MERRILL LYNCH
MULTI-STATE
LIMITED
MATURITY
MUNICIPAL
SERIES TRUST
Annual Report July 31, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Fund
unless accompanied or preceded by the Fund's current
prospectus. Past performance results shown in this
report should not be considered a representation of
future performance. Investment return and principal
value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their
original cost.
Merrill Lynch Multi-State
Limited Maturity
Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Officers and
Trustees
Arthur Zeikel, President and Trustee
Kenneth S. Axelson, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Peter J. Hayes, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agent
Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
<PAGE>
TO OUR SHAREHOLDERS
The expectation of increasing inflationary
pressures and higher interest rates ini-
tially heightened investor concerns and
increased financial market volatility dur-
ing the July quarter. However, as the
quarter progressed, it was the weakness
of the US dollar in foreign exchange
markets that dominated the financial
news and prolonged stock and bond
market declines. Although the US dollar
had strengthened slightly by July quarter-
end, which may have improved investor
confidence in the stock and bond markets,
the possibility of continued tightening
by the Federal Reserve Board resurfaced
following Chairman Alan Greenspan's
recent Congressional testimony. Neverthe-
less, as the quarter drew to a close, a
lower-than-expected rate of growth
reported for the US economy during the
second calendar quarter allayed investor
concerns and led to stock and bond
market rallies.
During the July quarter, the US dollar's
weakness relative to other major curren-
cies reflected the deteriorating US trade
deficit and widening net long-term capital
outflows. In 1993, an expanding US econ-
omy and recession in other industrial
countries led to a higher level of imports
and weaker export growth, widening the
US trade deficit further. In addition,
global investors favored non-US dollar
denominated assets throughout 1993,
which has further depressed the dollar's
value. This trend is not improving signifi-
cantly thus far in 1994 since foreign
inflows into US capital markets continue
to decline, although US investors are
investing outside of the United States to
a lesser degree.
<PAGE>
Over the longer term, if the economies
of the United States' major trading part-
ners expand (improving the prospects for
US export growth), the outlook for the
US dollar is likely to improve. In the near
term, central banks have attempted to
reverse the dollar's decline through
currency market intervention. These
efforts have met with limited success
thus far, giving rise to the concern that
the Federal Reserve Board will be forced
to continue to raise short-term interest
rates to attract investment capital back
to the United States and bolster the
dollar's value. However, further interest
rate increases may jeopardize the US
economic expansion. Despite evidence of
a moderating trend in the US economy,
Federal Reserve Board Chairman Alan
Greenspan indicated in his July Humphrey-
Hawkins testimony that the central bank
would prefer to err on the side of too
much monetary tightening rather than too
little. In the weeks ahead, investors will
continue to assess economic data and
inflationary trends as they focus on the
US dollar in order to gauge whether further
increases in short-term interest rates are
imminent. Continued indications of
moderate and sustainable levels of eco-
nomic growth would be positive for the
US capital markets.
The Municipal Market
The tax-exempt bond market has continued
to be very volatile, with yields fluctuating
by as much as 15 basis points (0.15%)
from week to week. This continued vola-
tility is largely a reflection of the same
lack of conviction regarding the near-term
direction of interest rates that has pre-
vailed for much of 1994. Throughout the
July quarter, the municipal bond market
was unable to maintain a consensus
regarding either the potential strength of
current economic recovery or the result-
ant response by the Federal Reserve
Board. However, a number of economic
indicators released in late July began to
suggest that the robust pace of recent
economic growth was slowing. This pro-
moted a more positive market environ-
ment, culminating in the market rally on
July 29.
<PAGE>
The municipal bond market's technical
position has remained supportive. Approxi-
mately $40 billion in long-term securities
were issued during the three months
ended July 31, 1994. This represents a
decline of over 50% versus the July quar-
ter from the previous year. As discussed
in earlier reports, this reduction in new-
issue supply minimized the selling pres-
sure by larger institutional investors who
fear being unable to purchase sizable
amounts of securities in the future. Such
a significant decline in issuance would
normally be expected to trigger a decline
in yields as investors chase a commodity
in scarce supply. Investor demand, how-
ever, has also diminished somewhat in
recent months as net flows into long-term
municipal bond funds have dramatically
slowed or, in some instances, reversed.
Consequently, the supply/demand rela-
tionship within the municipal bond
market has remained in balance, promot-
ing the overall stability in yield levels
seen in the past months. Intermediate
tax-exempt bonds ended the July quarter
essentially unchanged, as a five-year AAA-
rated municipal yielded approximately
4.80% at quarter-end.
With after-tax equivalents yields as high
as approximately 8%, five-year tax-exempt
bonds continue to represent value relative
to other investment alternatives. For
example, the five-year US Treasury note
yielded approximately 6.73% at quarter-
end. The economic impact of the signifi-
cant interest rate increases experienced
since early February have yet to be totally
realized. The resultant drag on the econ-
omy should provide the foundation for
further interest rate declines.
<PAGE>
Fiscal Year in Review
Merrill Lynch Arizona Limited Maturity
Municipal Bond Fund
Despite a rise in the State of Arizona's
unemployment rate from 5.6% at the onset
of the quarter to 5.9% by May month-end,
the State continues to reap the benefits
of recent economic growth in the western
region with an unemployment rate well
below the national average. But Arizona is
experiencing the growing pains associated
with a burgeoning population. In July,
the Arizona Supreme Court determined
that there is an inequity in the current
funding policy between wealthy and
poorer school districts. Therefore, the
State must address new funding alterna-
tives and their ensuing costs in the
upcoming months.
In the recent quarter, as throughout the
fiscal year, we maintained a cautious port-
folio strategy for Arizona Limited Maturity
Municipal Bond Fund. The Federal Reserve
Board's restrictive policy stance resulted
in a rise in the Federal Funds rate from
3.00% to 4.25% since February. Conse-
quently, during the July quarter we main-
tained a cash reserve position of 45%
of net assets, and an average portfolio
maturity of just under three years. In the
upcoming quarter we will continue to
monitor the impact of new economic
data on the municipal bond marketplace.
Over the course of the fiscal year, this
strategy has allowed the Fund to minimize
the drop in the Class A and Class B Shares'
net asset values, despite a dramatic rise
in interest rates. We will continue to
invest primarily in AA-rated or better
securities, which tend to outperform
lesser rated issues in volatile periods.
Merrill Lynch California Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1994,
the State of California approved its $41.9
billion General Fund Budget. The budget's
approval was not without consequence
as Standard & Poor's Corporation lowered
its rating on California's $18.4 billion in
outstanding general obligation debt to
A from A+, and Moody's Investors Service,
Inc. lowered its rating from Aa to A1.
These rating downgrades reflected the
State's heavy reliance on the short-term
municipal note market to finance its cash
imbalance and the perceived likelihood
that its accumulated cash deficits will
persist over the next two years. California's
economic performance has been slowly
improving although its has lagged behind
the nation in general. The budget's plan
includes an expected $763 million in
Federal immigration aid to assist the
1994-1995 cash flow. The State anticipates
that the Federal government will authorize
and appropriate additional funds to offset
the State's costs associated with illegal
immigration. Currently, only $87 million in
aid was included in the Federal budget,
which was passed by the House of
Representatives but is still pending in
the Senate.
<PAGE>
During the July quarter, as throughout
the year, we maintained a cautious
approach to investing the California
Limited Maturity Municipal Bond Fund.
The Federal Reserve Board tightened
monetary policy four times during the
fiscal year, raising the Federal Funds
rate from 3.00% to 4.25%, while the pos-
sibility of additional rate hikes continues
to weigh heavily on the intermediate
marketplace. For this reason, we have
maintained cash equivalent securities
throughout the year at anywhere between
25%--48% of net assets. Over the course of
the fiscal year, this strategy has allowed
the Fund to minimize the drop in the
Class A and Class B Shares' net asset
values, despite a dramatic rise in inter-
est rates. The current maturity of the
California Limited Maturity Municipal
Bond Fund is approximately four years,
and we are currently maintaining 43% of
the Fund's net assets in cash equivalent
securities. Diversification, credit quality
and yield remain paramount in importance
to the Fund, and we will continue to closely
monitor the everchanging marketplace.
Merrill Lynch Florida Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1994,
Florida's economy continued to experience
slow but steady growth. The State's
economy centers on a growing trade and
services sector, although tourism and
agriculture continue to be important
industries. Florida continues to experi-
ence strong population growth from
retirees and immigration because of its
geographical location. The budget for
fiscal 1994 provides an increase in spend-
ing in the General Revenue Fund of 10.9%
or $1.3 billion, growing from $11.9 billion
in fiscal 1993 to $13.2 billion in fiscal
1994. Medicaid, the largest and fastest
growing component of the State's budget,
grew at an average annual rate of 25%
over the last ten years. For fiscal 1994, the
State budgeted an increase of 18% after
accounting for cost-containment efforts.
Education funding, proposed to account
for 49% of the State's General Revenue
Fund in fiscal 1994, would increase by 10%
from $6.0 billion to $6.6 billion. The State
also enacted legislation to create a com-
prehensive healthcare system. The plan
combines the State and small businesses
as purchasers of heathcare and extends
coverage for certain medical services to
many of the State's working poor who
currently have no coverage.
<PAGE>
During the July quarter, as throughout
the year, we maintained a cautious
approach to investing the Florida Limited
Maturity Municipal Bond Fund. The
Federal Reserve Board tightened mone-
tary policy four times during the fiscal year,
raising the Federal Funds rate from 3.00%
to 4.25%, while the possibility of additional
rate hikes continues to weigh heavily on
the intermediate marketplace. For this
reason we have maintained cash equiva-
lent securities throughout the year of
anywhere from 22%--35% of net assets.
Over the course of the fiscal year, this
strategy has allowed the Fund to minimize
the drop in the Class A and Class B Shares'
net asset values, despite a dramatic rise
in interest rates. The current maturity of
the Florida Limited Maturity Municipal
Bond Fund is approximately 3.8 years,
and we are currently maintaining 35% of
the Fund's net assets in cash equivalent
securities. Diversification, credit quality
and yield remain paramount in importance
to the Fund, and we will continue to closely
monitor the everchanging marketplace.
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
The Commonwealth of Massachusetts
continued to experience improvements
in the local economy, contributing to a
decline in the seasonally adjusted unem-
ployment rate to 5.9%, slightly below the
national average of 6.1%. Additionally, the
Commonwealth announced that fiscal year
1994 closed with an apparent $20 million
surplus, making 1994 the fourth consecu-
tive year the State closed the fiscal year
with a surplus. This was achieved despite
the fact that tax revenues fell $87 million
short of expectations, mostly the result of
the impact of an unusually harsh winter,
a negative tax judgment, as well as the
effects of Federal tax increases. However,
the surplus was achieved as the result
of tighter spending controls imposed by
Governor Weld's Administration.
<PAGE>
During the July quarter, as throughout
the year, we continued to maintain a
defensive posture to offset the rising
interest rate environment. The Fund's
cash position ranged from 25%--40% of
net assets, and we maintained the average
portfolio maturity in the 2-year--3-year
range throughout most of the period.
Throughout the fiscal year, this strategy
has allowed the Fund to minimize the
drop in the Class A and Class B Shares'
net asset values, despite a dramatic
rise in interest rates. In the upcoming
quarter, we will continue to closely moni-
tor economic data to assess the effects,
if any, of the Federal Reserve Board's
tightening of monetary policy during the
spring. Should economic data point to
moderate inflation and a slackening of
economic growth, we would seek to
become more aggressively invested in
order to take advantage of any drop in
interest rates.
Merrill Lynch Michigan Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1994,
the State of Michigan continued its strong
economic performance led by powerful
automobile sales and a surging manufac-
turing sector. The "Big Three" domestic
auto makers continue to project new
vehicle sales at an annual rate of above
15.0 million units, and project strong
sales into and throughout 1995. Good
news in the automobile industry trans-
lates into positive news for Michigan's
unemployment rate as it dropped to
approximately 5.2% in June 1994, com-
pared to a 7.00% average rate for all of
1993. Throughout the State, construction
experienced a strong spring followed by
gains in the retail trade and service
sectors. Most areas of Michigan also had
modest hiring increases in their manufac-
turing industries.
<PAGE>
During the July quarter, as throughout
the fiscal year, we maintained a cautious
approach to investing the Michigan
Limited Maturity Municipal Bond Fund.
The Federal Reserve Board tightened
monetary policy four times during the
fiscal year, raising the Federal Funds rate
from 3.00% to 4.25%, while the possibility
of additional rate hikes continues to weigh
heavily on the intermediate marketplace.
For this reason we have maintained the
Fund's cash equivalent securities through-
out the year of anywhere from 22%--55% of
net assets. Over the course of the fiscal
year, this strategy has allowed the Fund to
minimize the drop in the Class A and
Class B Shares' net asset values, despite a
dramatic rise in interest rates. The current
maturity of the Michigan Limited Maturity
Municipal Bond Fund is approximately
3.10 years, and we are currently maintain-
ing 35% of the Fund in cash equivalent
securities. Diversification, credit quality
and yield remain paramount in importance
to the Fund, and we will continue to closely
monitor the everchanging marketplace.
<PAGE>
Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund
In July, the State legislature passed
Republican Governor Whitman's first
budget. The $15.8 billion budget elimi-
nated the New Jersey Department of
Higher Education and the office of the
Public Advocate, and reduced the State's
income tax by 10%. In addition, Governor
Whitman signed a bill reducing the State's
current pension burden. This bill will save
the State $1.32 billion that will be applied
to the budget to help offset the revenues
lost by the income tax cut. In addition,
the State incorporated a $215 million
surplus from the health insurance fund
into the State's budget. During the budget
debates, the legislature also approved a
bill to sell $708.5 million in bonds to pay
off $1.3 billion in State auto insurance
debt. This issue, the New Jersey Economic
Development Authority Market Transition
Facility, which sold in late July, represented
much of the New Jersey state-specific
issuance in the intermediate range for the
recent quarter. The State's economy con-
tinues to improve and most recently a
resurgence in tourism added increased
revenues to the State's coffers. In the
months ahead, the State must begin to
address the Supreme Court's ruling that
the State's school funding policy is uncon-
stitutional, and that funding between
wealthy and poor districts is inequitable.
<PAGE>
In the July quarter, as throughout the
fiscal year, we maintained a cautious port-
folio strategy in New Jersey Limited
Maturity Municipal Bond Fund. The
Federal Reserve Board's restrictive policy
stance resulted in a rise in the Federal
Funds rate from 3.00% to 4.25% since
February. Consequently, during the
quarter we maintained the Fund's cash
reserves between 25%--40% of net assets.
Throughout the quarter we maintained
an average portfolio maturity of just under
three years. In the upcoming quarter we
will continue to monitor the impact of
new economic data on the municipal bond
marketplace. Over the course of the fiscal
year, this strategy has allowed the Fund
to minimize the drop in the Class A and
Class B Shares' net asset values, despite
a dramatic rise in interest rates. We con-
tinue to invest primarily in AA-rated or
better securities, which tend to outper-
form lesser rated issues in volatile periods.
Merrill Lynch New York Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1994,
the New York State Legislature, after a
more than eight-week delay, finally
approved a $33 billion budget for 1995.
The fiscal 1995 budget calls for total
general fund revenues to grow 6.2%, with
spending up 7.2% above 1994 fiscal levels,
to $34.3 million. Compared to the proposed
budget, a total of $1.1 billion of new
initiatives were added consisting of a
$260 million tax cut designed to promote
economic development in urban areas and
$879 million in new grants to local govern-
ments to address educational, infrastruc-
ture and health concerns. After reviewing
the adopted fiscal 1995 State budget,
Standard & Poor's Corporation affirmed
its A- rating on New York State's $5.53
billion in outstanding general obligation
bonds, with the rating trend maintained
as positive.
During the July quarter, as throughout
the year, we have maintained a cautious
approach to investing the New York
Limited Maturity Municipal Bond Fund.
The Federal Reserve Board tightened
monetary policy four times during the
fiscal year, raising the Federal Funds rate
from 3.00% to 4.25%, while the possibility
of additional rate hikes continues to weigh
heavily on the intermediate marketplace.
For this reason we have maintained the
Fund's cash equivalent securities through-
out the year of anywhere between 23%--
41% of net assets. Over the course of the
fiscal year, this strategy has allowed the
Fund to minimize the drop in the Class A
and Class B Shares' net asset values,
despite a dramatic rise in interest rates.
The current maturity of the New York
Limited Maturity Municipal Bond Fund is
approximately 3.10 years, and we are
currently maintaining 39% of the Fund in
cash equivalent securities. Diversification,
credit quality and yield remain paramount
in importance to the Fund, and we will
continue to closely monitor the ever-
changing marketplace.
<PAGE>
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
The Commonwealth of Pennsylvania con-
tinues to exhibit signs of an improving
economy. In both the 1992-1993 and
1993-1994 fiscal years, financial operations
within the Commonwealth surpassed
expectations and realized revenues were
greater than projected. Although the
Commonwealth's unemployment rate
increased to 6.4% at the onset of the
second quarter, it is still lower than the
7.0% rate in the corresponding period in
1993. Residential construction is rebound-
ing within Pennsylvania as housing permits
continue to rise and the office vacancy
rate is declining, which suggest that there
is the potential for continued strength
in the construction industry in the
upcoming months.
In the July quarter, as throughout the
fiscal year, we maintained a cautious port-
folio strategy in the Pennsylvania Limited
Maturity Municipal Bond Fund. The
Federal Reserve Board's restrictive policy
stance resulted in a rise in the Federal
Funds rate from 3.00% to 4.25% since
February. Consequently, during the July
quarter we maintained a cash reserve
position of approximately 40% of net
assets, and an average portfolio maturity
of just over four years. In the upcoming
quarter we will continue to monitor the
impact of new economic data on the
municipal bond marketplace. Over the
course of the fiscal year, this strategy
has allowed the Fund to minimize the
drop in the Class A and Class B Shares'
net asset values, despite a dramatic rise
in interest rates. We will continue to
invest primarily in AA-rated or better
securities, which tend to outperform lesser
rated issues in volatile periods.
<PAGE>
In Conclusion
We appreciate your interest in Merrill
Lynch Multi-State Limited Maturity
Series Trust, and we look forward to
assisting you with your financial needs
in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
and Portfolio Manager
August 25, 1994
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
Class A and Class B Shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Total Return
Based on a
$10,000
Investment
Arizona Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +1.35% +0.34%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 1.
<PAGE>
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +1.15% +0.15%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 1.
California Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +0.34% -0.67%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 2.
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.14% -0.86%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 2.
Florida Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +0.34% -0.66%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
<PAGE>
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 3.
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.14% -0.86%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 3.
Massachusetts Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +1.41% +0.40%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 4.
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +1.21% +0.21%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 4.
<PAGE>
PERFORMANCE DATA (continued)
Total Return
Based on a
$10,000
Investment
(concluded)
Michigan Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +0.56% -0.44%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 5.
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.36% -0.64%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 5.
New Jersey Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +0.94% -0.06%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 6.
<PAGE>
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.74% -0.26%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 6.
New York Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +0.83% -0.18%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 7.
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.63% -0.37%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 7.
Pennsylvania Limited Maturity--Aggregate Total Returns
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 6/30/94 +1.07% +0.06%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIALS ITEM 8.
<PAGE>
% Return Without % Return With
Class B Shares* CDSC CDSC**
Inception (11/26/93) through 6/30/94 +0.87% -0.13%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0% after
one year.
**Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
Since Total 3 Month Standardized
Inception 3 Month Return Since Total 30-day Yield
7/31/94 4/30/94 11/26/93** % Change % Change Inception Return As of 7/31/94
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $9.97 $9.95 $10.00 -0.30% +0.20% +2.02%(1) +1.10%(2) 3.88%
Arizona Limited Maturity Class B Shares 9.97 9.95 10.00 -0.30 +0.20 +1.78(3) +1.01(4) 3.57
California Limited Maturity Class A Shares 9.88 9.85 10.00 -1.20 +0.30 +1.23(5) +1.30(6) 3.94
California Limited Maturity Class B Shares 9.88 9.85 10.00 -1.20 +0.30 +0.99(7) +1.21(8) 3.63
Florida Limited Maturity Class A Shares 9.87 9.84 10.00 -1.30 +0.30 +1.12(9) +1.29(10) 3.96
Florida Limited Maturity Class B Shares 9.88 9.84 10.00 -1.20 +0.41 +0.99(11) +1.30(12) 3.64
Massachusetts Limited Maturity Class A Shares 9.95 9.94 10.00 -0.50 +0.10 +2.01(13) +1.08(14) 3.74
Massachusetts Limited Maturity Class B Shares 9.95 9.94 10.00 -0.50 +0.10 +1.77(15) +0.99(16) 3.42
Michigan Limited Maturity Class A Shares 9.92 9.89 10.00 -0.80 +0.30 +1.66(17) +1.31(18) 3.98
Michigan Limited Maturity Class B Shares 9.92 9.89 10.00 -0.80 +0.30 +1.42(19) +1.22(20) 3.67
New Jersey Limited Maturity Class A Shares 9.94 9.91 10.00 -0.60 +0.30 +1.73(21) +1.25(22) 3.99
New Jersey Limited Maturity Class B Shares 9.95 9.91 10.00 -0.50 +0.40 +1.59(23) +1.26(24) 3.66
New York Limited Maturity Class A Shares 9.91 9.84 10.00 -0.90 +0.71 +1.61(25) +1.71(26) 3.73
New York Limited Maturity Class B Shares 9.91 9.84 10.00 -0.90 +0.71 +1.37(27) +1.62(28) 3.41
Pennsylvania Limited Maturity Class A Shares 9.95 9.93 10.00 -0.50 +0.20 +1.85(29) +1.17(30) 4.05
Pennsylvania Limited Maturity Class B Shares 9.95 9.93 10.00 -0.50 +0.20 +1.61(31) +1.08(32) 3.73
<PAGE>
<FN>
* Investment results shown for the 3-month and since inception periods are before
the deduction of any sales charges.
** Commencement of Operations.
(1) Percent change includes reinvestment of $0.220 per share ordinary income dividends.
(2) Percent change includes reinvestment of $0.089 per share ordinary income dividends.
(3) Percent change includes reinvestment of $0.197 per share ordinary income dividends.
(4) Percent change includes reinvestment of $0.081 per share ordinary income dividends.
(5) Percent change includes reinvestment of $0.231 per share ordinary income dividends.
(6) Percent change includes reinvestment of $0.098 per share ordinary income dividends.
(7) Percent change includes reinvestment of $0.208 per share ordinary income dividends.
(8) Percent change includes reinvestment of $0.089 per share ordinary income dividends.
(9) Percent change includes reinvestment of $0.231 per share ordinary income dividends.
(10)Percent change includes reinvestment of $0.096 per share ordinary income dividends.
(11)Percent change includes reinvestment of $0.207 per share ordinary income dividends.
(12)Percent change includes reinvestment of $0.088 per share ordinary income dividends.
(13)Percent change includes reinvestment of $0.239 per share ordinary income dividends.
(14)Percent change includes reinvestment of $0.097 per share ordinary income dividends.
(15)Percent change includes reinvestment of $0.215 per share ordinary income dividends.
(16)Percent change includes reinvestment of $0.088 per share ordinary income dividends.
(17)Percent change includes reinvestment of $0.233 per share ordinary income dividends.
(18)Percent change includes reinvestment of $0.099 per share ordinary income dividends.
(19)Percent change includes reinvestment of $0.210 per share ordinary income dividends.
(20)Percent change includes reinvestment of $0.090 per share ordinary income dividends.
(21)Percent change includes reinvestment of $0.220 per share ordinary income dividends.
(22)Percent change includes reinvestment of $0.093 per share ordinary income dividends.
(23)Percent change includes reinvestment of $0.197 per share ordinary income dividends.
(24)Percent change includes reinvestment of $0.085 per share ordinary income dividends.
(25)Percent change includes reinvestment of $0.239 per share ordinary income dividends.
(26)Percent change includes reinvestment of $0.097 per share ordinary income dividends.
(27)Percent change includes reinvestment of $0.215 per share ordinary income dividends.
(28)Percent change includes reinvestment of $0.089 per share ordinary income dividends.
(29)Percent change includes reinvestment of $0.223 per share ordinary income dividends.
(30)Percent change includes reinvestment of $0.096 per share ordinary income dividends.
(31)Percent change includes reinvestment of $0.200 per share ordinary income dividends.
(32)Percent change includes reinvestment of $0.087 per share ordinary income dividends.
</TABLE>
<PAGE>
Portfolio
Abbreviations: To simplify the listings of Merrill
Lynch Multi-State Limited
Maturity Municipal Series Trust's
portfolio holdings in the
Schedule of Investments, we
have abbreviated the names
of many of the securities
according to the list at right.
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
S/F Single-Family
TAN Tax Anticipation Notes
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Arizona Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Arizona--82.2% A1+ P1 $ 200 Apache County, Arizona, IDA, IDR (Tucson Electric Power--Springerville
Project), VRDN, 2.95% due 12/15/2018 (a) $ 200
NR VMIG1 300 Arizona Educational Loan Marketing Corp., Educational Loan Revenue Bonds,
Series A, AMT, VRDN, 2.95% due 12/01/2020 (a) 300
A1 VMIG1 200 Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary
Hospital Federation), Series B, VRDN, 1.90% due 10/01/2015 (a) (c) 200
AAA Aaa 1,000 Arizona State Transportation Board, Excise Tax Revenue Bonds (Maricopa
County Regional Area), 5.60% due 7/01/2002 (b) 1,027
AAA Aaa 220 Maricopa County, Arizona, Alhambra Elementary School District No. 68,
Refunding and Improvement Bonds, UT, 7.75% due 7/01/2000 (b) 251
A1+ VMIG1 100 Maricopa County, Arizona, IDA, Hospital Facilities Revenue Bonds
(Samaritan Health Service Hospital), Series B2, VRDN, 2.75%
due 12/01/2008 (a) (d) 100
A1+ NR 300 Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds (Vista Ventana
Apartments Project), Series D, VRDN, 2.25% due 6/01/2034 (a) 300
NR VMIG1 300 Maricopa County, Arizona, Pollution Control Corporation, PCR (El Paso
Electric-Palo Verde Project), Series E, VRDN, 3.60% due 12/01/2014 (a) 300
Phoenix, Arizona, Airport Revenue Refunding Bonds, Series C, AMT (d):
AAA Aaa 465 5.60% due 7/01/2002 468
AAA Aaa 480 5.70% due 7/01/2003 483
A1+ VMIG1 100 Phoenix, Arizona, Series 2, UT, VRDN, 2.85% due 6/01/2018 (a) 100
A1+ Aa 300 Pima and Maricopa Counties, Arizona, IDA, M/F Housing Revenue Bonds
(Privado Park Apartments), Series A, AMT, VRDN, 2.40% due 6/01/2034 (a) 300
A1+ VMIG1 100 Pima County, Arizona, IDR (Tucson Electric Co.), VRDN, 3.05%
due 12/01/2022 (a) 100
A+ Aa 260 Pima County, Arizona, Refunding Bonds, 5.375% due 7/01/1996 265
AA P1 300 Pinal County, Arizona, IDA, PCR (Magma-Copper/Newmont Mining Corporation),
VRDN, 2.85% due 12/01/2009 (a) 300
A1 NR 200 Pinal County, Arizona, IDR (Calsonic Incorporated Project), VRDN, 1.90% due
12/01/2005 (a) 200
A NR 1,100 Scottsdale, Arizona, Improvement Bonds (District Number I3704-Bell Road),
5.40% due 1/01/1996 1,114
A1 NR 300 Tucson, Arizona, IDA, M/F Revenue Refunding Bonds (Lincoln Garden
Project), VRDN, 2.85% due 2/01/2006 (a) 300
Puerto Rico--2.6% A1+ P1 200 Puerto Rico Maritime Shipping Authority, TECP, 1.90% due 8/15/1994 200
Total Investments (Cost--$6,502)--84.8% 6,508
Other Assets Less Liabilities--15.2% 1,169
-------
Net Assets--100.0% $ 7,677
=======
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1994.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
NR--Not rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
California Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
California--97.8% AAA Aaa $ 410 California Educational Facilities Authority Revenue Bonds
(Pepperdine University), 5.15% due 3/15/2003 (c) $ 407
California Health Facilities Financing Authority Revenue Bonds
(Sutter Health), VRDN (a):
A1+ VMIG1 300 Series A, 2.65% due 3/01/2020 300
A1+ VMIG1 200 Series B, 2.75% due 3/01/2020 200
A+ Aa 600 California, HFA, Home Mortgage Revenue Bonds, Series B-1, AMT, 5.05%
due 2/01/1998 605
AA Aa2 700 California Pollution Control Financing Authority, PCR (Chevron USA Inc.
Project), Series B, 3.70% due 6/15/1995 698
California Pollution Control Financing Authority, PCR, Refunding
(Shell Oil Company Project), VRDN (a):
A1+ VMIG1 500 Series B, 2.65% due 10/01/2011 500
A1+ VMIG1 100 Series C, 2.65% due 11/01/2000 100
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, AMT, VRDN (a):
NR P1 700 (Delano Project), Series 1991, 2.60% due 8/01/2019 700
NR P1 300 (Honey Lake Power Project), 2.60% due 9/01/2018 300
California Pollution Control Financing Authority, Resource Recovery
Revenue Refunding Bonds, AMT, VRDN (a):
NR P1 100 (Ultra Power Malaga), Series B, 2.65% due 4/01/2017 100
NR P1 300 (Ultra Power Rocklin Project), Series A, 2.65% due 6/01/2017 300
A A1 700 California State, Clean Water Revenue Bonds, GO, 2.90% due 2/01/1995 696
AA Aa 500 California State Department of Water Resources, Central Valley Project
Revenue Bonds (Water Systems), Series J-3, 5.70% due 12/01/2003 516
California State, GO, UT:
A A1 750 6.75% due 10/01/2003 820
A A1 1,400 5.12% due 3/01/2004 1,349
A- A 575 California State Public Works Board, Lease Revenue Bonds (California
State University Various Projects), Series A, 4.30% due 12/01/1999 548
AAA NR 500 California Statewide Community Development Authority Revenue Bonds, COP
(Salk Institute), 4.90% due 7/01/1999 (b) 498
AAA Aaa 400 Eastern Municipal Water District, California, COP, 6.60%
due 11/01/1997 (d) (e) 425
A1 NR 200 Irvine, California, M/F Housing Revenue Bonds, VRDN, Series 1983-A, 2.75%
due 12/01/1995 (a) 200
Irvine Ranch, California, Water District Consolidated Revenue Bonds,
VRDN (a):
A1+ VMIG1 600 District Nos. 105, 250, 290, 2.85% due 8/01/2016 600
A1+ NR 100 Series A, DATES, 2.85% due 10/01/2000 100
<PAGE> AA Aa 350 Long Beach, California, Water Revenue Refunding Bonds, 4.95% due 5/01/2000 350
AA Aa 700 Los Angeles County, California, Public Works Financing Authority
Revenue Bonds (Regulation Park and Open Space District), Series A, 5.25%
due 10/01/2000 709
AAA Aaa 500 Los Angeles County, California, Transportation Commission, Sales Tax
Revenue Bonds (Proposition C-Second Senior), Series A, 6.50%
due 7/01/2002 (c) (f) 551
A1 NR 200 Moor Park, California, M/F Revenue Refunding Bonds (Le Club Apartment
Project), Series A, VRDN, 2.75% due 11/01/2015 (a) 200
A1 VMIG1 600 Orange County, California, Improvement Board Act of 1915 Revenue Bonds
(Irvine Coast Assessment District No. 88-1), VRDN, 2.80% due 9/02/2018 (a) 600
NR VMIG1 500 Sacramento County, California, M/F Housing Revenue Bonds (River Oaks
Apartments), Series E, VRDN, 2.95% due 9/15/2007 (a) 500
AAA Aaa 500 San Francisco, California, City and County Airport Commission,
International Airport Revenue Refunding Bonds, Second Series, Issue 1,
6.10% due 5/01/1995 (d) 509
AAA Aaa 1,000 San Jose, California, Redevelopment Agency, Tax Allocation Revenue
Refunding Bonds (Merged Area Redevelopment Project), 5.50%
due 8/01/2000 (c) 1,030
AAA Aaa 500 Southern California Public Power Authority, Power Project Revenue Bonds
(San Juan Unit 3), Series A, 4.75% due 1/01/2001 (c) 489
Total Investments (Cost--$14,946)--97.8% 14,900
Other Assets Less Liabilities--2.2% 334
-------
Net Assets--100.0% $15,234
=======
(a)The interest rate is subject to change periodically based upon the prevailing
market rate. The interest rate shown is the rate in effect at July 31, 1994.
(b)Insured by Connie Lee.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)Escrowed to Maturity.
(f)Prerefunded.
NR--Not rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Florida Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida-98.9% NR VMIG1 $ 900 Brevard County, Florida, HFA, M/F Housing Revenue Bonds
(Palm Place Project), VRDN, 2.85% due 12/01/2007 (a) $ 900
AAA NR 1,000 Broward County, Florida, Educational Facilities Authority, Revenue
Refunding Bonds (Nova Southeastern University Project), 4.90%
due 4/01/1998 1,000
AAA Aaa 1,000 Broward County, Florida, School District Revenue Bonds, UT, 7.125%
due 2/15/1999 (d) 1,107
Dade County, Florida, Aviation Revenue Refunding Bonds:
A1 VMIG1 1,000 Series V, VRDN, 2.90% due 10/01/2007 (a) 1,000
A Aa 1,395 Series X, 4.80% due 10/01/1998 1,404
A1 VMIG1 1,600 Dade County, Florida, Solid Waste, IDR (Montenay-Dade Limited Project),
VRDN, Series A, 3.05% due 12/01/2013 (a) 1,600
Dade County, Florida, Water and Sewer System Revenue Bonds (b):
AAA Aaa 1,000 Refunding, 5% due 10/01/2000 1,006
A1+ VMIG1 400 VRDN, 2.85% due 10/05/2022 (a) 400
Florida State Board of Education, Capital Outlay:
AA Aaa 1,000 Series B, 7.25% due 6/01/1996 (d) 1,071
AAA Aaa 2,000 Series C, 6.90% due 6/01/1997 (e) 2,146
AA Aa 1,500 Series E, UT, 5.10% due 6/01/2003 1,478
A1+ VMIG1 900 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company), VRDN, 2.75% due 5/15/2018 (a) 900
AAA Aaa 1,500 Homestead, Florida, Special Insurance Assessment Revenue Bonds, 5%
due 9/01/2001 (c) 1,494
AA Aa1 4,500 Jacksonville, Florida, Electric Authority Revenue Bonds
(Saint John's River), Issue 2, Series 10, 4.70% due 10/01/2001 4,366
AA Aa1 1,000 Jacksonville, Florida, Electric Authority Special Obligation Revenue
Bonds (Saint John's River), 4th Series, 6.375% due 10/01/1999 1,068
AAA Aaa 1,000 Palm Bay, Florida, Utility Revenue Bonds (Palm Bay Utility Corp.
Project), Series B, 6.20% due 10/01/2002 (d) 1,081
NR VMIG1 1,200 Palm Beach County, Florida, Water and Sewer Revenue Bonds, VRDN, 2.85%
due 10/01/2011 (a) 1,200
AA- Aa 1,500 Pinellas County, Florida, Capital Improvement Revenue Bonds, 5.20%
due 10/01/1995 1,524
A1 VMIG1 1,600 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan Project), DATES, 2.85% due 12/01/2015 (a) 1,600
A1 VMIG1 400 Putnam County, Florida, Development Authority, PCR, Refunding
(Florida Power and Light Company Project), VRDN, 3% due 9/01/2024 (a) 400
AAA Aaa 1,000 Reedy Creek, Florida, Improvement District Florida Utility Revenue Bonds,
Series 1991-1, 6.50% due 10/01/2001 (c) (d) 1,088
NR VMIG1 1,200 Saint Lucie County, Florida, PCR, Refunding, TECP 3.20% due 1/27/1995 1,200
AAA Aaa 1,000 Saint Lucie County, Florida, Sales Tax Revenue Bonds, 6.50%
due 10/01/2002 (b) (d) 1,096
Sarasota County, Florida, Health Facilities Authority, Hospital Revenue
<PAGE> Bonds (Venice Hospital Project), ACES, VRDN (a):
A3 VMIG2 355 2.80% due 12/01/2015 355
NR VMIG1 700 2.80% due 12/01/2022 700
A1 VMIG1 1,500 Volusia County, Florida, Health Facilities Authority Revenue Bonds
(Pooled Hospital Loan Program), VRDN, ACES, 2.90% due 11/01/2015 (a) (b) 1,500
Total Investments (Cost--$32,752)--98.9% 32,684
Other Assets Less Liabilities--1.1% 363
-------
Net Assets--100.0% $33,047
=======
<FN>
(a)The interest rate is subject to change periodically based upon the prevailing
market rate. The interest rate shown is the rate in effect at July 31, 1994.
(b)FGIC Insured.
(c)MBIA Insured.
(d)Prerefunded.
(e)Escrowed to maturity.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Massachusetts Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Massachusetts-- A A $ 315 Boston, Massachusetts, Metropolitan District, Revenue Refunding Bonds,
93.8% Series A, B, & C, 3.90% due 12/01/1995 $ 314
NR NR 600 Cape Cod, Massachusetts, Regional Transportation Authority, RAN, 4.25%
due 7/06/1995 600
SP-1 MIG2 1,000 Massachusetts Bay Transportation Authority Notes, Series A, 3.75%
due 3/01/1995 1,000
AAA Aaa 475 Massachusetts Bay Transportation Authority Revenue Bonds (General
Transportation System), UT, Series A, 5.30% due 3/01/2004 (d) 474
BBB+ A 500 Massachusetts Municipal Wholesale Electric Company Power Supply System
Revenue Refunding Bonds, Series B, 6.375% due 7/01/2001 528
A+ A 400 Massachusetts State, Consolidated Loan, Series A, 6.10% due 6/01/2002 422
A A 500 Massachusetts State Convention Center Authority Refunding Bonds (Hynes
Convention Center), 5.20% due 9/01/1995 505
A+ A 1,000 Massachusetts State General Obligation Refunding Bonds, Series C, 4.55%
<PAGE> due 9/01/1997 999
Massachusetts State Health and Educational Facilities Authority Revenue
Bonds (Capital Asset Program), VRDN (a) (e):
A1+ VMIG1 300 Series B, 2.60% due 7/01/2005 300
A1+ VMIG1 600 Series C, 2.60% due 7/01/2005 600
SP-1+ VMIG1 600 Series D, 2.70% due 1/01/2035 600
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
NR Baa1 645 (Faulkner Hospital), Series C, 5.25% due 7/01/1999 630
AAA NR 500 (Holy Cross College), Series F, 8.40% due 5/01/1995 (b) 526
AAA NR 600 (Melrose-Wakefield Hospital), Series A, 8.625% due 7/01/1996 (b) (d) 658
AAA Aaa 750 Massachusetts State HFA, Revenue Refunding Bonds (Housing Projects),
Series A, 5.35% due 10/01/2003 (c) 745
Massachusetts State Industrial Finance Agency, Health Care Facility
Revenue Bonds (Beverly Enterprises), VRDN (a):
A1+ VMIG1 300 2.75% due 12/01/2011 300
NR MIG1++ 300 2.75% due 4/01/2009 300
AAA Aaa 1,000 Massachusetts State Industrial Finance Agency, Resource Recovery Revenue
Refunding Bonds (Refusetech Inc. Project), Series A, 5.45%
due 7/01/2001 (f) 1,010
A1 VMIG1 100 Massachusetts State Industrial Finance Agency, Revenue Refunding Bonds
(Showa Womens Institute Inc.), VRDN, 2.75% due 3/15/2004 (a) 100
AA- Aaa 400 Massachusetts State Port Authority Revenue Bonds, Series B, 9.375%
due 7/01/1995 (b) 427
AA A1 500 Massachusetts State Special Obligation Revenue Bonds, Series A, 5.30%
due 6/01/1998 511
SP-1 MIG1++ 1,500 Massachusetts State Water Resources Authority, BAN, Series A, 4.125%
due 10/15/1995 1,507
A- A1 400 New England Educational Loan Marketing Corp., Massachusetts Student Loan
Revenue Refunding Bonds, Series H, 5.05% due 12/01/2002 382
NR NR 700 Salem, Massachusetts, BAN, 3.60% due 7/03/1995 699
A+ A1 600 Salem, Massachusetts, GO, 5% due 7/15/1997 605
NR NR 400 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley
Health Care), AMT, Series A, 5% due 12/01/1996 400
Puerto Rico--4.8% A Baa1 390 Puerto Rico Commonwealth, UT, 5.55% due 7/01/2001 398
AAA Aaa 350 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series J, 9%
due 7/01/1995 (b) 376
Total Investments (Cost--$15,998)--98.6% 15,916
Other Assets Less Liabilities--1.4% 227
-------
Net Assets--100.0% $16,143
=======
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1994.
(b)Prerefunded.
<PAGE> (c)AMBAC Insured.
(d)FGIC Insured.
(e)MBIA Insured.
(f)FSA Insured.
++Highest short-term rating issued by Moody's Investors Service, Inc.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
Michigan Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Michigan--83.6% NR P1 $ 200 Delta County, Michigan, Economic Development Corp., Environmental
Impact Revenue Bonds (Mead Escambia Paper), Series C, VRDN, 2.80%
due 12/01/2023 (a) $ 200
AAA Aaa 300 Detroit, Michigan, Distributable State Aid, UT, 5.70% due 5/01/2001 (b) 309
AA- Aa 140 Holland, Michigan, Electric Revenue Refunding Bonds, 4.75% due 7/01/1997 141
AAA Aaa 250 Hudsonville, Michigan, Public Schools Refunding Bonds, Series B,
UT, 5.15% due 5/01/2003 (c) 248
A1+ VMIG1 200 Michigan Higher Education Student Loan Authority, Revenue Refunding
Bonds, Series XII-B, AMT, VRDN, 2.65% due 10/01/2013 (a) (b) 200
Michigan Municipal Bond Authority Revenue Bonds:
SP-1+ NR 250 Series B, 4.75% due 7/20/1995 252
AAA Aaa 285 Series C, 5.50% due 5/01/2003 (d) 288
AA- A1 590 Michigan Public Power Agency, Revenue Refunding Bonds (Belle River
Project), Series A, 5.40% due 1/01/2001 601
AA- A 275 Michigan State Building Authority, Revenue Refunding Bonds, Series I,
3.90% due 10/01/1997 270
Michigan State Hospital Finance Authority Revenue Bonds:
NR VMIG1 200 (Chelsea Community Hospital), VRDN, 2.85% due 12/01/2011 (a) 200
NR VMIG1 200 (Hospital Equipment Loan Program), VRDN, 2.85% due 11/01/1999 (a) 200
BBB Baa1 250 Refunding (Pontiac Osteopathic), Series A, 4.65% due 2/01/1997 244
AA NR 300 Michigan State Housing Development Authority, S/F Mortgage Revenue Bonds,
Series A, 5.30% due 6/01/2000 302
NR P1 100 Michigan State Strategic Fund, Limited Obligation Revenue Bonds
(Dow Chemical Co. Project), VRDN, AMT, 3.15% due 12/01/2014 (a) 100
NR VMIG1 200 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(Grayling Generating Project), AMT, VRDN, 2.90% due 1/01/2014 (a) 200
Michigan State Trunk Line:
AA- A1 500 Series A, 5.25% due 11/15/2001 504
AA- A1 265 Series B, 5.50% due 11/15/1998 273
AAA Aaa 150 Southfield, Michigan, Public Schools Facilities Revenue Bonds, GO,
5% due 5/01/2000 (d) 151
AAA Aaa 200 West Bloomfield, Michigan, School District Refunding Bonds, UT,
5.50% due 5/01/1998 (d) 206
<PAGE>
Puerto Rico--4.6% A Baa1 265 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 270
Total Investments (Cost--$5,161)--88.2% 5,159
Other Assets Less Liabilities--11.8% 687
-------
Net Assets--100.0% $ 5,846
=======
(a)The interest rate is subject to change periodically based upon the prevailing
market rate. The interest rate shown is the rate in effect at July 31, 1994.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
New Jersey Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New Jersey--84.7% NR Aaa $ 1,000 Bergen County, New Jersey, GO, UT, 6.75% due 1/15/1997 $ 1,056
AA Aa1 500 Bridgewater Township, New Jersey, Sewer Assessment Revenue Bonds, UT,
7% due 8/15/1995 515
AAA Aaa 500 Cape May County, New Jersey, Improvement Bonds, UT, 5.85%
due 4/18/1995 (b) 508
Essex County, New Jersey, Improvement Authority Lease Revenue
Bonds (Newark):
BBB+ Baa1 300 Guaranteed, 5.05% due 4/01/1997 298
BBB+ Baa1 370 5.05% due 4/01/1997 368
SP-1+ VMIG1 600 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
2.60% due 11/01/1998 (a) 600
New Jersey, EDA, Dock Facility Revenue Refunding Bonds (Bayonne
International Matex Tank Terminal Project), Series A, VRDN (a):
NR VMIG1 200 2.70% due 12/01/2027 200
NR VMIG1 200 2.75% due 12/01/2027 200
NR P1 300 New Jersey, EDA, Economic Development Revenue Refunding Bonds
(Dow Chemical-El Dorado Term 1984), Series A, VRDN, 2.75%
due 5/01/2001 (a) 300
NR Aaa 200 New Jersey, EDA, Revenue Bonds (Hoffman-La Roche Incorporated Project),
AMT, VRDN, 2.45% due 11/01/2011 (a) 200
AAA Aaa 500 New Jersey Health Care Facilities Financing Authority Revenue Bonds
<PAGE> (Carrier Foundation), Series C, VRDN, 2.75% due 7/01/2005 (a) (d) 500
A1 VMIG1 300 New Jersey Sports and Exposition Authority Revenue Bonds (State Contract),
Series C, VRDN, 2.70% due 9/01/2024 (a) (c) 300
AAA Aaa 300 New Jersey State Educational Facilities Authority Revenue Bonds
(Princeton University), Series A, 5.40% due 7/01/1995 305
AA+ Aa1 2,500 New Jersey State Government Various Purpose Revenue Bonds, 5.80%
due 8/01/2001 (e) 2,619
AA- A1 650 New Jersey State Highway Authority, General Revenue Bonds
(Garden State Parkway--Senior Parkway), 7.10% due 1/01/1999 706
A A 1,000 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series A,
5.60% due 1/01/2000 1,027
AA Aa1 500 Parsippany, Troy Hills Township, New Jersey, Refunding Bonds, UT, 5.90%
due 4/01/2003 526
A1+ VMIG1 300 Port Authority of New York and New Jersey, Versatile Structure Special
Obligation Revenue Bonds, Series 1, AMT, VRDN, 2.85% due 8/01/2028 (a) 300
AAA Aaa 1,100 Somerset County, New Jersey, Series B, UT, 6.50% due 11/01/1997 1,171
Puerto Rico--4.3% A1+ P1 600 Puerto Rico Maritime Shipping Authority, TECP, 2.65% due 8/26/1994 600
Total Investments (Cost--$12,294)--89.0% 12,299
Other Assets Less Liabilities--11.0% 1,519
-------
Net Assets--100.0% $13,818
=======
<FN>
(a)The interest rate is subject to change periodically based upon the
prevailing market rate. The interest rate shown is the rate in effect at
July 31, 1994.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)Secured by escrow.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE
<PAGE>
</TABLE>
<TABLE>
New York Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York-92.4% AAA Aaa $ 500 Albany County, New York, Refunding Bonds (South Mall Construction),
Series B, UT, 5% due 10/01/2000 (c) $ 501
A- A1 400 Great Neck North, New York, Water Authority, Water System Revenue Bonds,
Series A, 7% due 1/01/2000 (b) 443
A-1+ VMIG1 300 Metropolitan Transportation Authority, New York, Commuter Facilities
Revenue Bonds, VRDN, 2.85% due 7/01/2021 (a) 300
AAA Aaa 200 Metropolitan Transportation Authority, New York, Transportation
Facilities Revenue Bonds, Series F, 8.37% due 7/01/1996 (b) 219
AA- Aa 600 Municipal Assistance Corporation for the City of New York, New York,
Series 61, 6.20% due 7/01/1998 635
NR NR 700 New York City, New York, IDA, IDR (Japan Airlines Company Ltd. Project),
AMT, VRDN, 2.85% due 11/01/2015 (a) 700
New York City, New York, IDA, Special Facility Revenue Bonds (Terminal
One Group Association Project), AMT:
A A 365 5.30% due 1/01/2000 363
A A 640 5.50% due 1/01/2002 633
New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Series A:
SP-1 MIG1++ 500 BAN, 3.75% due 12/15/1994 501
A- Aaa 1,000 7.50% due 6/15/2000 (b) 1,140
A- Baa1 700 New York City, Refunding Bonds, UT, Series A, 5.75% due 8/01/2002 696
SP-1 MIG1++ 700 New York City, Transportation Authority, Special Obligation RAN,
Series A, 4% due 12/15/1994 702
A-1 VMIG1 500 New York City Trust For Cultural Restoration, New York, Revenue Bonds
(Museum of Broadcasting), VRDN, 2.70% due 5/01/2014 (a) 500
New York State Dormitory Authority Revenue Bonds:
AA Aa 230 (Cornell University), 7.40% due 7/01/1995 237
NR VMIG1 100 Refunding (Oxford University Press Inc.), GO, UT, VRDN, 2.70%
due 7/01/2023 (a) 100
BBB+ Baa1 600 Refunding (State University Educational Facilities), Series A, 5.30%
due 5/15/2003 599
New York State Energy Research & Development Authority, PCR:
A-1+ Aaa 600 (New York State Electric & Gas), 3.25% due 3/15/2015 599
A-1+ NR 100 (Niagara Power Corporation Project), Series B, VRDN, 2.90%
due 7/01/2027 (a) 100
A-1+ NR 600 New York State Environmental Facilities, Corporate Resource Recovery
Revenue Bonds (Equity Huntington Project), AMT, VRDN, 2.85%
due 11/01/2014 (a) 600
A-1+ VMIG1 500 New York State HFA, Revenue Bonds (Normandie Court I Project), VRDN,
2.70% due 5/15/2015 (a) 500
AAA NR 545 New York State Medical Care Facilities, Finance Agency Revenue Refunding
Bonds (Hospital and Nursing Home), Series C, 5% due 2/15/1998 (d) 544
AA- Aa 600 New York State Power Authority, Revenue Refunding and General Purpose
Bonds, Series Z, 5.85% due 1/01/2000 626
AA Aa 600 New York State Power Authority, Series V, 7.10% due 1/01/1999 651
<PAGE> BBB Baa1 500 New York State Urban Development Corporation Revenue Bonds (Correctional
Capital Facilities), Series 4, 4.50% due 1/01/1998 487
A- A 600 New York State, UT, 4.90% due 3/01/1999 601
A+ Aa 985 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding and
General Purpose Bonds, Series A, 4.60% due 1/01/2004 914
Puerto Rico--3.4% A Baa1 500 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 510
Total Investments (Cost--$14,391)--95.8% 14,401
Other Assets Less Liabilities--4.2% 632
-------
Net Assets--100.0% $15,033
=======
<FN>
(a)The interest rate is subject to change periodically based upon the prevailing
market rate. The interest rate shown is the rate in effect at July 31, 1994.
(b)Prerefunded.
(c)FGIC Insured.
(d)FHA Insured.
++Highest short-term rating issued by Moody's Investors Service, Inc.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
Pennsylvania Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Pennsylvania-- A1+ VMIG1 $ 200 Allegheny County, Pennsylvania, Authority Improvement Municipalities,
77.6% Hospital Revenue Bonds (Pooled Hospital Equipment Leasing), ACES, VRDN,
2.30% due 9/01/1995 (a) (d) $ 200
A1+ VMIG1 300 Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (Health Center Presbyterian), Series A, VRDN, 2.80%
due 3/01/2020 (a) (d) 300
AAA Aaa 1,650 Delaware County, Pennsylvania, Authority College Revenue Bonds
(Haverford College), 7.37% due 11/15/2000 (a) (e) 1,885
A-1 NR 400 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, 2.85%
due 3/01/2024 (d) 400
<PAGE> AAA Aaa 350 Jersey Shore Area, Pennsylvania, Joint Water Authority, Water Revenue
Bonds, 7.70% due 4/01/1996 (c) (e) 370
A1+ Aaa 500 Lehigh County, Pennsylvania, Authority Water Revenue Bonds, VRDN, 2.80%
due 11/01/2004 (b) (d) 500
BBB NR 450 Northeastern, Pennsylvania, Hospital and Education Authority, Revenue
Refunding Bonds (Wilkes University), 5% due 10/01/2000 436
NR P1 100 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Temple University), VRDN, 3% due 10/01/2009 (d) 100
AAA Aaa 1,000 Pennsylvania State, IDA, Revenue Bonds (Economic Development), 6%
due 1/01/1999 (c) 1,041
AA- A1 1,385 Pennsylvania State University, Revenue Refunding Bonds, 5.85%
due 3/01/2002 1,440
A1+ NR 400 Philadelphia, Pennsylvania, Authority for IDR (Fox Chase Institute of
Cancer Research Project), Series A, VRDN, 3% due 7/01/2013 (d) 400
A- NR 650 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Bonds (Children's Seashore House), Series B,
7% due 8/15/2003 684
A-1 NR 400 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Northeastern Power Company), VRDN, 2.85% due 12/01/2011(d) 400
Puerto Rico--4.7% A-1+ P1 500 Puerto Rico Maritime Shipping Authority, TECP, 1.90% due 8/15/1994 500
Total Investments (Cost--$8,659)--82.3% 8,656
Other Assets Less Liabilities--17.7% 1,866
-------
Net Assets--100.0% $10,522
=======
<FN>
(a)MBIA Insured.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)The interest rate is subject to change periodically based on prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1994.
(e)Prerefunded.
NR--Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 6,508,242 $ 14,899,919 $ 32,684,086 $ 15,915,789
Cash 80,048 69,418 10,547 60,506
Receivables:
Securities sold 1,055,087 -- -- 507,690
Interest 31,912 153,712 374,888 144,723
Investment adviser (Note 2) 66,611 77,541 118,456 76,256
Capital shares sold 3,995 51,496 -- --
Deferred organization expenses (Note 1e) 36,603 41,135 38,794 36,603
Prepaid registration fees and other assets
(Note 1e) 19,919 21,454 29,786 23,293
----------- ------------ ------------ ------------
Total assets 7,802,417 15,314,675 33,256,557 16,764,860
----------- ------------ ------------ ------------
Liabilities: Payables:
Capital shares redeemed 54,725 10 114,326 69,031
Securities purchased -- -- -- 475,855
Dividends to shareholders (Note 1f) 4,609 9,133 20,653 10,425
Distributor (Note 2) 1,667 3,303 5,412 2,408
Accrued expenses and other liabilities 64,048 68,036 69,525 64,296
----------- ------------ ------------ ------------
Total liabilities 125,049 80,482 209,916 622,015
----------- ------------ ------------ ------------
Net Assets: Net assets $ 7,677,368 $ 15,234,193 $ 33,046,641 $ 16,142,845
=========== ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited number of
shares authorized $ 21,086 $ 38,500 $ 150,566 $ 81,367
Class B Shares of beneficial interest,
$.10 par value, unlimited number of
shares authorized 55,901 115,678 184,085 80,851
Paid-in capital in excess of par 7,616,340 15,275,520 33,232,260 16,047,875
Undistributed (accumulated) realized capital
gains (losses)--net (Note 5) (22,701) (149,477) (452,713) 15,134
Unrealized appreciation/depreciation on
investments--net 6,742 (46,028) (67,557) (82,382)
----------- ------------ ------------ ------------
Net assets $ 7,677,368 $ 15,234,193 $ 33,046,641 $ 16,142,845
=========== ============ ============ ============
<PAGE>
Net Asset Value: Class A:
Net assets $ 2,102,777 $ 3,804,230 $ 14,867,806 $ 8,096,884
=========== ============ ============ ============
Shares outstanding 210,864 385,000 1,505,660 813,675
=========== ============ ============ ============
Net asset value and redemption price
per share $ 9.97 $ 9.88 $ 9.87 $ 9.95
=========== ============ ============ ============
Class B:
Net assets $ 5,574,591 $ 11,429,963 $ 18,178,835 $ 8,045,961
=========== ============ ============ ============
Shares outstanding 559,005 1,156,779 1,840,852 808,507
=========== ============ ============ ============
Net asset value and redemption price
per share $ 9.97 $ 9.88 $ 9.88 $ 9.95
=========== ============ ============ ============
<FN>
*Identified cost $ 6,501,500 $ 14,945,947 $ 32,751,643 $ 15,998,171
=========== ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES (concluded)
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 5,159,293 $ 12,298,722 $ 14,401,144 $ 8,656,415
Cash 610,286 8,373 4,066 35,044
Receivables:
Securities sold -- 1,832,624 498,122 1,664,020
Interest 61,145 155,568 109,048 103,664
Investment adviser (Note 2) 63,978 68,583 79,537 79,239
Capital shares sold -- 233,897 12,387 --
Deferred organization expenses (Note 1e) 41,135 36,847 41,135 38,332
Prepaid registration fees and other assets
(Note 1e) 18,955 21,245 13,619 21,981
------------ ------------ ------------ ------------
Total assets 5,954,792 14,655,859 15,159,058 10,598,695
------------ ------------ ------------ ------------
<PAGE>
Liabilities: Payables:
Capital shares redeemed 46,879 767,960 44,766 5,060
Dividends to shareholders (Note 1f) 3,773 9,315 9,782 6,600
Distributor (Note 2) 718 2,353 2,898 2,889
Accrued expenses and other liabilities 57,800 58,385 68,869 61,829
------------ ------------ ------------ ------------
Total liabilities 109,170 838,013 126,315 76,378
------------ ------------ ------------ ------------
Net Assets: Net assets $ 5,845,622 $ 13,817,846 $ 15,032,743 $ 10,522,317
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited number of
shares authorized $ 34,616 $ 59,691 $ 53,368 $ 9,954
Class B Shares of beneficial interest,
$.10 par value, unlimited number of
shares authorized 24,295 79,285 98,291 95,811
Paid-in capital in excess of par 5,837,915 13,764,297 14,993,394 10,481,655
Accumulated realized capital losses--net
(Note 5) (49,216) (89,728) (122,010) (62,626)
Unrealized appreciation/depreciation on
investments--net (1,988) 4,301 9,700 (2,477)
------------ ------------ ------------ ------------
Net assets $ 5,845,622 $ 13,817,846 $ 15,032,743 $ 10,522,317
============ ============ ============ ============
Net Asset Value: Class A:
Net assets $ 3,434,929 $ 5,932,845 $ 5,289,719 $ 990,458
============ ============ ============ ============
Shares outstanding 346,162 596,910 533,680 99,545
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.92 $ 9.94 $ 9.91 $ 9.95
============ ============ ============ ============
Class B:
Net assets $ 2,410,693 $ 7,885,001 $ 9,743,024 $ 9,531,859
============ ============ ============ ============
Shares outstanding 242,948 792,848 982,913 958,108
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.92 $ 9.95 $ 9.91 $ 9.95
============ ============ ============ ============
<FN>
*Identified cost $ 5,161,281 $ 12,294,421 $ 14,391,444 $ 8,658,892
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
For the Period November 26, 1993++ Limited Limited Limited Limited
to July 31, 1994 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium
Income and discount earned $ 156,424 $ 350,659 $ 851,172 $ 349,356
(Note 1d): ------------ ------------ ------------ ------------
Expenses: Investment advisory fees (Note 2) 16,109 34,377 83,640 33,156
Distribution fees--Class B (Note 2) 11,485 25,664 41,544 18,766
Printing and shareholder reports 11,982 16,792 37,214 18,988
Accounting services (Note 2) 20,900 19,998 24,625 14,821
Registration fees (Note 1e) 17,064 17,864 22,498 22,770
Directors' fees and expenses 2,880 5,953 13,222 4,936
Amortization of organization expenses (Note 1e) 5,756 6,465 6,101 5,756
Custodian fees 3,227 3,642 6,046 3,576
Professional fees 1,312 3,084 5,651 2,114
Transfer agent fees--Class B (Note 2) 1,706 2,373 3,098 2,118
Pricing fees 1,872 2,356 2,207 2,112
Transfer agent fees--Class A (Note 2) 618 726 2,587 1,358
Other 609 766 950 343
------------ ------------ ------------ ------------
Total expenses before reimbursement 95,520 140,060 249,383 130,814
Reimbursement of expenses (Note 2) (82,720) (111,918) (202,096) (109,411)
------------ ------------ ------------ ------------
Total expenses after reimbursement 12,800 28,142 47,287 21,403
------------ ------------ ------------ ------------
Investment income--net 143,624 322,517 803,885 327,953
------------ ------------ ------------ ------------
Realized & Realized gain (loss) on investments--net (22,701) (149,477) (452,713) 15,134
Unrealized Unrealized appreciation/depreciation on
Gain (Loss) on investments--net 6,742 (46,028) (67,557) (82,382)
Investments--Net ------------ ------------ ------------ ------------
(Notes 1d & Net Increase in Net Assets Resulting
3): from Operations $ 127,665 $ 127,012 $ 283,615 $ 260,705
============ ============ ============ ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS (concluded)
<CAPTION>
Michigan New Jersey New York Pennsylvania
For the Period November 26, 1993++ Limited Limited Limited Limited
to July 31, 1994 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium
Income and discount earned $ 140,158 $ 303,431 $ 338,640 $ 246,945
(Note 1d): ------------ ------------ ------------- ------------
Expenses: Investment advisory fees (Note 2) 13,621 30,851 32,105 25,192
Accounting services (Note 2) 22,555 18,734 22,165 22,273
Registration fees (Note 1e) 18,125 20,666 16,858 21,461
Distribution fees--Class B (Note 2) 5,799 17,538 21,568 23,133
Printing and shareholder reports 7,599 10,599 16,695 15,003
Amortization of organization expenses (Note 1e) 6,465 5,794 6,465 6,028
Directors' fees and expenses 2,530 4,039 5,897 4,627
Custodian fees 2,369 3,903 3,938 3,525
Professional fees 1,324 2,112 2,682 2,869
Pricing fees 1,608 1,900 2,136 1,958
Transfer agent fees--Class A (Note 2) 1,191 1,091 1,169 2,832
Transfer agent fees--Class B (Note 2) 1,008 1,725 2,699 227
Other 212 469 1,354 261
------------ ------------ ------------ ------------
Total expenses before reimbursement 84,406 119,421 135,731 129,389
Reimbursement of expenses (Note 2) (77,598) (99,434) (111,642) (104,431)
------------ ------------ ------------ ------------
Total expenses after reimbursement 6,808 19,987 24,089 24,958
------------ ------------ ------------ ------------
Investment income--net 133,350 283,444 314,551 221,987
------------ ------------ ------------ ------------
Realized & Realized loss on investments--net (49,216) (89,728) (122,010) (62,626)
Unrealized Unrealized appreciation/depreciation on
Gain (Loss) on investments--net (1,988) 4,301 9,700 (2,477)
Investments-- ------------ ------------ ------------ ------------
Net (Notes 1d Net Increase in Net Assets Resulting
& 3): from Operations $ 82,146 $ 198,017 $ 202,241 $ 156,884
============ ============ ============ ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Period November 26, 1993++ to July 31, 1994
Arizona California Florida Massachusetts
Limited Limited Limited Limited
Increase (Decrease) in Net Assets: Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 143,624 $ 322,517 $ 803,885 $ 327,953
Realized gain (loss) on investments--net (22,701) (149,477) (452,713) 15,134
Unrealized appreciation/depreciation on
investments--net 6,742 (46,028) (67,557) (82,382)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 127,665 127,012 283,615 260,705
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (44,448) (87,891) (424,360) (151,876)
(Note 1f): Class B (99,176) (234,626) (379,525) (176,077)
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends to shareholders (143,624) (322,517) (803,885) (327,953)
------------ ------------ ------------ ------------
Beneficial Net increase in net assets derived from
Interest beneficial interest transactions 7,593,327 15,329,698 33,466,911 16,110,093
Transactions ------------ ------------ ------------ ------------
(Note 4):
Net Assets: Total increase in net assets 7,577,368 15,134,193 32,946,641 16,042,845
Beginning of period 100,000 100,000 100,000 100,000
------------ ------------ ------------ ------------
End of period $ 7,677,368 $ 15,234,193 $ 33,046,641 $ 16,142,845
============ ============ ============ ============
<PAGE>
<CAPTION>
For the Period November 26, 1993++ to July 31, 1994
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Increase (Decrease) in Net Assets:
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 133,350 $ 283,444 $ 314,551 $ 221,987
Realized loss on investments--net (49,216) (89,728) (122,010) (62,626)
Unrealized appreciation/depreciation on
investments--net (1,988) 4,301 9,700 (2,477)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 82,146 198,017 202,241 156,884
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (80,245) (131,310) (110,834) (20,350)
(Note 1f): Class B (53,105) (152,134) (203,717) (201,637)
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends to shareholders (133,350) (283,444) (314,551) (221,987)
------------ ------------ ------------ ------------
Beneficial Net increase in net assets derived from
Interest beneficial interest transactions 5,796,826 13,803,273 15,045,053 10,487,420
Transactions ------------ ------------ ------------ ------------
(Note 4):
Net Assets: Total increase in net assets 5,745,622 13,717,846 14,932,743 10,422,317
Beginning of period 100,000 100,000 100,000 100,000
------------ ------------ ------------ ------------
End of period $ 5,845,622 $ 13,817,846 $ 15,032,743 $ 10,522,317
============ ============= ============= ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have
been derived from information provided in the For the Period November 26, 1993++ to July 31, 1994
financial statements. Arizona California Florida Massachusetts
Limited Maturity Limited Maturity Limited Maturity Limited Maturity
Increase (Decrease) in Net Asset Value: Class A Class B Class A Class B Class A Class B Class A Class B
<S> <S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Operating ------- ------- ------- ------- ------- ------- ------- -------
Performance: Investment income--net .23 .20 .24 .21 .24 .21 .25 .22
Realized and unrealized loss on
investments--net (.03) (.03) (.12) (.12) (.13) (.12) (.05) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations .20 .17 .12 .09 .11 .09 .20 .17
------- ------- ------- ------- ------- ------- ------- -------
Less dividends:
Investment income--net (.23) (.20) (.24) (.21) (.24) (.21) (.25) (.22)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.97 $ 9.97 $ 9.88 $ 9.88 $ 9.87 $ 9.88 $ 9.95 $ 9.95
======= ======= ======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 2.02%+++ 1.78%+++ 1.23%+++ 0.99%+++ 1.12%+++ 0.99%+++ 2.01%+++ 1.77%+++
Return:** ======= ======= ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, excluding distribution fees
Net Assets: and net of reimbursement .02%* .03%* .02%* .03%* .02%* .03%* .03%* .03%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .02%* .38%* .02%* .38%* .02%* .38%* .03%* .38%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses 1.82%* 2.18%* 1.16%* 1.52%* .86%* 1.23% 1.17%* 1.54%*
======= ======= ======= ======= ======= ======= ======= =======
Investment income--net 3.37%* 3.02%* 3.54%* 3.19%* 3.54%* 3.19%* 3.69%* 3.28%*
======= ======= ======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 2,103 $ 5,575 $ 3,804 $11,430 $14,868 $18,179 $ 8,097 $ 8,046
======= ======= ======= ======= ======= ======= ======= =======
Portfolio turnover 142.37% 142.37% 130.10% 130.10% 136.71% 136.71% 57.80% 57.80%
======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
<CAPTION>
The following per share data and ratios have
been derived from information provided in the For the Period November 26, 1993++ to July 31, 1994
financial statements. Arizona California Florida Massachusetts
Limited Maturity Limited Maturity Limited Maturity Limited Maturity
Increase (Decrease) in Net Asset Value: Class A Class B Class A Class B Class A Class B Class A Class B
<S> <S> <C> <C> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
Operating ------- ------- ------- ------- ------- ------- ------- -------
Performance: Investment income--net .24 .22 .23 .20 .25 .22 .23 .21
Realized and unrealized loss on
investments--net (.08) (.08) (.06) (.05) (.09) (.09) (.05) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations .16 .14 .17 .15 .16 .13 .18 .16
------- ------- ------- ------- ------- ------- ------- -------
Less dividends:
Investment income--net (.24) (.22) (.23) (.20) (.25) (.22) (.23) (.21)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.92 $ 9.92 $ 9.94 $ 9.95 $ 9.91 $ 9.91 $ 9.95 $ 9.95
======= ======= ======= ======= ======= ======= ======= =======
Total Based on net asset value per share 1.66%+++ 1.42%+++ 1.73%+++ 1.59%+++ 1.61%+++ 1.37%+++ 1.85%+++ 1.61%+++
Investment ======= ======= ======= ======= ======= ======= ======= =======
Return:**
Ratios to Average Expenses, excluding distribution
Net Assets: fees and net of reimbursement .02%* .03%* .03%* .03%* .03%* .03%* .02%* .03%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .02%* .38%* .03%* .38%* .03%* .38%* .02%* .38%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses 2.01%* 2.38%* 1.14%* 1.52%* 1.24%* 1.60%* 1.48%* 1.83%*
======= ======= ======= ======= ======= ======= ======= =======
Investment income--net 3.59%* 3.21%* 3.45%* 3.04%* 3.68%* 3.31%* 3.46%* 3.05%*
======= ======= ======= ======= ======= ======= ======= =======
Supplemental
Data: Net assets, end of period
(in thousands) $ 3,435 $ 2,411 $ 5,933 $ 7,885 $ 5,290 $ 9,743 $ 990 $ 9,532
======= ======= ======= ======= ======= ======= ======= =======
Portfolio turnover 204.15% 204.15% 205.04% 205.04% 152.73% 152.73% 237.47% 237.47%
======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
<FN>
++Commencement of Operations.
+++Aggregate total investment return.
*Annualized.
**Total investment returns exclude the effects of sales loads.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
("the Trust") is registered under the Investment Company Act of
1940 as a diversified, open-end management investment company
consisting of eight separate series: Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund, Merrill Lynch California Limited
Maturity Municipal Bond Fund, Merrill Lynch Florida Limited
Maturity Municipal Bond Fund, Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund, Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund, Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund, Merrill Lynch New York Limited
Maturity Municipal Bond Fund, and Merrill Lynch Pennsylvania
Limited Maturity Municipal Bond Fund. Each series of the Trust is
referred to herein as a "Fund." Prior to commencement of operations
on November 26, 1993, each Fund had no operations other than
those relating to organizational matters and the issuance of 5,000
Class A Shares of beneficial interest and 5,000 Class B Shares of
beneficial interest for each Fund to Fund Asset Management, L.P.
("FAM") for $100,000. The Trust offers Class A and Class B Shares.
Class A Shares are sold with a front-end sales charge. Class B Shares
may be subject to a contingent deferred sales charge. Both classes of
shares have identical voting, dividend, liquidation and other rights
and the same terms and conditions, except that each Fund's Class B
Shares bear certain expenses related to the distribution of such
shares and have exclusive voting rights with respect to matters
relating to such distribution expenditures. The following is a
summary of significant accounting policies followed by the Trust.
<PAGE>
(a) Valuation of investments--Municipal bonds and other portfolio
securities in which the Funds invest are traded primarily in the
over-the-counter municipal bond and money markets and are valued
at the last available bid price in the over-the-counter market or on
the basis of yield equivalents as obtained from one or more dealers
that make markets in the securities. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their
settlement prices as of the close of such exchanges. Options, which
are traded on exchanges, are valued at their last sale price as of the
close of such exchanges or, lacking any sales, at the last available bid
price. Short-term investments with a remaining maturity of 60 days
or less are valued on an amortized cost basis, which approximates
market value. Securities and assets for which market quotations are
not readily available are valued at fair value as determined in good
faith by or under the direction of the Board of Trustees of the Trust,
including valuations furnished by a pricing service retained by the
Trust, which may utilize a matrix system for valuations. The pro-
cedures of the pricing service and its valuations are reviewed by the
officers of the Trust under the general supervision of the Trustees.
(b) Financial futures contracts--The Funds may purchase or sell
interest rate futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Funds
deposit and maintain as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Funds agree to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Funds as unrealized gains or losses. When the
contract is closed, the Funds record a realized gain or loss equal to
the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
(c) Income taxes--It is each Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated invest-
ment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Interest income is recognized on the accrual basis.
Discounts and market premiums are amortized into interest income.
Realized gains and losses on security transactions are determined
on the identified cost basis.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expenses on a straight-
line basis over a five-year period beginning with the commencement
of operations. Prepaid registration fees are charged to expense as the
related shares are issued.
(f) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with
FAM. Effective January 1, 1994, the investment advisory business of
FAM was reorganized from a corporation to a limited partnership.
Both prior to and after the reorganization, ultimate control of FAM
was vested with Merrill Lynch & Co., Inc. ("ML & Co."). The
general partner of FAM is Princeton Services, Inc. (PSI), an indirect
wholly-owned subsidiary of ML & Co. The limited partners are
ML & Co. and Fund Asset Management, Inc. ("FAMI"), which is also
an indirect wholly-owned subsidiary of ML & Co. Each Fund has also
entered into Distribution Agreements and a Distribution Plan with
Merrill Lynch Funds Distributor, Inc. ("MLFD" or "Distributor"), a
wholly-owned subsidiary of Merrill Lynch Investment Management,
Inc. ("MLIM").
FAM is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such
services, each Fund pays a monthly fee at the annual rate of 0.35% of
each Fund's average daily net assets. The Investment Advisory
Agreement obligates FAM to reimburse each Fund to the extent
each Fund's expenses (excluding interest, taxes, distribution fees,
brokerage fees and commissions, and extraordinary items) exceed
2.5% of each Fund's first $30 million of average daily net assets, 2.0%
of the next $70 million of average daily net assets and 1.5% of the
average daily net assets in excess thereof. FAM's obligation to
reimburse each Fund is limited to the amount of the management
fee. No fee payment will be made during any fiscal year which will
cause such expenses to exceed expense limitation at the time of
such payment.
<PAGE>
For the period ended July 31, 1994, FAM had voluntarily waived
management fees and reimbursed each Fund for additional expenses
as follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 16,109 $ 34,377 $ 83,640
Additional expenses 66,611 77,541 118,456
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 33,156 $ 13,621 $ 30,851
Additional expenses 76,255 63,978 68,583
New York Pennsylvania
Limited Limited
Maturity Maturity
Management fee $ 32,105 $ 25,192
Additional expenses 79,537 79,239
Pursuant to separate distribution plans adopted by the Trust on
behalf of each Fund under Rule 12b-1 under the 1940 Act (each a
"Distribution Plan"), each Fund pays the Distributor an ongoing
account maintenance fee and distribution fee relating to its Class B
shares, which are accrued daily and paid monthly, at the annual
rates of 0.15% and 0.20%, respectively, of the average daily net assets
of the Class B shares of that Fund. Pursuant to sub-agreements with
the Distributor, Merrill Lynch, Pierce, Fenner & Smith, Inc.
("MLPF&S"), an affiliate of MLIM, also provides account maintenance
and distribution services to each Fund. The ongoing account main-
tenance fee charged by each Fund compensates the Distributor and
MLPF&S for providing account maintenance services to Class B
shareholders of that Fund. As authorized by the Plan, the Distribu-
tor has entered into an agreement with MLPF&S, which provides for
the compensation of MLPF&S for providing distribution-related
services to each Fund.
For the period ended July 31, 1994, MLFD earned underwriting
discounts and MLPF&S earned dealer concessions on sales of each
Fund's Class A Shares as follows:
<PAGE>
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
MLFD $ 473 $ 555 $ 1,464
MLPF&S 16,896 24,519 65,890
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
MLFD $ 2,023 $ 550 $ 380
MLPF&S 34,109 24,269 9,064
New York Pennsylvania
Limited Limited
Maturity Maturity
MLFD $ 811 $ 127
MLPF&S 20,311 5,278
MLPF&S received contingent deferred sales charges of $63,449
relating to transactions in Class B Shares, amounting to $1,505,
$5,716, $17,622, $11,965, $3,454, $6,854, $9,833, and $6,500 in the
Arizona Limited Maturity, California Limited Maturity, Florida
Limited Maturity, Massachusetts Limited Maturity, Michigan Limited
Maturity, New Jersey Limited Maturity, New York Limited Maturity
and Pennsylvania Limited Maturity Funds, respectively.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is each Fund's transfer agent.
Accounting services are provided to the Trust by FAM at cost.
Certain officers and/or trustees of the Trust are officers and/or
directors of FAM, FAMI, MLIM, MLFD, FDS, MLPF&S, and/or
ML & Co.
<PAGE>
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the period ended July 31, 1994, were as follows:
Purchases Sales
Arizona Limited Maturity $ 8,694,982 $ 5,001,357
California Limited Maturity 20,796,370 10,334,848
Florida Limited Maturity 48,973,353 27,133,612
Massachusetts Limited Maturity 16,228,414 4,605,753
Michigan Limited Maturity 10,292,882 6,403,584
New Jersey Limited Maturity 24,934,267 15,572,154
New York Limited Maturity 20,825,749 10,839,164
Pennsylvania Limited Maturity 18,213,372 12,157,399
Net realized and unrealized gains (losses) as of July 31, 1994
were as follows:
Realized Unrealized
Arizona Limited Maturity Gains (Losses) Gains
Long-term investments $ (59,255) $ 6,742
Short-term investments 493 --
Financial future contracts 36,061 --
----------- -----------
Total $ (22,701) $ 6,742
=========== ===========
Realized Unrealized
California Limited Maturity Gains (Losses) Losses
Long-term investments $ (186,006) $ (46,028)
Short-term investments 4,616 --
Financial future contracts on options 31,913 --
----------- -----------
Total $ (149,477) $ (46,028)
=========== ===========
Realized Unrealized
Florida Limited Maturity Gains (Losses) Losses
Long-term investments $ (678,918) $ (67,557)
Short-term investments 330 --
Financial future contracts 225,875 --
----------- -----------
Total $ (452,713) $ (67,557)
=========== ===========
<PAGE>
Realized Unrealized
Massachusetts Limited Maturity Gains (Losses) Losses
Long-term investments $ (78,962) $ (82,382)
Short-term investments (1,567) --
Financial future contracts on options 95,663 --
----------- -----------
Total $ 15,134 $ (82,382)
=========== ===========
Realized Unrealized
Michigan Limited Maturity Gains (Losses) Losses
Long-term investments $ (62,142) $ (1,988)
Short-term investments 52 --
Financial future contracts 12,874 --
----------- -----------
Total $ (49,216) $ (1,988)
=========== ===========
Realized Unrealized
New Jersey Limited Maturity Gains (Losses) Gains
Long-term investments $ (173,354) $ 4,301
Short-term investments (266) --
Financial future contracts on options 83,892 --
----------- -----------
Total $ (89,728) $ 4,301
=========== ===========
Realized Unrealized
New York Limited Maturity Gains (Losses) Gains (Losses)
Long-term investments $ (149,559) $ 11,741
Short-term investments (108) (2,041)
Financial future contracts on options 27,657 --
----------- -----------
Total $ (122,010) $ 9,700
=========== ===========
<PAGE>
Realized Unrealized
Pennsylvania Limited Maturity Gains (Losses) Losses
Long-term investments $ (125,554) $ (2,477)
Short-term investments (2,238) --
Financial future contracts on options 65,166 --
----------- -----------
Total $ (62,626) $ (2,477)
=========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
As of July 31, 1994, net unrealized appreciation/depreciation for
Federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
<S> <C> <C> <C>
Arizona Limited Maturity $ 19,179 $ (12,437) $ 6,742
California Limited Maturity 34,197 (80,225) (46,028)
Florida Limited Maturity 48,046 (116,603) (67,557)
Massachusetts Limited Maturity 29,747 (112,129) (82,382)
Michigan Limited Maturity 19,726 (21,714) (1,988)
New Jersey Limited Maturity 39,514 (35,213) 4,301
New York Limited Maturity 61,075 (51,375) 9,700
Pennsylvania Limited
Maturity 22,039 (24,516) (2,477)
</TABLE>
The aggregate cost of investments at July 31, 1994 for Federal
income tax purposes was $6,501,500 for the Arizona Limited Maturity
Fund, $14,945,947 for the California Limited Maturity Fund,
$32,751,643 for the Florida Limited Maturity Fund, $15,998,171
for the Massachusetts Limited Maturity Fund, $5,161,281 for the
Michigan Limited Maturity Fund, $12,294,421 for the New Jersey
Limited Maturity Fund, $14,391,443 for the New York Limited
Maturity Fund and $8,658,892 for the Pennsylvania Limited
Maturity Fund.
<PAGE>
4. Beneficial Interest Transactions:
Net increase in net assets derived from beneficial transactions
for the period ended July 31, 1994 were $7,593,327 for the
Arizona Limited Maturity Fund; $15,329,698 for the California
Limited Maturity Fund; $33,466,911 for the Florida Limited Maturity
Fund; $16,110,093 for the Massachusetts Limited Maturity Fund;
$5,796,826 for the Michigan Limited Maturity Fund; $13,803,273
for the New Jersey Limited Maturity Fund; $15,045,053 for the New
York Limited Maturity Fund; and $10,487,420 for the Pennsylvania
Limited Maturity Fund.
Transactions in capital shares for Class A and Class B Shares were
as follows:
Arizona Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 278,239 $ 2,779,806
Shares issued to shareholders in
reinvestment of dividends and distributions 2,135 21,321
--------- -----------
Total issued 280,374 2,801,127
Shares redeemed (74,510) (744,870)
--------- -----------
Net increase 205,864 $ 2,056,257
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations),
the Fund issued 5,000 shares to FAM for $50,000.
Arizona Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 616,984 $ 6,164,185
Shares issued to shareholders in
reinvestment of dividends and distributions 5,114 51,044
--------- -----------
Total issued 622,098 6,215,229
Shares redeemed (68,093) (678,159)
--------- -----------
Net increase 554,005 $ 5,537,070
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
California Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 498,638 $ 4,981,335
Shares issued to shareholders in
reinvestment of dividends 3,211 31,885
--------- -----------
Total issued 501,849 5,013,220
Shares redeemed (121,849) (1,206,841)
--------- -----------
Net increase 380,000 $ 3,806,379
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
California Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,286,485 $12,864,329
Shares issued to shareholders in
reinvestment of dividends 9,784 97,043
--------- -----------
Total issued 1,296,269 12,961,372
Shares redeemed (144,490) (1,438,053)
--------- -----------
Net increase 1,151,779 $11,523,319
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Florida Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 2,423,924 $24,249,083
Shares issued to shareholders in
reinvestment of dividends 19,775 195,813
--------- -----------
Total issued 2,443,699 24,444,896
Shares redeemed (943,039) (9,343,654)
--------- -----------
Net increase 1,500,660 $15,101,242
========= ===========
<PAGE>
[FN]
++Prior to November 26, 1993 (commencement of operations),
the Fund issued 5,000 shares to FAM for $50,000.
Florida Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 2,024,566 $20,228,524
Shares issued to shareholders in
reinvestment of dividends 17,982 178,003
--------- -----------
Total issued 2,042,548 20,406,527
Shares redeemed (206,696) (2,040,858)
--------- -----------
Net increase 1,835,852 $18,365,669
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Massachusetts Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 986,106 $ 9,847,094
Shares issued to shareholders in
reinvestment of dividends 10,151 101,086
--------- -----------
Total issued 996,257 9,948,180
Shares redeemed (187,582) (1,874,872)
--------- -----------
Net increase 808,675 $ 8,073,308
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
Massachusetts Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 918,615 $ 9,181,458
Shares issued to shareholders in
reinvestment of dividends 8,777 87,462
--------- -----------
Total issued 927,392 9,268,920
Shares redeemed (123,885) (1,232,135)
--------- -----------
Net increase 803,507 $ 8,036,785
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Michigan Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 401,323 $ 4,013,429
Shares issued to shareholders in
reinvestment of dividends 2,478 24,576
--------- -----------
Total issued 403,801 4,038,005
Shares redeemed (62,639) (622,769)
--------- -----------
Net increase 341,162 $ 3,415,236
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
Michigan Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 278,617 $ 2,783,049
Shares issued to shareholders in
reinvestment of dividends 2,148 21,328
--------- -----------
Total issued 280,765 2,804,377
Shares redeemed (42,817) (422,787)
--------- -----------
Net increase 237,948 $ 2,381,590
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
New Jersey Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 713,522 $ 7,132,561
Shares issued to shareholders in
reinvestment of dividends 3,582 35,606
--------- -----------
Total issued 717,104 7,168,167
Shares redeemed (125,194) (1,242,893)
--------- -----------
Net increase 591,910 $ 5,925,274
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
New Jersey Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 911,860 $ 9,110,233
Shares issued to shareholders in
reinvestment of dividends 8,809 87,675
--------- -----------
Total issued 920,669 9,197,908
Shares redeemed (132,821) (1,319,909)
--------- -----------
Net increase 787,848 $ 7,877,999
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
New York Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 688,129 $ 6,868,576
Shares issued to shareholders in
reinvestment of dividends 7,715 76,559
--------- -----------
Total issued 695,844 6,945,135
Shares redeemed (167,164) (1,662,649)
--------- -----------
Net increase 528,680 $ 5,282,486
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
New York Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,107,860 $11,052,622
Shares issued to shareholders in
reinvestment of dividends 9,226 91,580
--------- -----------
Total issued 1,117,086 11,144,202
Shares redeemed (139,173) (1,381,635)
--------- -----------
Net increase 977,913 $ 9,762,567
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Pennsylvania Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 106,856 $ 1,069,053
Shares issued to shareholders in
reinvestment of dividends 969 9,663
--------- -----------
Total issued 107,825 1,078,716
Shares redeemed (13,280) (132,350)
--------- -----------
Net increase 94,545 $ 946,366
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Pennsylvania Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,067,442 $10,675,486
Shares issued to shareholders in
reinvestment of dividends 12,521 124,741
--------- -----------
Total issued 1,079,963 10,800,227
Shares redeemed (126,855) (1,259,173)
--------- -----------
Net increase 953,108 $ 9,541,054
========= ===========
<PAGE>
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
5. Capital Loss Carryforward:
At July 31, 1994, the New York Limited Maturity Fund had a net
capital loss carryforward of approximately $122,000, all of which will
expire in 2002 and will be available to offset like amounts of any
future taxable gains.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust:
We have audited the accompanying statement of assets and liabili-
ties, including the schedule of investments, of Merrill Lynch Limited
Maturity Municipal Bond Funds for Arizona, California, Florida,
Massachusetts, Michigan, New Jersey, New York, and Pennsylvania
of the Merrill Lynch Multi-State Limited Maturity Municipal Series
Trust (the "Trust") as of July 31, 1994, the related statements of
operations and changes in net assets, and the financial highlights
for the period November 26, 1993 (commencement of operations) to
July 31, 1994. These financial statements and the financial highlights
are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and per-
form the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities
owned at July 31, 1994 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Limited Maturity Municipal Bond Funds for Arizona,
California, Florida, Massachusetts, Michigan, New Jersey, New York,
and Pennsylvania of the Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust as of July 31, 1994, the results of their
operations, the changes in their net assets, and the financialhigh-
lights for the respective stated period in conformity with generally
accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
August 29, 1994
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION
All of the net investment income distributions paid monthly by
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
during its taxable year ended July 31, 1994 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Trust
during the period.
Please retain this information for your records.
APPENDIX GRAPHIC AND IMAGE MATERIALS.
ITEM 1:
Arizona Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Arizona Limited Maturity++--
Class A* $9,900 $10,100
ML U1AO Index++++ $10,000 $10,215
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Arizona Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Arizona
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Arizona Limited Maturity++--
Class B* $10,000 $10,079
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Arizona Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Arizona
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
<PAGE>
ITEM 2:
California Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
California Limited Maturity++--
Class A* $9,900 $10,022
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++California Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of California
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
California Limited Maturity++--
Class B* $10,000 $10,000
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++California Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of California
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
<PAGE>
ITEM 3:
Florida Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Florida Limited Maturity++--
Class A* $9,900 $10,011
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Florida Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Florida
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Florida Limited Maturity++--
Class B* $10,000 $10,000
ML U1AO Index++++ $10,000 $10,215
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Florida Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Florida
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
ITEM 4:
Massachusetts Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Massachusetts Limited Maturity++--
Class A* $9,900 $10,099
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Massachusetts Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the Commonwealth of
Massachusetts or its political subdivisions, agencies or
instrumentalities, and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Massachusetts Limited Maturity++--
Class B* $10,000 $10,077
ML U1AO Index++++ $10,000 $10,215
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Massachusetts Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the Commonwealth of
Massachusetts or its political subdivisions, agencies or
instrumentalities, and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
ITEM 5:
Michigan Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Michigan Limited Maturity++--
Class A* $9,900 $10,064
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Michigan Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Michigan
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
<PAGE>
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Michigan Limited Maturity++--
Class B* $10,000 $10,042
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Michigan Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Michigan
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
ITEM 6:
New Jersey Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
New Jersey Limited Maturity++--
Class A* $9,900 $10,071
ML U1AO Index++++ $10,000 $10,215
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New Jersey Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New Jersey
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
New Jersey Limited Maturity++--
Class B* $10,000 $10,059
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New Jersey Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New Jersey
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
<PAGE>
ITEM 7:
New York Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
New York Limited Maturity++--
Class A* $9,900 $10,059
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New York Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New York
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
New York Limited Maturity++--
Class B* $10,000 $10,038
ML U1AO Index++++ $10,000 $10,215
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New York Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New York
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
ITEM 8:
Pennsylvania Limited Maturity
Total Return Based on a $10,000 Investment--Class A Shares*
A line graph depicting the growth of an investment in the Fund's
Class A Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Pennsylvania Limited Maturity++--
Class A* $9,900 $10,083
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Pennsylvania Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the Commonwealth
of Pennsylvania or its political subdivisions, agencies or
instrumentalities, and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
<PAGE>
Total Return Based on a $10,000 Investment--Class B Shares*
A line graph depicting the growth of an investment in the Fund's
Class B Shares compared to the growth of an investment in the ML
U1AO Index. Beginning and ending values are:
11/26/93** 7/94
Pennsylvania Limited Maturity++--
Class B* $10,000 $10,062
ML U1AO Index++++ $10,000 $10,215
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Pennsylvania Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the Commonwealth
of Pennsylvania or its political subdivisions, agencies or
instrumentalities, and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past performance is not predictive of future performance.
