acted as the Fund's administrator and was compensated at the same fee rate. Pursuant to the Distribution and Shareholder Servicing Plan in compliance with Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned subsidiary of Merrill Lynch, receives a distribution fee from the Fund. The fee is accrued daily and paid monthly at the annual rate of .125% of average daily net assets of the Fund, for shareholders whose Fund accounts are serviced by MLPF&S financial advisors, whether maintained through MLPF&S or directly with the Fund's transfer agent. The distribution fee is to compensate MLPF&S for providing, or arranging for the provision of, shareholder services and sales and promotional activities and services with respect to shares of the Fund. For the year ended March 31, 2007, MLPF&S earned $10,816,176 under the Shareholder Servicing Plan. Financial Data Services, Inc. ("FDS"), a wholly owned subsidiary of Merrill Lynch, 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. Prior to September 29, 2006, certain officers and/or trustees of the Fund were officers and/or directors of MLIM, FAM, PSI, and/or Merrill Lynch. Commencing September 29, 2006, certain officers and/or trustees of the Fund are officers and/or directors of BlackRock, Inc. or its affiliates. 3. Beneficial Interests Transactions: The number of shares sold, reinvested and redeemed during the years corresponds to the amounts included in the Statements of Changes in Net Assets for net proceeds from sale of shares, value of shares reinvested and cost of shares redeemed, respectively, since shares are recorded at $1.00 per share. 4. Distributions to Shareholders: The tax character of distributions paid during the fiscal years ended March 31, 2007 and March 31, 2006 was as follows: 3/31/2007 3/31/2006 Distributions paid from: Tax-exempt income $ 263,606,567 $ 192,840,950 --------------- --------------- Total distributions $ 263,606,567 $ 192,840,950 =============== =============== As of March 31, 2007, there were no significant differences between book and tax components of net assets. 5. Capital Loss Carryforward: On March 31, 2007, the Fund had a net capital loss carryforward of $935,805, all of which expires in 2014. This amount will be available to offset like amounts of any future taxable gains. CMA TAX-EXEMPT FUND MARCH 31, 2007 Report of Independent Registered Public Accounting Firm CMA Tax-Exempt Fund To the Shareholders and Board of Trustees of CMA Tax-Exempt Fund: We have audited the accompanying statement of assets and liabilities of CMA Tax-Exempt Fund as of March 31, 2007, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with 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 CMA Tax-Exempt Fund as of March 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey May 21, 2007 Important Tax Information (unaudited) All of the net investment income distributions paid by CMA Tax-Exempt Fund during the taxable year ended March 31, 2007 qualify as tax-exempt interest dividends for federal income tax purposes. CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments as of March 31, 2007 Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Alabama--2.1% $ 55,000 Alabama, HFA, S/F Mortgage Revenue Bonds, VRDN, AMT, Series H, 3.80% due 6/01/2009 (j) $ 55,000 3,995 Birmingham, Alabama, Waterworks and Sewer Board, Water and Sewer Revenue Refunding Bonds, PUTTERS, VRDN, Series 1737, 3.72% due 1/01/2015 (a)(j)(p) 3,995 20,000 Columbia, Alabama, IDB, Revenue Bonds (Alabama Power Company Project), VRDN, AMT, 3.76% due 11/01/2021 (j) 20,000 11,950 Daphne, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Presbyterian), VRDN, Series B, 3.70% due 8/15/2023 (a)(j) 11,950 1,000 Decatur, Alabama, IDB, Environmental Facilities Revenue Bonds (BP Amoco Chemical Company Project), VRDN, AMT, 3.70% due 11/01/2035 (j) 1,000 4,255 Eagle Tax-Exempt Trust, Birmingham, Alabama, Water and Sewer, VRDN, Series 2002-6009, Class A, 3.72% due 1/01/2043 (f)(j) 4,255 Eagle Tax-Exempt Trust, Jefferson County, Alabama, Sewer Revenue Refunding Bonds, VRDN, Series 2002 (b)(j): 7,835 Class 6015, 3.72% due 2/01/2032 7,835 3,000 Class 6016, 3.72% due 2/01/2038 3,000 89,455 Jefferson County, Alabama, Limited Obligation School Warrants, VRDN, Series B, 3.67% due 1/01/2027 (a)(j) 89,455 5,000 Jefferson County, Alabama, Sewer Revenue Refunding Bonds, VRDN, Series C-6, 3.67% due 2/01/2040 (j)(n) 5,000 8,100 Lehman Municipal Trust Receipts, Alabama Housing Finance Authority, FLOATS, VRDN, Series 2006-K41, 3.75% due 10/01/2037 (j)(o) 8,100 Alaska--0.8% 19,400 Alaska Industrial Development and Export Authority Revenue Bonds, ROCS, VRDN, Series II-R-320, 3.71% due 4/01/2034 (e)(j)(p) 19,400 2,205 Anchorage, Alaska, Electric Utility Revenue Refunding Bonds, PUTTERS, VRDN, Series 1128, 3.72% due 6/01/2013 (f)(j)(p) 2,205 6,200 Anchorage, Alaska, GO, PUTTERS, VRDN, Series 552, 3.72% due 6/01/2012 (f)(j)(p) 6,200 Valdez, Alaska, Marine Terminal Revenue Refunding Bonds (ConocoPhillips Company Project), VRDN (j): 3,580 3.77% due 5/01/2007 3,580 49,650 Series C, 3.68% due 6/01/2007 49,650 Face Amount Municipal Bonds Value Arizona--1.7% $ 33,000 Apache County, Arizona, IDA, IDR (Tucson Electric Power Co.), VRDN, Series 83-A, 3.65% due 12/15/2018 (j) $ 33,000 Arizona Health Facilities Authority, Revenue Refunding Bonds (Banner Health System), VRDN (j): 4,970 Series A, 3.65% due 1/01/2029 (f) 4,970 4,390 Series C, 3.62% due 1/01/2035 (b) 4,390 49,055 Clipper Tax-Exempt Certificates Trust, Arizona, Revenue Bonds, VRDN, Series 2007-1, 3.70% due 2/01/2020 (j) 49,055 10,000 Maricopa County, Arizona, IDA, Health Facilities Revenue Bonds, PUTTERS, VRDN, Series 420, 3.71% due 1/01/2010 (j)(p) 10,000 7,526 Maricopa County, Arizona, IDA, S/F Mortgage Revenue Bonds, FLOATS, VRDN, AMT, Series 1165, 3.70% due 2/01/2008 (j) 7,526 20,000 McAllister Academic Village, LLC, Arizona, Revenue Bonds (Arizona State University Project), VRDN, Series A, 3.63% due 7/01/2045 (a)(j) 20,000 39,630 Morgan Keegan Municipal Products, Inc., Maricopa County, Arizona, IDA, VRDN, AMT, Series A, 3.75% due 2/02/2009 (j) 39,630 Phoenix, Arizona, Civic Improvement Corporation, State of Arizona Distribution Revenue Bonds, VRDN (b)(j)(p): 2,400 PUTTERS, Series 1306, 3.71% due 1/01/2026 2,400 4,775 TOCS, Series Z-11, 3.71% due 5/08/2034 4,775 4,080 Phoenix, Arizona, IDA, Government Office Lease Revenue Refunding Bonds, PUTTERS, VRDN, Series 1119, 3.70% due 9/15/2013 (a)(j)(p) 4,080 Arkansas--1.0% 7,800 Arkansas State Development Finance Authority, M/F Housing Revenue Bonds (Chapelridge Benton Project), VRDN, AMT, Series C, 3.73% due 6/01/2032 (j) 7,800 50,595 Arkansas State Development Finance Authority, S/F Mortgage Revenue Bonds, FLOATS, VRDN, AMT, Series 1139, 3.72% due 2/01/2008 (j) 50,595 Morgan Keegan Municipal Products, Inc., Arkansas State Development Finance Authority, VRDN (j): 20,595 AMT, Series D, 3.75% due 2/01/2010 20,595 1,990 S/F Mortgage Revenue Bonds, Series C, 3.75% due 6/01/2011 1,990 Portfolio Abbreviations for Master Tax-Exempt Trust ACES (SM) Adjustable Convertible Extendible Securities AMT Alternative Minimum Tax (subject to) BAN Bond Anticipation Notes COP Certificates of Participation CP Commercial Paper EDA Economic Development Authority EDR Economic Development Revenue Bonds FLOATS Floating Rate Securities GO General Obligation Bonds HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDB Industrial Development Board IDR Industrial Development Revenue Bonds M/F Multi-Family MERLOTS Municipal Exempt Receipts Liquidity Optional Tenders MSTR Municipal Securities Trust Receipts PCR Pollution Control Revenue Bonds PUTTERS Puttable Tax-Exempt Receipts RAN Revenue Anticipation Notes ROCS Reset Option Certificates S/F Single-Family TAN Tax Anticipation Notes TOCS Tender Option Certificates TRAN Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Arkansas (concluded) $ 9,000 North Little Rock, Arkansas, Health Facilities Board, Health Care Revenue Bonds (Baptist Health), VRDN, Series B, 3.68% due 12/01/2021 (f)(j) $ 9,000 10,685 University of Arkansas, University Revenue Bonds, FLOATS, VRDN, Series 1397, 3.69% due 11/01/2036 (a)(j) 10,685 California--1.1% 2,184 California Health Facilities Financing Authority Revenue Bonds, FLOATS, VRDN, Series 591, 3.69% due 3/01/2014 (f)(j) 2,184 17,500 California State Economic Recovery, GO, FLOATS, VRDN, Series L27, 3.67% due 7/01/2017 (j) 17,500 8,020 California State, GO, MERLOTS, VRDN, Series B-45, 3.67% due 10/01/2029 (j)(p) 8,020 3,430 California Statewide Communities Development Authority, M/F Housing Revenue Bonds, FLOATS, VRDN, Series 54TP, 3.75% due 1/01/2049 (j) 3,430 30,485 Los Angeles, California, S/F Home Mortgage Revenue Bonds, VRDN, AMT, 4.52% due 10/01/2040 (j) 30,485 50,040 Morongo Band of Mission Indians, California, Revenue Bonds, VRDN, 3.73% due 12/01/2019 (j) 50,040 4,800 San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, VRDN, Second Series, Issue 33J, 3.43% due 5/01/2026 (j)(n) 4,800 Colorado--2.1% 7,705 Adams County, Colorado, School District Number 012, GO, ROCS, VRDN, Series II-R-1045, 3.71% due 12/15/2022 (e)(j)(p) 7,705 3,190 Colorado Department of Transportation Revenue Bonds, ROCS, VRDN, Series II-R-4046, 3.71% due 12/15/2016 (a)(j)(p) 3,190 9,990 Colorado Department of Transportation Revenue Refunding Bonds, PUTTERS, VRDN, Series 318, 3.70% due 6/15/2015 (f)(j)(p) 9,990 Colorado Educational and Cultural Facilities Authority, Revenue Refunding Bonds (National Jewish Federation Bond Program Project), VRDN (j): 23,510 Series A-1, 3.71% due 9/01/2033 23,510 11,180 Series A-6, 3.71% due 2/01/2025 11,180 24,335 Series A-8, 3.71% due 9/01/2035 24,335 16,515 Series C-1, 3.71% due 9/01/2035 16,515 3,640 Colorado Health Facilities Authority, Revenue Refunding Bonds (Catholic Health Initiatives), VRDN, Series B-1, 3.67% due 3/01/2023 (j) 3,640 6,900 Colorado School Mines Development Corporation, Revenue Refunding Bonds, VRDN, 3.82% due 9/01/2026 (j) 6,900 40,000 Colorado State, General Fund, RAN, 4.50% due 6/27/2007 40,068 Denver, Colorado, City and County Airport, Revenue Refunding Bonds, VRDN (b)(j): 9,500 FLOATS, Series 63-TP, 3.69% due 11/15/2025 9,500 5,805 MERLOTS, AMT, Series A61, 3.74% due 11/15/2012 (p) 5,805 3,031 E-470 Public Highway Authority, Colorado, Revenue Bonds, TOCS, VRDN, Series Z-9, 3.71% due 10/01/2021 (f)(j)(p) 3,031 2,835 E-470 Public Highway Authority, Colorado, Revenue Refunding Bonds, FLOATS, VRDN, Series 997, 3.72% due 3/01/2036 (f)(j) 2,835 Face Amount Municipal Bonds Value Colorado (concluded) $ 7,200 Eclipse Funding Trust, Solar Eclipse Certificates, El Paso County, Colorado, School District, COP, VRDN, Series 2006-0101, 3.69% due 12/15/2028 (f)(j) $ 7,200 98 El Paso County, Colorado, S/F Mortgage Revenue Bonds, FLOATS, VRDN, AMT, Series 1136, 3.72% due 11/01/2008 (j) 98 14,700 Pitkin County, Colorado, IDR, Refunding (Aspen Skiing Company Project), VRDN, Series A, 3.71% due 4/01/2016 (j) 14,700 18,200 Platte River Power Authority, Colorado, Electric Revenue Refunding Bonds, VRDN, Sub-Lien, Series S-1, 3.65% due 6/01/2018 (j) 18,200 6,500 University of Colorado Hospital Authority Revenue Bonds, ROCS, VRDN, Series II-R-573CE, 3.71% due 11/15/2040 (j)(p) 6,500 Connecticut--0.2% 12,725 Connecticut State Health and Educational Facilities Authority, Revenue Refunding Bonds (Ascension Health Credit), VRDN, Series B, 3.60% due 11/15/2029 (j) 12,725 4,960 Eagle Tax-Exempt Trust, Connecticut, GO, VRDN, Series 96-0701, 3.70% due 11/15/2007 (j) 4,960 Delaware--1.4% Delaware State EDA Revenue Bonds (Hospital Billing and Collection), VRDN (j): 40,735 Series B, 3.68% due 12/01/2015 40,735 65,850 Series C, 3.63% due 12/01/2015 65,850 Delaware State Housing Authority Revenue Bonds, VRDN (j)(p): 3,685 MERLOTS, Series B10, 3.74% due 7/01/2031 (f) 3,685 2,020 ROCS, AMT, Series II-R-359, 3.74% due 7/01/2035 (e)(p) 2,020 GS Pool Trust, Delaware, FLOATS, VRDN, AMT (j): 14,910 Series 1, 3.78% due 6/02/2012 14,910 11,960 Series 35TP, 3.78% due 8/01/2049 11,960 2,315 Series 56TP, 3.75% due 7/01/2048 2,315 District of Columbia--0.8% 4,000 District of Columbia, Ballpark Revenue Bonds, PUTTERS, VRDN, Series 1325, 3.70% due 2/01/2014 (b)(j)(p) 4,000 District of Columbia, GO, Refunding, VRDN (j): 17,350 MSTR, Series SGA-62, 3.72% due 6/01/2017 (a)(p) 17,350 21,000 Series C, 3.67% due 6/01/2026 (b) 21,000 16,605 District of Columbia, Hospital Revenue Bonds, FLOATS, VRDN, Series 712, 3.69% due 7/15/2019 (b)(j) 16,605 26,190 District of Columbia, Water and Sewer Authority, Public Utility Revenue Bonds, FLOATS, VRDN, Series 1125, 3.69% due 10/01/2033 (b)(j) 26,190 Florida--7.3% 14,770 Collier County, Florida, Educational Facilities Authority, Limited Obligation Revenue Bonds (Ave Maria University), VRDN, 3.71% due 10/01/2036 (j) 14,770 11,680 Collier County, Florida, School Board, COP, ROCS, VRDN, Series II-R-7032, 3.71% due 2/15/2024 (e)(j)(p) 11,680 Eagle Tax-Exempt Trust, Florida State Board of Education, GO, VRDN, Class A (j): 15,500 Series 2005-0057, 3.72% due 6/01/2035 15,500 8,000 Series 2005-3013, 3.72% due 6/01/2033 8,000 19,730 Eagle Tax-Exempt Trust, South Florida Water Management District, COP, VRDN, Series 2006-0136, Class A, 3.72% due 10/01/2036 (a)(j) 19,730 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Florida (continued) $ 11,975 Eclipse Funding Trust, Solar Eclipse Certificates, Gainesville, Florida, Utilities System Revenue Refunding Bonds, VRDN, Series 2006-0027, 3.69% due 10/01/2013 (e)(j) $ 11,975 Florida Gas Utility Revenue Bonds (Gas Supply Project Number 2), VRDN (j): 50,000 Series A-1, 3.65% due 11/01/2026 50,000 121,535 Series A-3, 3.63% due 11/01/2026 121,535 5,480 Florida Housing Finance Corporation, M/F Mortgage Revenue Bonds, ROCS, VRDN, Series II-R-600CE, 3.74% due 7/01/2043 (j)(p) 5,480 16,176 Florida Local Government Finance Commission, CP, 3.64% due 4/09/2007 16,176 3,470 Florida State Board of Education, GO, Refunding, ROCS, VRDN, Series II-R-6087, 3.71% due 6/01/2014 (b)(j)(p) 3,470 Florida State Board of Education, Lottery Revenue Bonds, VRDN (j): 6,220 FLOATS, Series 858, 3.69% due 1/01/2017 (f) 6,220 2,825 ROCS, Series II-R-4521, 3.71% due 7/01/2020 (b)(p) 2,825 27,840 Florida State, Revenue Refunding Bonds, MERLOTS, VRDN, Series A-22, 3.65% due 7/01/2027 (j)(p) 27,840 4,100 Gainesville, Florida, Utilities System Revenue Refunding Bonds, VRDN, Series C, 3.70% due 10/01/2026 (j) 4,100 6,000 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Adventist Health System), VRDN, Series C, 3.68% due 11/15/2021 (j) 6,000 3,950 Hillsborough County, Florida, Aviation Authority, Revenue Refunding Bonds, MERLOTS, VRDN, AMT, Series A18, 3.74% due 10/01/2013 (f)(j)(p) 3,950 15,000 Jacksonville, Florida, Electric Authority, CP, 3.67% due 5/22/2007 15,000 38,825 Jacksonville, Florida, Electric Authority Revenue Bonds (Electric System), VRDN, Series B, 3.71% due 10/01/2030 (j) 38,825 5,825 Miami-Dade County, Florida, GO, ROCS, VRDN, Series II-R-387, 3.72% due 7/01/2028 (b)(j)(p) 5,825 60,000 Miami-Dade County, Florida, School District, TAN, 4.50% due 6/28/2007 60,108 6,000 Miami-Dade County, Florida, Special Obligation Revenue Bonds, TOCS, VRDN, Series Z-9, 3.71% due 4/17/2015 (f)(j)(p) 6,000 16,240 Miami-Dade County, Florida, UBS Municipal CRVS Trust, Expressway Authority, Toll System Revenue Bonds, FLOATS, VRDN, Series 06-1004, 3.68% due 1/01/2014 (a)(j) 16,240 40,000 Miami-Dade County, Florida, Water and Sewer Revenue Refunding Bonds, VRDN, 3.66% due 10/01/2025 (e)(j) 40,000 15,600 North Broward, Florida, Hospital District Revenue Refunding Bonds, VRDN, Series B, 3.66% due 1/15/2031 (g)(j) 15,600 5,000 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Orlando Regional Healthcare), VRDN, Series A-10, 3.73% due 10/01/2041 (e)(j) 5,000 Orange County, Florida, Health Facilities Authority Revenue Bonds, FLOATS, VRDN (j): 29,850 Series 532, 3.69% due 11/15/2015 (a) 29,850 17,245 Series 830, 3.69% due 11/15/2022 (e) 17,245 57,450 Orlando, Florida, Utilities Commission, Water and Electric Revenue Bonds, VRDN, Series A, 3.65% due 10/01/2017 (j) 57,450 Face Amount Municipal Bonds Value Florida (concluded) Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Bonds, VRDN (a)(j): $ 2,250 Sub-Series A-2, 3.64% due 7/01/2040 $ 2,250 38,600 Sub-Series C, 3.63% due 7/01/2040 38,600 19,000 Orlando-Orange County Expressway Authority, Florida, Expressway Revenue Refunding Bonds, VRDN, Series D, 3.63% due 7/01/2032 (e)(j) 19,000 10,000 Palm Beach County, Florida, Health Facilities Authority, CP, 3.71% due 5/24/2007 10,000 6,100 Saint Johns County, Florida, Sales Tax Revenue Bonds, ROCS, VRDN, Series II-R-755PB, 3.70% due 10/01/2036 (f)(j)(p) 6,100 17,700 Sunshine State, Florida, Governmental Finance Commission, CP, 3.68% due 5/03/2007 17,700 Volusia County, Florida, School Board, COP, VRDN (f)(j)(p): 2,125 PUTTERS, Series 970, 3.72% due 2/01/2013 2,125 5,470 ROCS, Series II-R-2212, 3.71% due 8/01/2023 5,470 Georgia--1.4% 4,005 Albany-Dougherty County, Georgia, Hospital Authority, Revenue Refunding Bonds, FLOATS, VRDN, Series L3J, 3.70% due 9/01/2020 (a)(j) 4,005 16,300 Appling County, Georgia, Development Authority, PCR (Georgia Power Plant Hatch), VRDN, Second Series, 3.70% due 12/01/2018 (j) 16,300 12,500 Atlanta, Georgia, Subordinate Lien Tax Allocation Bonds (Atlantic Station), VRDN, 3.74% due 12/01/2024 (j) 12,500 4,000 Atlanta, Georgia, Urban Residential Finance Authority, M/F Housing Revenue Bonds (Lindbergh City Center Apartment Project), VRDN, AMT, 3.72% due 11/01/2044 (j) 4,000 15,500 Burke County, Georgia, CP, 3.65% due 9/10/2007 15,500 Clayton County, Georgia, Development Authority, Special Facilities Revenue Bonds (Delta Air Lines Project), VRDN (j): 10,545 AMT, Series B, 3.80% due 5/01/2035 10,545 6,500 AMT, Series C, 3.80% due 5/01/2035 6,500 10,135 Series A, 3.74% due 6/01/2029 10,135 2,400 Clayton County, Georgia, Housing Authority, M/F Housing Revenue Bonds (Provence Place Apartments Project), VRDN, 3.73% due 10/01/2041 (j) 2,400 4,485 DeKalb County, Georgia, Public Safety and Judicial Facilities Authority, Special Tax Revenue Bonds, FLOATS, VRDN, Series 1459, 3.69% due 12/01/2034 (j) 4,485 Eagle Tax-Exempt Trust, Atlanta, Georgia, Water and Wastewater Revenue Bonds, VRDN, Class A (e)(j): 9,100 Series 2005-0009, 3.72% due 11/01/2043 9,100 5,000 Series 2006-0130, 3.72% due 11/01/2034 5,000 6,815 Georgia Municipal Electric Authority, Power Revenue Bonds (MACON Trust), VRDN, Series E, 3.71% due 1/01/2017 (e)(j) 6,815 2,150 Georgia State, GO, PUTTERS, VRDN, Series 1420, 3.71% due 6/01/2012 (j)(p) 2,150 2,575 Gwinnett County, Georgia, Development Authority, COP, ROCS, VRDN, Series II-R-6009, 3.71% due 1/01/2021 (f)(j)(p) 2,575 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Georgia (concluded) $ 20,000 Monroe County, Georgia, Development Authority, PCR (Georgia Power Company--Scherer), VRDN, Second Series 95, 3.76% due 6/01/2007 (j) $ 20,000 15,995 Municipal Securities Trust Certificates, Atlanta, Georgia, Water and Wastewater Revenue Bonds, VRDN, AMT, Series 2002-186, Class A, 3.70% due 2/25/2021 (f)(j) 15,995 Hawaii--0.2% 7,930 Eagle Tax-Exempt Trust, Hawaii State Highway Revenue Bonds, VRDN, Series 2001-1101, Class A, 3.72% due 7/01/2011 (e)(j) 7,930 7,500 Hawaii Pacific Health, Special Purpose Revenue Refunding Bonds (Wilcox Memorial Hospital), VRDN, Series B-2, 3.77% due 7/01/2033 (h)(j) 7,500 1,985 Hawaii State, Revenue Bonds, ROCS, VRDN, Series II-R-6504, 3.71% due 10/01/2024 (f)(j)(p) 1,985 Illinois--7.7% 14,285 ABN AMRO MuniTops Certificates Trust, Chicago, Illinois, GO, VRDN, Series 2001-31, 3.68% due 1/01/2009 (b)(j) 14,285 Chicago, Illinois, Board of Education, GO (p): 4,525 ROCS, VRDN, Series II-R-9077, 3.71% due 12/01/2026 (e)(j) 4,525 6,174 TOCS, Series Z-8, 3.71% due 10/28/2025 (b)(p) 6,174 Chicago, Illinois, GO, VRDN (j): 8,175 Series B, 3.67% due 1/01/2012 8,175 3,058 TOCS, Series Z-10, 3.71% due 6/29/2029 (b)(p) 3,058 5,740 Chicago, Illinois, Motor Fuel Tax Revenue Refunding Bonds, ROCS, VRDN, Series II-R-2021, 3.71% due 1/01/2020 (a)(j)(p) 5,740 Chicago, Illinois, O'Hare International Airport Revenue Bonds, VRDN (j): 9,330 (MACON Trust), Series A, 3.74% due 1/01/2018 (f) 9,330 3,700 ROCS, AMT, Series II-R-239, 3.74% due 1/01/2022 (e)(p) 3,700 5,995 ROCS, AMT, Series II-R-250, 3.74% due 1/01/2034 (g)(p) 5,995 9,375 ROCS, Series II-R- 556, 3.71% due 1/01/2029 (f)(p) 9,375 5,110 ROCS, Series II-R-605PB, 3.70% due 1/01/2033 (b)(p) 5,110 41,550 Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds (General Airport Third Lien), VRDN, Series D, 3.66% due 1/01/2035 (g)(j) 41,550 6,705 Chicago, Illinois, Park District, GO, Refunding, ROCS, VRDN, Series II-R-4002, 3.71% due 1/01/2023 (b)(j)(p) 6,705 28,100 Chicago, Illinois, Second Lien Water Revenue Refunding Bonds, VRDN, 3.65% due 11/01/2031 (f)(j) 28,100 3,345 Cook County, Illinois, GO, Refunding, ROCS, VRDN, Series II-R-2063, 3.71% due 11/15/2021 (f)(j)(p) 3,345 11,000 Eagle Tax-Exempt Trust, Chicago, Illinois, Board of Education, VRDN, Series 01, Class 1309, 3.72% due 12/01/2026 (j) 11,000 Eagle Tax-Exempt Trust, Chicago, Illinois, GO, VRDN (j): 9,900 Series 98, Class 1301, 3.72% due 1/01/2017 9,900 7,155 Series 2006-0001, Class-A, 3.72% due 1/01/2034 (e) 7,155 Face Amount Municipal Bonds Value Illinois (continued) $ 30,000 Eagle Tax-Exempt Trust, Cook County, Illinois, VRDN, Series 02, Class 1303, 3.72% due 11/15/2025 (a)(j) $ 30,000 3,150 Eagle Tax-Exempt Trust, Illinois State Finance Authority, Revenue Refunding Bonds, VRDN, Series 2006-0118, Class A, 3.72% due 12/01/2042 (j) 3,150 Eagle Tax-Exempt Trust, Illinois State, GO, VRDN (j): 11,000 Series 01, Class 1307, 3.72% due 11/01/2022 11,000 11,100 Series 02, Class 1302, 3.72% due 2/01/2027 11,100 3,000 Eagle Tax-Exempt Trust, Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds, VRDN, Series 2004-0030, Class A, 3.72% due 6/15/2042 (f)(j) 3,000 5,000 Eagle Tax-Exempt Trust, Metropolitan Pier and Exposition Authority, Illinois, VRDN, Series 2002-6001, Class A, 3.72% due 12/15/2028 (f)(j) 5,000 10,000 Eagle Tax-Exempt Trust, University of Illinois, University Revenue Refunding Bonds, VRDN, Series 2006-0124, Class A, 3.72% due 4/01/2035 (f)(j) 10,000 10,720 Eclipse Funding Trust, Solar Eclipse Certificates, Chicago, Illinois, GO, Refunding, VRDN, Series 2006-0038, 3.69% due 1/01/2028 (e)(j) 10,720 5,000 Illinois Development Finance Authority, Water Facilities Revenue Refunding Bonds (Illinois American Water Company), VRDN, AMT, 3.78% due 3/01/2032 (f)(j) 5,000 8,450 Illinois Educational Facilities Authority Revenue Bonds (Art Institute of Chicago), VRDN, 3.70% due 3/01/2027 (j) 8,450 Illinois HDA, M/F Housing Revenue Bonds (Danbury Court Apartments), VRDN, AMT (j): 6,225 Series A, 3.73% due 5/01/2037 6,225 445 Series B, 3.80% due 5/01/2037 445 50,000 Illinois Health Facilities Authority, CP, 3.67% due 7/19/2007 50,000 2,940 Illinois State Dedicated Tax (MACON Trust), VRDN, Series N, 3.75% due 12/15/2020 (a)(j) 2,940 Illinois State Finance Authority Revenue Bonds, VRDN (j): 4,190 FLOATS, Series 1489, 3.69% due 12/01/2042 4,190 50,415 (University of Chicago), Series B, 3.65% due 7/01/2034 50,415 12,500 Illinois State Finance Authority, Revenue Refunding Bonds (Central DuPage Health System), VRDN, Series B, 3.71% due 11/01/2038 (j) 12,500 Illinois State, GO,VRDN (j): 1,750 (MACON Trust), Series L, 3.69% due 1/01/2031 1,750 8,960 MERLOTS, Series B04, 3.69% due 12/01/2024 (e)(p) 8,960 Illinois State, GO, Refunding, VRDN (f)(j): 16,310 FLOATS, Series 743D, 3.69% due 8/01/2015 (n) 16,310 5,780 MERLOTS, Series A49, 3.69% due 8/01/2013 (p) 5,780 16,605 Illinois Student Assistance Commission, Student Loan Revenue Bonds, VRDN, AMT, Series A-I, 3.72% due 9/01/2034 (f)(j) 16,605 5,690 Kane County, Illinois, School District Number 129 (Aurora West Side), GO, Refunding, PUTTERS, VRDN, Series 1113, 3.72% due 2/01/2013 (b)(j)(p) 5,690 Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds, FLOATS, VRDN (f)(j): 1,800 Series 2006-6Z, 3.71% due 12/15/2032 1,800 5,310 Series 2006-9Z, 3.71% due 12/15/2034 5,310 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Illinois (concluded) $ 35,000 Morgan Keegan Municipal Products, Inc., Aurora, Illinois, S/F Mortgage Revenue Bonds, VRDN, AMT, Series B, 3.75% due 6/01/2045 (j) $ 35,000 6,250 Municipal Securities Trust Certificates, Chicago, Illinois, Board of Education, GO, VRDN, Series 2005-237, Class A, 3.71% due 1/04/2024 (b)(j)(m) 6,250 26,045 Municipal Securities Trust Certificates, Chicago, Illinois, O'Hare International Airport, Revenue Refunding Bonds, VRDN, AMT, Series 2000-93, Class A, 3.72% due 10/04/2012 (a)(j)(m) 26,045 29,950 Municipal Securities Trust Certificates, Chicago O'Hare Airport, Illinois, Revenue Bonds, VRDN, AMT, Series 2001-151, Class A, 3.72% due 6/30/2015 (a)(j)(m) 29,950 Municipal Securities Trust Certificates, Cook County, Illinois, GO, Refunding, VRDN, Class A (b)(j): 29,085 Series 2001-145, 3.70% due 11/15/2029 29,085 33,895 Series 2002-191, 3.70% due 3/18/2019 33,895 7,810 Municipal Securities Trust Certificates, Illinois Finance Authority, Revenue Refunding Bonds, VRDN, Series 2006-253, Class A, 3.70% due 5/12/2014 (a)(j)(m) 7,810 13,230 Municipal Securities Trust Certificates, Kane, McHenry, Cook and DeKalb Counties, Illinois, United School District Number 300, GO, VRDN, Series 2007-309, Class A, 3.72% due 1/15/2015 (a)(j)(m) 13,230 31,615 Municipal Securities Trust Certificates, Metropolitan Pier and Exposition Authority, Illinois, Revenue Refunding Bonds, VRDN, Series 2001-157, Class A, 3.70% due 10/05/2017 (b)(j) 31,615 18,065 Municipal Securities Trust Certificates, Will County, Illinois, Community High School District Number 210, VRDN, Series 2006-265, Class A, 3.71% due 4/08/2021 (e)(j) 18,065 2,165 Regional Transportation Authority, Illinois, GO, MERLOTS, VRDN, Series A41, 3.69% due 6/01/2017 (b)(j)(p) 2,165 2,755 Regional Transportation Authority, Illinois, Revenue Bonds (MACON Trust), VRDN, Series K, 3.69% due 7/01/2026 (f)(j) 2,755 32,783 Regional Transportation Authority, Illinois, Revenue Refunding Bonds, FLOATS, VRDN, Series 818-D, 3.69% due 7/01/2033 (b)(j) 32,783 10,000 University of Illinois, COP (Utility Infrastructure Projects), Refunding, VRDN, 3.65% due 8/15/2021 (j) 10,000 22,000 University of Illinois, University Revenue Refunding Bonds (South Campus Project), VRDN, Series A, 3.68% due 1/15/2022 (b)(j) 22,000 2,065 Will County, Illinois, Community Unit School District Number 365-U (Valley View), GO, Refunding, TOCS, VRDN, Series Z-10, 3.71% due 4/15/2020 (e)(j)(p) 2,065 Will County, Illinois, Exempt Facilities Revenue Bonds (BP Amoco Chemical Company Project), VRDN, AMT (j): 2,025 3.70% due 3/01/2028 2,025 3,500 3.70% due 7/01/2031 3,500 2,600 3.70% due 7/01/2032 2,600 10,000 Will County, Illinois, M/F Housing Redevelopment, Revenue Refunding Bonds (Woodlands Crest Hill), VRDN, AMT, 3.74% due 2/15/2031 (d)(j) 10,000 Face Amount Municipal Bonds Value Indiana--2.6% $ 5,360 Carmel, Indiana, School Building Corporation Revenue Bonds, ROCS, VRDN, Series II-R-2065, 3.71% due 7/15/2020 (f)(j)(p) $ 5,360 4,450 Elkhart County, Indiana, Revenue Refunding Bonds, PUTTERS, VRDN, Series 1669, 3.72% due 12/01/2014 (e)(j)(p) 4,450 13,000 Goshen, Indiana, EDR, Refunding (Goshen College Project), VRDN, 3.70% due 10/01/2037 (j) 13,000 6,000 Hobart, Indiana, Building Corporation, First Mortgage Revenue Bonds, MERLOTS, VRDN, Series D-3, 3.69% due 1/15/2029 (b)(j)(p) 6,000 4,110 Huntington, Indiana, School Building Corporation Revenue Bonds, PUTTERS, VRDN, Series 1648, 3.72% due 7/15/2014 (f)(j)(p) 4,110 37,900 Indiana Bond Bank, Advance Funding Program Revenue Notes, Series A, 4.25% due 1/31/2008 38,085 40,250 Indiana State Development Finance Authority, Environmental Revenue Bonds (PSI Energy, Inc. Projects), VRDN, AMT, Series A, 3.85% due 12/01/2038 (j) 40,250 3,700 Indiana State Development Finance Authority, IDR (Republic Services, Inc. Project), VRDN, AMT, 4.01% due 11/01/2035 (j) 3,700 11,000 Indiana State Housing and Community Development Authority, S/F Mortgage Revenue Bonds, VRDN, AMT, Series E-2, 3.62% due 12/20/2007 (j) 11,000 5,245 Indiana State Office Building Commission, Facilities Revenue Bonds, ROCS, VRDN, Series II-R-4534, 3.71% due 7/01/2020 (j)(p) 5,245 1,972 Indiana Transportation Finance Authority, Highway Revenue Refunding Bonds, FLOATS, VRDN, Series 942D, 3.69% due 12/01/2022 (b)(j) 1,972 4,240 Indianapolis, Indiana, Local Public Improvement Bond Bank, Revenue Refunding Bonds (MACON Trust), VRDN, Series S, 3.69% due 1/01/2021 (f)(j) 4,240 34,995 Municipal Securities Trust Certificates, Indianapolis, Indiana, Local Tax-Exempt, GO, VRDN, Series 2002-192, Class A, 3.69% due 6/18/2014 (f)(j) 34,995 7,705 New Albany-Floyd County, Indiana, Independent School Building Corporation, Revenue Refunding Bonds, PUTTERS, VRDN, Series 879, 3.72% due 6/01/2013 (e)(j)(p) 7,705 6,565 Pike County, Indiana, Multi-School Building Corporation, Revenue Refunding Bonds, PUTTERS, VRDN, Series 1122, 3.72% due 7/15/2012 (f)(j)(p) 6,565 41,635 Saint Joseph County, Indiana, Industrial Educational Facilities, Revenue Refunding Bonds (University of Notre Dame du Lac Project), VRDN, 3.60% due 3/01/2040 (j) 41,635 Whiting, Indiana, Environmental Facilities Revenue Refunding Bonds, VRDN, AMT (j): 6,085 (Amoco Oil Company Project),3.70% due 7/01/2031 6,085 27,900 (BP Products Project), Series C, 3.70% due 7/01/2034 27,900 Iowa--0.8% 15,000 Iowa Finance Authority, Health Care Facilities, Revenue Refunding Bonds (Iowa Health System), VRDN, Series B-3, 3.64% due 2/15/2035 (a)(j) 15,000 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Iowa (concluded) $ 22,000 Iowa Finance Authority, Revenue Refunding Bonds (Trinity Health Credit Group), VRDN, Series D, 3.65% due 12/01/2030 (j) $ 22,000 33,200 Iowa State, TRAN, 4.25% due 6/29/2007 33,259 10,000 Louisa County, Iowa, PCR, Refunding (Iowa-Illinois Gas and Electric), VRDN, Series A, 3.72% due 9/01/2016 (j) 10,000 Kansas--0.3% 3,955 Kansas State Department of Transportation, Highway Revenue Bonds, ROCS, VRDN, Series II-R-6020, 3.71% due 3/01/2019 (e)(j)(p) 3,955 19,700 Kansas State Department of Transportation, Highway Revenue Refunding Bonds, VRDN, Series C-1, 3.62% due 9/01/2019 (j) 19,700 1,780 Kansas State Development Financing Authority, Revenue Bonds (Sisters of Charity of Leavenworth Health System), VRDN, Series C, 3.71% due 12/01/2019 (j) 1,780 7,500 Lehman Municipal Trust Receipts, Sedgwick and Shawnee Counties, Kansas, FLOATS, VRDN, Series 2006-P33U, 3.75% due 6/01/2038 (c)(i)(j) 7,500 Kentucky--2.8% 3,775 Boyd County, Kentucky, Sewer and Solid Waste Revenue Bonds (Air Products and Chemicals Project), VRDN, AMT, 3.75% due 7/01/2021 (j) 3,775 36,737 Breckinridge County, Kentucky, Lease Program Revenue Bonds (Kentucky Association of Counties Leasing Trust), VRDN, Series A, 3.71% due 2/01/2032 (j) 36,737 20,930 Carroll, Kentucky, CP, 3.78% due 4/02/2007 20,930 14,000 Eagle Tax-Exempt Trust, Louisville and Jefferson Counties, Kentucky, Metropolitan Sewer District, Sewer and Drain System Revenue Bonds, VRDN, Series 2006-0053 Class A, 3.72% due 5/15/2033 (b)(j) 14,000 35,000 Jefferson County, Kentucky, CP, 3.68% due 6/12/2007 35,000 2,200 Kenton County, Kentucky, Airport Board, Special Facilities Revenue Refunding Bonds, VRDN, Series B, 3.74% due 10/01/2030 (j) 2,200 1,750 Kentucky Economic Development Finance Authority, Solid Waste Disposal Revenue Bonds (Republic Services, Inc.), VRDN, AMT, 3.95% due 7/01/2035 (j) 1,750 36,475 Kentucky State Turnpike Authority, Resource Recovery Road Revenue Bonds, FLOATS, VRDN, Series 488, 3.69% due 7/01/2007 (e)(j) 36,475 Louisville and Jefferson Counties, Kentucky, Metropolitan Government Health System, Revenue Refunding Bonds, ROCS, VRDN (j)(p): 8,205 Series II-R-651CE, 3.71% due 10/01/2036 8,205 17,500 Series II-R-662CE, 3.71% due 10/01/2036 (b) 17,500 29,915 Louisville and Jefferson Counties, Kentucky, Metropolitan Sewer District, Sewer and Drain System, Revenue Refunding Bonds, VRDN, Series B, 3.65% due 5/15/2023 (e)(j) 29,915 63,815 Public Energy Authority of Kentucky, Inc., Gas Supply Revenue Bonds (BP Corporation of North America), VRDN, Series A, 3.72% due 8/01/2016 (j) 63,815 13,980 Shelby County, Kentucky, Lease Revenue Bonds, VRDN, Series A, 3.71% due 9/01/2034 (j) 13,980 Face Amount Municipal Bonds Value Louisiana--2.8% $ 17,700 Ascension Parish, Louisiana, Revenue Bonds (BASF Corporation Project), VRDN, AMT, 3.76% due 3/01/2025 (j) $ 17,700 32,900 Calcasieu Parish, Louisiana, IDB, Environmental Revenue Bonds (Citgo Petroleum Corp.), VRDN, AMT, 3.70% due 7/01/2026 (j) 32,900 13,495 Calcasieu Parish, Louisiana, IDB, Environmental Revenue Refunding Bonds (Citgo Petroleum Corp.), VRDN, AMT, 3.70% due 3/01/2025 (j) 13,495 Eagle Tax-Exempt Trust, Louisiana State Gas and Fuel Tax Revenue Bonds, VRDN, Class A (e)(j): 27,225 Series 2006-0129, 3.72% due 5/01/2041 (b) 27,225 4,020 Series 2006-137, 3.72% due 5/01/2036 4,020 3,625 East Baton Rouge, Louisiana, Mortgage Finance Authority, S/F Revenue Bonds, FLOATS, VRDN, AMT, Series 996, 3.75% due 6/02/2008 (j) 3,625 Jefferson Parish, Louisiana, Hospital Service District Number 001, Hospital Revenue Bonds, VRDN (j): 10,000 PUTTERS, Series 522, 3.71% due 12/01/2008 (p) 10,000 25,000 (West Jefferson Medical Center), Series B, 3.67% due 1/01/2028 (e) 25,000 25,114 Louisiana HFA, Mortgage Revenue Refunding Bonds, FLOATS, AMT, Series 1069, 3.75% due 12/01/2047 (j) 25,114 Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, VRDN, AMT (j): 4,000 (BASF Corporation Project), 3.74% due 12/01/2036 4,000 6,000 (Honeywell International Inc. Project), 3.85% due 12/01/2037 6,000 7,500 Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Refunding Bonds (BASF Corporation Project), VRDN, Series B, 3.64% due 12/01/2030 (j) 7,500 Louisiana Public Facilities Authority Revenue Bonds, VRDN (j): 2,850 (Air Products and Chemicals Project), AMT, 3.75% due 12/01/2039 2,850 12,655 (Equipment and Capital Facilities Loan Program), Series C, 3.70% due 7/01/2024 12,655 10,000 Louisiana State, GO, MERLOTS, VRDN, Series C-4, 3.69% due 5/01/2026 (e)(j)(p) 10,000 17,600 Louisiana State, Gas and Fuels Tax Revenue Bonds, ROCS, VRDN, Series II-R-660, 3.71% due 5/01/2041 (b)(j)(p) 17,600 15,500 Louisiana State Municipal Natural Gas Purchasing and Distribution Authority Revenue Bonds, PUTTERS, VRDN, Series 1411Q, 3.71% due 3/15/2014 (j)(p) 15,500 8,790 Morgan Keegan Municipal Products, Inc., East Baton Rouge, Louisiana, Mortgage Finance Authority, S/F Revenue Bonds, VRDN, AMT, Series A, 3.75% due 2/01/2011 (j) 8,790 24,125 Morgan Keegan Municipal Products, Inc., New Orleans, Louisiana, Finance Authority, VRDN, Series G, 3.75% due 12/01/2041 (j) 24,125 8,065 New Orleans, Louisiana, Ernest N. Morial Exhibit Hall Authority, Special Tax, ROCS, VRDN, Series II-R-4038, 3.74% due 7/15/2023 (a)(j)(p) 8,065 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Louisiana (concluded) $ 4,400 South Louisiana Port Commission, Port Revenue Refunding Bonds (Occidental Petroleum), VRDN, 3.67% due 7/01/2018 (j) $ 4,400 Maine--0.1% 12,000 Maine State Housing Authority, Mortgage Purpose Revenue Bonds, VRDN, AMT, Series H, 3.62% due 11/15/2034 (j) 12,000 Maryland--1.9% 4,780 Baltimore County, Maryland, Revenue Refunding Bonds (The Paths at Loveton Farms Apartments Facility Project), VRDN, 3.70% due 12/01/2021 (j) 4,780 35,700 Baltimore, Maryland, Port Facilities Revenue Bonds (Occidental Petroleum), FLOATS, VRDN, 3.60% due 10/14/2011 (j) 35,700 2,500 Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, VRDN, AMT, Series R, 3.64% due 12/14/2007 (j) 2,500 11,000 Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, VRDN, Series Q, 3.59% due 12/14/2007 (j) 11,000 29,000 Maryland State Economic Development Corporation, Revenue Refunding Bonds (Constellation Energy Group, Inc. Project), VRDN, Series A, 3.63% due 4/01/2024 (j) 29,000 34,350 Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds, FLOATS, VRDN, Series 867, 3.69% due 7/01/2019 (b)(j) 34,350 4,000 Maryland State Stadium Authority, Lease Revenue Refunding Bonds (Baltimore Convention Center), VRDN, AMT, 3.65% due 12/15/2014 (j) 4,000 48,295 Metropolitan Washington Airports Authority, D.C., Airport System Revenue Refunding Bonds, MERLOTS, VRDN, AMT, Series C35, 3.74% due 10/01/2014 (f)(j)(m)(p) 48,295 9,225 Metropolitan Washington Airports Authority, D.C., System Revenue Bonds, ROCS, VRDN, Series II-R-195, 3.74% due 10/01/2032 (b)(j)(p) 9,225 13,805 Montgomery County, Maryland, EDR (Riderwood Village, Inc. Project), Refunding, VRDN, 3.68% due 3/01/2034 (j) 13,805 Massachusetts--1.5% 10,000 Eagle Tax Exempt Trust, Massachusetts Commuter Facilities, VRDN, Series 2001, Class 2101, 3.71% due 6/15/2033 (j) 10,000 7,495 Eagle Tax-Exempt Trust, Massachusetts State Water Resources Authority, Revenue Refunding Bonds, VRDN, Series 2006-0054 Class A, 3.71% due 8/01/2036 (a)(j) 7,495 10,500 Massachusetts State Development Finance Agency, CP, 3.67% due 5/18/2007 10,500 7,935 Massachusetts State Development Finance Agency Revenue Bonds (Suffolk University), VRDN, Series A, 3.70% due 7/01/2035 (j)(k) 7,935 Face Amount Municipal Bonds Value Massachusetts (concluded) $ 2,700 Massachusetts State, GO, Refunding, VRDN, Series A, 3.62% due 9/01/2016 (j) $ 2,700 39,250 Massachusetts State Industrial Finance Agency, Solid Waste Disposal, CP, 3.67% due 5/09/2007 39,250 60,000 Massachusetts State Port Authority, CP, 3.57% due 6/14/2007 60,000 9,925 Massachusetts State Special Obligation and Dedicated Tax Revenue Bonds, MERLOTS, VRDN, Series B19, 3.68% due 1/01/2028 (b)(j)(p) 9,925 Michigan--3.2% 5,100 Detroit, Michigan, City School District, GO, Refunding (MACON Trust), VRDN, Series J, 3.69% due 5/01/2028 (e)(j) 5,100 4,615 Detroit, Michigan, City School District, GO, VRDN, Series A, 3.73% due 5/01/2029 (e)(j) 4,615 20,930 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-665PB, 3.70% due 7/01/2033 (f)(j)(p) 20,930 6,900 Eagle Tax-Exempt Trust, Grand Rapids Michigan, Sanitation Sewer System, VRDN, Series A, 3.72% due 1/01/2022 (b)(j) 6,900 Eagle Tax-Exempt Trust, Michigan State Building Authority, Revenue Refunding Bonds, VRDN, Class A (b)(j): 8,080 Series 2006-0113, 3.72% due 10/15/2036 8,080 7,100 Series 2006-156, 3.72% due 10/15/2036 7,100 57,720 Kent, Michigan, Hospital Finance Authority, Revenue Refunding Bonds (Spectrum Health), VRDN, Series A, 3.65% due 1/15/2029 (b)(j) 57,720 Michigan State Building Authority, Revenue Refunding Bonds, ROCS, VRDN (f)(j)(p): 4,965 Series II-R-550, 3.71% due 10/15/2024 (a) 4,965 4,250 Series II-R-2064, 3.71% due 10/15/2021 4,250 Michigan State Hospital Finance Authority Revenue Bonds, VRDN (j): 82,000 (Ascension Health), Series B-1, 3.62% due 11/15/2033 82,000 11,100 (Trinity Health Credit Group), Series F, 3.67% due 11/01/2018 11,100 Michigan State Hospital Finance Authority, Revenue Refunding Bonds, VRDN (j): 39,700 (Ascension Health), 3.62% due 11/15/2033 39,700 22,000 MERLOTS, Series K, 3.69% due 11/15/2023 (f)(p) 22,000 28,110 (Trinity Health Credit Group), Series E, 3.70% due 12/01/2030 (a) 28,110 2,940 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Russell Investment Co. LLC Project), VRDN, AMT, 3.78% due 11/01/2031 (j) 2,940 5,615 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Dow Chemical Project), VRDN, Series B-1, 3.77% due 6/01/2014 (j) 5,615 10,000 RBC Municipal Products, Inc., Detroit, Michigan, Water Supply System Revenue Bonds, FLOATS, VRDN, Series I-18, 3.70% due 7/01/2014 (e)(j) 10,000 3,365 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (William Beaumont Hospital), VRDN, Series U, 3.74% due 1/01/2020 (a)(j) 3,365 3,550 Whitmore Lake, Michigan, Public School District, GO, ROCS, VRDN, Series II-R-4515, 3.71% due 5/01/2023 (j)(p) 3,550 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Minnesota--1.8% $ 16,005 Duluth, Minnesota, EDA, Health Care Facilities, Revenue Refunding Bonds, FLOATS, VRDN, Series 895, 3.69% due 2/15/2020 (a)(j) $ 16,005 Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, FLOATS, VRDN (j): 27,900 Series 2007-1G, 3.70% due 1/01/2032 (a) 27,900 11,345 Series 2007-2G, 3.70% due 1/01/2032 (b) 11,345 13,955 Minneapolis, Minnesota, Health Care System, Revenue Refunding Bonds (Fairview Health Services Project), VRDN, Series B, 3.64% due 11/15/2029 (a)(j) 13,955 1,680 Minnesota State, GO, ROCS, VRDN, Series II-R-4065, 3.71% due 8/01/2023 (j)(p) 1,680 6,300 Municipal Securities Trust Certificates, Minneapolis and Saint Paul, Minnesota, Metropolitan Airports Commission, Airport Revenue Bonds, VRDN, Series 2007-292, Class A, 3.71% due 12/23/2014 (a)(j) 6,300 Rochester, Minnesota, Healthcare, CP: 16,250 3.66% due 5/01/2007 16,250 20,500 3.66% due 5/08/2007 20,500 33,300 3.66% due 6/15/2007 33,300 33,200 3.67% due 7/13/2007 33,200 Mississippi--1.7% 56,695 Mississippi Development Bank, Special Obligation Revenue Bonds (Municipal Gas Authority of Mississippi--Natural Gas Supply Project), VRDN, 3.65% due 7/01/2015 (j) 56,695 89,191 Mississippi Home Corporation, S/F Revenue Bonds, FLOATS, VRDN, AMT, Series 1212, 3.72% due 12/01/2008 (j) 89,191 18,780 Mississippi State, Capital Improvement, GO, VRDN, 3.65% due 9/01/2025 (j) 18,780 5,950 University of Mississippi Educational Building Corporation Revenue Bonds (The University of Mississippi Medical Center Pediatric and Research Facilities Project), VRDN, 3.68% due 6/01/2034 (a)(j) 5,950 Missouri--0.6% 4,645 Jackson County, Missouri, Special Obligation Revenue Bonds, ROCS, VRDN, Series II-R-9013, 3.71% due 12/01/2029 (a)(j)(p) 4,645 5,220 Lehman Municipal Trust Receipts, St. Louis, Missouri, Industrial Development Authority, M/F Housing Revenue Bonds, FLOATS, VRDN, AMT, Series 2006-K50, 3.75% due 12/20/2044 (f)(j) 5,220 Missouri Development Finance Board, Cultural Facilities Revenue Bonds (Nelson Gallery Foundation), VRDN (j): 13,050 Series A, 3.71% due 12/01/2033 13,050 9,870 Series B, 3.71% due 12/01/2031 (f) 9,870 3,160 Missouri-Illinois Bi-State Development Agency, Subordinate Mass Transit Revenue Bonds (Metrolink Cross County Extension Project), VRDN, Series A, 3.67% due 10/01/2035 (j) 3,160 5,760 Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds, ROCS, VRDN, Series II-R-620PB, 3.70% due 1/01/2034 (a)(j)(p) 5,760 4,650 Missouri State Health and Educational Facilities Authority, Health Facilities Revenue Bonds (BJC Health System), VRDN, Series B, 3.71% due 5/15/2034 (f)(j) 4,650 5,232 Missouri State Housing Development Commission, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, Series A, 4.52% due 9/01/2038 (j) 5,232 Face Amount Municipal Bonds Value Missouri (concluded) $ 6,000 Palmyra, Missouri, IDA, Solid Waste Disposal Revenue Bonds (BASF Corporation Project), VRDN, AMT, 3.74% due 12/01/2022 (j) $ 6,000 Montana--0.1% 13,640 Montana Facility Finance Authority Revenue Bonds (Sisters of Charity of Leavenworth Health System), VRDN, Series A, 3.71% due 12/01/2025 (j) 13,640 Nebraska--2.1% American Public Energy Agency, Nebraska, Gas Supply Revenue Bonds, VRDN (j): 89,866 (National Public Gas Agency Project), Series B, 3.65% due 2/01/2014 89,866 34,080 Series A, 3.65% due 12/01/2015 34,080 9,720 Central Plains Energy Project, Nebraska, Gas Project Number 1 Revenue Bonds, VRDN, Series A, 5% due 12/01/2007 (j) 9,802 2,000 Eagle Tax-Exempt Trust, Nebraska Public Power District Revenue Bonds, VRDN, Series 2004-1016, Class A, 3.72% due 1/01/2035 (a)(j) 2,000 16,995 Eagle Tax-Exempt Trust, Nebraska Public Power District, Revenue Refunding Bonds, VRDN, Series 2007-0013, Class A, 3.70% due 1/01/2031(b)(j) 16,995 5,960 Eclipse Funding Trust, Solar Eclipse Certificates, Omaha, Nebraska, Public Power District Revenue Bonds, VRDN, Series 2006-0025, 3.69% due 2/01/2036 (a)(j) 5,960 4,345 Municipal Energy Agency of Nebraska, Power Supply System Revenue Bonds, ROCS, VRDN, Series II-R-2051, 3.71% due 4/01/2022 (e)(j)(p) 4,345 34,000 Omaha Public Power District, Nebraska, CP, 3.64% due 4/03/2007 34,000 14,150 Omaha Public Power District, Nebraska, Electric System Revenue Bonds, ROCS, VRDN, Series II-R-9031, 3.71% due 2/01/2039 (j)(p) 14,150 Nevada--1.1% 29,185 ABN AMRO MuniTops Certificates Trust, Clark County, Nevada, Airport Revenue Bonds, VRDN, Series 1999-15, 3.68% due 1/02/2008 (f)(j) 29,185 5,700 Clark County, Nevada, Airport System Subordinate Lien, Revenue Refunding Bonds, VRDN, Series C, 3.66% due 7/01/2029 (b)(j) 5,700 20,250 Clark County, Nevada, CP, 3.65% due 7/12/2007 20,250 4,690 Clark County, Nevada, School District, GO, PUTTERS, VRDN, Series 1429, 3.70% due 12/15/2013 (e)(j)(p) 4,690 18,965 Eagle Tax-Exempt Trust, Clark County, Nevada, GO, Refunding, VRDN, Series 2007-0011, Class A, 3.70% due 11/01/2030 (a)(j) 18,965 9,025 Las Vegas Valley, Nevada, Water District, GO, Refunding, MERLOTS, VRDN, Series B 10, 3.69% due 6/01/2024 (f)(j)(p) 9,025 5,850 Nevada State Department of Business and Industry, Solid Waste Disposal Revenue Bonds (Republic Services, Inc. Project), VRDN, AMT, 4.04% due 12/01/2034 (j) 5,850 9,330 Truckee Meadows, Nevada, Water Authority, Water Revenue Refunding Bonds, ROCS, VRDN, Series II-R-6078, 3.71% due 1/01/2027 (e)(j)(p) 9,330 7,190 Washoe County, Nevada, School District, GO, ROCS, VRDN, Series II-R-2012, 3.71% due 6/01/2020 (b)(j)(p) 7,190 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value New Hampshire--0.7% $ 6,500 New Hampshire Health and Educational Facilities Authority, Revenue Refunding Bonds (Dartmouth Hitchcock Obligation), VRDN, Series A, 3.65% due 8/01/2031 (e)(j) $ 6,500 New Hampshire Higher Educational and Health Facilities Authority Revenue Refunding Bonds, FLOATS, VRDN (b)(j): 9,658 Series 866, 3.69% due 8/15/2021 9,658 4,782 Series 772, 3.69% due 1/01/2017 4,782 7,415 New Hampshire State Business Finance Authority, Resource Recovery Revenue Refunding Bonds (Wheelabrator), VRDN, Series A, 3.67% due 1/01/2018 (j) 7,415 40,600 New Hampshire State Business Fund, CP, 3.64% due 5/07/2007 40,600 New Jersey--1.8% 15,490 GS Pool Trust, Newark, New Jersey, Housing Authority, Revenue Refunding Bonds, FLOATS, VRDN, Series 24, 3.71% due 1/01/2027 (f)(j) 15,490 10,500 Municipal Securities Trust Certificates, New Jersey State, GO, Refunding, VRDN, Series 2001-174, Class A, 3.70% due 2/26/2015 (j) 10,500 Municipal Securities Trust Certificates, New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Bonds, Class A, VRDN (j)(m): 5,855 Series 2006-3010, 3.71% due 6/13/2024 (a) 5,855 11,550 Series 2006-3013, 3.71% due 11/05/2026 (b) 11,550 12,000 New Jersey EDA, Revenue Refunding Bonds (Presbyterian Homes), VRDN, Series B, 3.65% due 4/01/2016 (j) 12,000 7,257 New Jersey Health Care Facilities Financing Authority Revenue Bonds, FLOATS, VRDN, Series 702, 3.70% due 7/01/2014 (f)(j) 7,257 10,350 New Jersey State Transportation Trust Fund Authority Revenue Bonds, PUTTERS, VRDN, Series 1365, 3.69% due 6/15/2023 (f)(j)(p) 10,350 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, VRDN (e)(j): 22,325 Series C-1, 3.63% due 1/01/2024 22,325 52,785 Series C-2, 3.63% due 1/01/2024 52,785 30,000 Passaic, New Jersey, GO, Refunding, BAN, 4.50% due 6/08/2007 30,052 New Mexico--0.4% 14,505 Eclipse Funding Trust, Solar Eclipse Certificates, Rio Rancho, New Mexico, Water and Waste Water Revenue Bonds, VRDN, Series 2006-0019, 3.69% due 5/15/2032 (f)(j) 14,505 7,340 New Mexico Finance Authority, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-7509, 3.71% due 6/15/2023 (a)(j)(p) 7,340 23,591 New Mexico Mortgage Finance Authority, S/F Mortgage Program Revenue Bonds, VRDN, AMT, 4.52% due 7/01/2007 (j) 23,591 Face Amount Municipal Bonds Value New York--6.4% $ 7,000 Aurora, New York, GO, BAN, 4% due 7/25/2007 $ 7,000 10,000 Carmel, New York, Central School District, GO, BAN, 4.50% due 6/29/2007 10,015 7,080 GS Pool Trust, New York City, New York, City Transitional Finance Authority Revenue Bonds, FLOATS, VRDN, Series 25, 3.71% due 11/01/2020 (j) 7,080 7,000 Hempstead, New York, Union Free School District, GO, TAN, 4.50% due 6/28/2007 7,011 31,950 Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, VRDN, Series B, 3.65% due 11/01/2022 (e)(j) 31,950 Monroe County, New York, GO: 9,390 BAN, 4.75% due 7/18/2007 9,411 25,000 RAN, 4% due 4/16/2007 25,004 32,700 Monroe County, New York, Public Improvement Refunding Bonds, GO, BAN, 4% due 7/18/2007 32,738 13,995 Municipal Securities Trust Certificates, New York City, New York, City Transitional Finance Authority Revenue Bonds, VRDN, Series 2002-202, Class A, 3.65% due 10/21/2010 (b)(j)(m) 13,995 13,000 New York City, New York, City Housing Development Corporation, M/F Rental Housing Revenue Bonds (Brittany Development), VRDN, AMT, Series A, 3.69% due 6/15/2029 (d)(j) 13,000 24,000 New York City, New York, City IDA, Liberty Revenue Bonds (One Bryant Park LLC Project), VRDN, Series A, 3.67% due 11/01/2039 (j) 24,000 New York City, New York, City Municipal Water Finance Authority, CP: 42,000 3.67% due 6/06/2007 42,000 50,000 3.68% due 6/11/2007 50,000 49,000 3.68% due 6/13/2007 49,000 40,000 3.70% due 6/14/2007 40,000 11,500 New York City, New York, City Transitional Finance Authority, Special Tax Revenue Refunding Bonds, VRDN, Series C, 3.62% due 2/01/2032 (j) 11,500 25,000 New York City, New York, GO, ROCS, VRDN, Series II-R-251A, 3.72% due 12/15/2033 (j)(p) 25,000 5,695 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, ROCS, VRDN, Series II-R-6084, 3.70% due 10/01/2023 (j)(p) 5,695 1,500 New York State Dormitory Authority, Mental Health Facilities Improvement Revenue Refunding Bonds, VRDN, Series F-2B, 3.65% due 2/15/2021 (e)(j) 1,500 6,500 New York State HFA, Service Contract Revenue Refunding Bonds, VRDN, Series G, 3.65% due 3/15/2028 (j) 6,500 56,600 New York State Local Assistance Corporation Revenue Bonds, VRDN, Series B, 3.59% due 4/01/2023 (j) 56,600 6,500 New York State Local Government Assistance Corporation, Revenue Refunding Bonds, Sub-Lien, VRDN, Series 3V, 3.63% due 4/01/2024 (b)(j) 6,500 10,975 New York State Thruway Authority, State Personal Income Tax, Revenue Refunding Bonds, FLOATS, VRDN, Series 1194, 3.68% due 3/15/2023 (e)(j) 10,975 11,000 Oceanside, New York, Union Free School District, GO, TAN, 4.50% due 6/27/2007 11,019 5,930 Plainedge, New York, Union Free School District, GO, TAN, 4.50% due 6/27/2007 5,940 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value New York (concluded) $ 20,000 Sachem Central School District (Holbrook), New York, GO, BAN, 4.50% due 6/27/2007 $ 20,034 3,990 Tobacco Settlement Financing Corporation of New York Revenue Bonds, FLOATS, VRDN, Series 1457, 3.75% due 6/01/2022 (j) 3,990 Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, VRDN (j): 46,280 Series A, 3.65% due 11/01/2035 46,280 18,570 Series B, 3.64% due 1/01/2033 18,570 29,000 Triborough Bridge and Tunnel Authority, New York, General Revenue Refunding Bonds, VRDN, Sub-Series B-2, 3.65% due 1/01/2032 (j) 29,000 4,985 Triborough Bridge and Tunnel Authority, New York, Special Obligation Revenue Refunding Bonds, VRDN, Series C, 3.61% due 1/01/2031 (e)(j) 4,985 25,000 William Floyd Union Free School District of Mastics-Moriches-Shirley, GO, TAN, 4.50% due 6/29/2007 25,040 North Carolina--1.9% 10,890 Eagle Tax-Exempt Trust, North Carolina Capital Facilities Finance Agency, Revenue Refunding Bonds, VRDN, Series 2007-0015, Class A, 3.70% due 7/01/2042 (j) 10,890 4,800 Lee County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, IDR (Arden Corporation Project), VRDN, AMT, 3.82% due 8/01/2034 (j) 4,800 Mecklenburg County, North Carolina, VRDN (j): 9,905 COP, 3.63% due 2/01/2026 9,905 21,010 GO, Series A, 3.63% due 2/01/2026 21,010 19,995 Municipal Securities Trust Certificates, North Carolina Eastern Municipal Power Agency, GO, Refunding, VRDN, Series 2002-201, Class A, 3.69% due 4/12/2017 (j) 19,995 4,025 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds, MERLOTS, VRDN, Series A22, 3.69% due 1/01/2024 (j)(p) 4,025 19,500 North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, VRDN, Series A, 3.65% due 1/01/2024 (f)(j) 19,500 North Carolina HFA, Home Ownership Revenue Bonds, VRDN, AMT (j): 3,200 MERLOTS, Series B12, 3.74% due 7/01/2037 (p) 3,200 3,000 Series 18-C, 3.72% due 1/01/2035 3,000 16,500 North Carolina Medical Care Commission, Health Care Facilities Revenue Bonds (Novant Health Inc.), VRDN, Series A, 3.66% due 11/01/2034 (j) 16,500 North Carolina Medical Care Commission, Health Care Facilities, Revenue Refunding Bonds, VRDN (j): 4,800 (Duke University Health System), Series C, 3.65% due 6/01/2028 4,800 38,520 (University Health Systems of Eastern Carolina), Series C1, 3.65% due 12/01/2036 (a) 38,520 North Carolina Medical Care Commission, Hospital Revenue Bonds, VRDN (j): 6,900 (Moses H. Cone Memorial Health System), Series B, 3.65% due 10/01/2035 6,900 4,100 (Pooled Equipment Financing Project), ACES, 3.65% due 12/01/2025 (f) 4,100 Face Amount Municipal Bonds Value North Carolina (concluded) $ 15,700 North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds (Northeast Medical Center Project), VRDN, Series B, 3.66% due 11/01/2032 (j) $ 15,700 4,500 North Carolina State, GO, MERLOTS, VRDN, Series A23, 3.69% due 3/01/2027 (j)(p) 4,500 6,400 Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, ROCS, VRDN, Series II-R-645, 3.71% due 3/01/2036 (j)(p) 6,400 3,100 Wake County, North Carolina, Industrial Facilities and Pollution Control Financing Authority Revenue Bonds (Solid Waste Disposal-Highway 55), VRDN, AMT, 3.76% due 9/01/2013 (j) 3,100 Ohio--1.3% 1,930 Brunswick, Ohio, Special Assessment Improvement, BAN, 3.90% due 4/03/2008 1,934 30,000 Cleveland, Ohio, Water Revenue Refunding Bonds, VRDN, Series M, 3.65% due 1/01/2033 (e)(j) 30,000 5,500 Columbus, Ohio, City School District, GO, TOCS, VRDN, Series H, 3.67% due 10/11/2012 (e)(j)(p) 5,500 5,000 Franklin County, Ohio, Health Care Facilities Revenue Refunding Bonds (Ohio Presbyterian Services), VRDN, Series A, 3.68% due 7/01/2036 (h)(j) 5,000 1,623 Franklin, Ohio, GO, BAN, 3.67% due 3/12/2008 1,623 13,940 Hamilton County, Ohio, Sales Tax Revenue Refunding Bonds, ROCS, VRDN, Series II-R-9051, 3.71% due 12/01/2032 (a)(j)(p) 13,940 9,000 Hamilton County, Ohio, Student Housing Revenue Bonds (Block 3 Community Urban Redevelopment Corporation Project), VRDN, 3.70% due 8/01/2036 (j) 9,000 1,770 Hudson, Ohio, City School District, Energy Conservation, GO, BAN, 4% due 3/13/2008 1,775 3,755 Licking County, Ohio, GO (Buckeye Lake Project), BAN, 4.25% due 11/28/2007 3,771 2,370 Municipal Securities Trust Certificates, Princeton, Ohio, City School District, GO, Series SGB 50-A, 3.70% due 12/01/2030 (f) 2,370 780 North Olmsted, Ohio, Capital Improvement and Equipment, BAN, 3.90% due 4/03/2008 782 5,000 North Royalton, Ohio, Various Purpose Improvement, BAN, 3.90% due 2/28/2008 5,010 2,150 Oakwood, Ohio, Capital Facilities, GO, BAN, 4% due 3/13/2008 2,156 Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Cincinnati Gas and Electric), VRDN (j): 7,900 Series A, 3.85% due 9/01/2030 7,900 16,300 Series B, 3.90% due 9/01/2030 16,300 22,890 Ohio State, GO, Common Schools, VRDN, Series A, 3.65% due 3/15/2025 (j) 22,890 2,500 Ohio State Solid Waste Revenue Bonds (Republic Services, Inc. Project), VRDN, AMT, 3.95% due 11/01/2035 (j) 2,500 3,000 Richland County, Ohio, Correctional Facilities, GO, BAN, 4.50% due 2/21/2008 3,019 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Oklahoma--1.0% $ 3,584 Comanche County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Bonds, VRDN, Series A, 3.90% due 5/01/2007 (j) $ 3,584 23,045 Morgan Keegan Municipal Products, Inc., Oklahoma County, Oklahoma, HFA, S/F Revenue Bonds, VRDN, AMT, Series A, 3.75% due 5/01/2009 (j) 23,045 2,500 Oklahoma State Development Finance Authority Revenue Bonds (ConocoPhillips Company Project), VRDN, AMT, Series B, 3.77% due 8/01/2037 (j) 2,500 5,084 Oklahoma State, HFA, S/F Mortgage Revenue Bonds, VRDN, AMT, 4.52% due 8/31/2007 (j) 5,084 Oklahoma State Turnpike Authority, Second Senior Revenue Refunding Bonds, VRDN (j)(n): 52,810 Series C, 3.65% due 1/01/2028 52,810 10,000 Series E, 3.66% due 1/01/2028 10,000 Oregon--0.1% 11,730 ABN AMRO MuniTops Certificates Trust, Portland, Oregon, GO, VRDN, Series 2001-4, 3.70% due 6/01/2009 (f)(j) 11,730 Pennsylvania--5.0% Allegheny County, Pennsylvania, Hospital Development Authority Revenue Bonds, VRDN (j): 27,165 PUTTERS, Series 1281, 3.70% due 1/15/2011 (b)(p) 27,165 6,907 (University of Pittsburgh Medical Center), Series B-1, 3.78% due 12/01/2016 6,907 25,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local Government Revenue Bonds, VRDN, Series D, 3.68% due 12/01/2020 (j) 25,000 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Series A (j): 11,925 3.71% due 3/01/2024 11,925 13,200 (Pennsylvania Loan Program), 3.68% due 3/01/2030 (e) 13,200 9,897 Erie County, Pennsylvania, Hospital Authority Revenue Bonds, FLOATS, VRDN, Series 820, 3.69% due 7/01/2022 (f)(j) 9,897 17,000 Erie, Pennsylvania, City School District, GO, TRAN, 4.50% due 6/29/2007 17,021 12,000 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 3.69% due 9/15/2020 (j)(p) 12,000 4,995 Mount Lebanon, Pennsylvania, School District, GO, MERLOTS, VRDN, Series B19, 3.69% due 2/15/2027 (f)(j)(p) 4,995 6,700 Pennsylvania Economic Development Financing Authority, Wastewater Treatment Revenue Refunding Bonds (Sunoco, Inc.--R & M Project), VRDN, AMT, Series B, 3.86% due 10/01/2034 (j) 6,700 15,120 Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds, FLOATS, VRDN, Series 1402, 3.69% due 12/01/2024 (a)(j) 15,120 Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds, VRDN (j): 6,925 Series B, 3.65% due 12/01/2012 6,925 20,420 Series U, 3.64% due 12/01/2019 20,420 Face Amount Municipal Bonds Value Pennsylvania (concluded) Philadelphia, Pennsylvania, Gas Works, CP: $ 65,000 3.63% due 5/04/2007 $ 65,000 49,500 3.63% due 5/07/2007 49,500 66,400 Philadelphia, Pennsylvania, Gas Works Revenue Refunding Bonds, VRDN, Series 6, 3.66% due 8/01/2031 (e)(j) 66,400 Philadelphia, Pennsylvania, Water and Wastewater Revenue Refunding Bonds, VRDN (e)(j): 72,855 3.65% due 6/15/2023 72,855 18,650 Series B, 3.65% due 8/01/2018 18,650 12,800 Southcentral General Authority, Pennsylvania, Revenue Refunding Bonds (Wellspan Health--York Hospital), VRDN, Series A, 3.65% due 6/07/2023 (a)(j) 12,800 18,000 Temple University of the Commonwealth System of Higher Education, Pennsylvania, University Funding Obligations, Revenue Refunding Bonds, VRDN, 5% due 4/26/2007 (j) 18,017 8,000 Washington County, Pennsylvania, Authority Revenue Refunding Bonds (University of Pennsylvania), VRDN, 3.66% due 7/01/2034 (j) 8,000 10,510 Washington County, Pennsylvania, IDA, Health Care Facilities Revenue Bonds (Presbyterian Senior Care), VRDN, 3.69% due 1/01/2030 (h)(j) 10,510 Rhode Island--1.2% 14,000 Narragansett Bay Commission, Rhode Island, Wastewater System Revenue Bonds, ROCS, VRDN, Series II-R-780PB, 3.70% due 2/01/2032 (f)(j)(p) 14,000 5,345 Rhode Island Housing and Mortgage Finance Corporation Revenue Bonds, ROCS, VRDN, Series II-R-599, 3.71% due 4/01/2033 (j)(p) 5,345 Rhode Island State and Providence Plantations, GO: 26,035 FLOATS, VRDN, Series 568, 3.69% due 9/01/2017 (f)(j) 26,035 15,855 FLOATS, VRDN, Series 720, 3.69% due 11/01/2022 (b)(j) 15,855 48,225 TAN, 4.25% due 6/29/2007 48,313 13,700 Rhode Island State Health and Educational Building Corporation, Higher Education Facilities Revenue Bonds (Brown University), VRDN, Series A, 3.60% due 5/01/2035 (j) 13,700 South Carolina--1.8% 12,195 ABN AMRO MuniTops Certificates Trust, Lexington County, South Carolina, GO, VRDN, Series 2001-37, 3.70% due 2/01/2010 (b)(j) 12,195 6,235 BNP Paribas STARS Certificates, Spartanburg, South Carolina, Waterworks Revenue Refunding Bonds, VRDN, Series 2007-012, 3.70% due 6/01/2028 (e)(j) 6,235 9,080 Bank of America MACON Trust, South Carolina Jobs EDA, Revenue Bonds, VRDN, Series 2007-303, 3.71% due 2/01/2012 (j) 9,080 Berkeley County, South Carolina, Exempt Facilities, Industrial Revenue Bonds (Amoco Chemical Company Project), VRDN, AMT (j): 25,400 3.70% due 4/01/2028 25,400 11,260 3.70% due 5/01/2038 11,260 3,685 Charleston Educational Excellence Financing Corporation, South Carolina, ROCS, VRDN, Series II-R-515, 3.71% due 12/01/2030 (j)(k)(p) 3,685 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value South Carolina (concluded) $ 11,500 Eagle Tax-Exempt Trust, South Carolina State Public Service Authority, Revenue Bonds, VRDN, Series 2006-0007, Class A, 3.72% due 1/01/2036 (f)(j) $ 11,500 9,500 Eagle Tax-Exempt Trust, South Carolina State Public Service Authority, Revenue Refunding Bonds, VRDN, Series 2006-0019, Class A, 3.72% due 1/01/2039 (f)(j) 9,500 6,380 Florence County, South Carolina, Solid Waste Disposal and Wastewater Treatment Revenue Bonds (Roche Carolina, Inc. Project), VRDN, AMT, 3.70% due 4/01/2027 (j) 6,380 Greenville Hospital System, South Carolina, Hospital Facilities Revenue Bonds, VRDN (a)(j): 23,700 Series A, 3.65% due 5/01/2035 23,700 22,750 Series B, 3.65% due 5/01/2035 22,750 8,035 Medical University Hospital Authority, South Carolina, Hospital Facilities, Revenue Refunding Bonds, VRDN, Series A-5, 3.70% due 8/15/2027 (f)(j)(l) 8,035 South Carolina Housing Finance and Development Authority, Mortgage Revenue Bonds, AMT (j)(p): 5,295 PUTTERS, VRDN, Series 1388, 3.75% due 7/01/2010 (a) 5,295 2,075 ROCS, Series II-R-398, 3.74% due 7/01/2034 (e) 2,075 6,250 South Carolina Jobs EDA, EDR (Holcim (US) Inc. Project), VRDN, AMT, 3.82% due 12/01/2033 (j) 6,250 South Carolina Transportation Infrastructure Bank Revenue Bonds, VRDN (a)(j): 12,500 FLOATS, Series 728, 3.69% due 10/01/2022 12,500 4,185 ROCS, Series II-R-9016, 3.71% due 10/01/2033 (p) 4,185 Tennessee--5.4% 20,325 Bank of America MACON Trust, Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, FLOATS, VRDN, Series 2007-3, 3.69% due 2/01/2024 (j) 20,325 Blount County, Tennessee, Public Building Authority, Local Government Public Improvement Revenue Bonds, VRDN (j): 11,285 Series A-4-A, 3.67% due 6/01/2032 11,285 4,175 Series D-1-F, 3.68% due 6/01/2030 (a) 4,175 13,600 Series D-3-A, 3.85% due 6/01/2034 13,600 2,000 Series D-7-B, 3.68% due 6/01/2031 (n) 2,000 4,000 Series D-7-C, 3.68% due 6/01/2032 (n) 4,000 Clarksville, Tennessee, Public Building Authority Revenue Bonds, Pooled Financing (Tennessee Municipal Bond Fund), VRDN (j): 30,670 3.66% due 11/01/2027 30,670 57,630 3.66% due 6/01/2029 57,630 4,200 3.71% due 7/01/2031 4,200 16,925 3.71% due 7/01/2034 16,925 34,120 3.71% due 11/01/2035 34,120 20,000 Franklin, Tennessee, Public Building Authority, Local Government Public Improvement Revenue Bonds, VRDN, Series 101-A-1, 3.68% due 6/01/2019 (j) 20,000 8,100 Loudon, Tennessee, IDB, PCR, Refunding (A.E. Staley Manufacturing Company Project), VRDN, 3.66% due 6/01/2023 (j) 8,100 6,020 Memphis, Tennessee, Health, Educational and Housing Facility Board Revenue Bonds (Not-for-Profit M/F Program), VRDN, 3.85% due 8/01/2032 (j) 6,020 Face Amount Municipal Bonds Value Tennessee (concluded) Montgomery County, Tennessee, Public Building Authority, Pooled Financing Revenue Bonds (Tennessee County Loan Pool), VRDN (j): $ 17,000 3.71% due 4/01/2032 $ 17,000 51,950 3.71% due 7/01/2034 51,950 9,000 3.71% due 2/01/2036 9,000 34,830 Morgan Keegan Municipal Products, Inc., Tennessee HDA, Revenue Bonds, VRDN, AMT, Series C, 3.75% due 8/09/2007 (j) 34,830 27,600 Municipal Energy Acquisition Corporation, Tennessee, Gas Revenue Bonds, PUTTERS, VRDN, Series 1578, 3.71% due 2/01/2013 (j)(p) 27,600 9,985 Municipal Securities Trust Certificates, Tennessee Energy Acquisition Corporation, Revenue Bonds, VRDN, Series 2006-276, Class A, 3.70% due 8/30/2022 (j)(m) 9,985 Sevier County, Tennessee, Public Building Authority, Local Government Public Improvement Revenue Bonds, VRDN (j): 41,550 AMT, Series III-A, 3.73% due 6/01/2028 (a) 41,550 7,100 Series II-A-1, 3.69% due 6/01/2024 (a) 7,100 10,000 Series III-D-2, 3.69% due 6/01/2017 (a) 10,000 3,970 Series III-D-6, 3.69% due 6/01/2020 (a) 3,970 18,825 Series III-E-1, 3.69% due 6/01/2025 18,825 10,000 Series III-E-4, 3.69% due 6/01/2025 (a) 10,000 6,000 Series IV-A-4, 3.68% due 6/01/2020 (e) 6,000 1,100 Series VI-D-4, 3.68% due 6/01/2025 (a) 1,100 5,850 Series VI-F-3, 3.68% due 6/01/2030 (n) 5,850 3,620 Sevier County, Tennessee, Public Building Authority, Local Government Public Improvement, Revenue Refunding Bonds, VRDN, Series II-E-2, 3.69% due 6/01/2021 (a)(j) 3,620 4,555 Shelby County, Tennessee, GO, Refunding, ROCS, VRDN, Series II-R-3023, 3.71% due 4/01/2020 (f)(j)(p) 4,555 10,000 Shelby County, Tennessee, Public Improvement and Schools, GO, VRDN, Series B, 3.70% due 4/01/2030 (j) 10,000 38,290 The Tennergy Corporation, Tennessee, Gas Revenue Bonds, PUTTERS, VRDN, Series 1258Q, 3.71% due 11/01/2013 (j)(p) 38,290 Texas--12.3% 4,480 Austin, Texas, Water and Wastewater System, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-6029, 3.71% due 11/15/2024 (a)(j)(p) 4,480 5,120 BNP Paribas STARS Certificates, San Antonio, Texas, Water Revenue Refunding Bonds, VRDN, Series 2007-009, 3.70% due 5/15/2037 (b)(j) 5,120 Bell County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Scott & White Memorial Hospital), VRDN (f)(j): 285 Series 2001-1, 3.71% due 8/15/2031 285 12,500 Series 2001-2, 3.71% due 8/15/2031 12,500 5,625 Series B-2, 3.71% due 8/15/2029 5,625 10,000 Brazos River Authority, Texas, Harbor Navigational District, Brazoria County Revenue Bonds (BASF Corp.), VRDN, AMT, 3.76% due 4/01/2032 (j) 10,000 Brazos River Harbor Navigation District, Texas, Brazoria County Environmental Revenue Bonds (Dow Chemical Company), VRDN (j): 4,200 Series A-2, 3.81% due 5/15/2033 4,200 2,400 Series B-1, 3.77% due 5/15/2033 2,400 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Texas (continued) $ 25,000 Brazos River, Texas, Harbor Industrial Development Corporation Revenue Bonds (BASF Corporation Project), VRDN, AMT, 3.74% due 5/01/2038 (j) $ 25,000 1,985 Brownsville, Texas, Utility System Revenue Refunding Bonds, ROCS, VRDN, Series II-R-4074, 3.71% due 9/01/2024 (a)(j)(p) 1,985 3,588 Central Texas Housing Finance Corporation, S/F Mortgage Revenue Bonds, VRDN, AMT, Series A, 5.02% due 7/01/2008 (j) 3,588 10,925 Collin County, Texas, GO, FLOATS, VRDN, Series 42-TP, 3.69% due 2/15/2026 (j) 10,925 7,270 Corpus Christi, Texas, Business and Job Development Corporation, Sales Tax Revenue Refunding Bonds, ROCS, VRDN, Series II-R-2001, 3.71% due 9/01/2017 (a)(j)(p) 7,270 3,705 Corpus Christi, Texas, Utility System Revenue Refunding Bonds, ROCS, VRDN, Series II-R-2149, 3.71% due 7/15/2024 (e)(j)(p) 3,705 2,555 Cypress-Fairbanks, Texas, Independent School District, GO, FLOATS, VRDN, Series 86TP, 3.71% due 2/15/2030 (f)(j) 2,555 Dallas-Fort Worth, Texas, International Airport Revenue Bonds, VRDN, AMT (j): 4,407 FLOATS, Series 824, 3.72% due 11/01/2015 (a) 4,408 7,140 PUTTERS, Series 350, 3.75% due 5/01/2011 (f)(p) 7,140 2,500 PUTTERS, Series 351, 3.75% due 5/01/2008 (e)(p) 2,500 4,995 PUTTERS, Series 385, 3.75% due 5/01/2008 (b)(p) 4,995 3,000 ROCS, Series II-R-268, 3.74% due 11/01/2033 (f)(p) 3,000 3,425 Dallas-Fort Worth, Texas, International Airport Revenue Refunding Bonds, PUTTERS, AMT, Series 1019, 3.75% due 5/01/2010 (b)(j)(p) 3,425 Dallas-Fort Worth, Texas, Regional Airport Revenue Bonds, MSTR, VRDN, AMT (f)(j)(p): 25,300 Series SGB-49, 3.72% due 11/01/2023 25,300 9,495 Series SGB-52, 3.74% due 11/01/2017 9,495 23,885 Dallas-Fort Worth, Texas, Regional Airport Revenue Refunding Bonds, MSTR, VRDN, AMT, Series SGB-46, 3.74% due 11/01/2020 (f)(j)(p) 23,885 2,810 Dallas, Texas, Area Rapid Transit Revenue Refunding Bonds, ROCS, VRDN, Series II-R-2078, 3.71% due 12/01/2022 (a)(j)(p) 2,810 2,500 Denton, Texas, Independent School District, GO, VRDN, Series 2005-A, 3.68% due 8/01/2035 (j) 2,500 8,435 Eagle Tax-Exempt Trust, Dallas-Fort Worth, Texas, International Airport Revenue Bonds, AMT, VRDN, Series 2003-0020, Class A, 3.74% due 11/01/2032 (a)(j) 8,435 6,000 Eagle Tax-Exempt Trust, Dallas, Texas, VRDN, Series 01, Class 4310, 3.72% due 12/01/2026 (a)(j) 6,000 13,200 Eagle Tax-Exempt Trust, Houston, Texas, Airport System Revenue Refunding Bonds, VRDN, Series 2006-0123, Class A, 3.72% due 7/01/2032 (e)(j) 13,200 4,915 Eagle Tax-Exempt Trust, San Antonio, Texas, VRDN, Series 01, Class 4311, 3.72% due 8/15/2026 (j) 4,915 14,500 Eagle Tax-Exempt Trust, San Antonio, Texas, Water Revenue Refunding Bonds, VRDN, Series 2006-0005, Class A, 3.72% due 5/15/2040 (f)(j) 14,500 Eagle Tax-Exempt Trust, Texas State, GO, VRDN, Class A (j): 7,200 Series 2006-0125, 3.72% due 4/01/2033 7,200 23,100 Series 2006-0126, 3.72% due 4/01/2035 23,100 Face Amount Municipal Bonds Value Texas (continued) $ 3,200 Ector County, Texas Independent School District, GO, Refunding, PUTTERS, VRDN, Series 1707, 3.70% due 2/15/2015 (j)(p) $ 3,200 4,500 Fort Bend County, Texas, GO, MSTR, VRDN, SGB-46-A, 3.70% due 3/01/2032 (f)(j)(p) 4,500 12,250 Galena Park, Texas, Independent School District, GO, Refunding, FLOATS, VRDN, Series SG-153, 3.68% due 8/15/2023 (j) 12,250 5,300 Grapevine, Texas, Industrial Development Corporation, Airport Revenue Refunding Bonds (Southern Air Transport), VRDN, 3.72% due 3/01/2010 (j) 5,300 14,150 Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities Revenue Bonds (BP Amoco Chemical Company Project), VRDN, AMT, Series B, 3.70% due 9/01/2038 (j) 14,150 Gulf Coast Waste Disposal Authority, Texas, Environmental Facilities Revenue Refunding Bonds, VRDN, AMT (j): 19,000 (American Aeryl LP Project), 3.73% due 5/01/2038 19,000 4,300 (BP Products North America Project), 3.70% due 7/01/2036 4,300 5,000 Gulf Coast Waste Disposal Authority, Texas, PCR (Amoco Oil Company Project), VRDN, AMT, 3.70% due 5/01/2023 (j) 5,000 Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds, VRDN, AMT (j): 2,200 (Air Products Project), 3.75% due 12/01/2039 2,200 2,500 (Waste Management, Inc.), Series A, 3.71% due 4/01/2019 2,500 21,300 Gulf Coast Waste Disposal Authority, Texas, Revenue Refunding Bonds (Amoco Oil Company Project), VRDN, AMT, 3.70% due 8/01/2023 (j) 21,300 11,095 Harris County-Houston, Texas, Sports Authority, Special Revenue Refunding Bonds, TOCS, VRDN, Series Z-3, 3.71% due 11/15/2025 (f)(j)(p) 11,095 9,360 Harris County, Texas, Flood Control District, GO, PUTTERS, VRDN, Series 1634Q, 3.72% due 10/01/2014 (j)(p) 9,360 Harris County, Texas, Health Facilities Development Corporation, Revenue Refunding Bonds, VRDN (j): 83,200 (Methodist Hospital System), Series A, 3.71% due 12/01/2032 83,200 14,000 (Saint Luke's Episcopal Hospital), Series A, 3.70% due 2/15/2032 (b) 14,000 2,090 (Saint Luke's Episcopal Hospital), Series B, 3.71% due 2/15/2031 2,090 31,350 Harris County, Texas, Industrial Development Corporation, Solid Waste Disposal Revenue Bonds (Deer Park Limited Partnership), VRDN, AMT, 3.79% due 2/01/2023 (j) 31,350 10,190 Harris County, Texas, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-1030, 3.71% due 8/15/2017 (e)(j)(p) 10,190 29,675 Houston, Texas, Independent School District, GO, VRDN, 3.63% due 6/15/2007 (j) 29,675 Houston, Texas, Utility System Revenue Refunding Bonds, VRDN (e)(j)(p): 5,345 ROCS, Series II-R-4063, 3.71% due 5/15/2021 5,345 6,000 TOCS, Series A, 3.69% due 5/25/2012 6,000 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Texas (continued) Houston, Texas, Water and Sewer Enterprise, CP: $ 5,000 3.70% due 6/19/2007 $ 5,000 15,000 3.70% due 6/21/2007 15,000 3,275 Houston, Texas, Water and Sewer Enterprise, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-787, 3.72% due 12/01/2028 (e)(j)(p) 3,275 5,345 Houston, Texas, Water and Sewer System, Revenue Refunding Bonds, ROCS, VRDN, Series II-R-630, 3.72% due 12/01/2020 (e)(j)(p) 5,345 4,950 Lewisville, Texas, Independent School District, GO, Refunding, PUTTERS, VRDN, Series 701, 3.70% due 8/15/2010 (b)(j)(p) 4,950 10,395 Municipal Securities Trust Certificates, Austin, Texas, Water Revenue Refunding Bonds, VRDN, Series 2001-134, Class A, 3.70% due 5/15/2010 (e)(j) 10,395 8,620 Municipal Securities Trust Certificates, Houston, Texas, Independent School District, GO, Refunding, VRDN, Series 233, Class A, 3.71% due 1/09/2014 (j) 8,620 3,000 Municipal Securities Trust Certificates, San Antonio, Texas, Water Revenue Refunding Bonds, VRDN, Series SGB 66, 3.70% due 5/15/2037 (b)(j) 3,000 32,000 North Central Texas, Health Facility Development Corporation, CP, 3.55% due 4/05/2007 32,000 8,445 North Texas Municipal Water District, Texas, Water System Revenue Bonds, ROCS, VRDN, Series II-R-593PB, 3.70% due 9/01/2035 (f)(j)(p) 8,445 3,385 Plano, Texas, Independent School District, GO, PUTTERS, VRDN, Series 1428, 3.71% due 8/15/2010 (j)(p) 3,385 17,335 Port Arthur, Texas, Navigation District, Environmental Facilities Revenue Refunding Bonds (Motiva Enterprises Project), VRDN, AMT, 3.80% due 12/01/2027 (j) 17,335 Port Arthur, Texas, Navigation District, Industrial Development Corporation, Exempt Facilities Revenue Bonds (Air Products and Chemicals Project), VRDN, AMT (j): 10,000 3.75% due 4/01/2036 10,000 8,400 3.72% due 5/01/2040 8,400 Port Arthur, Texas, Navigation District Revenue Bonds, VRDN, AMT (j): 20,000 (BASF Corporation Project), 3.76% due 4/01/2033 20,000 16,000 (Fina Oil and Chemical Company Project), 3.71% due 5/01/2033 16,000 10,000 Multi-Mode (Atofina Petrochemicals), Series B, 3.88% due 4/01/2027 10,000 12,500 Port of Corpus Christi Authority, Texas, Nueces County Solid Waste Disposal Revenue Bonds (Flint Hills Resources LP Project), VRDN, AMT (j) 12,500 50,000 Port of Corpus Christi Authority, Texas, Nueces County Solid Waste Disposal, Revenue Refunding Bonds (Flint Hills Resources LP Project), VRDN, AMT, Series A, 3.95% due 7/01/2029 (j) 50,000 1,800 San Antonio, Texas, Independent School District, GO, Refunding, PUTTERS, VRDN, Series 1726, 3.70% due 8/15/2014 (j)(p) 1,800 4,135 Socorro, Texas, Independent School District, GO, ROCS, VRDN, Series II-R-2222, 3.71% due 8/15/2022 (j)(p) 4,135 25,000 Texas Municipal Power Agency, CP, 3.64% due 7/09/2007 25,000 Face Amount Municipal Bonds Value Texas (concluded) $ 6,870 Texas Municipal Power Agency, Revenue Refunding Bonds, PUTTERS, VRDN, Series 1323, 3.72% due 3/01/2014 (f)(j)(p) $ 6,870 Texas State Affordable Housing Corporation, M/F Housing Revenue Bonds, FLOATS, VRDN (f)(j): 17,653 Series 11, 3.69% due 3/01/2032 17,653 43,400 Series 12TP, 3.69% due 3/01/2032 43,400 10,000 Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional Educator Home Loan Program), VRDN, AMT, Series A-2, 3.75% due 3/10/2008 (j) 10,000 14,000 Texas State, CP, 3.63% due 5/10/2007 14,000 40,000 Texas State, GO, PUTTERS, VRDN, Series 1521, 3.70% due 10/01/2014 (j)(p) 40,000 Texas State, GO, Refunding, VRDN, AMT, 3.93% 54,160 due 7/02/2007 (j) 54,160 172,055 Texas State, TRAN, 4.50% due 8/31/2007 172,714 23,800 Texas State Transportation Commission, First Tier Revenue Bonds, VRDN, Series B, 3.66% due 4/01/2026 (j) 23,800 13,435 Texas State Transportation Commission, GO, ROCS, VRDN, Series II-R-4083, 3.71% due 4/01/2035 (j)(p) 13,435 5,390 Texas State University, System Financing Revenue Refunding Bonds, ROCS, VRDN, Series II-R-1011, 3.71% due 3/15/2019 (e)(j)(p) 5,390 4,093 Travis County, Texas, Housing Finance Corporation, S/F Mortgage Revenue Bonds, VRDN, Series 2001-1, 3.91% due 5/01/2007 (j) 4,093 3,984 Victoria County, Texas, Hospital Revenue Refunding Bonds, FLOATS, VRDN, Series 959, 3.69% due 1/01/2016 (a)(j) 3,984 2,265 Wichita Falls, Texas, Water and Sewer Revenue Refunding Bonds, PUTTERS, VRDN, Series 1713, 3.72% due 8/01/2014 (b)(j)(p) 2,265 Utah--1.4% 6,500 Emery County, Utah, PCR, Refunding (PacifiCorp Projects), VRDN, 3.71% due 11/01/2024 (a)(j) 6,500 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, VRDN (a)(j): 10,000 Series F, 3.64% due 7/01/2015 10,000 5,900 Series F, 3.55% due 7/01/2018 5,900 10,000 Intermountain Power Agency, Utah, Power Supply, Revenue Refunding Bonds, VRDN, Series E, 3.54% due 7/01/2018 (a)(j) 10,000 Murray City, Utah, Hospital Revenue Bonds (IHC Health Services, Inc.), VRDN (j): 34,300 Series A, 3.66% due 5/15/2036 34,300 6,000 Series A, 3.71% due 5/15/2037 6,000 20,700 Series D, 3.70% due 5/15/2036 20,700 Utah Transit Authority, Sales Tax Revenue Bonds, VRDN (e)(j)(p): 5,675 PUTTERS, Series 1107B, 3.71% due 12/15/2013 5,675 3,195 ROCS, Series II-R-609PB, 3.70% due 6/15/2032 3,195 8,300 Utah Water Finance Agency, Tender Option Revenue Bonds, VRDN, Series A-9, 3.70% due 7/01/2034 (a)(j) 8,300 30,820 Weber County, Utah, Hospital Revenue Bonds (IHC Health Services), VRDN, Series C, 3.71% due 2/15/2035 (j) 30,820 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (continued) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Vermont--0.1% $ 1,525 Vermont HFA, S/F Revenue Bonds, VRDN, AMT, Series 16 A, 3.78% due 5/01/2032 (e)(j) $ 1,525 8,000 Vermont State Student Assistance Corporation, Student Loan Revenue Bonds, FLOATS, VRDN, 3.76% due 1/01/2008 (j) 8,000 Virginia--0.7% 15,460 Clipper Tax-Exempt Certificates Trust, Virginia Commonwealth Transportation Board Revenue Bonds, VRDN, Series 2007-7, 3.70% due 5/01/2015 (j)(m) 15,460 6,055 Eagle Tax-Exempt Trust, Richmond, Virginia, Public Utilities Revenue Bonds, VRDN, Series 2006-0050, Class A, 3.72% due 1/15/2035 (e)(j) 6,055 6,300 Henrico County, Virginia, Water and Sewer Revenue Bonds, ROCS, VRDN, Series II-R-753 PB, 3.70% due 5/01/2031 (f)(j)(p) 6,300 6,570 Morgan Keegan Municipal Products, Inc., Virginia State, HDA, VRDN, Series E, 3.69% due 12/01/2010 (j) 6,570 Norfolk, Virginia, CP: 20,000 3.65% due 5/04/2007 20,000 15,000 3.66% due 5/08/2007 15,000 3,000 Virginia State, HDA, Revenue Bonds, MERLOTS, VRDN, AMT, Series B-19, 3.74% due 4/01/2033 (j)(p) 3,000 Washington--2.9% 12,590 Central Puget Sound, Washington, Regional Transit Authority, Sales and Use Tax Revenue Bonds, ROCS, VRDN Series II-R-7510, 3.71% due 11/01/2023 (a)(j)(p) 12,590 22,900 Clark County, Washington, Public Utility District Number 001, Generating System Revenue Refunding Bonds, MSTR, VRDN, Series SGA-118, 3.72% due 1/01/2025 (e)(j)(p) 22,900 3,000 Eagle Tax-Exempt Trust, Bellevue, Washington, GO, Refunding, VRDN, Series 2004-1011, Class A, 3.72% due 12/01/2043 (f)(j) 3,000 19,000 Energy Northwest, Washington, Electric Revenue Refunding Bonds (Project Number 3), VRDN, Series D-3-1, 3.65% due 7/01/2018 (e)(j) 19,000 8,860 Grant County, Washington, Public Utility District Number 002, Electric Revenue Refunding Bonds, ROCS, VRDN, Series II-R-2039, 3.71% due 1/01/2019 (e)(j)(p) 8,860 5,200 King County, Washington, School District Number 410, Snoqualmie Valley, GO, ROCS, VRDN, Series II-R-4513, 3.71% due 12/01/2020 (e)(j)(p) 5,200 3,700 King County, Washington, Sewer Revenue Bonds, VRDN, Junior Lien, Series B, 3.65% due 1/01/2036 (f)(j) 3,700 14,745 King County, Washington, Sewer Revenue Refunding Bonds, FLOATS, VRDN, Series 554, 3.69% due 7/01/2009 (b)(j) 14,745 2,255 Lewis County, Washington, Public Utility District Number 001, Cowlitz Falls Hydroelectric Revenue Refunding Bonds, VRDN, Series II-R-4026, 3.71% due 10/01/2023 (f)(j) 2,255 14,070 Municipal Securities Trust Certificates, Washington State Motor Vehicle Fuel Tax, GO, VRDN, Series 2001-112, Class A, 3.72% due 1/07/2021 (j) 14,070 4,925 Port of Seattle, Washington, Revenue Bonds, MERLOTS, VRDN, AMT, Series B04, 3.74% due 9/01/2015 (b)(j)(p) 4,925 30,000 Port of Tacoma, Washington, Subordinate Lien Revenue Bonds, VRDN, AMT, 3.77% due 12/01/2036 (j)(n) 30,000 4,925 Seattle, Washington, Water System Revenue Refunding Bonds, ROCS, VRDN, Series II-R-4006, 3.71% due 9/01/2022 (f)(j)(p) 4,925 Face Amount Municipal Bonds Value Washington (concluded) $ 3,450 Spokane County, Washington, Spokane School District Number 081, GO, ROCS, VRDN, Series II-R-4000, 3.71% due 12/01/2019 (e)(j)(p) $ 3,450 5,575 Tacoma, Washington, Convention Center and Parking Revenue Bonds, ROCS, VRDN, Series II-R-2144, 3.71% due 12/01/2022 (f)(j)(p) 5,575 13,930 Tacoma, Washington, Water Revenue Refunding Bonds, FLOATS, VRDN, Series 555, 3.69% due 12/01/2009 (b)(j) 13,930 Washington State, GO, PUTTERS, VRDN (j)(p): 15,075 Series 333, 3.71% due 12/01/2014 (f) 15,075 9,545 Series 1312, 3.70% due 1/01/2013 (e) 9,545 11,785 Series 1422, 3.70% due 7/01/2014 (e) 11,785 Washington State, GO, ROCS, VRDN (j)(p): 4,180 Series II-R-4082, 3.71% due 7/01/2023 (e) 4,180 10,350 Series II-R-6061, 3.71% due 1/01/2022 (a) 10,350 4,375 Series II-R-7035, 3.71% due 7/01/2024 (e) 4,375 2,560 Washington State, GO, Refunding, PUTTERS, VRDN, Series 1399, 3.70% due 1/01/2013 (a)(j)(p) 2,560 2,480 Washington State Health Care Facilities Authority Revenue Bonds, ROCS, VRDN, Series II-R-669, 3.72% due 12/01/2036 (h)(j)(p) 2,480 6,400 Washington State Housing Finance Commission, M/F Housing Revenue Bonds (Arbors on the Park Project), VRDN, AMT, 3.74% due 10/01/2024 (j) 6,400 30,400 Washington State Housing Finance Commission, Nonprofit Housing Revenue Bonds (Mirabella Project), VRDN, Series A, 3.72% due 3/01/2036 (j) 30,400 3,000 Washington State Housing Finance Commission, Nonprofit Revenue Bonds (Eastside Catholic School), VRDN, Series B, 3.69% due 7/01/2038 (j) 3,000 13,900 Washington State Public Power Supply Systems, Electric Revenue Refunding Bonds (Project Number 3), VRDN, Series 3-A, 3.65% due 7/01/2018 (f)(j) 13,900 Washington State University Revenue Bonds, VRDN (a)(j): 10,590 FLOATS, Series 1406, 3.69% due 10/01/2036 10,590 2,105 ROCS, Series II-R-595PB, 3.70% due 10/01/2031 (p) 2,105 West Virginia--0.2% 10,695 ABN AMRO MuniTops Certificates Trust, West Virginia State, GO, VRDN, Series 2000-12, 3.68% due 6/04/2008 (f)(j) 10,695 9,900 Eagle Tax-Exempt Trust, West Virginia Higher Education Policy Commission, Revenue Refunding Bonds, Series 2005-0018, Class A, 3.72% due 4/01/2034 (b)(j) 9,900 Wisconsin--1.9% 1,995 Hartland, Wisconsin, IDR (Commercial Communications, Inc. Project), VRDN, AMT, 4% due 8/01/2009 (j) 1,995 2,000 Lehman Municipal Trust Receipts, Wisconsin, GO, Refunding, FLOATS, VRDN, AMT, Series 2006-K40, 3.75% due 5/01/2031 (f)(j) 2,000 2,670 Manitowoc, Wisconsin, Electric Revenue Bonds, ROCS, VRDN, Series II-R-2177, 3.71% due 10/01/2024 (b)(j)(p) 2,670 3,100 Menomonee Falls, Wisconsin, TRAN, 4.25% due 8/24/2007 3,107 17,600 Oconomiwoc, Wisconsin, Area School District, GO, BAN, 3.75% due 11/30/2007 17,606 CMA TAX-EXEMPT FUND MARCH 31, 2007 Schedule of Investments (concluded) Master Tax-Exempt Trust (in Thousands) Face Amount Municipal Bonds Value Wisconsin (concluded) $ 42,600 Racine, Wisconsin, Unified School District, TRAN, 4.50% due 7/13/2007 $ 42,690 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Refunding Bonds, VRDN, AMT (j): 20,000 Series A, 3.72% due 9/01/2022 20,000 24,125 Series A, 3.72% due 3/01/2035 24,125 5,970 Wisconsin Public Power Inc., Power Supply System Revenue Bonds, PUTTERS, VRDN, Series 1150, 3.70% due 7/01/2013 (a)(j)(p) 5,970 Wisconsin State, GO, CP: 5,855 3.65% due 4/02/2007 5,855 25,000 3.65% due 5/03/2007 25,000 20,000 3.63% due 5/04/2007 20,000 20,000 3.66% due 6/06/2007 20,000 Face Amount Municipal Bonds Value Wyoming--1.5% $150,000 Wyoming State Education Fund, TRAN, Series A, 4.50% due 6/27/2007 $ 150,285 Puerto Rico--0.3% 10,000 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue Bonds, ROCS, VRDN, Series II-R-709CE, 3.71% due 12/15/2008 (j)(p) 10,000 3,153 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Obligation Revenue Bonds, TOCS, VRDN, Series Z-6, 3.71% due 6/26/2037 (b)(j)(p) 3,153 12,800 Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN, Series SGA-43, 3.63% due 7/01/2022 (f)(j)(p) 12,800 Total Investments (Cost--$10,092,069*)--99.5% 10,092,069 Other Assets Less Liabilities--0.5% 51,469 ----------- Net Assets--100.0% $10,143,538 =========== * Cost for federal income tax purposes. (a) AMBAC Insured. (b) FGIC Insured. (c) FHLMC Collateralized. (d) FNMA Collateralized. (e) FSA Insured. (f) MBIA Insured. (g) CIFG Insured. (h) Radian Insured. (i) FNMA/GNMA Collateralized. (j) Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. (k) Assured Guaranty Insured. (l) FHA Insured. (m) The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. (n) XL Capital Insured. (o) GNMA Collateralized. (p) These securities are short-term floating rate certificates issued by tender option bond trusts and are secured by the underlying municipal bond securities. See Notes to Financial Statements. CMA TAX-EXEMPT FUND MARCH 31, 2007 Statement of Assets and Liabilities Master Tax-Exempt Trust
As of March 31, 2007 Assets Investments in unaffiliated securities, at value (identified cost--$10,092,069,243) $ 10,092,069,243 Cash 96,756 Receivables: Interest $ 72,497,754 Contributions 748,766 73,246,520 ---------------- Prepaid expenses 51,059 ---------------- Total assets 10,165,463,578 ---------------- Liabilities Payables: Securities purchased 20,321,778 Investment adviser 1,127,680 Other affiliates 87,732 21,537,190 ---------------- Accrued expenses and other liabilities 388,479 ---------------- Total liabilities 21,925,669 ---------------- Net Assets Net assets $ 10,143,537,909 ================ Net Assets Consist of Investors' capital $ 10,143,537,909 ---------------- Net Assets $ 10,143,537,909 ================ See Notes to Financial Statements.
Statement of Operations Master Tax-Exempt Trust
For the Year Ended March 31, 2007 Investment Income Interest and amortization of premium and discount earned $ 342,023,393 Expenses Investment advisory fees $ 12,825,882 Accounting services 868,103 Custodian fees 219,780 Professional fees 97,453 Pricing fees 77,800 Trustees' fees and expenses 54,990 Printing and shareholder reports 2,420 Other 132,479 ---------------- Total expenses 14,278,907 ---------------- Investment income--net 327,744,486 ---------------- Realized Gain--Net Realized gain on investments--net 864,981 ---------------- Net Increase in Net Assets Resulting from Operations $ 328,609,467 ================ See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Statements of Changes in Net Assets Master Tax-Exempt Trust
For the Year Ended March 31, Increase (Decrease) in Net Assets: 2007 2006 Operations Investment income--net $ 327,744,486 $ 247,385,747 Realized gain (loss)--net 864,981 (414,731) ---------------- ---------------- Net increase in net assets resulting from operations 328,609,467 246,971,016 ---------------- ---------------- Capital Transactions Proceeds from contributions 61,520,885,054 52,632,134,510 Fair value of withdrawals (61,230,693,465) (53,104,175,686) ---------------- ---------------- Net increase (decrease) in net assets derived from capital transactions 290,191,589 (472,041,176) ---------------- ---------------- Net Assets Total increase (decrease) in net assets 618,801,056 (225,070,160) Beginning of year 9,524,736,853 9,749,807,013 ---------------- ---------------- End of year $ 10,143,537,909 $ 9,524,736,853 ================ ================ See Notes to Financial Statements.
Financial Highlights Master Tax-Exempt Trust
For the Period February 13, 2003++ The following per share data and ratios have been derived For the Year Ended March 31, to March 31, from information provided in the financial statements. 2007 2006 2005 2004 2003 Total Investment Return Total investment return 3.45% 2.64% 1.33% .94% .68%* ============ ============ ============ ============ ============ Ratios to Average Net Assets Expenses .15% .15% .15% .15% .21%* ============ ============ ============ ============ ============ Investment income and realized gain (loss)--net 3.44% 2.61% 1.31% .94% 1.04%* ============ ============ ============ ============ ============ Supplemental Data Net assets, end of period (in thousands) $ 10,143,538 $ 9,524,737 $ 9,749,807 $ 10,252,630 $ 10,591,179 ============ ============ ============ ============ ============ * Annualized. ++ Commencement of operations. See Notes to Financial Statements.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Notes to Financial Statements Master Tax-Exempt Trust 1. Significant Accounting Policies: Master Tax-Exempt 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--Investments are valued at amortized cost, which approximates market value. Effective April 2, 2007, securities purchased with a maturity greater than 60 days may be valued at amortized cost. For the purpose of valuation, the maturity of a variable rate demand instrument is deemed to be the demand notice payment period. In the case of a floating rate instrument, the remaining maturity is the next coupon date on which the interest rate is to be adjusted. (b) 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 un- realized 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. (c) Security transactions and investment income--Security transactions are recorded on the dates the trans-actions 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. (d) Recent accounting pronouncements--In July 2006, the Financial Accounting Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109." FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including mutual funds, before being measured and recognized in the financial statements. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. The impact on the Trust's financial statements, if any, is currently being assessed. In September 2006, "Statement of Financial Accounting Standards No. 157, Fair Value Measurements" ("FAS 157"), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Trust's financial statements, if any, has not been determined. In addition, in February 2007, FASB issued "Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities" ("FAS 159"), which is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trust's financial statements, if any, has not been determined. 2. Investment Advisory Agreement and Transactions with Affiliates: On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill Lynch") combined Merrill Lynch's investment management business, Merrill Lynch Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest in the combined company and The PNC Financial Services Group, Inc. has approximately a 34% economic and voting interest. The new company operates under the BlackRock name and is governed by a board of directors with a majority of independent members. CMA TAX-EXEMPT FUND MARCH 31, 2007 Notes to Financial Statements (concluded) Master Tax-Exempt Trust On September 15, 2006, the shareholders of each of the investors approved a new Investment Advisory Agreement for the Trust with BlackRock Advisors, Inc. (the "Manager"), an indirect, wholly owned subsidiary of BlackRock, Inc., which was reorganized into a limited liability company and renamed BlackRock Advisors, LLC. The new advisory agreement between the Trust and the Manager became effective on September 29, 2006. Prior to September 29, 2006, FAM was the Trust's manager. The general partner of FAM is Princeton Services, Inc. ("PSI"), an indirect, wholly owned subsidiary of Merrill Lynch, which is the limited partner. The Manager 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 Trust's 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. In addition, the Manager has entered into a Sub-Advisory Agreement with BlackRock Institutional Management Corporation, an affiliate of the Manager, under which the Manager pays the Sub-Adviser for services it provides a monthly fee that is a percentage of the management fee paid by the Trust to the Manager. For the year ended March 31, 2007, the Trust reimbursed FAM and the Manager $102,429 and $87,732, respectively, for certain accounting services. Prior to September 29, 2006, certain officers and/or trustees of the Trust were officers and/or directors of FAM, PSI, and/or Merrill Lynch. Commencing September 29, 2006, certain officers and/or trustees of the Trust are officers and/or directors of BlackRock, Inc. or its affiliates. CMA TAX-EXEMPT FUND MARCH 31, 2007 Report of Independent Registered Public Accounting Firm Master Tax-Exempt Trust To the Investors and Board of Trustees of Master Tax-Exempt Trust: We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Master Tax-Exempt Trust as of March 31, 2007, 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 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, 2007, 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 Tax-Exempt Trust as of March 31, 2007, 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 accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Princeton, New Jersey May 21, 2007 CMA TAX-EXEMPT FUND MARCH 31, 2007 Officers and Trustees
Number of Funds and 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. Doll, Jr.* President 2005 to Vice Chairman and Director of BlackRock, Inc., 122 Funds None P.O. Box 9011 and present Global Chief Investment Officer for Equities, 168 Portfolios Princeton, Trustee Chairman of the BlackRock Retail Operating NJ 08543-9011 Committee, and member of the BlackRock Age: 52 Executive Committee since 2006; President of the funds advised by Merrill Lynch Investment Managers, L.P. ("MLIM") and its affiliates ("MLIM/FAM-advised funds") from 2005 to 2006 and Chief Investment Officer thereof from 2001 to 2006; President of MLIM and Fund Asset Management, L.P. ("FAM") from 2001 to 2006; Co-Head (Americas Region) thereof from 2000 to 2001 and Senior Vice President from 1999 to 2001; President and Director of Princeton Services, Inc. ("Princeton Services") and President of Princeton Administrators, L.P. ("Princeton Administrators") from 2001 to 2006; Chief Investment Officer of OppenheimerFunds, 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 BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll is an "interested person," as defined in the Investment Company Act, of the Fund based on his positions with BlackRock, Inc. and its affiliates. 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.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Officers and Trustees (continued)
Number of Funds and 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* Ronald W. Forbes** Trustee 1981/2002 Professor Emeritus of Finance, School of 47 Funds None P.O. Box 9095 to present Business, State University of New York at 49 Portfolios Princeton, Albany since 2000 and Professor thereof from NJ 08543-9095 1989 to 2000; International Consultant, Urban Age: 66 Institute, Washington, D.C. from 1995 to 1999. Cynthia A. Montgomery++ Trustee 1994/2002 Professor, Harvard Business School since 1989; 47 Funds Newell P.O. Box 9095 to present Associate Professor, J.L. Kellogg Graduate 49 Portfolios Rubbermaid, Inc. Princeton, School of Management, Northwestern (manufacturing) NJ 08543-9095 University from 1985 to 1989; Associate Age: 54 Professor, 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 Reid Trustee 2004 to Self-employed consultant since 2001; Counsel 47 Funds None P.O. Box 9095 present of Alliance Capital Management (investment 49 Portfolios Princeton, adviser) in 2000; General Counsel, Director and NJ 08543-9095 Secretary of Sanford C. Bernstein & Co., Inc. Age: 61 (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. Suddarth Trustee 2000/2002 President, Middle East Institute, from 1995 to 47 Funds None P.O. Box 9095 to present 2001; Foreign Service Officer, United States 49 Portfolios Princeton, Foreign Service, from 1961 to 1995 and Career NJ 08543-9095 Minister from 1989 to 1995; Deputy Inspector Age: 71 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. West Trustee 1981/2002 Professor of Finance from 1984 to 1995, 47 Funds Bowne & Co., P.O. Box 9095 to present Dean from 1984 to 1993 and since 1995 49 Portfolios Inc. (financial Princeton, Dean Emeritus of New York University's printers); NJ 08543-9095 Leonard N. Stern School of Business Vornado Realty Age: 69 Administration. Trust (real estate company); Alexander's, Inc. (real estate company) * 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. ++ Chair of the Nominating Committee.
CMA TAX-EXEMPT FUND MARCH 31, 2007 Officers and Trustees (concluded)
Position(s) Length of Held with Time Name, Address & Age Fund/Trust Served Principal Occupation(s) During Past 5 Years Fund Officers* Donald C. Burke Vice 1993/2002 Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill P.O. Box 9011 President to present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM") Princeton, and and in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer NJ 08543-9011 Treasurer 1999 to thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997. Age: 46 present John M. Loffredo Senior 2002 to Managing Director of BlackRock, Inc. since 2006; Managing Director Tax-Exempt P.O. Box 9011 Vice present Fund Management) of MLIM from 2000 to 2006; Director of MLIM from 1997 Princeton, President to 2000. NJ 08543-9011 Age: 43 Peter J. Hayes Vice 1989/2002 Managing Director of BlackRock, Inc. since 2006; Managing Director (Tax-Exempt P.O. Box 9011 President to present Fund Management) of MLIM from 2000 to 2006; Director of MLIM from 1997 Princeton, to 2000; Vice President of MLIM from 1988 to 1997. NJ 08543-9011 Age: 47 Jeffrey Hiller Fund/Trust 2004 to Managing Director of BlackRock, Inc. and Fund Chief Compliance Officer since P.O. Box 9011 Chief present 2006; Chief Compliance Officer of the MLIM/FAM-advised funds and First Vice Princeton, Compliance President and Chief Compliance Officer of MLIM (Americas Region) from 2004 to NJ 08543-9011 Officer 2006; Chief Compliance Officer of the IQ Funds since 2004; Global Director of Age: 55 Compliance at 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 Securities and Exchange Commission's Division of Enforcement in Washington, D.C. from 1990 to 1995. Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. since 2006; Director (Legal Advisory) of MLIM from P.O. Box 9011 present 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated with Princeton, MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and NJ 08543-9011 Princeton Services from 2004 to 2006. Age: 47 * 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 1-800-441-7762. Custodian State Street Bank and Trust Company P.O. Box 351 Boston, MA 02101 Transfer Agent Financial Data Services, Inc. 4800 Deer Lake Drive East Jacksonville, FL 32246-6484 800-221-7210* * For inquiries regarding your CMA account, call 800-CMA-INFO (800-262-4636). Effective January 1, 2007, Edward D. Zinbarg retired as a Trustee of BlackRock CMA Tax-Exempt Fund and Master Tax-Exempt Trust. The Fund's/Trust's Board of Trustees wishes Mr. Zinbarg well in his retirement. Effective April 13, 2007, Jeffrey Hiller resigned his position as Chief Compliance Officer of the Fund/Trust. Also effective April 13, 2007, Karen Clark was appointed Chief Compliance Officer of the Fund/Trust. Ms. Clark has been a Managing Director of BlackRock, Inc. since 2007. She was a Director thereof from 2005 to 2007. Prior to that, Ms. Clark was a principal and senior compliance officer at State Street Global Advisors from 2001 to 2005. Ms. Clark was a principal consultant with PricewaterhouseCoopers, LLP from 1998 to 2001. From 1993 to 1998, Ms. Clark was Branch Chief, Division of Investment Management and Office of Compliance Inspections and Examinations, with the U.S. Securities and Exchange Commission. CMA TAX-EXEMPT FUND MARCH 31, 2007 Availability of Quarterly Schedule of Investments The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Electronic Delivery Electronic copies of most financial reports and prospectuses are available on the Fund's Web site. Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Fund's electronic delivery program. Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages: Please contact your financial advisor to enroll. Please note that not all investment advisers, banks or brokerages may offer this service. BlackRock Privacy Principles BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, "Clients") and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties. If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations. BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our Web sites. BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic personal information about its Clients, except as permitted by law or as is necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose. We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information. CMA TAX-EXEMPT FUND MARCH 31, 2007 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 at www.blackrock.com. 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 (retired as of December 31, 2006). Item 4 - Principal Accountant Fees and Services CMA Tax-Exempt Fund (a) Audit Fees - Fiscal Year Ending March 31, 2007 - $6,600 Fiscal Year Ending March 31, 2006 - $6,600 (b) Audit-Related Fees - Fiscal Year Ending March 31, 2007 - $0 Fiscal Year Ending March 31, 2006 - $0 (c) Tax Fees - Fiscal Year Ending March 31, 2007 - $6,100 Fiscal Year Ending March 31, 2006 - $6,000 The nature of the services include tax compliance, tax advice and tax planning. (d) All Other Fees - Fiscal Year Ending March 31, 2007 - $0 Fiscal Year Ending March 31, 2006 - $0 Master Tax-Exempt Trust (a) Audit Fees - Fiscal Year Ending March 31, 2007 - $35,500 Fiscal Year Ending March 31, 2006 - $35,500 (b) Audit-Related Fees - Fiscal Year Ending March 31, 2007 - $0 Fiscal Year Ending March 31, 2006 - $0 (c) Tax Fees - Fiscal Year Ending March 31, 2007 - $6,800 Fiscal Year Ending March 31, 2006 - $6,800 The nature of the services include tax compliance, tax advice and tax planning. (d) All Other Fees - Fiscal Year Ending March 31, 2007 - $0 Fiscal Year Ending March 31, 2006 - $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 Ended March 31, 2007 - $3,016,200 Fiscal Year Ended March 31, 2006 - $3,754,550 (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) - $1,739,500, 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 - The registrant's Nominating Committee will consider nominees to the Board recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and sets forth the qualifications of the proposed nominee to the registrant's Secretary. There have been no material changes to these procedures. 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. CMA Tax-Exempt Fund and Master Tax-Exempt Trust By: /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust Date: May 21, 2007 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 CMA Tax-Exempt Fund and Master Tax-Exempt Trust Date: May 21, 2007 By: /s/ Donald C. Burke ------------------- Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust Date: May 21, 2007 EX-99.CERT 2 section302.txt SECTION 302 EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Robert C. Doll, Jr., Chief Executive Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust, certify that: 1. I have reviewed this report on Form N-CSR of CMA Tax-Exempt Fund and Master Tax-Exempt Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrants as of, and for, the periods presented in this report; 4. The registrants' other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants' disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and 5. The registrants' other certifying officer(s) and I have disclosed to the registrants' auditors and the audit committees of the registrants' boards of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants' internal control over financial reporting. Date: May 21, 2007 /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust EX-99. CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust, certify that: 1. I have reviewed this report on Form N-CSR of CMA Tax-Exempt Fund and Master Tax-Exempt Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrants as of, and for, the periods presented in this report; 4. The registrants' other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrants' disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and 5. The registrants' other certifying officer(s) and I have disclosed to the registrants' auditors and the audit committees of the registrants' boards of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants' internal control over financial reporting. Date: May 21, 2007 /s/ Donald C. Burke -------------------- Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust EX-99.1350CERT 3 section906.txt SECTION 906 Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Robert C. Doll, Jr., Chief Executive Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust (together, the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2007 /s/ Robert C. Doll, Jr. ----------------------- Robert C. Doll, Jr., Chief Executive Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to CMA Tax-Exempt Fund and Master Tax-Exempt Trust and will be retained by CMA Tax-Exempt Fund and Master Tax-Exempt Trust and furnished to the Securities and Exchange Commission or its staff upon request. Exhibit 99.1350CERT Certification Pursuant to Section 906 of the Sarbanes Oxley Act I, Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust (together, the "Fund"), certify that: 1. The N-CSR of the Fund (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 21, 2007 /s/ Donald C. Burke -------------------- Donald C. Burke, Chief Financial Officer of CMA Tax-Exempt Fund and Master Tax-Exempt Trust A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to CMA Tax-Exempt Fund and Master Tax-Exempt Trust and will be retained by CMA Tax-Exempt Fund and Master Tax-Exempt Trust and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----