MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Quarterly Report
October 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
90 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
TO OUR SHAREHOLDERS
Concerns of increasing inflationary pressures continued to prompt
volatility in the US stock and bond markets during the October
quarter. In addition, the weakness of the US dollar in foreign
exchange markets prolonged stock and bond market declines. Early in
the period, the possibility of continued monetary policy tightening
by the Federal Reserve Board was predominant in the minds of
investors. However, a lower-than-expected rate of growth reported
for the US economy during the second calendar quarter allayed
inflationary concerns to some degree, despite the fifth increase
this year in short-term interest rates made by the central bank in
mid-August.
<PAGE>
Inflationary expectations surfaced again with the announcement of
significant upward revisions in industrial production and capacity
utilization for the May--July period. When the central bank did not
raise short-term interest rates at the late September Federal Open
Market Committee meeting, financial markets rallied on the
expectation that the US economy was not overheating and therefore
significant further monetary policy tightening would not be
necessary. Also encouraging were reports that consumer spending is
increasing at a lower rate than has been the case in recent economic
recoveries. Nevertheless, shortly after the conclusion of the
October quarter, investor sentiment had again deteriorated. The
report of better-than-expected growth in the gross domestic product
for the three months ended September 30, combined with evidence of a
still-robust manufacturing sector and renewed US dollar weakness,
all rekindled concerns that short-term interest rates would soon
resume their upward trend.
In the weeks ahead, investors will continue to assess economic data
and inflationary trends in order to gauge whether further increases
in short-term interest rates are imminent. Continued indications of
moderate and sustainable levels of economic growth would be positive
for the US capital markets.
The Municipal Market
The long-term tax-exempt market continued to erode throughout the
three months ended October 31, 1994. As measured by the Bond Buyer
Revenue Bond Index, yields on A-rated municipal revenue bonds
maturing in 30 years rose by almost 50 basis points (0.50%) to 6.95%
during the October 31, 1994 quarter. This represents the highest
level in tax-exempt bond yields in over two years. US Treasury bonds
suffered even greater declines during the quarter as Treasury bond
yields rose approximately 60 basis points to end the quarter at
8.00%.
The tax-exempt bond market reacted negatively throughout the October
quarter to indications that, despite a series of interest rate
increases by the Federal Reserve Board, the strength of the domestic
economy seen in recent quarters has not yet been significantly
reduced. While inflationary pressures have remained well contained,
additional Federal Reserve Board actions have been expected both to
ensure that domestic economic growth is eventually confined to
current levels and to assure nervous financial markets of its anti-
inflationary intentions.
<PAGE>
Fortunately, while the demand for tax-exempt bonds has declined
somewhat in recent months, new bond issuance has remained greatly
reduced. During the quarter ended October 31, 1994, only $32 billion
in long-term tax-exempt securities were issued, a decline of over
50% versus the October 1993 quarter. Similarly, for the six months
ended October 31, 1994, only $75 billion in municipal securities
were underwritten, a decline of over 50% versus the comparable
period a year earlier. This reduction in issuance in recent quarters
has allowed the municipal bond market to react to both the decline
in investor demand and the rise in fixed-income yields in a more
orderly fashion than in similar situations in the past, particularly
during 1987.
Five-year tax-exempt revenue bonds currently yield approximately
5.75%, or over 9.5% on an after-tax equivalent basis to an investor
in the 39.6% Federal income tax bracket, as compared to five-year US
Treasury notes yielding 7.5%. As inflation has only marginally
increased in the past year, real tax-exempt interest rates have
risen dramatically. The Federal Reserve Board appears committed to
maintaining inflation at or below its current levels. Indeed, most
forecasts expect inflation to remain in its present range of 3%--4%
throughout 1995 and, potentially, for the remainder of the 1990s.
Federal Reserve Board actions taken thus far have yet to fully
impact US domestic growth and expected additional actions may lead
to only a modest economic expansion within a benign inflationary
context beginning sometime early in 1995. Within such an
environment, it is unlikely that tax-exempt interest rates will
remain at their current levels. Tax-exempt bond issuance is unlikely
to return to the historic high levels seen in 1992 and 1993, while
investor demand should return as markets stabilize. As we have
discussed in earlier reports, the total number of tax-exempt bonds
outstanding is scheduled to decline dramatically in 1994 and 1995 as
a result of both regular bond maturities and early redemptions.
Investors seeking tax-advantaged issues may find it difficult to
obtain currently available tax-exempt yields as the current
supply/demand balance is unlikely to be maintained in the coming
quarters.
Portfolio Strategy
Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund
The economy of the State of Arizona continues to be bolstered by
continued strong employment growth. Employment for the first seven
months of 1994 is up 4.1% from the corresponding period of the
previous year. Areas of strength include construction,
manufacturing, and trade and services. This strength is more evident
when one compares Arizona's performance with that of other states.
Arizona is ranked seventh in manufacturing growth, second in
construction growth and sixth in terms of overall growth. It is
partially a result of the accompanying rise in revenues that enabled
the Arizona State legislature to pass a $107 million personal income
tax reduction earlier this year.
<PAGE>
During the October quarter, our investment posture remained
unchanged. In light of a sustained increase in short-term interest
rates and the ensuing volatility in the marketplace, we continued to
be defensive and maintained cash reserves of between 45%--50% of net
assets. At quarter-end, our average portfolio maturity was 3.33
years. In addition, during the October quarter we sold lower-coupon
bonds and purchased prerefunded bonds which offer a high level of
current income while generally outperforming lower-coupon bonds in
periods of rising interest rates. Despite the anticipation of low
issuance in the final quarter of the year, we intend to maintain
this posture until a clearer picture emerges as to the direction of
short-term interest rates.
Merrill Lynch California Limited
Maturity Municipal Bond Fund
During the quarter ended October 31, 1994, the State of California's
economic recovery continued to lag the national recovery. The
State's current tax revenue collections reflect sharp declines in
employment, income and retail sales on a scale not seen in decades.
The State's revision to the Governor's budget assumes that the State
will begin a modest recovery in late 1994 into 1995 with
prerecession job levels not expected to be reached until 1997.
Investment in nonresidential structures is coming in weaker than
anticipated, and Federal spending for both defense and nondefense
programs has fallen more rapidly than previously forecast.
California's September unemployment rate stood at 8.3%.
During the October quarter, as has been the case throughout the
year, we have maintained a cautious approach to investing Merrill
Lynch California Limited Maturity Municipal Bond Fund. Through
October month-end, the Federal Reserve Board had tightened monetary
policy five times so far this year, raising the Federal Funds rate
from 3.00% to 4.75%, while the possibility of additional interest
rate hikes continues to weigh heavily on the intermediate-term
marketplace. For this reason we maintained a position of cash
equivalent securities throughout the year of anywhere ranging from
25% to 48% of net assets. This strategy enhanced the Fund's total
returns by allowing us to mitigate the drop in the Fund's net asset
value despite a dramatic rise in interest rates. The average
portfolio maturity of the Fund was approximately 4 years at October
31, 1994.
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 Florida Limited
Maturity Municipal Bond Fund
During the quarter ended October 31, 1994, Standard & Poor's Corp.
affirmed its AA rating on Florida's $5.6 billion in outstanding full
faith and credit debt following the Florida Supreme Court's
invalidation of the motor vehicle impact fee enacted in 1990. The
Court has ordered that the $295 fee, collected since 1991, must be
refunded in full. The worst case liability for prior year
collections is estimated at $180 million. Florida's economy
continues to exhibit good growth with the September unemployment
rate at 6.7%. Florida's trade and service sectors continued to
experience strong growth with its service sector now the largest
employment category in the State. The State's housing industry
continues to perform well with total construction expenditures
forecast to increase 15.6% this year and 13.3% next year.
During the October quarter, as has been the case throughout the
year, we maintained a cautious approach to investing Merrill Lynch
Florida Limited Maturity Municipal Bond Fund. Through October month-
end the Federal Reserve Board had tightened monetary policy five
times so far this year, raising the Federal Funds rate from 3.00% to
4.75% while the possibility of additional interest rate hikes
continues to weigh heavily on the intermediate-term marketplace. For
this reason we have maintained a position of cash equivalent
securities throughout the year ranging from 22% to 37% of net
assets. This strategy enhanced the Fund's total returns by allowing
us to mitigate the drop in the Fund's net asset value despite a
dramatic rise in interest rates. The average portfolio maturity of
the Fund was approximately 4 years at October 31, 1994.
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
During the October quarter, economic conditions in the Commonwealth
of Massachusetts progressed in all business sectors except housing.
As a result of retail sales improving considerably, most retailers
and manufacturers reported improved results. The slowdown in housing
has resulted from rising interest rates stemming from the Federal
Reserve Board's efforts to curtail economic growth and relieve
inflationary pressures by tightening monetary policy. Employment in
the Commonwealth continued to be strong, with the seasonally
adjusted unemployment rate for October 1994 declining to 6.4%.
Positive economic growth has translated into a positive revenue
stream for the Commonwealth. Strong withholding along with greater
corporate and sales tax receipts have contributed to revenues for
fiscal 1995, currently at $3.4 billion or 5% higher than the same
period last year.
<PAGE>
During the October quarter, our investment posture remained
unchanged. In light of a sustained rise in short-term interest rates
and the ensuing volatility in the marketplace, we continued to be
defensively positioned and maintained cash reserves between 25%--35%
of net assets. At quarter-end, our average portfolio maturity was
3.6 years. In addition, during the October quarter we sold lower-
coupon bonds and purchased prerefunded issues which offer a high
level of current income while generally outperforming lower-coupon
bonds in periods of rising interest rates. We will continue to
monitor the marketplace and Federal Reserve Board policy for signs
as to the direction of interest rates in the future.
Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund
During the quarter ended October 31, 1994, the State of Michigan
continued its strong economic performance led by powerful automobile
sales and a surging manufacturing sector. The State's recently
completed fiscal year (September 30, 1994) produced a $352 million
budget surplus, which brings the balance of the budget stabilization
fund to $664 million. Michigan's September unemployment rate stood
at 5.3%. The State's employment growth continues to outpace earlier
expectations, and tax receipts should continue to increase and
enable the State to continue to add to its rainy day fund balance.
During the October quarter, Standard & Poor's Corp. upgraded the
outlook on Michigan's outstanding debt to stable from negative,
citing the State's strong economic performance as well as Michigan's
tight expenditure controls. Also reflected is the fact that the
fiscal requirements at the state level under the recently passed
school finance reform plan are manageable and should not require
significant budget cuts.
During the October quarter, as has been the case throughout the
year, we maintained a cautious approach to investing Merrill Lynch
Michigan Limited Maturity Municipal Bond Fund. Through October month-
end, the Federal Reserve Board had tightened monetary policy five
times so far this year, raising the Federal Funds rate from 3.00% to
4.75%, while the possibility of additional interest rate hikes
continues to weigh heavily on the intermediate-term marketplace. For
this reason we have maintained a position of cash equivalent
securities throughout the year of 22%--55% of net assets. This
strategy enhanced total returns by allowing us to mitigate the drop
in the Fund's net asset value despite a dramatic rise in interest
rates. The average portfolio maturity of the Fund was approximately
3.11 years at October 31, 1994.
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 September, New Jersey state officials announced a projected $2.0
billion budget gap for the upcoming fiscal year beginning July 1,
1995. Governor Whitman will present her preliminary budget for this
upcoming fiscal year in January 1995. This announcement prompted
concerns among the three major rating agencies who intimated that
the State was in danger of being downgraded. Of concern was Governor
Whitman's need to replace revenues lost by the current and proposed
reduction in the State's income tax, the court mandated need to
equalize funding among poor and wealthy school districts, as well as
a potential downturn in the State's economy. Governor Whitman also
conceded that her proposed three-year program of tax cuts would most
likely be stretched to four years.
In the most recent period, we continued to maintain a defensive
posture in Merrill Lynch New Jersey Limited Maturity Municipal Bond
Fund. Throughout the October quarter, we maintained cash reserves
between 40%--50% of the Fund's net assets, and at quarter-end the
Fund had an average portfolio maturity of 2.75 years. The portfolio
continues to be heavily weighted in securities rated AA or better by
one of the major rating services, as these bonds tend to out-perform
lesser-rated securities in a volatile market environment. We
anticipate maintaining our current portfolio strategy until a
clearer picture of Federal Reserve Board policy emerges.
Merrill Lynch New York Limited
Maturity Municipal Bond Fund
During the quarter ended October 31, 1994, Standard & Poor's Corp.
affirmed its A- rating and positive outlook on New York State's $5.53
billion in outstanding general obligation debt, citing the State's
ability to react to reduced revenue forecasts by controlling
spending in key state programs. Although the passage of the 1994
budget was overdue, the State continued to use consensus revenue
estimates and conservative spending patterns to construct the
budget. Thus, New York's mid-year financial report once again
reflects positive financial operations. The State's financial plan
now projects a general fund operating surplus of $87 million. Unlike
the prior two fiscal periods, the increase in the State's general
fund surplus, prior to transfers, results from a decrease in state
spending, not from an upward revision in tax receipts. While recent
bad news in the financial sectors has caused the State to revise its
economic assumptions downward, New York is still expected to produce
positive employment growth for 1994 and 1995. New York State's
September unemployment rate stood at 6.00%.
<PAGE>
During the October quarter, as has been the case throughout the
year, we maintained a cautious approach to investing Merrill Lynch
New York Limited Maturity Municipal Bond Fund. Through October month-
end, the Federal Reserve Board had tightened monetary policy five
times so far this year, raising the Federal Funds rate from 3.00% to
4.75%, while the possibility of additional interest rate hikes
continues to weigh heavily on the intermediate-term marketplace. For
this reason we have maintained a position of cash equivalent
securities throughout the year ranging from 23% to 41% of net
assets. This strategy enhanced total returns by allowing us to
mitigate the drop in the Fund's net asset value despite a dramatic
rise in interest rates. The average portfolio maturity of the Fund
was approximately 3.11 years at October 31, 1994.
Diversification, credit quality and yield remain paramount in
importance to the Fund, and we will continue to closely monitor the
everchanging marketplace.
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
The Commonwealth of Pennsylvania continued to benefit from the
current economic expansion during the period ended October 31, 1994.
Manufacturing, led by automobile production, has enabled the
Commonwealth to prosper indirectly through related industries, such
as steel production. In addition, growth in trade-related, medical
and health services has assisted the Commonwealth in diversifying
its economy away from its traditional heavy industrial base.
Finally, the long-standing agricultural base has continued to be a
contributor to the Commonwealth's stability, ranking in the top ten
states in production of various agricultural products.
During the October quarter, we continued to maintain a defensive
posture in the Merrill Lynch Pennsylvania Limited Maturity Municipal
Bond Fund. Throughout the quarter, we maintained cash reserves
between 45%--50% of net assets, and at quarter-end our average
portfolio maturity was 3.08 years. In addition, during the quarter
we sold lower-coupon bonds and purchased prerefunded bonds which
offer a high level of current income while generally outperforming
lower-coupon bonds in periods of rising interest rates. Despite the
anticipation of low issuance in the final quarter of the year, we
intend to maintain this posture until a clearer picture emerges as
to the direction of short-term interest rates.
<PAGE>
In Conclusion
We appreciate your interest in Merrill Lynch Multi-State Limited
Maturity Municipal 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
November 22, 1994
PERFORMANCE DATA
About Fund Performance
Since October 21, 1994, investors have been able to purchase shares
of the Fund through the Merrill Lynch Select Pricing SM System,
which offers four pricing alternatives:
* Class A Shares incur a maximum initial sales charge
(front-end load) of 1% and bear no ongoing distribution
or account maintenance fees. Class A Shares are available
only to eligible investors.
* Class B Shares are subject to a maximum contingent
deferred sales charge of 1% if redeemed during the
first year, decreasing 1% the next year to 0%. In addition,
Class B Shares are subject to a distribution fee of 0.20% and
an account maintenance fee of 0.15%. These shares auto-
matically convert to Class D Shares after 10 years.
* Class C Shares are subject to a distribution fee of 0.20%
and an account maintenance fee of 0.15%. In addition,
Class C Shares are subject to a 1% contingent deferred
sales charge if redeemed within one year of purchase.
* Class D Shares incur a maximum initial sales charge of
1% and an account maintenance fee of 0.10% (but no
distribution fee).
<PAGE>
Performance data for the Fund's Class A and Class B Shares are
presented in the "Aggregate Total Returns" tables on page 10. Data
for all of the Fund's shares, including Class C and Class D Shares,
are presented in the "Recent Performance Results" table.
The "Recent Performance Results" table on pages 8 and 9 shows
investment results before the deduction of any sales charges for
Class A and Class B Shares for the since inception (November 26,
1993) and 3-month periods ended October 31, 1994 and for Class C and
Class D Shares for the period since inception (October 21, 1994)
through October 31, 1994. All data in this table assume imposition
of the actual total expenses incurred by each class of shares during
the relevant period.
None of the past results shown should 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.
PERFORMANCE DATA (continued)
<TABLE>
Recent
Performance
Results*
<CAPTION>
Standardized
Since 30-day
Since Inception 3 Month Yield
Inception 3 Month Total Total As of
10/31/94 7/31/94++ 11/26/93++ % Change++ % Change Return++ Return 10/31/94
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $9.85 $9.97 $10.00 -1.50% -1.20% +1.78%(1) -0.24%(2) 3.94%
Arizona Limited Maturity Class B Shares 9.85 9.97 10.00 -1.50 -1.20 +1.45(3) -0.32(4) 3.63
Arizona Limited Maturity Class C Shares 9.85 9.89 -- -0.40 -- -0.29(5) -- --
Arizona Limited Maturity Class D Shares 9.85 9.89 -- -0.40 -- -0.29(5) -- --
California Limited Maturity Class A Shares 9.71 9.88 10.00 -2.90 -1.72 +0.51(6) -0.71(7) 3.90
California Limited Maturity Class B Shares 9.71 9.88 10.00 -2.90 -1.72 +0.19(8) -0.80(9) 3.58
California Limited Maturity Class C Shares 9.72 9.76 -- -0.41 -- -0.30(5) -- --
California Limited Maturity Class D Shares 9.71 9.76 -- -0.51 -- -0.40(5) -- --
Florida Limited Maturity Class A Shares 9.73 9.87 10.00 -2.70 -1.42 +0.74(10) -0.38(11) 4.13
Florida Limited Maturity Class B Shares 9.73 9.88 10.00 -2.70 -1.52 +0.41(12) -0.57(13) 3.81
Florida Limited Maturity Class C Shares 9.72 9.76 -- -0.41 -- -0.30(5) -- --
<PAGE>
Florida Limited Maturity Class D Shares 9.72 9.76 -- -0.41 -- -0.30(5) -- --
Massachusetts Limited Maturity Class A Shares 9.79 9.95 10.00 -2.10 -1.61 +1.45(14) -0.55(15) 4.41
Massachusetts Limited Maturity Class B Shares 9.79 9.95 10.00 -2.10 -1.61 +1.12(16) -0.64(17) 4.11
Massachusetts Limited Maturity Class C Shares 9.78 9.82 -- -0.41 -- -0.29(5) -- --
Massachusetts Limited Maturity Class D Shares 9.78 9.82 -- -0.41 -- -0.29(5) -- --
Michigan Limited Maturity Class A Shares 9.71 9.92 10.00 -2.90 -2.12 +0.54(18) -1.10(19) 4.22
Michigan Limited Maturity Class B Shares 9.71 9.92 10.00 -2.90 -2.12 +0.21(20) -1.19(21) 3.90
Michigan Limited Maturity Class C Shares 9.71 9.76 -- -0.51 -- -0.40(5) -- --
Michigan Limited Maturity Class D Shares 9.71 9.76 -- -0.51 -- -0.40(5) -- --
New Jersey Limited Maturity Class A Shares 9.83 9.94 10.00 -1.70 -1.11 +1.60(22) -0.12(23) 3.77
New Jersey Limited Maturity Class B Shares 9.84 9.95 10.00 -1.60 -1.11 +1.37(24) -0.21(25) 3.46
New Jersey Limited Maturity Class C Shares 9.84 9.86 -- -0.20 -- -0.09(5) -- --
New Jersey Limited Maturity Class D Shares 9.83 9.85 -- -0.20 -- -0.09(5) -- --
New York Limited Maturity Class A Shares 9.74 9.91 10.00 -2.60 -1.72 +0.91(26) -0.69(27) 4.18
New York Limited Maturity Class B Shares 9.74 9.91 10.00 -2.60 -1.72 +0.58(28) -0.78(29) 3.86
New York Limited Maturity Class C Shares 9.74 9.78 -- -0.41 -- -0.30(5) -- --
New York Limited Maturity Class D Shares 9.74 9.78 -- -0.41 -- -0.30(5) -- --
Pennsylvania Limited Maturity Class A Shares 9.81 9.95 10.00 -1.90 -1.41 +1.38(30) -0.46(31) 3.93
Pennsylvania Limited Maturity Class B Shares 9.81 9.95 10.00 -1.90 -1.41 +1.06(32) -0.55(33) 3.64
Pennsylvania Limited Maturity Class C Shares 9.81 9.84 -- -0.30 -- -0.19(5) -- --
Pennsylvania Limited Maturity Class D Shares 9.81 9.84 -- -0.30 -- -0.19(5) -- --
<PAGE>
<FN>
*Investment results shown do not reflect any
sales charges; results shown would be lower
if a sales charge was included.
++Class A and Class B Shares commenced
operations on 11/26/93. Class C and Class D
Shares commenced operations on 10/21/94.
(1)Percent change includes reinvestment of
$0.317 per share ordinary income dividends.
(2)Percent change includes reinvestment of
$0.097 per share ordinary income dividends.
(3)Percent change includes reinvestment of
$0.285 per share ordinary income dividends.
(4)Percent change includes reinvestment of
$0.088 per share ordinary income dividends.
(5)Percent change includes reinvestment of
$0.001 per share ordinary income dividends.
(6)Percent change includes reinvestment of
$0.332 per share ordinary income dividends.
(7)Percent change includes reinvestment of
$0.100 per share ordinary income dividends.
(8)Percent change includes reinvestment of
$0.300 per share ordinary income dividends.
(9)Percent change includes reinvestment of
$0.092 per share ordinary income dividends.
(10)Percent change includes reinvestment of
$0.333 per share ordinary income dividends.
(11)Percent change includes reinvestment of
$0.102 per share ordinary income dividends.
(12)Percent change includes reinvestment of
$0.301 per share ordinary income dividends.
(13)Percent change includes reinvestment of
$0.094 per share ordinary income dividends.
(14)Percent change includes reinvestment of
$0.344 per share ordinary income dividends.
(15)Percent change includes reinvestment of
$0.106 per share ordinary income dividends.
(16)Percent change includes reinvestment of
$0.312 per share ordinary income dividends.
(17)Percent change includes reinvestment of
$0.097 per share ordinary income dividends.
(18)Percent change includes reinvestment of
$0.335 per share ordinary income dividends.
(19)Percent change includes reinvestment of
$0.102 per share ordinary income dividends.
(20)Percent change includes reinvestment of
$0.303 per share ordinary income dividends.
(21)Percent change includes reinvestment of
$0.093 per share ordinary income dividends.
(22)Percent change includes reinvestment of
$0.318 per share ordinary income dividends.
(23)Percent change includes reinvestment of
$0.098 per share ordinary income dividends.
(24)Percent change includes reinvestment of
$0.286 per share ordinary income dividends.
(25)Percent change includes reinvestment of
$0.089 per share ordinary income dividends.
<PAGE>
(26)Percent change includes reinvestment of
$0.341 per share ordinary income dividends.
(27)Percent change includes reinvestment of
$0.102 per share ordinary income dividends.
(28)Percent change includes reinvestment of
$0.309 per share ordinary income dividends.
(29)Percent change includes reinvestment of
$0.093 per share ordinary income dividends.
(30)Percent change includes reinvestment of
$0.318 per share ordinary income dividends.
(31)Percent change includes reinvestment of
$0.094 per share ordinary income dividends.
(32)Percent change includes reinvestment of
$0.285 per share ordinary income dividends.
(33)Percent change includes reinvestment of
$0.086 per share ordinary income dividends.
</TABLE>
PERFORMANCE DATA (concluded)
Aggregate
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +2.20% +1.18%
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.24% +0.23%
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.25% +0.24%
<PAGE>
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +2.05% +1.03%
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.47% +0.45%
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.93% +0.91%
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.53% +0.51%
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Inception (11/26/93) through 9/30/94 +1.71% +0.69%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
Arizona Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.90% +0.90%
<PAGE>
California Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +0.94% -0.04%
Florida Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +0.95% -0.03%
Massachusetts Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.74% +0.76%
Michigan Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.16% +0.18%
New Jersey Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.63% +0.64%
New York Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.23% +0.24%
<PAGE>
Pennsylvania Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Inception (11/26/93) through 9/30/94 +1.41% +0.42%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0%
after one year.
**Assuming payment of applicable contingent deferred sales charge.
PORTFOLIO COMPOSITION
For the Quarter Ended October 31, 1994
Arizona
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 38.6%
General Obligations & Tax Revenue Bonds 27.1
Prerefunded Bonds** 25.3
Utility Revenue Bonds 9.0
------
Total 100.0%
======
Net assets as of October 31, 1994 were $8,208,409.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
<PAGE>
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1.
For the Quarter Ended October 31, 1994
California
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Utility Revenue Bonds 34.4%
Other Revenue Bonds 33.2
General Obligations & Tax Revenue Bonds 21.6
Prerefunded Bonds** 10.8
------
Total 100.0%
======
Net assets as of October 31, 1994 were $15,496,979.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 2.
PORTFOLIO COMPOSITION (continued)
For the Quarter Ended October 31, 1994
Florida
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 32.9%
Utility Revenue Bonds 30.0
Prerefunded Bonds** 26.5
General Obligation & Tax Revenue Bonds 10.6
------
Total 100.0%
======
Net assets as of October 31, 1994 were $31,685,996.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 3.
For the Quarter Ended October 31, 1994
Massachusetts
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 38.9%
General Obligation & Tax Revenue Bonds 31.3
Utility Revenue Bonds 17.5
Prerefunded Bonds** 12.3
------
Total 100.0%
======
Net assets as of October 31, 1994 were $14,641,207.
<PAGE>
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 4.
For the Quarter Ended October 31, 1994
Michigan
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 44.0%
Other Revenue Bonds 32.9
Utility Revenue Bonds 23.1
------
Total 100.0%
======
Net assets as of October 31, 1994 were $5,858,036.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 5.
<PAGE>
For the Quarter Ended October 31, 1994
New Jersey
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 59.6%
Other Revenue Bonds 40.4
------
Total 100.0%
======
Net assets as of October 31, 1994 were $13,785,140.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 6.
PORTFOLIO COMPOSITION (concluded)
For the Quarter Ended October 31, 1994
New York
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 48.6%
Utility Revenue Bonds 18.6
General Obligation & Tax Revenue Bonds 17.6
Prerefunded Bonds 15.2
------
Total 100.0%
======
Net assets as of October 31, 1994 were $15,942,522.
<PAGE>
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 7.
For the Quarter Ended October 31, 1994
Pennsylvania
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 46.0%
Prerefunded Bonds** 31.8
Utility Revenue Bonds 13.5
General Obligation & Tax Revenue Bonds 8.7
------
Total 100.0%
======
Net assets as of October 31, 1994 were $10,638,717.
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
**Backed by a fund holding US Treasury or other high-quality securities.
++Temporary investments in short-term municipal securities.
Quality Ratings*
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 8.
APPENDIX GRAPHIC AND IMAGE MATERIAL.
<PAGE>
ITEM 1:
Arizona Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 53%
Other++ 47%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 2:
California Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 26%
AA/Aa 17%
A/A 20%
Other++ 37%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 3:
Florida Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
<PAGE>
A pie chart illustrating the following percentages:
AAA/Aaa 37%
AA/Aa 34%
A/A 3%
Other++ 26%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 4:
Massachusetts Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 41%
AA/Aa 8%
A/A 14%
Other++ 34%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 5:
Michigan Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
<PAGE>
A pie chart illustrating the following percentages:
AAA/Aaa 24%
AA/Aa 39%
A/A 4%
Other++ 33%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 6:
New Jersey Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 16%
AA/Aa 28%
A/A 7%
Other++ 49%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
<PAGE>
ITEM 7:
New York Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 14%
AA/Aa 18%
A/A 24%
BBB/Baa 7%
Other++ 37%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
ITEM 8:
Pennsylvania Limited Maturity Municipal Bond Fund
Quality Ratings*
(Based on Nationally Recognized Rating Services)
A pie chart illustrating the following percentages:
AAA/Aaa 32%
AA/Aa 14%
A/A 6%
Other++ 48%
[FN]
*Based on total market value of the portfolio as of October 31, 1994.
++Temporary investments in short-term municipal securities.
