MERRILL LYNCH
MULTI-STATE
LIMITED
MATURITY
MUNICIPAL
SERIES TRUST
Semi-Annual Report January 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
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Officers and
Directors
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
<PAGE>
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
TO OUR SHAREHOLDERS
We are pleased to provide you with this first semi-annual report for
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust. In
this and future shareholder reports, we will highlight the Trust's
investment performance, describe recent investment activities, and
examine some of the important market developments that helped shape
our investment strategy during the period under review.
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust seeks
to provide shareholders with as high a level of income exempt from Federal
and personal income taxes imposed by the designated state as is consistent
with prudent investment management. The Trust invests primarily in a port-
folio of intermediate-term, investment grade obligations, the interest on
which is exempt from Federal and personal income taxes of the designated
state.
The Municipal Market
Yields on tax-exempt bonds continued to trend lower for the period ended
January 31, 1994 as they had for most of 1993. Although interest rates on
US Treasury bonds ended the period essentially unchanged, investors' con-
cerns of reduced issuance in 1994 and the realization of higher marginal
tax rates forced municipal yields lower. For instance, at the Fund's in-
ception on November 26, 1993, the yield on the five-year US Treasury note
was 5.08%, while on January 31, 1994 it stood at 5.04%. However, yields on
AAA-rated general obligation municipal bonds fell approximately 15 basis
points (0.15%) during the same period.
This outperformance of the municipal bond market in relation to the taxable
market was not without consequence. At the outset of the period a purchase
of an AA-rated general obligation bond with a five-year maturity represented
approximately 86% of its taxable equivalent, a historically attractive level.
By quarter-end that relationship had declined to approximately 76%.
<PAGE>
Municipal bond issuance for all of 1993 was $290.94 billion, an increase
of 24% from 1992's total issuance of $235.01 billion. As interest rates
declined, municipal bond issuers sought to refinance their existing high
coupon issues by issuing record amounts of bonds at the historically low
yield levels seen in 1993. As a result, refundings were responsible
for $148.19 billion of new issuance in 1993 versus $92.16 billion in 1992.
Unless interest rates continue to move dramatically lower in 1994 to provide
further refunding opportunities, we expect supply to be substantially less
this year than in 1993.
Portfolio Strategy
Merrill Lynch Arizona Limited Maturity Municipal Bond Fund
Since inception (November 26, 1993), we have focused on the investment and
diversification of the Fund's assets. Despite an environment in which the
demand for municipal bonds exceeded supply, we were able to achieve these
goals because we were able to invest smaller amounts more readily. Demand
for municipal bonds, particularly in the intermediate-term sector, forced
a compression of yield spreads among various rating categories in the market.
As a result, given market volatility, we believed it was more appropriate
to invest in bonds rated AA or better whenever possible for their liquidity
and their tendency toward greater price stability in periods of rising in-
terest rates.
The Fund is diversified, and at quarter-end its average portfolio maturity
was approximately 3.2 years. We maintained a cash reserve portion of
approximately 25% as a defensive measure against the uncertainty surround-
ing Federal Reserve Board policy in the near future. We will continue to
diversify our portfolio in the upcoming quarter as new issues enter the
market, while monitoring economic data that will impact the portfolio.
Merrill Lynch California Limited Maturity Municipal Bond Fund
During the three-month period ended January 31, 1994, the State of
California's Governor Wilson indicated that the continued sluggish
performance of the State's economy will have adverse effects on
the results for the 1993-1994 fiscal year. Revenues are now expected
to be $39.7 billion, about $900 million less than the Budget Act projected,
even though revenues in the first half of the fiscal year have been very
close to original projections. Expenditures for the 1993-1994 fiscal
year are now projected to be $39.3 billion, about $800 million above
the original Budget Act Projection.
On January 17, 1994, a major earthquake struck Los Angeles, causing
significant property damage to public and private facilities in four
counties, which is currently estimated at $15 billion or more. The Federal
and State governments' approach to meeting the damage costs are forthcoming,
and increased bond sales and sales tax increases are possible solutions.
<PAGE>
Since the Fund's inception on November 26, 1993, we have attempted to invest
as much of the Fund's assets in bonds rated A or better as quickly as possible
in order to take advantage of declining intermediate-term bond yields caused
by the large municipal defeasance taking place. We were able to extend the
average maturity of the Fund to 3.2 years as of December 31, 1993, although
diversification was difficult. The majority of municipal bond investors were
purchasing issues that mature within ten years, since they were wary of a
rapidly expanding economy and potentially higher inflation. Intermediate-term
securities tend to be less exposed to the potential price declines resulting
from higher interest rates.
As of January 31, 1994, the Fund's maturity stood at 4.0 years as some
California supply in early January allowed us to again extend the Fund's
maturity, while we maintained a 28% cash position as a defensive measure
against the uncertainty surrounding Federal Reserve Board monetary policy
in the near future. The Fund's net asset value stood at approximately
$14.9 million on January 31, 1994, approximately a 27% increase from the
$10.4 million in net assets at inception. Diversification, quantity 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 January 31, 1994, the State of Florida continued
to show a manageable debt burden and satisfactory fiscal responsibility.
Florida's nonagricultural employment, which contracted 2% between 1990
and 1992, posted an approximate 3% gain in 1993. Florida is expected to
post moderate job growth in 1994, mainly because of expected gains in
tourism and construction. The State continues to benefit from a construction
boom, aided by the lingering rebuilding that followed Hurricane Andrew. That
boom is masking a loss of defense-related jobs and expansion problems that
stem from lower interest income for the State's large retiree population.
Despite recent softening in the State's tourism industry, largely the result
of concern about crime, the November 1993 revenue estimating conference con-
cluded that 1994 general fund revenues will be only $20 million below original
projections. Governor Chiles' proposed $38 billion budget for 1995 includes
general revenue funds appropriations of $14 billion, 5% higher than the 1994
level.
<PAGE>
Since the Fund's inception, we attempted to invest as much of the Fund's
assets in securities rated A or better as quickly as possible in order to
take advantage of declining intermediate-term bond yields caused by the
large municipal defeasance taking place. We were able to extend the
average maturity of the Fund to approximately 3.0 years as of 1993 year-
end, although diversification was difficult. The majority of municipal
bond investors were purchasing issues that mature within ten years, since
they were wary of a rapidly expanding economy and potentially higher in-
flation. Intermediate-term securities tend to be less exposed to the
potential price declines resulting from higher interest rates. As of
January 31, 1994, the Fund's maturity stood at 3.7 years as some Florida
supply in early January allowed us to extend the maturity of the Fund,
while we maintained a 29% cash reserve position as a defensive measure
against the market uncertainty surrounding Federal Reserve Board mone-
tary policy in the near future. The Fund's net assets stood at approximately
$38.3 million on January 31, 1994, a 39% rise from the approximately $22.3
million in assets at inception. Diversification, 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 economic environment within the Commonwealth of Massachusetts has
continued to improve as lower interest rates have fueled the auto and
housing industries. This has translated into an improved employment
situation with unemployment declining to approximately 7.2% on a seasonally
adjusted basis, slightly above the national average. Governor Weld recently
proposed a balanced budget of $16.16 billion for fiscal year 1995 which
would eliminate more than $300 million in taxes, including a reduction of
the Commonwealth income tax to 5.85%, while increasing the Commonwealth's
reserve fund to $325 million from $310 million. Despite various proposed
spending cuts to offset proposed revenue reductions, the Governor has
proposed increasing the amount of assets allocated to education by $214
million.
Since the Fund's inception on November 26, 1993, we have sought to rapidly
invest the portfolio in higher-quality Massachusetts tax-exempt securities
which tend to outperform lesser-quality instruments in periods of volatility.
The excellent relative value offered by intermediate-term municipal bonds in
December, together with an outlook of increasing demand and reduced supply in
1994, prompted an aggressive investment strategy. By January 31, 1994, we were
able to achieve an average portfolio maturity of 3.1 years, while we main-
tained a cash reserve position of approximately 20% as a defensive measure
against the uncertainty surrounding Federal Reserve Board policy in the near
future. Diversification and credit quality remain paramount in importance as
we monitor the everchanging marketplace and seek to offer shareholders an
attractive level of income exempt from both Federal and Commonwealth taxes.
<PAGE>
Merrill Lynch Michigan Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1994, the State of Michigan continued
its strong economic comeback as employment increased by 125,000 jobs to 4.3
million and its unemployment rate dropped to 7%, the lowest level in a
decade. The economic recovery has been fueled by the performance of the
auto industry with the "Big 3" domestic automakers' sales increasing by
12% in 1993. The automakers are enjoying the benefits of a low interest
rate environment as well as reaping the slow reward of the major restructur-
ing which occurred in the three previous years. Michigan must still adopt
a new taxation system in order to fund the State's school system. A ballot
proposal to hike the State's sales tax as well as other revenue raising
measures will come before the State's voters on March 15, 1994.
Since the Fund's inception on November 26, 1993, we have attempted to invest
as much of the Fund's assets in securities rated A or better as quickly as
possible in order to take advantage of declining intermediate-term bond yields
caused by the large municipal defeasance taking place. We were able to extend
the average maturity of the Fund to 3.0 years by December 31, 1993, although
diversification was difficult. The majority of municipal bond investors were
purchasing issues that mature within ten years since they were wary of a
rapidly expanding economy and potentially higher inflation. Intermediate-
term securities tend to be less exposed to the potential price declines
resulting from higher interest rates. As of January 31, 1994, the Fund's
maturity stood at 3.8 years as some Michigan supply in early January allowed
us to again extend the Fund's maturity. In addition, we maintained a 28% cash
reserve position as a defensive measure against the market's uncertainty sur-
rounding Federal Reserve Board monetary policy in the near future. The Fund's
net assets stood at approximately $5.7 million as of January 31, 1994, a 22%
increase from the $4.4 million in net assets at inception. Diversification,
quality and yield remain paramount in importance to the Fund, and we will
continue to closely monitor the everchanging marketplace.
Merrill Lynch New Jersey Limited Maturity Municipal Bond Fund
Newly elected Republican Governor Christine Todd Whitman will formally
release the State of New Jersey's fiscal 1995 budget in the upcoming quarter.
In mid-January, however, Governor Whitman announced her intention to reduce
taxes retroactive to January 1, 1994. In addition, Whitman announced the
formation of an Economic Master Plan Commission whose purpose will be to
look for new ways to stimulate the State's economy and replace revenues
lost from the proposed reduction in taxes. In her budget, Governor Whitman
will also have to address the funding disparities between districts in New
Jersey's school system. A statewide property tax has been suggested as a
possible remedy by a commission created during the previous administration.
Finally, Governor Whitman will have to address proposed healthcare reform
and its effect on individuals and businesses within the State. Although
Whitman began her tenure as Governor in November with the lowest unemploy-
ment level in the State in two years, this downward trend changed and
unemployment rates rose to 7.0% and 6.8% in December and January, respec-
tively. In the upcoming quarter, we will continue to monitor the effects of
Governor Whitman's policies and their effect on the marketplace.
<PAGE>
Since inception, our primary focus has been the investment and diversification
of the Fund's assets. Given the limited availability of New Jersey issues,
coupled with strong demand and the current volatility in the marketplace,
our strategy has been to invest primarily in higher-quality securities. The
reasons for these investments are twofold. First, because of a very limited
supply of paper, the yield spreads between lower- and higher-rated securities
compressed. Given these market conditions, we felt that it was appropriate to
be invested in the more liquid, slightly lower-yielding and higher-quality
bonds. Second, we believed that we should closely monitor the effects of
Governor Whitman's policies and determine their influence on the marketplace.
Over the course of the period, we extended the average portfolio maturity to
just over 4.0 years, and at quarter-end over 50% of the Fund was invested in
securities rated AA or better. Additionally, we maintained a cash reserve
position of approximately 15% as a defensive measure against the uncertainty
surrounding Federal Reserve Board policy in the near future.
Merrill Lynch New York Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1994, the State of New York's economy
recovered somewhat from a five-year slump, with positive trends in new busi-
ness expansion, tourism and the investment community. The New York State
comptroller also announced that the State will finish the fiscal year ending
March 31, 1994 with a $300 million surplus.
New York does face challenges though, with a lagging manufacturing industry,
continued defense and military cuts, corporate restructuring and layoffs
related to new technologies. In January, Governor Cuomo proposed a $62.6
billion budget that would increase general fund spending by 3.8% to $33.4
billion. Governor Cuomo called for a reduction in the State's surcharge on
corporate taxes to 12.5% from 15% halfway through next fiscal year and to
10% in 1996. The Governor's budget plan also brings an end to the State's
short-term spring borrowing.
Since the Fund's inception on November 26, 1993, we have attempted to invest
as much of the Fund's assets in issues rated A or better as quickly as possi-
ble in order to take advantage of declining intermediate-term bond yields
caused by the large municipal defeasance taking place. We were able to ex-
tend the average maturity of the Fund to 3.6 years as of December 31, 1993,
although diversification was difficult. The majority of municipal bond
investors were purchasing issues that mature within ten years, since they
were wary of a rapidly expanding economy and potentially higher inflation.
Intermediate-term securities tend to be less exposed to the potential price
declines resulting from higher interest rates.
<PAGE>
As of January 31, 1994, the Fund's maturity stood at 4.0 years as some
New York supply in early January allowed us to again extend the maturity
of the Fund, while we maintained a 24% cash reserve position as a defensive
measure against the market's uncertainty surrounding Federal Reserve Board
monetary policy in the near future. The Fund's net assets stood at approxi-
mately $12.8 million on January 31, 1994, approximately an 18% increase from
the $10.4 million in net assets at inception. Diversification, 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 economic environment within the Commonwealth continued to improve in
the January quarter, and the seasonally adjusted unemployment rate dropped
from 7.0% at the onset of the quarter to 6.0% by quarter-end. In the final
months of the year, and particularly in December, Pennsylvania bond issuance
was rapidly absorbed as demand rose for the Commonwealth of Pennsylvania
securities. This rise is the result of the Pennsylvania Intangible Tax which
taxes Pennsylvania residents on out-of-state securities held at the end of
the calendar year. As a consequence, initial investment of the Fund's assets
in intermediate-term bonds was difficult.
Our focus during the first months of inception was diversification consisting
primarily of higher-quality and prerefunded bonds. Prerefunded bonds pro-
vided us with a higher level of current income, and higher-rated securities
provided us with liquidity and a tendency toward greater price stability in
periods of interest rate volatility. In January, the supply of Pennsylvania
securities increased marginally, and we were able to diversify further. Also
in January, we increased our average portfolio maturity to our current 3.5
years and maintained cash reserves of approximately 20% as a defensive measure
against the uncertainty surrounding Federal Reserve Board policy in the near
future. The Fund is invested primarily in bonds rated AA or better, insured
bonds and prerefunded bonds. In the upcoming quarter, we will continue to
monitor impending supply as well as the direction of interest rates until a
clearer picture of both emerge.
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 finan-
cial needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
March 16, 1994
<PAGE>
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.
<TABLE>
Recent
Performance
Results*
<CAPTION>
Since Standardized
Inception Total 30-day Yield
1/31/94 11/26/93** Change Return As of 1/31/94
<S> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.08 $10.00 +0.80% +1.41(1) 3.01%
Arizona Limited Maturity Class B Shares 10.08 10.00 +0.80 +1.35(2) 2.69
California Limited Maturity Class A Shares 10.11 10.00 +1.10 +1.69(3) 3.26
California Limited Maturity Class B Shares 10.11 10.00 +1.10 +1.63(4) 2.94
Florida Limited Maturity Class A Shares 10.07 10.00 +0.70 +1.28(5) 3.16
Florida Limited Maturity Class B Shares 10.07 10.00 +0.70 +1.22(6) 2.85
Massachusetts Limited Maturity Class A Shares 10.05 10.00 +0.50 +1.13(7) 3.51
Massachusetts Limited Maturity Class B Shares 10.05 10.00 +0.50 +1.07(8) 3.20
Michigan Limited Maturity Class A Shares 10.08 10.00 +0.80 +1.43(9) 3.34
Michigan Limited Maturity Class B Shares 10.08 10.00 +0.80 +1.37(10) 3.02
New Jersey Limited Maturity Class A Shares 10.06 10.00 +0.60 +1.17(11) 3.08
New Jersey Limited Maturity Class B Shares 10.07 10.00 +0.70 +1.21(12) 2.76
New York Limited Maturity Class A Shares 10.10 10.00 +1.00 +1.64(13) 3.35
New York Limited Maturity Class B Shares 10.10 10.00 +1.00 +1.58(14) 3.03
Pennsylvania Limited Maturity Class A Shares 10.07 10.00 +0.70 +1.26(15) 3.09
Pennsylvania Limited Maturity Class B Shares 10.07 10.00 +0.70 +1.20(16) 2.76
<FN>
*Investment results shown for the since inception period are before the deduction of any sales charges.
**Commencement of operations.
(1) Percent change includes reinvestment of $0.051 per share ordinary income dividends.
(2) Percent change includes reinvestment of $0.045 per share ordinary income dividends.
(3) Percent change includes reinvestment of $0.049 per share ordinary income dividends.
(4) Percent change includes reinvestment of $0.043 per share ordinary income dividends.
(5) Percent change includes reinvestment of $0.048 per share ordinary income dividends.
(6) Percent change includes reinvestment of $0.042 per share ordinary income dividends.
(7) Percent change includes reinvestment of $0.053 per share ordinary income dividends.
(8) Percent change includes reinvestment of $0.047 per share ordinary income dividends.
(9) Percent change includes reinvestment of $0.052 per share ordinary income dividends.
(10) Percent change includes reinvestment of $0.047 per share ordinary income dividends.
(11) Percent change includes reinvestment of $0.047 per share ordinary income dividends.
(12) Percent change includes reinvestment of $0.041 per share ordinary income dividends.
(13) Percent change includes reinvestment of $0.054 per share ordinary income dividends.
(14) Percent change includes reinvestment of $0.048 per share ordinary income dividends.
(15) Percent change includes reinvestment of $0.046 per share ordinary income dividends.
(16) Percent change includes reinvestment of $0.040 per share ordinary income dividends.
</TABLE>
<PAGE>
<TABLE>
Aggregate
Total Returns
<CAPTION>
Arizona Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.70% -0.31% Inception (11/26/93)
through 12/31/93 +0.66% -0.34%
<CAPTION>
California Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.89% -0.12% Inception (11/26/93)
through 12/31/93 +0.85% -0.15%
<CAPTION>
Florida Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.58% -0.42% Inception (11/26/93)
through 12/31/93 +0.55% -0.45%
<CAPTION>
Massachusetts Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Sales Charge Sales Charge
Inception (11/26/93) through 12/31/93 +0.51% -0.50% Inception (11/26/93)
through 12/31/93 +0.47% -0.53%
<CAPTION>
Michigan Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.52% -0.49% Inception (11/26/93)
through 12/31/93 +0.48% -0.52%
<CAPTION>
New Jersey Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.38% -0.63% Inception (11/26/93)
<PAGE> through 12/31/93 +0.44% -0.56%
<CAPTION>
New York Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.72% -0.29% Inception (11/26/93)
through 12/31/93 +0.68% -0.32%
<CAPTION>
Pennsylvania Limited Maturity
% Return Without % Return With % Return Without % Return With
Class A Shares* Sales Charge Sales Charge** Class B Shares* CDSC CDSC**
<S> <C> <C> <S> <C> <C>
Inception (11/26/93) through 12/31/93 +0.68% -0.33% Inception (11/26/93)
through 12/31/93 +0.64% -0.36%
<FN> <FN>
*Maximum sales charge is 1%. *Maximum contingent deferred sales charge is 1% and reduced to
**Assuming maximum sales charge. 0% after one year.
**Assuming payment of applicable contingent deferred sales
charge.
</TABLE>
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 abbrev-
iated the names of many of
the securities according to
the list at right.
ACESSM 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--85.2% A1+ P1 $ 200 Apache County, Arizona, IDA, IDR (Tucson Electric Power-
Springerville Project), VRDN, 2.25% due 12/15/2018(a) $ 200
AAA Aaa 270 Arizona Health Facilities Authority, Hospital System Revenue Bonds
(Samaritan Health Services), 5.30% due 12/01/1995(d) 280
A-1 VMIG1 200 Arizona Health Facilities Authority Revenue Bonds (Arizona
Voluntary Hospital Federation), VRDN, Series B, 2.25%
due 10/01/2015(a)(c) 200
AAA Aaa 275 Arizona State, COP, Refunding Bonds, Series B, 4.375% due 5/01/2000 279
AA Aa 295 Arizona State Transportation Board, Highway Revenue Refunding Bonds,
Sub-Series A, 3.20% due 7/01/1995 296
AA A1 500 Arizona State University, University System Revenue Refunding Bonds,
Series A, 4.25% due 7/01/1996 511
AAA Aaa 220 Maricopa County, Arizona, Alhambra Elementary School District
Number 68, Refunding and Improvement Bonds, UT, 7.75% due 7/01/2000(b) 263
AAA Aaa 250 Maricopa County, Arizona, Mesa Unified School District Number 4, UT,
5.25% due 7/01/2003(c) 267
A1+ P1 300 Maricopa County, Arizona, Pollution Control Corporation, PCR
(Arizona Public Service Company--Palo Verde Project), Series D, VRDN,
2% due 2/03/1994(a) 300
SP1+ MIG2 200 Maricopa County, Arizona, TAN, 3.10% due 7/29/1994 201
AA A1 500 Phoenix, Arizona, Street and Highway User Revenue Refunding Bonds,
Senior Lien, 5.60% due 7/01/1998 535
A1+ VMIG1 100 Pima County, Arizona, IDR (Tucson Electric), VRDN, Series A, 2.05%
due 12/01/2022(a) 100
A+ Aa 260 Pima County, Arizona, Refunding Bonds, 5.375% due 7/01/1996 272
<PAGE>
A1+ NR 200 Pinal County, Arizona, IDR (Calsonic Incorporated Project), VRDN,
2.30% due 12/01/2005(a) 200
AA Aa 1,000 Salt River Project, Arizona, Agricultural Improvement and Power
District, Electric System Revenue Refunding Bonds, Series C, 4.30%
due 1/01/2002 1,003
AA Aaa 500 Scottsdale, Arizona, Improvement Bonds, 6.60% due 7/01/1996(e) 548
Puerto Rico--4.7% SP1+ MIG1++ 200 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 201
A1+ NR 100 Puerto Rico, Industrial, Medical and Environmental Pollution
Control Facilities Financing Authority Revenue Bonds (Anna G.
Mendez Educational Foundation), TECP, 2.10% due 2/04/1994 100
Total Investments (Cost--$5,716)--89.9% 5,756
Other Assets Less Liabilities--10.1% 644
-------
Net Assets--100.0% $ 6,400
=======
<FN>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rates shown are those in effect at January 31, 1994.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
(e) Prerefunded.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<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--95.1% California Health Facilities Financing Authority Revenue Bonds:
AAA VMIG1 $ 500 (Pooled Loan Program), Series 85B, VRDN, 2.10% due
10/01/2010(b)(e) $ 500
AA- NR 400 (Saint Joseph Health System), 6.90% due 7/01/1999(a)(f) 465
AAA Aaa 500 California Health Facilities, Financing Revenue Refunding Bonds
(Catholic Insured Health Facilities), Series E, 4.40% due
7/01/2001(d) 506
<PAGE>
California Pollution Control Financing Authority, Resources Recovery
Revenue Bonds, VRDN(b):
NR P1 200 (Delano Project), AMT, 2.25% due 8/01/2019 200
NR P1 100 (Delano Project), Series 1991, 2.25% due 8/01/2019 100
NR P1 500 (Ultra Power Rocklin), AMT, Series A, 2.30% due 6/01/2017 500
A+ Aa 1,040 California State, GO, UT, 5.60% due 9/01/2000 1,127
California State, GO, Veteran's Board, UT:
A+ Aa 785 Series VV, 5% due 8/01/1996 816
AA Aa 1,000 Series XX, 5.50% due 8/01/1997 1,063
California State Public Works Board, Lease Revenue Bonds:
A A1 575 (California State University Various Projects), Series A,
4.30% due 12/01/1999 580
A A1 1,500 (Department of Corrections Madera State Prison), Series E, 4.30%
due 6/01/1999 1,513
AAA Aaa 400 Eastern Municipal Water District, California, COP, 6.60%
due 11/01/1997(d)(f) 443
A1+ VMIG1 500 Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Revenue Bonds, VRDN, 2.20% due 7/01/2023(b) 500
A-1 NR 200 Irvine, California, M/F Housing Revenue Bonds, VRDN, Series 1983-A,
2.10% due 12/15/1995(b) 200
NR A1 600 Los Angeles, California, Municipal Improvement Corporation,
Lease Revenue Refunding Bonds (Central Library Project), Series B,
4.875% due 6/01/2001 618
A1+ VMIG1 300 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Refunding Bonds, VRDN, Second Senior Series A,
2.20% due 7/01/2020(b)(c) 300
AAA Aaa 500 Los Angeles County, California, Public Works Financing Authority,
Lease Revenue Bond, Multiple Capital Facilities (Project IV),
3.80% due 12/01/1997(c) 506
SP1+ MIG1++ 700 Los Angeles County, California, TRAN, Series A, 3% due 6/30/1994 702
A1+ NR 500 Moor Park California, M/F Revenue Refunding Bonds (Le Club Apartment
Project), Series A, VRDN, 2.10% due 11/01/2015(b) 500
AAA Aaa 300 Orange County, California, Various Sanitation Districts, COP,
Revenue Refunding Bonds (#1-3,5-7+11), VRDN, 2.20% due 8/01/2013(b)(d) 300
AA Aa 500 Sacramento County, California, Sanitation District Financing Authority,
Revenue Refunding Bonds, 4% due 12/01/1998 506
AA- Aaa 800 San Diego County, California, Regional Transportation Commission,
Sales Tax Revenue Bonds, Series A, 7.25% due 4/01/1999(a) 936
<PAGE>
AAA Aaa 300 San Jose, California, Redevelopment Agency, Tax Allocation Revenue
Refunding Bonds (Merged Area Redevelopment Project),
4.40% due 8/01/1999(c) 305
AAA Aaa 505 Signal Hill, California, Redevelopment Agency, Tax Allocation Revenue
Refunding Bonds (Signal Hill Redevelopment Project 1-B), 5.20% due
10/01/2002(c) 537
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multiple Purpose
Projects), Series C, 4% due 9/01/1999(d) 502
Puerto Rico--4.7% A1+ VMIG1 200 Puerto Rico Commonwealth Government Development Bank, Revenue
Refunding Bonds, VRDN, 1.75% due 12/01/2015(b) 200
SP1+ MIG1++ 500 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 502
Total Investments (Cost--$14,778)--99.8% 14,927
Other Assets Less Liabilities--0.2% 29
-------
Net Assets--100.0% $14,956
=======
<FN>
(a) Prerefunded.
(b) The interest rate is subject to change periodically based upon the prevailing
market rate. The interest rates shown are those rates in effect at January 31, 1994.
(c) MBIA Insured.
(d) AMBAC Insured.
(e) FGIC Insured.
(f) Escrowed to Maturity.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Florida Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida--96.1% AAA Aaa $ 650 Broward County, Florida, Water & Sewer Utility, Revenue Refunding
Bonds, 4.50% due 10/01/2002(b) $ 662
A-1 VMIG1 1,500 Dade County, Florida, Aviation Revenue Refunding Bonds,
Series V, VRDN, 2.20% due 10/01/2007(a) 1,500
A+ A1 1,000 Dade County, Florida, School District, 7% due 7/01/1999 1,145
A-1 VMIG1 1,400 Dade County, Florida, Solid Waste, IDR (Montenay--Dade Limited
Project), VRDN, Series A, 2.35% due 12/01/2013 (a) 1,400
<PAGE>
Dade County, Florida, Water & Sewer System Revenue Refunding
Bonds (c):
AAA Aaa 1,000 5% due 10/01/2000 1,056
AAA Aaa 500 4.40% due 10/01/2001 509
AAA Aaa 2,000 Florida State Board of Education, Capital Outlay, GO, Series C,
6.90% due 6/01/1997 2,211
AAA Aaa 1,500 Florida State Division, Board of Finance, Department of General
Services, Revenue Bonds (Department of Natural Resource Preservation),
Series 2000--A, 5.75% due 7/01/2000(d) 1,639
AA Aa 1,500 Florida State, Refunding, GO, Dade County Road, 4.70% due 7/01/2000 1,558
A1+ VMIG1 200 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company), VRDN, 2.10% due 5/15/2018 (a) 200
AA Aa1 4,000 Jacksonville, Florida, Electric Authority Revenue Refunding Bonds
(Saint Johns River), Issue 2, Series 8, 3.65% due 10/01/1996 4,042
AAA Aaa 1,500 Lake County, Florida, School Board COP, 4% due 12/01/1999(b) 1,502
Orlando, Florida, Utilities Commission, Water & Electric
Revenue Bonds:
AA Aa1 1,500 Refunding, 5.60% due 10/01/2003 1,642
AA- Aa 1,885 Series B, 4.75% due 10/01/2002 1,954
Pinellas County, Florida, Capital Improvement Revenue Bonds:
AA- Aa 1,500 5.20% due 10/01/1995 1,550
AA- Aa 4,825 5.30% due 10/01/1996 5,064
A-1 VMIG1 200 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 2.20%
due 12/01/2015(a) 200
AAA Aaa 700 Pinellas County, Florida, Resource Recovery Revenue Refunding Bonds,
Series A, 6.80% due 10/01/2002(d) 810
AAA A1 1,400 Reedy Creek, Florida, Improvement District Refunding Bonds,
UT, 7.25% due 6/01/1997 1,558
A-1 P1 300 Saint Lucie County, Florida, PCR, Refunding (Florida Power & Light
Company), VRDN, 2.10% due 5/01/2027(a) 300
Sarasota County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Aces-Venice Hospital Project), VRDN(a):
A-3 VMIG2 200 2.25% due 12/01/2015 200
NR VMIG1 200 2.25% due 12/01/2022 200
<PAGE>
A1+ VMIG1 1,600 Sarasota County, Florida, Public Hospital District, Hospital
Revenue Bonds (Sarasota Memorial Hospital Project), Series C, TECP,
2.30% due 2/10/1994 1,600
NR VMIG1 1,400 Sunshine State Governmental Financing Commission, Florida, Revenue
Bonds, TECP, 2.25% due 2/10/1994 1,400
A-1 VMIG1 1,500 Volusia County, Florida, Health Facilities Authority Revenue Bonds
(ACESSM-Pooled Hospital Loan Program), VRDN, 2.20%
due 11/01/2015(a)(c) 1,500
AAA Aaa 1,415 West Palm Beach, Florida, Public Service Tax, Revenue
Refunding Bonds, 4.15% due 3/01/2000(b) 1,427
Puerto Rico--2.9% SP1+ MIG1++ 1,100 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 1,104
Total Investments (Cost--$37,678)--99.0% 37,933
Other Assets Less Liabilities--1.0% 381
-------
Net Assets--100.0% $38,314
=======
<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 January 31, 1994.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
++Highest short-term rating issued by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<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--
89.9% AAA Aaa $ 400 Ashburnham and Westminister, Massachusetts, Regional School
District, 3.75% due 12/15/1998(b) $ 400
A A 315 Boston, Massachusetts, Metropolitan District, Revenue
Refunding Bonds, Series A, B, & C, 3.90% due 12/01/1995 317
A A 400 Boston, Massachusetts, Revenue Refunding Bonds, Series A, 5%
due 2/01/2001 416
SP-1 MIG2 400 Massachusetts Bay Transportation Authority Notes, Series A, 2.80%
due 3/01/1994 400
<PAGE>
BBB+ A 500 Massachusetts Municipal Wholesale Electric Company, Supply
System Revenue Bonds, Series A, 6.10% due 7/01/1998 538
A+ A 1,000 Massachusetts State Consolidated Loan, Series A, 4% due 1/01/1997 1,011
A A 500 Massachusetts State Convention Center Authority Refunding Bonds
(Hynes Convention Center), 5.20% due 9/01/1995 514
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
AAA NR 500 (Holy Cross College), Series F, 8.40% due 5/01/1995(d) 544
AAA Aaa 400 (New England Medical Center Hospitals), Series G, 4.30%
due 7/01/2000(b) 406
AAA Aaa 410 (Saint Luke's Hospital), Series C, 4% due 8/15/1996(b) 417
A+ A1 600 Massachusetts State, HFA, Revenue Refunding Bonds (Housing Projects),
Series A, 5.20% due 10/01/2000 626
NR MIG1++ 400 Massachusetts State Industrial Finance Agency, Health Care Facility
Revenue Bonds (Beverly Enterprises), VRDN, 2.20% due 4/01/2009(a) 400
AA- Aaa 400 Massachusetts State Port Authority Revenue Bonds, Series B, 9.375%
due 7/01/1995(d) 443
A+ A 1,000 Massachusetts State Revenue Refunding Bonds, Series C, 4.55%
due 9/01/1997 1,031
A A 500 Massachusetts State Special Obligation Revenue Bonds, Series A,
5.30% due 6/01/1998 528
A+ A1 500 Massachusetts State Turnpike Authority, Revenue Refunding Bonds,
Series A, 4.625% due 1/01/2002 508
SP-1 MIG1++ 1,500 Massachusetts State Water Resources Authority, BAN, Series A,
4.125% due 10/15/1995 1,525
AAA Aaa 400 Quincy, Massachusetts, Revenue Refunding Bonds (Quincy Hospital),
4.50% due 1/15/2000(c) 407
A+ A1 600 Salem, Massachusetts, GO, 5% due 7/15/1997 625
NR NR 400 South Hadley, Massachusetts, Industrial Revenue Bonds,
(South Hadley Health Care), AMT, Series A, 5% due 12/01/1996 400
NR NR 400 Springfield, Massachusetts, RAN, 3.90% due 4/01/1994 401
Puerto Rico--6.0% SP1+ MIG1++ 400 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 401
AAA Aaa 350 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series J,
9% due 7/01/1995(d) 389
<PAGE>
Total Investments (Cost--$12,592)--95.9% 12,647
Other Assets Less Liabilities--4.1% 537
-------
Net Assets--100.0% $13,184
=======
<FN>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rates shown are those in effect at January 31, 1994.
(b) MBIA Insured.
(c) FSA Insured.
(d) Prerefunded.
++Highest short-term ratings issued by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Michigan Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Michigan--92.4% NR P1 $ 200 Delta County, Michigan, Economic Development Corp., Environmental
Improvement Revenue Bonds (Mead Escambia Paper), VRDN, 2.20%
due 12/01/2023(a) $ 200
AAA Aaa 1,000 Detroit, Michigan, Distributable State Aid, 6.80% due 5/01/1998(b) 1,117
A1+ VMIG1 100 Grand Rapids, Michigan, Water Supply System, Revenue Refunding Bonds,
VRDN, 2.10% due 1/01/2020(a)(d) 100
AA- Aa 140 Holland, Michigan, Electric Revenue Refunding Bonds, 4.75%
due 7/01/1997 145
AAA Aaa 250 Kalamazoo, Michigan, Hospital Finance Authority, Hospital Facility
Revenue Refunding Bonds (Borgess Medical Center), Series A, 4%
due 6/01/1998(d) 252
AA Aa 235 Lansing, Michigan, Board of Water and Light, Water Supply and Electric
Utility System Revenue Bonds, Series A, 6.20% due 7/01/2000 262
A1+ VMIG1 200 Michigan Higher Education Student Loan Authority, Revenue Refunding
Bonds, Series XII-B, AMT, VRDN, 2.55% due 10/01/2013(a)(b) 200
AA Aaa 200 Michigan Municipal Bond Authority Revenue Bonds (State Revolving
Fund), 4.15% due 10/01/1999 202
AA- A 200 Michigan State Building Authority Revenue Bonds, Series II, 5.90% due
10/01/1999 219
A- A 200 Michigan State Hospital Finance Authority, Revenue Refunding Bonds
(Detroit Medical Center), Series B, 4.70% due 8/15/2001 201
Michigan State Housing Development Authority, Limited Obligation Bonds,
VRDN(a):
NR VMIG1 200 (Pine Ridge), 2.25% due 10/01/2007 200
NR VMIG1 100 (Shoal Creek), 2.25% due 10/01/2007 100
AA A1 250 Michigan State Housing Development Authority, S/F Mortgage
Revenue Bonds, Convertible Option, Series B, 3.55% due 6/01/1995(b) 250
NR P1 200 Michigan State Strategic Fund, Limited Obligation Revenue Bonds
(Dow Chemical Co. Project), AMT, VRDN, 2.35% due 1/01/2014(a) 200
NR VMIGI 200 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(Grayling Generating Project), AMT, VRDN, 2.40% due 12/01/2014(a) 200
NR P1 100 Monroe County, Michigan, Economic Development Corp., Limited
Obligation Revenue Refunding Bonds (Detroit Edison), Series CC,
VRDN, 2.20% due 10/01/2024(a) 100
AA Aa 750 University of Michigan, University Hospital Revenue Refunding Bonds,
Series A, 7.50% due 12/01/2001 895
AAA Aaa 200 Wayne Charter County, Michigan, Airport Revenue Refunding Bonds,
Subordinated Lien (Detroit Metro), Series C, 4.60% due 12/01/2002(c) 202
AAA Aaa 200 West Bloomfield, Michigan, School District Refunding Bonds, UT, 5.50%
due 5/01/1998(c) 214
Puerto Rico--3.5% SP1+ MIG1++ 200 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 201
Total Investments (Cost--$5,420)--95.9% 5,460
Other Assets Less Liabilities--4.1% 235
------
Net Assets--100.0% $5,695
======
<FN>
(a) The interest rate is subject to change periodically based upon the prevailing
market rates. The interest rate shown is the rate in effect at January 31, 1994.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<PAGE>
<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--93.1% NR Baa $ 1,000 Atlantic County, New Jersey, Utilities Authority, Solid Waste
Revenue Bonds, 6.25% due 3/01/1997 $ 1,054
NR Aaa 500 Bergen County, New Jersey, Refunding, GO, UT, 6.50% due 8/01/1995 526
AA Aa 1,030 Burlington County, New Jersey, Various Purpose Bonds, UT, 4.35%
due 10/15/2003 1,033
AAA Aaa 500 Cape May County, New Jersey, Improvement Bonds, UT, 5.85%
due 4/15/1995(b) 516
A+ NR 1,000 Hudson County, New Jersey, GO, UT, 4.10% due 8/01/1998 1,010
SP1+ VMIG1 300 Mercer County, New Jersey, Improvement Authority Revenue Bonds,
VRDN, 2.05% due 11/01/1998(a) 300
AA+ Aaa 500 Middlesex County, New Jersey, Refunding Bonds, UT, 3.60%
due 7/15/1996 506
AA- Aa 500 New Jersey Building Authority, State Building Revenue Bonds,
4.20% due 6/15/1997 512
New Jersey, EDA, Revenue Bonds(a):
NR Aaa 100 (400 International Drive Partners), VRDN, 2.10% due 9/01/2005 100
NR Aaa 200 (Hoffman-La Roche Incorporated Project), AMT, VRDN, 2.25%
due 11/01/2011 200
AA+ Aa1 500 New Jersey, GO, 6.25% due 9/15/1995 526
New Jersey Health Care Facilities Financing Authority Revenue Bonds:
AAA Aaa 500 (Carrier Foundation), Series C, VRDN, 1.95% due 7/01/2005(a)(d) 500
AAA Aaa 550 Refunding (Allegany Health--Our Lady of Lourdes), 4.40%
due 7/01/2001(c) 556
AAA Aaa 300 New Jersey State Educational Facilities Authority Revenue Bonds
(Princeton University), Series A, 5.40% due 7/01/1995 310
AA- A1 600 New Jersey State Highway Authority, General Revenue Refunding Bonds
(Garden State Parkway--Senior Parkway), 4.70% due 1/01/2003 613
A+ Aa 1,500 New Jersey State Transportation Trust Fund Authority Bonds
(Transportation System), Series A, 4.60% due 6/15/2001 1,537
<PAGE>
A A 465 New Jersey State Turnpike Authority, Revenue Refunding Bonds,
Series A, 5.50% due 1/01/1996 484
AA Aa1 500 Parsippany, Troy Hills Township, New Jersey, Refunding Bonds,
UT, 5.90% due 4/01/2003 556
AA A1 300 Rutgers State University, New Jersey, University Revenue Refunding
Bonds (State University of New Jersey), Series R, 5.10%
due 5/01/1997 315
AAA Aaa 225 Somerset County, New Jersey, GO, 6.20% due 8/01/1995 236
Puerto Rico--2.5% SP1+ MIG1++ 300 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 301
Total Investments (Cost--$11,625)--95.6% 11,691
Other Assets Less Liabilities--4.4% 543
------
Net Assets--100.0% 12,234
======
<FN>
(a) The interest rate is subject to change periodically based upon the
prevailing market rate. The interest rates shown are those in effect at
January 31, 1994.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FGIC Insured.
++Highest short-term rating issued by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
New York 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 York--95.6% A A $ 500 Battery Park City Authority, New York, Revenue Refunding
Bonds, Series B, 4.25% due 11/01/1997 $ 507
AAA Aaa 400 Metropolitan Transportation Authority, New York,
Transportation Facilities Revenue Bonds, Series F, 8.375%
due 7/01/1996(b) 455
NR NR 500 Monroe County, New York, BAN, UT, 3% due 6/10/1994 501
<PAGE> AA- Aa 300 Municipal Assistance Corporation for the City of New York, New York,
GO, Series 67, 7.20% due 7/01/1999 346
A- Baa1 600 New York City, New York, GO, Series C, 4.80% due 10/01/2000 597
NR NR 600 New York City, New York, Industrial Development Agency, Industrial
Development Revenue Bonds (Japan Airlines Company Limited), AMT,
VRDN, 2.30% due 11/01/2015(a) 600
SP-1 MIG1++ 500 New York City, New York, Municipal Water Finance Authority,
Water and Sewer System BAN, Series A, 2.75% due 4/15/1994 500
AAA Aaa 500 New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Series A, 5.40% due 6/15/2000(c) 535
A1+ VMIG1 500 New York City Trust For Cultural Restoration, New York, Revenue Bonds
(Museum of Broadcasting), VRDN, 2.10% due 5/01/2014(a) 500
New York State Dormitory Authority Revenue Bonds:
AA Aa 230 (Cornell University), 7.40% due 7/01/1995 243
AAA Aaa 500 Refunding (New York University), Series A, 4.40% due 7/01/2001(d) 509
A1+ NR 400 New York State Environmental Facilities, Corporate Resource Recovery
Revenue Bonds (Equity Huntington Project), AMT, VRDN, 2.35%
due 11/01/2014(a) 400
A1+ VMIG1 500 New York State Housing Finance Agency, Revenue Bonds (Normandie Court
I Project), VRDN, 2.10% due 5/15/2015(a) 500
A A 575 New York State Local Government Assistance Corporation, Refunding
Bonds, Series D, 4.375% due 4/01/2001 579
AAA Aa 500 New York State Medcare Facilities Finance Authority Refunding Bonds
(Presbyterian Hospital), Series A, 4.35% due 2/15/2001 503
AAA Aaa 500 New York State Thruway Authority, Emergency Highway Construction and
Reconstruction Bonds, Series A, 4.90% due 3/01/2002(e) 521
BBB Baa1 500 New York State Urban Development Corporation Revenue Bonds
(Correctional Capital Facilities), Series 4, 4.50% due 1/01/1998 504
AA- A1 1,580 Port Authority of New York and New Jersey, Construction Bonds,
Ninety-First Series, 4.10% due 11/15/1999 1,598
AAA Aaa 600 Sullivan County, New York, GO, Refunding, Public Improvement Bonds,
4.375% due 3/15/2001(d) 606
A+ Aaa 1,500 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding
Bonds, Series M, 7.375% due 1/01/1998(b) 1,732
<PAGE>
Puerto Rico--3.9% SP1+ MIG1++ 500 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 502
Total Investments (Cost--$12,623)--99.5% 12,738
Other Assets Less Liabilities--0.5% 63
-------
Net Assets--100.0% $12,801
=======
<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 January 31, 1994.
(b) Prerefunded.
(c) AMBAC Insured.
(d) MBIA Insured.
(e) FGIC Insured.
++Highest short-term ratings issued by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<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--88.9% A1+ VMIG1 $ 200 Allegheny County, Pennsylvania, Authority Improvement
Municipalities, Hospital Revenue Bonds (Pooled Hospital
Equipment Leasing), VRDN, 2.25% due 9/01/1995(a)(e) $ 200
AAA Aaa 1,500 Berks County, Pennsylvania, GO, 7.80% due 11/15/1998(b)(f) 1,762
AA Aa 500 Bucks County, Pennsylvania, GO, Series A, UT, 6% due 3/01/2001 554
A-1 NR 200 Delaware County, Pennsylvania, Health Care Authority Revenue Bonds
Capital Asset), Series B, VRDN, 2.40% due 7/01/2015(e) 200
A A 600 Delaware River, Pennsylvania, Joint Toll Bridge Commission,
Bridge Revenue Bonds, 7.875% due 7/01/1998(f) 709
AAA Aaa 1,000 Delaware River Port Authority of Pennsylvania and New Jersey,
Delaware River Bridges, Revenue Refunding Bonds, 6.90%
due 1/01/1996(c) 1,068
AAA Aaa 475 Doylestown, Pennsylvania, Hospital Authority Revenue Refunding Bonds,
Series A, 4.25% due 7/01/2000(c) 479
A1+ NR 400 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, 2.30% due
3/01/2024(e) 400
AAA Aaa 350 Jersey Shore Area, Pennsylvania, Joint Water Authority, Water Revenue
Bonds, 7.70% due 4/01/1996(c)(f) 383
<PAGE>
BBB NR 450 Northeastern, Pennsylvania, Hospital and Education Authority,
Revenue Refunding Bonds (Wilkes University), 5% due 10/01/2000 457
AA- A1 500 Pennsylvania, GO, 6.25% due 9/01/2001 537
A1+ VMIG1 400 Pennsylvania Higher Education Assistance Agency, Student Loan Revenue
Bonds, Series B, AMT, VRDN, 2.25% due 7/01/2018(e) 400
AAA Aaa 500 Pennsylvania Housing Finance Agency Refunding Bonds (Rental Housing),
4.15% due 7/01/1995(d) 505
AAA Aaa 450 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series A,
7.875% due 12/01/1996(f) 514
A1+ NR 400 Philadelphia, Pennsylvania, Authority for Industrial Development
Revenue Bonds (Fox Chase Institute of Cancer Research), Series A,
VRDN, 2.10% due 7/01/2013(e) 400
AAA Aaa 400 Pittsburgh, Pennsylvania, Revenue Refunding Bonds, Series B, 4.10% due
9/01/1995(c) 406
AAA Aaa 750 Union County, Pennsylvania, Higher Education Facilities Financing
Authority (Bucknell University), 6% due 4/01/2002(a) 830
Puerto Rico--5.5% SP1+ MIG1++ 265 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 266
AAA Aaa 300 Puerto Rico Electric Power Authority Revenue Bonds,
9% due 7/01/1995 (f) 334
Total Investments (Cost--$10,333)--94.4% 10,404
Other Assets Less Liabilities--5.6% 621
-------
Net Assets--100.0% $11,025
=======
<FN>
(a) MBIA Insured.
(b) FGIC Insured.
(c) AMBAC Insured.
(d) FNMA Insured.
(e) The interest rate is subject to change periodically based on prevailing
market rates. The rates shown are those in effect at January 31, 1994.
(f) Prerefunded.
++Highest short-term rating by Moody's Investors Service, Inc.
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) $ 5,756,257 $ 14,927,080 $ 37,933,206 $ 12,647,321
Cash 99,542 18,277 278,932 14,188
Receivables:
Securities sold 200,058 -- 1,500,216 --
Beneficial interest sold 293,996 -- 566,652 365,090
Interest 36,129 165,918 376,927 143,576
Investment adviser (Note 2) 15,948 21,208 28,994 18,756
Deferred organization expenses
(Note 1e) 47,600 47,600 47,600 47,600
------------ ------------ ------------ ------------
Total assets 6,449,530 15,180,083 40,732,527 13,236,531
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased -- -- 2,316,449 --
Beneficial interest redeemed -- 164,676 24,989 --
Distributor (Note 2) 1,189 3,010 4,792 2,010
Dividends to shareholders (Note 1f) 3,687 9,297 23,285 9,318
Accrued expenses and other liabilities 44,980 46,924 48,953 41,680
------------ ------------ ------------ ------------
Total liabilities 49,856 223,907 2,418,468 53,008
------------ ------------ ------------ ------------
Net Assets: Net assets $ 6,399,674 $ 14,956,176 $ 38,314,059 $ 13,183,523
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $0.10 par value, unlimited number of
shares authorized $ 18,529 $ 38,707 $ 204,187 $ 54,793
Class B Shares of beneficial interest,
$0.10 par value, unlimited number of
shares authorized 44,973 109,198 176,211 76,443
Paid-in capital in excess of par 6,291,084 14,654,447 37,677,325 12,996,606
Undistributed realized capital
gains--net 4,340 4,458 1,154 180
Unrealized appreciation on
investments--net 40,748 149,366 255,182 55,501
------------ ------------ ------------ ------------
Net assets $ 6,399,674 $ 14,956,176 $ 38,314,059 $ 13,183,523
============ ============ ============ ============
<PAGE>
Net Asset Value: Class A:
Net assets $ 1,867,331 $ 3,914,015 $ 20,565,395 $ 5,504,174
============ ============ ============ ============
Shares outstanding 185,294 387,072 2,041,870 547,931
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.08 $ 10.11 $ 10.07 $ 10.05
============ ============ ============ ============
Class B:
Net assets $ 4,532,343 $ 11,042,161 $ 17,748,664 $ 7,679,349
============ ============ ============ ============
Shares outstanding 449,731 1,091,984 1,762,106 764,425
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.08 $ 10.11 $ 10.07 $ 10.05
============ ============ ============ ============
<FN>
*Identified cost $ 5,715,509 $ 14,777,714 $ 37,678,024 $ 12,591,820
============ ============ ============ ============
<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) $ 5,459,952 $ 11,691,172 $ 12,737,887 $ 10,404,209
Cash 98,128 34,654 53,626 --
Receivables:
Securities sold 1,716,550 500,026 1,103,626 1,025,467
Beneficial interest sold -- 604,530 101,750 20,585
Interest 45,716 129,314 101,612 110,255
Investment adviser (Note 2) 17,266 17,527 21,775 19,659
Deferred organization expenses
(Note 1e) 47,600 47,600 47,600 47,600
------------ ------------ ------------ ------------
Total assets 7,385,212 13,024,823 14,167,876 11,627,775
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased 1,640,162 735,205 1,099,197 --
Beneficial interest redeemed -- -- 210,306 --
Distributor (Note 2) 683 1,852 2,395 2,768
Dividends to shareholders (Note 1f) 3,374 7,766 8,426 6,977
Accrued expenses and other liabilities 46,298 46,148 46,461 592,813
------------ ------------ ------------ ------------
Total liabilities 1,690,517 790,971 1,366,785 602,558
------------ ------------ ------------ ------------
Net Assets: Net assets $ 5,694,695 $ 12,233,852 $ 12,801,091 $ 11,025,217
============ ============ ============ ============
<PAGE>
Net Assets Class A Shares of beneficial interest,
Consist of: $0.10 par value, unlimited number of
shares authorized $ 31,563 $ 49,981 $ 42,394 $ 8,976
Class B Shares of beneficial interest,
$0.10 par value, unlimited number of
shares authorized 24,919 71,578 84,392 100,505
Paid-in capital in excess of par 5,594,687 12,042,088 12,556,307 10,843,669
Undistributed realized capital
gains--net 4,056 3,968 2,616 544
Unrealized appreciation on
investments--net 39,470 66,237 115,382 71,523
------------ ------------ ------------ ------------
Net assets $ 5,694,695 $ 12,233,852 $ 12,801,091 $ 11,025,217
============ ============ ============ ============
Net Asset Value: Class A:
Net assets $ 3,182,283 $ 5,028,448 $ 4,280,288 $ 903,952
============ ============ ============ ============
Shares outstanding 315,626 499,810 423,938 89,757
Net asset value and redemption price
per share $ 10.08 $ 10.06 $ 10.10 $ 10.07
============ ============ ============ ============
Class B:
Net assets $ 2,512,412 $ 7,205,404 $ 8,520,803 $ 10,121,265
============ ============ ============ ============
Shares outstanding 249,188 715,779 843,924 1,005,047
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.08 $ 10.07 $ 10.10 $ 10.07
============ ============ ============ ============
<FN>
*Identified cost $ 5,420,482 $ 11,624,935 $ 12,622,505 $ 10,332,686
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
For the Period November 26, 1993++ Limited Limited Limited Limited
to January 31, 1994 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium
Income (Note 1d): and discount earned $ 32,768 $ 76,137 $ 190,412 $ 68,524
<PAGE> ---------- ---------- ---------- ----------
Expenses: Investment advisory fees (Note 2) 3,679 8,704 21,994 7,154
Distribution fees--Class B (Note 2) 2,622 6,385 10,270 4,420
Transfer agent fees--Class A (Note 2) 137 224 700 273
Transfer agent fees--Class B (Note 2) 381 678 747 526
Printing and shareholder reports 1,239 3,031 5,535 1,833
Accounting services (Note 2) 5,701 6,491 5,490 5,702
Pricing fees 749 651 811 598
Registration fees (Note 1e) 4,375 4,409 6,693 5,754
Custodian fees 702 672 1,003 743
Professional fees 278 781 1,619 448
Directors' fees and expenses 729 1,862 3,402 1,197
Amortization of organization expenses
(Note 1e) 1,561 1,737 1,689 1,562
Other 96 672 1,305 120
---------- ---------- ---------- ----------
Total expenses before reimbursement 22,249 36,297 61,258 30,330
Reimbursement of expenses (Note 2) (19,627) (29,912) (50,988) (25,910)
---------- ---------- ---------- ----------
Total expenses after reimbursement 2,622 6,385 10,270 4,420
---------- ---------- ---------- ----------
Investment income--net 30,146 69,752 180,142 64,104
---------- ---------- ---------- ----------
Realized & Realized gain on investments--net 4,340 4,458 1,154 180
Unrealized Gain Unrealized appreciation
on Investment-- on investments--net 40,748 149,366 255,182 55,501
Net (Notes 1d ---------- ---------- ---------- ----------
& 3): Net Increase in Net Assets Resulting
from Operations $ 75,234 $ 223,576 $ 436,478 $ 119,785
========== ========== ========== ==========
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Period November 26, 1993++ Maturity Maturity Maturity Maturity
to January 31, 1994
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium
Income and discount earned $ 29,409 $ 55,741 $ 72,797 $ 53,625
(Note 1d): ----------- ---------- --------- ----------
Expenses: Investment advisory fees (Note 2) 3,202 6,477 7,684 6,477
Distribution fees--Class B (Note 2) 1,507 4,153 5,416 6,030
Transfer agent fees--Class A (Note 2) 311 208 266 44
Transfer agent fees--Class B (Note 2) 304 464 702 670
Printing and shareholder reports 1,432 1,800 3,047 1,744
Accounting services (Note 2) 6,232 4,379 6,526 5,832
Pricing fees 327 829 655 592
Registration fees (Note 1e) 4,882 5,040 4,940 5,835
Custodian fees 441 806 730 740
Professional fees 354 534 784 662
Directors' fees and expenses 722 1,021 1,702 1,181
Amortization of organization expenses
(Note 1e) 1,727 1,726 1,747 1,595
Other 534 720 676 764
<PAGE> ----------- ---------- --------- ----------
Total expenses before reimbursement 21,975 28,157 34,875 32,166
----------- ---------- --------- ----------
Reimbursement of expenses (Note 2) (20,468) (24,004) (29,459) (26,135)
----------- ---------- --------- ----------
Total expenses after reimbursement 1,507 4,153 5,416 6,031
----------- ---------- --------- ----------
Investment income--net 27,902 51,588 67,381 47,594
----------- ---------- --------- ----------
Realized & Realized gain on investments--net 4,056 3,968 2,616 544
Unrealized Unrealized appreciation on
Gain on investments--net 39,470 66,237 115,382 71,523
Investments--Net ----------- ---------- --------- ----------
(Notes 1d & 3): Net Increase in Net Assets Resulting
from Operations $ 71,428 $ 121,793 $ 185,379 $ 119,661
=========== ========== ========= ==========
<FN>
++Commencement of operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Period November 26, 1993++ to January 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 $ 30,146 $ 69,752 $ 180,142 $ 64,104
Realized gain on investments--net 4,340 4,458 1,154 180
Unrealized appreciation
on investments--net 40,748 149,366 255,182 55,501
---------- ----------- ----------- -----------
Net increase in net assets resulting
from operations 75,234 223,576 436,478 119,785
---------- ----------- ----------- -----------
Dividends to Investment income--net:
Shareholders Class A (9,395) (20,246) (102,470) (26,774)
(Note 1f): Class B (20,751) (49,506) (77,672) (37,330)
---------- ----------- ----------- -----------
Net decrease in net assets resulting
from dividends to shareholders (30,146) (69,752) (180,142) (64,104)
<PAGE> ---------- ----------- ----------- -----------
Beneficial Net increase in net assets derived
Interest from beneficial interest transactions 6,254,586 14,702,352 37,957,723 13,027,842
Transactions ---------- ----------- ----------- -----------
(Note 4):
Net Assets: Total increase in net assets 6,299,674 14,856,176 38,214,059 13,083,523
Beginning of period 100,000 100,000 100,000 100,000
---------- ----------- ----------- -----------
End of period $6,399,674 $14,956,176 $38,314,059 $13,183,523
========== =========== =========== ===========
<FN>
++Commencement of operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<CAPTION>
For the Period November 26, 1993++ to January 31, 1994
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Increase (Decrease) in Net Assets: Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 27,902 $ 51,588 $ 67,381 $ 47,594
Realized gain on investments--net 4,056 3,968 2,616 544
Change in unrealized appreciation
on investments--net 39,470 66,237 115,382 71,523
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 71,428 121,793 185,379 119,661
----------- ----------- ----------- -----------
Dividends to Investment income--net
Shareholders Class A (15,592) (20,740) (21,666) (3,767)
(Note 1f): Class B (12,310) (30,848) (45,715) (43,827)
----------- ----------- ----------- -----------
Net decrease in net assets
resulting from dividends
to shareholders (27,902) (51,588) (67,381) (47,594)
----------- ----------- ----------- -----------
Beneficial Net increase in net assets derived
Interest Trans- from beneficial interest transactions 5,551,169 12,063,647 12,583,093 10,853,150
actions (Note 4): ----------- ----------- ----------- -----------
Net Assets: Total increase in net assets 5,594,695 12,133,852 12,701,091 10,925,217
Beginning of period 100,000 100,000 100,000 100,000
----------- ----------- ----------- -----------
End of period $ 5,694,695 $12,233,852 $12,801,091 $11,025,217
=========== =========== =========== ===========
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
The following per share data and ratios have been derived
from information provided in the financial statements.
Increase (Decrease) in Net Asset Value:
<CAPTION>
For the Period November 26, 1993++ to January 31, 1994
Arizona California Florida Massachusetts
Limited Maturity Limited Maturity Limited Maturity Limited Maturity
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 .06 .05 .06 .05 .05 .05 .06 .05
Realized and unrealized gain on
investments--net .08 .08 .11 .11 .07 .07 .05 .05
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations .14 .13 .17 .16 .12 .12 .11 .10
------- ------- ------- ------- ------- ------- ------- -------
Less dividends:
Investment income--net (.06) (.05) (.06) (.05) (.05) (.05) (.06) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Total dividends (.06) (.05) (.06) (.05) (.05) (.05) (.06) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.08 $ 10.08 $ 10.11 $ 10.11 $ 10.07 $ 10.07 $ 10.05 $ 10.05
======= ======= ======= ======= ======= ======= ======= =======
Total Invest- Based on net asset value per share 1.41%+++ 1.35%+++ 1.69%+++ 1.63%+++ 1.28%+++ 1.22%+++ 1.13%+++ 1.07%+++
ment Return:** ======= ======= ======= ======= ======= ======= ======= =======
Ratios to Expenses, excluding distribution fees
Average Net and net of reimbursement .00% .00% .00% .00% .00% .00% .00% .00%
Assets: ======= ======= ======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .00% .35%* .00% .35%* .00% .35%* .00% .35%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses 1.86%* 2.22%* 1.20%* 1.55%* .81%* 1.17%* 1.25%* 1.63%*
======= ======= ======= ======= ======= ======= ======= =======
Investment income--net 3.11%* 2.77%* 3.06%* 2.71%* 3.06%* 2.65%* 3.43%* 2.96%*
======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in
Data: (thousands) $ 1,867 $ 4,532 $ 3,914 $11,042 $20,565 $17,749 $ 5,504 $ 7,679
======= ======= ======= ======= ======= ======= ======= =======
Portfolio turnover 44.78% 44.78% .00% .00% 1.98% 1.98% .00% .00%
======= ======= ======= ======= ======= ======= ======= =======
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
Increase (Decrease) in Net Asset Value:
For the Period November 26, 1993++ to January 31, 1994
Michigan New Jersey New York Pennsylvania
Limited Maturity Limited Maturity Limited Maturity Limited Maturity
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 .06 .05 .05 .05 .06 .05 .05 .05
Realized and unrealized gain on
investments--net .08 .08 .06 .07 .10 .10 .07 .07
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations .14 .13 .11 .12 .16 .15 .12 .12
------- ------- ------- ------- ------- ------- ------- -------
Less dividends:
Investment income--net (.06) (.05) (.05) (.05) (.06) (.05) (.05) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Total dividends (.06) (.05) (.05) (.05) (.06) (.05) (.05) (.05)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.08 $ 10.08 $ 10.06 $ 10.07 $ 10.10 $ 10.10 $ 10.07 $ 10.07
======= ======= ======= ======= ======= ======= ======= =======
Total Invest- Based on net asset value per share 1.43%+++ 1.37%+++ 1.17%+++ 1.21%+++ 1.64%+++ 1.58%+++ 1.26%+++ 1.20%+++
ment Return:** ======= ======= ======= ======= ======= ======= ======= =======
Ratios to Expenses, excluding distribution fees
Average Net and net of reimbursement .00% .00% .00% .00% .00% .00% .00% .00%
Assets: ======= ======= ======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .00% .35%* .00% .35%* .00% .35%* .00% .35%*
======= ======= ======= ======= ======= ======= ======= =======
Expenses 2.23%* 2.59%* 1.24%* 1.68%* 1.34%* 1.69%* 1.41%* 1.76%*
======= ======= ======= ======= ======= ======= ======= =======
Investment income--net 3.22%* 2.86%* 3.12%* 2.60%* 3.34%* 2.95%* 2.95%* 2.54%*
======= ======= ======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period
Data: (in thousands) $ 3,182 $ 2,512 $ 5,028 $ 7,205 $ 4,280 $ 8,521 $ 904 $10,121
======= ======= ======= ======= ======= ======= ======= =======
Portfolio turnover 68.74% 68.74% 29.55% 29.55% 25.84% 25.84% 18.07% 18.07%
======= ======= ======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
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 investment management company. 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 con-
ditions, except that 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.
(a) Valuation of investments--Municipal bonds and other portfolio
securities in which the Trust invests 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. 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, in-
cluding valuations furnished by a pricing service retained by the Trust,
which may utilize a matrix system for valuations. The procedures of the
pricing service and its valuations are reviewed by the officers of the
Trust under the general supervision of the Trustees.
<PAGE>
(b) Financial futures contracts--The Trust may purchase or sell in-
terest 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 Trust
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Trust agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the con-
tract. Such receipts or payments are known as variation margin and
are recorded by the Trust as unrealized gains or losses. When the
contract is closed, the Trust records 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 the Trust'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 transactions
are recorded on the dates the transactions are entered into (the trade
dates). Interest income is recognized on the accrual basis. Original
issue discounts and market premiums are amortized into interest income.
Realized gains and losses on security transactions are determined on the
identified cost basis.
(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. Costs related to the organization
of the second class of shares are charged to expense over a period not
exceeding five years. 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:
The Trust has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). Effective January 1, 1994, the invest-
ment 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 and Co., Inc. ("ML & Co.").
The general partner of FAM is Princeton Services, Inc., an indirect wholly-
owned subsidiary of ML & Co. The limited partners are ML & Co. and Merrill
Lynch Investment Management, Inc. ("MLIM"), which is also an indirect wholly-
owned subsidiary of ML & Co. The Trust has also entered into Distribution
Agreements and a Distribution Plan with Merrill Lynch Funds Distributor, Inc.
("MLFD" or "Distributor"), a wholly-owned subsidiary of MLIM.
<PAGE>
FAM is responsible for the management of the Trust's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Trust. For such services, the Trust pays
a monthly fee based upon the average daily value of the Trust's net assets
at the following annual rates: 0.35% of the Trust's average daily net assets.
The Investment Advisory Agreement obligates FAM to reimburse the Trust to
the extent the Trust's expenses (excluding interest, taxes, distribution
fees, brokerage fees and commissions, and extraordinary items) exceed 2.5%
of the Trust'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 the Trust
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.
For the period November 26, 1993 to January 31, 1994, FAM had voluntarily
waived management fees and reimbursed the Trust for additional expenses
as follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 3,679 $ 8,704 $ 21,994
Additional expenses 15,948 21,208 28,994
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 7,154 $ 3,202 $ 6,477
Additional expenses 18,756 17,266 17,527
New York Pennsylvania
Limited Limited
Maturity Maturity
Management fee $ 7,684 $ 6,477
Additional expenses 21,775 19,658
The Trust has adopted a Plan of Distribution (the "Plan") pursuant
to Rule 12b-1 under the Investment Company Act of 1940 that each Fund
pays the Distributor an ongoing account maintenance fee and distribution
fee relating to 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 the
sub-agreements with the Distributor, Merrill Lynch also provides account
maintenance and distribution services to each Fund. As authorized by the
Plan, the Distributor has entered into an agreement with Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), an affiliate of MLIM, which
provides for the compensation of MLPF&S for providing distribution-
related services to the Trust.
<PAGE>
For the period November 26, 1993 to January 31, 1994, MLFD earned
underwriting discounts and MLPF&S earned dealer concessions on
sales of the Trust's Class A Shares as follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
MLFD $ 206 $ 428 $ 1,146
MLPF&S 53,445 22,567 61,490
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
MLFD $ 1,518 $ 241 $ 180
MLPF&S 29,502 21,381 7,057
New York Pennsylvania
Limited Limited
Maturity Maturity
MLFD $ 482 $ 15
MLPF&S 17,281 4,088
MLPF&S received contingent deferred sales charges relating to transactions
in Class B Shares, amounting to $0, $720, $801, $500, $0, $217, $1,000, and
$30 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 the Trust'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, MLIM, MLFD, FDS, MLPF&S, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for
the period November 26, 1993 to January 31, 1994, were as follows:
<PAGE>
Purchases Sales
Arizona Limited Maturity $ 5,335,402 $ 1,112,910
California Limited Maturity 10,283,748 --
Florida Limited Maturity 28,365,848 252,070
Massachusetts Limited Maturity 10,998,927 --
Michigan Limited Maturity 5,223,222 1,301,280
New Jersey Limited Maturity 11,457,551 1,224,201
New York Limited Maturity 10,235,862 1,106,950
Pennsylvania Limited Maturity 9,095,505 609,138
NOTES TO FINANCIAL STATEMENTS (continued)
Net realized and unrealized gains (losses) as of January 31, 1994 were
as follows:
Realized Unrealized
Arizona Limited Maturity Gains Gains
Long-term investments $ 3,592 $ 40,207
Short-term investments 748 541
-------- --------
Total $ 4,340 $ 40,748
======== ========
Realized Unrealized
California Limited Maturity Gains Gains
Long-term investments -- $147,985
Short-term investments $ 4,458 1,381
-------- --------
Total $ 4,458 $149,366
======== ========
Realized Unrealized
Florida Limited Maturity Gains Gains
Long-term investments $ 1,144 $253,444
Short-term investments 10 1,738
-------- --------
Total $ 1,154 $255,182
======== ========
Realized Unrealized
Massachusetts Limited Maturity Gains Gains
Long-term investments -- $ 54,667
Short-term investments $ 180 834
-------- --------
Total $ 180 $ 55,501
======== ========
<PAGE> Realized Unrealized
Michigan Limited Maturity Gains (Losses) Gains
Long-term investments $ 4,062 $ 39,154
Short-term investments (6) 316
-------- --------
Total $ 4,056 $ 39,470
======== ========
Realized Unrealized
New Jersey Limited Maturity Gains Gains
Long-term investments $ 3,953 $ 65,837
Short-term investments 15 400
-------- --------
Total $ 3,968 $ 66,237
======== ========
Realized Unrealized
New York Limited Maturity Gains Gains
Long-term investments $ 1,841 $114,026
Short-term investments 775 1,356
-------- --------
Total $ 2,616 $115,382
======== ========
Realized Unrealized
Pennsylvania Limited Maturity Gains (Losses) Gains
Long-term investments $ 798 $ 71,170
Short-term investments (254) 353
-------- --------
Total $ 544 $ 71,523
======== ========
As of January 31, 1994, net unrealized appreciation for
Federal income tax purposes were as follows:
<PAGE>
Gross Gross Net
Unrealized Unrealized Unrealized
Appreciation Depreciation Appreciation
Arizona Limited Maturity $ 40,748 -- $ 40,748
California Limited Maturity 149,366 -- 149,366
Florida Limited Maturity 255,182 -- 255,182
Massachusetts Limited
Maturity 57,383 ($1,882) 55,501
Michigan Limited Maturity 39,470 -- 39,470
New Jersey Limited Maturity 66,237 -- 66,237
New York Limited Maturity 115,382 -- 115,382
Pennsylvania Limited
Maturity 72,637 (1,114) 71,523
The aggregate cost of investments at January 31, 1994 for Federal income tax
purposes was $5,715,509 for the Arizona Limited Maturity Fund, $14,777,714
for the California Limited Maturity Fund, $37,678,024 for the Florida
Limited Maturity Fund, $12,591,820 for the Massachusetts Limited Maturity
Fund, $5,420,482 for the Michigan Limited Maturity Fund, $11,624,935 for
the New Jersey Limited Maturity Fund, $12,622,505 for the New York Limited
Maturity Fund and $10,332,686 for the Pennsylvania Limited Maturity Fund.
4. Beneficial Interest Transactions:
Net increase in net assets derived from beneficial interest transactions
for the period ended January 31, 1994 were $6,254,586 for the Arizona
Limited Maturity Fund; $14,702,352 for the California Limited Maturity
Fund; $37,957,723 for the Florida Limited Maturity Fund; $13,027,842 for
the Massachusetts Limited Maturity Fund; $5,551,169 for the Michigan
Limited Maturity Fund; $12,063,647 for the New Jersey Limited Maturity
Fund; $12,583,093 for the New York Limited Maturity Fund; and $10,853,150
for the Pennsylvania Limited Maturity Fund.
Transactions in beneficial interest for Class A and Class B Shares
were as follows:
Arizona Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold $ 201,702 $2,018,747
Shares issued to shareholders in
reinvestment of dividends 411 4,126
---------- ----------
Total issued 202,113 2,022,873
Shares redeemed (21,819) (218,402)
---------- ----------
Net increase 180,294 $1,804,471
========== ==========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
Arizona Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold $ 459,367 $4,596,648
Shares issued to shareholders in
reinvestment of dividends 813 8,165
---------- ----------
Total issued 460,180 4,604,813
Shares redeemed (15,449) (154,698)
---------- ----------
Net increase 444,731 $4,450,115
========== ==========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
California Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 422,588 $ 4,230,771
Shares issued to shareholders in
reinvestment of dividends 772 7,773
------- -----------
Total issued 423,360 4,238,544
Shares redeemed (41,288) (416,069)
------- -----------
Net increase 382,072 $ 3,822,475
======= ===========
[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 January 31, 1994 Shares Amount
Shares sold 1,144,288 $11,455,675
Shares issued to shareholders in
reinvestment of dividends 1,922 19,352
--------- -----------
Total issued 1,146,210 11,475,027
Shares redeemed (59,226) (595,150)
--------- -----------
Net increase 1,086,984 $10,879,877
<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 A Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 2,275,154 $22,770,267
Shares issued to shareholders in
reinvestment of dividends 3,456 34,690
--------- -----------
Total issued 2,278,610 22,804,957
Shares redeemed (241,740) (2,425,673)
--------- -----------
Net increase 2,036,870 $20,379,284
========== ===========
[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 January 31, 1994 Shares Amount
Shares sold 1,769,985 $17,707,730
Shares issued to shareholders in
reinvestment of dividends 2,830 28,409
--------- -----------
Total issued 1,772,815 17,736,139
Shares redeemed (15,709) (157,700)
--------- -----------
Net increase 1,757,106 $17,578,439
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
NOTES TO FINANCIAL STATEMENTS (concluded)
Massachusetts Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 663,619 $ 6,640,306
Shares issued to shareholders in
reinvestment of dividends 1,101 11,036
-------- -----------
Total issued 664,720 6,651,342
Shares redeemed (121,789) (1,219,788)
-------- -----------
Net increase 542,931 $ 5,431,554
======== ===========
[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 January 31, 1994 Shares Amount
Shares sold 764,545 $ 7,647,609
Shares issued to shareholders in
reinvestment of dividends 1,560 15,641
------- -----------
Total issued 766,105 7,663,250
Shares redeemed (6,680) (66,962)
-------- -----------
Net increase 759,425 $ 7,596,288
======== ===========
[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 January 31, 1994 Shares Amount
Shares sold 323,102 $ 3,233,808
Shares issued to shareholders in
reinvestment of dividends 262 2,625
------- -----------
Total issued 323,364 3,236,433
Shares redeemed (12,738) (127,702)
------- -----------
Net increase 310,626 $ 3,108,731
======= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Michigan Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 243,776 $ 2,438,309
Shares issued to shareholders in
reinvestment of dividends 412 4,129
------- -----------
Total issued 244,188 2,442,438
Shares redeemed -- --
------- -----------
Net increase 244,188 $ 2,442,438
======= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
New Jersey Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 509,861 $ 5,103,320
Shares issued to shareholders in
reinvestment of dividends 404 4,047
-------- -----------
Total issued 510,265 5,107,367
Shares redeemed (15,455) (154,671)
-------- -----------
Net increase 494,810 $ 4,952,696
======== ===========
[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 B Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 720,314 $ 7,206,431
Shares issued to shareholders in
reinvestment of dividends 1,415 14,194
------- -----------
Total issued 721,729 7,220,625
Shares redeemed (10,950) (109,674)
-------- -----------
Net increase 710,779 $ 7,110,951
======= ===========
[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 January 31, 1994 Shares Amount
Shares sold 472,522 $ 4,731,861
Shares issued to shareholders in
reinvestment of dividends 1,404 14,114
------- -----------
Total issued 473,926 4,745,975
Shares redeemed (54,988) (551,537)
------- -----------
Net increase 418,938 $ 4,194,438
======= ===========
[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 January 31, 1994 Shares Amount
Shares sold 874,974 $ 8,751,574
Shares issued to shareholders in
reinvestment of dividends 1,820 18,294
-------- -----------
Total issued 876,794 8,769,868
Shares redeemed (37,870) (381,213)
-------- -----------
Net increase 838,924 $ 8,388,655
======== ===========
[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 January 31, 1994 Shares Amount
Shares sold 86,592 $ 867,265
Shares issued to shareholders in
reinvestment of dividends 226 2,272
------ -----------
Total issued 86,818 869,537
Shares redeemed (2,061) (20,672)
------ -----------
Net increase 84,757 $ 848,865
====== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
Pennsylvania Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to January 31, 1994 Shares Amount
Shares sold 1,001,643 $10,020,165
Shares issued to shareholders in
reinvestment of dividends 2,306 23,156
--------- -----------
Total issued 1,003,949 10,043,321
Shares redeemed (3,902) (39,036)
--------- -----------
Net increase 1,000,047 $10,004,285
========= ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
