MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Annual Report
July 31, 1995
<PAGE>
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
Trustees
<PAGE>
Arthur Zeikel, President and Trustee
James H. Bodurtha, 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, 12th Floor
New York, New York 10005
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
Transfer Agency Mutual Fund Operations
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
Important Tax
Information
All of the net investment income distributions paid monthly by
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
during its taxable year ended July 31, 1995 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, the Massachusetts Limited Maturity Fund distributed
long-term capital gains of $.012241 per share to shareholders of
record on December 19, 1994. There were no short-term capital gains
distributed by any Fund of the Trust.
Please retain this information for your records.
<PAGE>
TO OUR SHAREHOLDERS
In the July quarter, economic data gen-
erally showed evidence of slowing activity.
Gross domestic product growth for the
first three months of 1995 was reported at
2.7%, the weakest showing in the past
18 months. Other signs of a sluggish econ-
omy included lackluster durable goods
orders, slowing growth in the manufactur-
ing sector, and three consecutive months
of declines in the Index of Leading Eco-
nomic Indicators, an occurrence which
has often (but not always) forecast reces-
sions. As a result, concerns arose that the
economic "soft landing" could turn into
an actual recession. However, at the same
time there were also expectations that a
few months of very slow or zero growth
would be followed by a pickup in eco-
nomic activity later in the year. This view
was supported by the stronger-than-
expected employment data for June and
an upward revision in May's employment
figures, as well as improving housing
activity measures and consumer con-
fidence survey.
Thus far in 1995, economic developments
have been very positive for the US stock
and bond markets, and most US stock
market averages recently have attained
record levels. In contrast, the US dollar
has been persistently weak, especially
relative to the yen. Following the Federal
Reserve Board's cut in short-term interest
rates in early July, continued signs of a
moderating expansion and well-contained
inflationary pressures could provide fur-
ther assurance that the peak in US interest
rates is behind us, creating a stronger
foundation for higher stock and bond
prices. On the other hand, indications of
reaccelerating growth and increasing
inflationary pressures would likely sug-
gest that higher interest rates are on the
horizon, a negative development for the
US financial markets. The outcome of the
current deliberations on reducing the
Federal budget deficit will also play a role
in the investment outlook for the US
capital markets.
<PAGE>
The Municipal Market
Tax-exempt bond yields exhibited consid-
erable volatility during the three months
ended July 31, 1995. Municipal bond yields
initially fell throughout May into early
June as evidence of a slowing domestic
economy and moderate inflationary pres-
sures accumulated. As measured by the
Bond Buyer Revenue Bond Index, yields
of A-rated, uninsured tax-exempt revenue
bonds declined 35 basis points (0.35%) to
5.94%. By late June, however, amid signs
of a potentially resurgent economy,
particularly in the rebounding housing
sector, bond yields returned to their April
quarter's levels of approximately 6.30%.
The lowering of short-term interest rates
by the Federal Reserve Board in early July
temporarily restored investor confidence
and tax-exempt bond yields fell to 6.05%.
As additional economic indicators were
released during July, investors again saw
signs that the economy was regaining
momentum and that the Federal Reserve
Board action had been premature. Fears
that an expanding economy would have
negative inflationary consequences pushed
municipal bond yields higher, ending
the July 31, 1995 quarter essentially
unchanged at 6.27%. US Treasury bond
yields exhibited a similar pattern of
volatility during the July quarter. However,
US Treasury bond yields continued to
decline, falling approximately 50 basis
points to 6.85%.
Municipal bonds have underperformed US
Treasury securities for a number of
reasons. The record highs of the US equity
market have continued to attract retail
investors seeking further capital gains.
Investor demand has also been dimin-
ished in recent months by the "sticker
shock" effect that periodically affects the
municipal bond market. Investors who
had become accustomed to purchasing
tax-exempt securities in the 6.50%--7.00%
range six to seven months ago have demon-
strated understandable reluctance to pur-
chase similar securities at current levels.
The strong fundamental structure of the
municipal bond market, however, suggests
that such hesitancy may prove costly.
<PAGE>
However, the major reason by far for the
tax-exempt market's recent underper-
formance has been concerns regarding
the implication for municipal bonds' tax
advantage resulting from various proposed
tax law changes (for example, flat tax,
value-added tax or national sales tax)
that have reduced investor demand for
tax-exempt products. Such concerns are
likely to quickly recede as investors real-
ize that such, if any, changes are unlikely
to be enacted before late 1996 at the
earliest. Long-term investors will also
recall 1986 when similar tax proposals were
made, municipal bond yields initially rose,
in some instances, to over 100% of taxable
yields. Tax-exempt bond yields quickly
declined as investors' fears proved to
be unfounded.
The municipal bond market's strong tech-
nical position has diminished somewhat
in recent months. New-issue supply over
the last six months has totaled approxi-
mately $71 billion, or a decline of over
20% compared to the corresponding period
in 1994. In recent months, however, munici-
palities issued approximately $41 billion
in new securities, which represents only
a 6% decline versus the same period a
year earlier. Investor demand has remained
muted in recent months despite signifi-
cant funds available to investors. By the
end of July investors, both individual and
institutional, are expected to have received
as much as $80 billion from tax-exempt
bond maturities, coupon payments and
the proceeds of early bond redemptions.
Little new money has entered the munici-
pal market in recent months, largely in
response to the factors mentioned above.
Consequently, much of the technical sup-
port the municipal market enjoyed earlier
this year has evaporated, causing munici-
pal bond yields to decline at a slower rate
than their taxable counterparts.
<PAGE>
However, the recent relative underper-
formance of municipal bonds has made
them particularly attractive to long-term
investors. Tax-exempt bonds currently
yield well over 90% of US Treasury securi-
ties. In some instances, A-rated, long-term
revenue bonds have yielded almost 95% of
US Treasury bonds. Analysts usually con-
sider municipal bonds yielding over 82%
of US Treasury securities to be historically
attractive. With inflation-adjusted, "real"
after-tax equivalent tax-exempt yields of
over 6.50%, municipal securities appear to
represent considerable value.
Current tax-exempt yield levels appear to
be overcompensating for any proposed
changes in tax law that can reasonably be
expected to be enacted. As Congressional
hearings on this matter would continue
into 1996, and the revenue losses result-
ant from such changes become more appar-
ent, the likelihood of any significant
changes to tax codes and the resultant
decline of municipal bonds' inherent tax
advantage should decline. Under such a
scenario, tax-exempt bond yields would
quickly decline and currently available
municipal bond yields would return to
their normal historic relationship.
Fiscal Year in Review
Merrill Lynch Arizona Limited Maturity
Municipal Bond Fund
The State of Arizona continues to see
economic strength in diverse industries.
The computer chip industry is rapidly
replacing construction jobs as the strong-
est growth area. The service sector
continues to experience labor shortfalls.
Although Arizona's rapid growth appears
to be leveling off, it is still experiencing
the most consistent growth of all of the
50 states.
<PAGE>
During the quarter ended July 31, 1995,
we continued to employ the strategy we
have utilized since January 1995. We
"barbelled" the portfolio by investing pri-
marily in bonds at the longer end of our
maturity spectrum while simultaneously
maintaining sufficient shorter maturity
securities to maintain a portfolio maturity
within our allowed parameters. The utili-
zation of this strategy in the latter part of
our fiscal year served the Fund well.
Municipal intermediate yields hit their
highs for the year in January and have not
approached these levels since then. We
maintained a defensive posture in the
first half of the year because of our uncer-
tainty over the immediate course of
interest rates and volatility in the inter-
mediate market. Therefore we were poised
to capitalize on this back up in yields. In
addition, the yield curve inside of five
years was extremely flat. This left us with
little incentive to shorten our average
portfolio maturity from its current 4.8
years. This compares to an average port-
folio maturity of just 3 years at the onset
of our fiscal year in August 1994. In
addition, Arizona state-specific issuance
declined significantly from a year ago,
For example, in the last quarter Arizona
issuance totaled $633 million, and for the
Fund's fiscal year $2.1 billion, a decrease
of 55% from the same period in 1994.
The portfolio is invested primarily in
AA-rated bonds or insured bonds because
of the liquidity they provide. Our defensive
posture at the onset of our year allowed
us to maintain a relatively stable net asset
value in an uncertain market environment
and to increase our net asset value in the
latter half of the year.
Merrill Lynch California Limited Maturity
Municipal Bond Fund
<PAGE>
During the quarter ended July 31, 1995,
the US Labor Department reported that
California's unemployment rate rose to 7.9%
in July versus 7.6% in June. This number
compares with a national rate of 5.7%.
The economy in the northern part of the
state is stronger because of its expand-
ing high-tech industry, while Southern
California is trying to stem job losses.
California's job-loss rate is higher than
other states because it lost hundreds of
thousands of jobs in aerospace and other
defense-related areas. July's unemploy-
ment increase is attributed to the contin-
uing cuts and closures at military instal-
lations. The latest economic numbers,
though mixed, showed that California's
modest recovery is still on track. Home
resales were up for the first time since
February to a rate of 380,000 units and
tourism and entertainment each posted
gains in the second quarter.
Governor Pete Wilson is expected to sign
into law a $57.3 billion spending plan that
cuts welfare but increases education
funding by $1 billion. State Controller
Kathleen Connell and others questioned
the reliability of the budget's revenue
estimates, particularly the budget's reli-
ance on $500 million in Federal funds to
offset California's cost of coping with
undocumented immigrants. The budget
also assumes personal income growth of
6.2% versus 3.5% last year. Without that
increase, revenue from income taxes and
sales taxes could fall short of estimates
and trigger additional program cuts.
<PAGE>
In December 1994 we saw value in high-
yield bonds offered in the market as an
opportunity to extend the average portfo-
lio maturity of Merrill Lynch California
Limited Maturity Municipal Bond Fund
to 4.6 years and also take advantage of
year-end technical pressures such as large
municipal defeasance as well as light new-
issue supply. We extended the average
maturity to 4.8 years after the Federal
Reserve Board tightened monetary policy
for what we anticipated might be the final
move of the tightening cycle on February 1,
1995, by raising the Federal Funds rate
from 5.50% to 6.00%. We maintained this
aggressive investment posture through
July, a move that benefited the portfolio
since the Federal Reserve Board lowered
the Federal Funds rate from 6.00% to 5.75%
in mid-July because of lower inflationary
expectations. During the six-month
period ended July 31, 1995, ten-year
tax-exempt yields fell approximately 130
basis points. This more aggressive invest-
ment posture benefited the portfolio by
allowing it to participate in the massive
bond rally which ensued for most of 1995,
while the defensive nature of the Fund in
the first half of the fiscal year insulated
the net asset value from the rise in
interest rates which occurred in 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 Florida Limited Maturity
Municipal Bond Fund
<PAGE>
During the quarter ended July 31, 1995,
the US Labor Department reported that
Florida's unemployment rate dropped
to 5.2% in July from 5.3% in June and
down from the 6.3% posted in July 1994.
Florida's economy continues to show
modest growth with housing starts
rebounding and retail growth relatively
strong. Single-family home permits rose
14% in the May--June period. Business
services and tourism continued to show
strong summer growth, although manu-
facturing growth remains at a standstill
with continued layoffs at Lockheed Martin
Corporation. Standard & Poor's Corp.
affirmed its AA rating on Florida's $7 bil-
lion outstanding full faith and credit debt.
This affirmation encompassed the State's
expanding service-based economy as well
as Florida's sound financial condition,
characterized by healthy reserve posi-
tions and strong management controls.
Although economic indicators are positive,
the revenue forecasts for fiscal 1995 and
1996 were adjusted downward twice by
the State's Revenue Estimate Conference.
Despite those downward revisions,
Florida ended fiscal 1995 with a working
capital reserve of $231 million and $121
million in the newly established Budget
Stabilization Reserve Fund.
<PAGE>
In December 1994 we saw value in the
high yields offered in the market as an
opportunity to extend the average port-
folio maturity of Merrill Lynch Florida
Limited Maturity Municipal Bond Fund to
4.5 years and also take advantage of year-
end technical pressures, such as large
municipal defeasance, as well as light
new-issue supply. We further extended
the portfolio maturity to 4.8 years after
the Federal Reserve Board tightened mon-
etary policy for what we anticipated might
be the final move of the tightening cycle
on February 1, 1995 by raising the Federal
Funds Rate from 5.50% to 6.00%. This
aggressive investment posture was main-
tained through July and proved beneficial
to the Fund when the Federal Reserve
Board lowered the Federal Funds rate
from 6.00% to 5.75% in mid-July because
of lower inflationary expectations. During
the six-month period ended July 31, 1995,
ten-year tax-exempt yields fell approxi-
mately 130 basis points. This more-
aggressive investment posture benefited
the portfolio by allowing it to participate
in the strong bond rally that took place
during most of 1995, while the defensive
nature of the Fund in the first half of the
fiscal year insulated the net asset value to
some degree from the rise in interest
rates which occurred in 1994. Diversifi-
cation, credit quality and yield remain
paramount in importance to the Fund,
and we will continue to closely monitor
the ever changing marketplace.
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
The Commonwealth of Massachusetts
experienced a slowdown in economic
activity, which mirrored the performance
of the other states. This trend, which began
in early 1995, continued through the July
quarter and might be stabilizing, accord-
ing to recent economic statistics. Employ-
ment was steady as the seasonally adjusted
unemployment level for July 1995 was
the same as the national average, 5.7%.
<PAGE>
The Commonwealth of Massachusetts
ended its fiscal year 1995 with tax rev-
enues up 5.4% over fiscal 1994. This con-
tributed to a cash balance of $372 million
in the undesignated fund and $385 million
in the stabilization fund as of June 30, 1995.
Governor Weld put forth his 1996 budget
of $16.8 billion, allowing for approximately
a 2.6% increase in spending over fiscal
year 1995. Governor Weld's 1996 budget
projects a fiscal year 1996 ending balance
of approximately $505 million, of which
approximately $419 million will be in the
stabilization fund. This budget continues
Governor Weld's efforts of fiscal responsi-
bility and enhances the Commonwealth's
ability to maintain high credit ratings.
Toward the end of 1994 short-term US
Treasury bond prices had continued to
decline after nearly 12 months because of
a prolonged period of stronger economic
growth created by a period of low short-term
interest rates in 1993. However, in January
1995 we recognized a possible turning
point and restructured the portfolio to a
more aggressive position to take advan-
tage of attractive current yield levels and
a possible reversal in bond prices. Value
in ten-year AAA-rated general obligation
bonds yielding approximately 6.00% had
been restored, so cash reserves in Merrill
Lynch Massachusetts Limited Maturity
Municipal Bond Fund were reduced and
the average portfolio maturity began to
be pushed out from a relatively defensive
2 years to approximately 4.5 years by
April and May 1995. This more-aggressive
investment posture benefited the port-
folio by allowing it to participate in the
strong bond rally that took place during
most of 1995, while the defensive nature
of the Fund in the first half of the fiscal
year insulated the net asset value to some
degree from the rise in interest rates which
occurred in 1994.
<PAGE>
We anticipate maintaining a more neutral
stance on the market in the upcoming
quarter as we assess economic data for
signs of the economy's direction and also
the direction of interest rates. Diversifi-
cation and credit quality continue to be
paramount in importance to the Fund.
Merrill Lynch Michigan Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1995,
Michigan's outstanding general obligation
bond rating was upgraded to Aa from A1 by
Moody's Investors Service, Inc., based upon
the state's traditionally low debt levels,
management's willingness to maintain
structural budget balance through con-
servative budgeting practices, the contin-
ued maintenance of high levels of reserves
and an improved state economy. The imple-
mentation of Michigan's restructuring
of state and local schools finances went
smoothly. Michigan's dependence on the
auto industry subjects it to greater eco-
nomic cyclicality, although structural
changes in the industry after the last two
recessions should better enable it to weather
future economic downturns. Also on the
economic front, the US Labor Department
reported that Michigan's unemployment
rate for July was 5.1%, down from 6.2% in
June and 5.8% in July 1994. Automobile
sales were relatively flat this year with light
vehicle sales at an annual rate of 14.8 mil-
lion in June, down from the 1994 level of
15.1 million. Vehicle production in Michigan
is down approximately 5% from a year ago.
<PAGE>
In December 1994 we saw value in the
high yields offered in the marketplace as
an opportunity to extend the average port-
folio maturity of Merrill Lynch Michigan
Limited Maturity Municipal Bond Fund
to 4.6 years and also take advantage of
year-end technical pressures such as large
municipal defeasance as well as light new-
issue supply. We then further extended
the portfolio's maturity to 4.9 years after
the Federal Reserve Board tightened
monetary policy for what we anticipated
might be the final move of the tightening
cycle on February 1, 1995 by raising
Federal Funds rate from 5.50% to 6.00%.
We maintained this aggressive investment
posture until the end of July, which proved
beneficial since the Federal Reserve
Board lowered the Federal Funds rate
from 6.00% to 5.75% in mid-July because
of lower inflationary expectations. During
the six-month period ended July 31, 1995,
ten-year tax-exempt yields fell approxi-
mately 130 basis points. This more
aggressive investment posture benefited
the portfolio by allowing it to participate
in the strong bond rally that took place
during most of 1995, while the defensive
nature of the Fund in the first half of the
fiscal year insulated the net asset value to
some degree from the rise in interest
rates which occurred in 1994. Diversifi-
cation, credit quality and yield remain
paramount in importance to the Fund,
and we will continue to closely monitor
the ever-changing marketplace.
Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund
During the three-month period ended
July 31, 1995, the New Jersey State
legislature passed a $16.0 billion budget
for fiscal 1996. Included in the budget was
a small increase in aid to municipalities
and school districts, especially poor school
districts. Also, Governor Christine Whitman
received final legislative approval for the
third and final leg of her tax-cut plan. The
economy continues to stagnate with the
unemployment rate rising from 6.5% in May to
6.8% in July.
<PAGE>
During the year ended July 31, 1995 we con-
tinued to employ the strategy we utilized
since January of this year. We "barbelled"
the portfolio by investing primarily in
bonds at the longer end of our maturity
spectrum while simultaneously maintain-
ing sufficient shorter-maturity securities
to maintain a portfolio maturity within
our allowed parameters. The utilization
of this strategy in the latter part of our
fiscal year served the Fund well. Munici-
pal intermediate yields hit their highs
in January for the year and have not
approached these levels since then.
Because we maintained a defensive pos-
ture in the first half of the year because
of our uncertainty over the immediate
course of interest rates and because of
volatility in the intermediate market we
were poised to capitalize on this back up
in yields. Recently, the yield curve inside
of five years has been extremely flat. This
left us with little incentive to abandon
our "barbell" strategy or shorten our aver-
age portfolio maturity from its current 4.8
years. In addition, New Jersey State--
specific issuance declined significantly
from a year ago. For example, in the
last quarter New Jersey issuance totaled
$1.3 billion and for the last 12 months
issuance totaled $3.3 billion, a decrease of
more than 50% from the same period in
the previous year. The portfolio is invested
primarily in AA-rated bonds or insured
bonds because of the liquidity they pro-
vide. Our defensive posture at the onset
of our year allowed us to maintain a
relatively stable net asset value in an
uncertain market environment and to
increase our net asset value in the latter
half of the year.
Merrill Lynch New York Limited Maturity
Municipal Bond Fund
During the quarter ended July 31, 1995,
New York's $34 billion budget was finally
passed after a 68-day delay. The State's
1996 budget drastically reduces govern-
ment spending on Medicaid and welfare
in an effort to offset the budget imbalances
caused by large multi-year tax cuts projected
over the next three years.
<PAGE>
However, because of the tax reductions
being phased-in over the next three years
and the size of the expenditure cuts that
must be realized this year, the State's fis-
cal picture remains stressed. Comptroller
H. Carl McCall estimates that New York
faces a $2.7 billion budget deficit in fiscal
1997 that could grow to $3.9 billion in
fiscal 1998. The fiscal 1996 budget relies
on almost $1.1 billion in one-time revenue
producing measures. Governor George
Pataki is also accused of using pension
fund reserves to close the fiscal 1996
deficit. On the economic front, New York's
unemployment rate rose to 6.2% in July
versus 5.9% in June. Job growth was
minimal in New York, which lagged most
of the other states for the past year. Pro-
jections for 1996 anticipate a weaker state
and national economy with New York's
job growth at only 0.4%, well below the
US rate of 5.0%.
In December 1994 we saw value in the
high yields offered in the market as an
opportunity to extend the maturity of
the average portfolio maturity of Merrill
Lynch New York Limited Maturity Munici-
pal Bond Fund to 4.5 years to take advan-
tage of year-end technical pressures such
as large municipal defeasance as well as
light new-issue supply. We then further
extended the Fund's portfolio maturity to
4.9 years after the Federal Reserve Board
tightened monetary policy for what we
anticipated might be the final move of the
tightening cycle on February 1, 1995 by
raising the Federal Fund's rate from 5.50%
to 6.00%. We maintained this aggressive
investment posture until the end of July,
which proved beneficial since the Federal
Reserve Board lowered the Federal Funds
rate from 6.00% to 5.75% in mid-July
because of lower inflationary expecta-
tions. During the six-month period ended
July 31, 1995, ten-year tax-exempt yields
fell approximately 130 basis points. This
more aggressive investment posture
benefited the portfolio by allowing it to
participate in the strong bond rally that
took place during most of 1995, while the
defensive nature of the Fund in the first
half of the fiscal year insulated the net
asset value to some degree from the rise
in interest rates which occurred in 1994.
Diversification, credit quality and yield
remain paramount in importance to the
Fund, and we will continue to closely
monitor the ever-changing marketplace.
<PAGE>
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
During the quarter ended July 31, 1995,
the Commonwealth of Pennsylvania's
economy continued to stagnate as it has
all year. Despite a weak economic picture,
tax revenue collections ended fiscal year
1995 on target with budget estimates.
This, combined with prudent fiscal man-
agement and monitoring expense outlays,
allowed the Commonwealth to end fiscal
year 1995 with a surplus of $540 million.
Governor Tom Ridge used this surplus as
an opportunity to increase the Commonwealth's
rainy day fund balance by $111 million.
During the July quarter, the Governor signed
Pennsylvania's $16.2 billion 1996 fiscal
budget. This budget increases education
spending by $143 million, allocates $109
million to a rainy-day reserve fund and
lowers the corporate net income tax by 1%
to 9.99%, while at the same time increasing
spending by only 2.7%.
During the July quarter, we continued to
employ the strategy we utilized since
January 1995. We "barbelled" the port-
folio by investing primarily in bonds at
the longer end of our maturity spectrum
while simultaneously maintaining shorter
maturity securities to maintain a portfolio
maturity within our allowed parameters.
The utilization of this strategy in the
latter part of our fiscal year served the
Fund well. Municipal intermediate yields
hit their highs for the year in January and
have not approached these levels since
then. Because we maintained a defensive
posture in the first half of our fiscal year
in response to our uncertainty over the
immediate course of interest rates and
because of volatility in the intermediate
market we were poised to capitalize on
this backup in yields. In addition, the
yield curve inside of five years was
extremely flat. This left us with little
incentive to shorten our average portfolio
maturity from its current 4.9 years. In
addition, Pennsylvania-specific issuance
declined significantly from a year ago.
For example, during the last quarter
Pennsylvania issuance totaled $1.8 billion
and for the Fund's fiscal year $6.4 billion,
a decrease of approximately 45% from the
same period in the previous year.
<PAGE>
The portfolio is invested primarily in
AA-rated bonds or insured bonds because
of the liquidity they provide. Our defensive
posture at the onset of our year allowed
us to maintain a relatively stable net asset
value in an uncertain market environment
and to increase our net asset value in the
latter half of the year.
In Conclusion
We appreciate your ongoing 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
September 7, 1995
<PAGE>
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 mainte-
nance 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 automatically convert to Class D Shares after
approximately 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).
Performance data for all of the Fund's shares are presented in the
"Total Return Based on a $10,000 Investment" graphs on pages 8-11
and the "Recent Performance Results" table on pages 14 and 15. Data
for the Fund's Class A and Class B Shares are presented in the "Average
Annual Total Returns" tables on pages 12 and 13. Data for Class C and
Class D Shares are also presented in the "Aggregate Total Returns"
tables on pages 13 and 14.
The "Recent Performance Results" table shows investment results
before the deduction of any sales charges for Class A and Class B
Shares for the 12-month and 3-month periods ended July 31, 1995
and for Class C and Class D Shares for the since inception and
3-month periods ended July 31, 1995. All data in this table assume
imposition of the actual total expenses incurred (net of reim-
bursement) by each class of shares during the relevant period.
None of the past results shown should be considered a represen-
tation 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. Dividends paid to
each class of shares will vary because of the different levels of
account maintenance, distribution and transfer agency fees appli-
cable to each class, which are deducted from the income available
to be paid to shareholders.
<PAGE>
PERFORMANCE DATA (continued)
Arizona Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
Arizona Limited Maturity++--
Class A* $ 9,900 $10,754
Arizona Limited Maturity++--
Class B* $10,000 $10,788
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
Arizona Limited Maturity++--
Class C* $10,000 $10,490
Arizona Limited Maturity++--
Class D* $ 9,900 $10,528
ML U1AO Index++++ $10,000 $10,510
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Arizona Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Arizona
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
California Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
California Limited Maturity++--
Class A* $ 9,900 $10,583
California Limited Maturity++--
Class B* $10,000 $10,627
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
California Limited Maturity++--
Class C* $10,000 $10,460
California Limited Maturity++--
Class D* $ 9,900 $10,480
ML U1AO Index++++ $10,000 $10,510
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++California Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of California
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
Florida Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
Florida Limited Maturity++--
Class A* $ 9,900 $10,617
Florida Limited Maturity++--
Class B* $10,000 $10,661
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
<PAGE>
10/21/94** 7/95
Florida Limited Maturity++--
Class C* $10,000 $10,465
Florida Limited Maturity++--
Class D* $10,000 $10,501
ML U1AO Index++++ $10,000 $10,510
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Florida Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Florida
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
Massachusetts Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
Massachusetts Limited Maturity++--
Class A* $ 9,900 $10,582
Massachusetts Limited Maturity++--
Class B* $10,000 $10,626
ML U1AO Index++++ $10,000 $10,732
<PAGE>
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
Massachusetts Limited Maturity++--
Class C* $10,000 $10,400
Massachusetts Limited Maturity++--
Class D* $ 9,900 $10,404
ML U1AO Index++++ $10,000 $10,510
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Massachusetts Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the Commonwealth of
Massachusetts or its political subdivisions, agencies or
instrumentalities, and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
Michigan Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
<PAGE>
11/26/93** 7/95
Michigan Limited Maturity++--
Class A* $ 9,900 $10,583
Michigan Limited Maturity++--
Class B* $10,000 $10,626
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
Michigan Limited Maturity++--
Class C* $10,000 $10,440
Michigan Limited Maturity++--
Class D* $ 9,900 $10,466
ML U1AO Index++++ $10,000 $10,510
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Michigan Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Michigan
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
New Jersey Limited Maturity
<PAGE>
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
New Jersey Limited Maturity++--
Class A* $ 9,900 $10,720
New Jersey Limited Maturity++--
Class B* $10,000 $10,775
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
New Jersey Limited Maturity++--
Class C* $10,000 $ 9,506
New Jersey Limited Maturity++--
Class D* $10,000 $ 9,545
ML U1AO Index++++ $10,000 $10,510
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New Jersey Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New Jersey
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
<PAGE>
New York Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
New York Limited Maturity++--
Class A* $ 9,900 $10,666
New York Limited Maturity++--
Class B* $10,000 $10,711
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
New York Limited Maturity++--
Class C* $10,000 $10,497
New York Limited Maturity++--
Class D* $ 9,900 $10,531
ML U1AO Index++++ $10,000 $10,510
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New York Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of New York
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
Pennsylvania Limited Maturity
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
11/26/93** 7/95
Pennsylvania Limited Maturity++--
Class A* $ 9,900 $10,667
Pennsylvania Limited Maturity++--
Class B* $10,000 $10,721
ML U1AO Index++++ $10,000 $10,732
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to the growth of an
investment in the ML U1AO Index. Beginning and ending values
are:
10/21/94** 7/95
Pennsylvania Limited Maturity++--
Class C* $10,000 $10,468
Pennsylvania Limited Maturity++--
Class D* $ 9,900 $10,503
ML U1AO Index++++ $10,000 $10,510
<PAGE>
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Pennsylvania Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade
obligations issued by or on behalf of the State of Pennsylvania
or its political subdivisions, agencies or instrumentalities,
and obligations of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds
maturing within three years.
Past Performance is not predictive of future performance.
PERFORMANCE DATA (continued)
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +6.32% +5.25%
Inception (11/26/93) through 6/30/95 +4.80 +4.14
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +5.78% +4.72%
Inception (11/26/93) through 6/30/95 +3.81 +3.16
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +6.01% +4.95%
Inception (11/26/93) through 6/30/95 +3.96 +3.30
<PAGE>
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +4.65% +3.60%
Inception (11/26/93) through 6/30/95 +3.81 +3.15
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +5.52% +4.47%
Inception (11/26/93) through 6/30/95 +3.80 +3.14
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +6.41% +5.35%
Inception (11/26/93) through 6/30/95 +4.60 +3.94
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +6.18% +5.12%
Inception (11/26/93) through 6/30/95 +4.38 +3.72
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/95 +5.94% +4.88%
Inception (11/26/93) through 6/30/95 +4.39 +3.73
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
<PAGE>
Average Annual
Total Returns
Arizona Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.93% +4.93%
Inception (11/26/93) through 6/30/95 +4.43 +4.43
California Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.40% +4.40%
Inception (11/26/93) through 6/30/95 +3.45 +3.45
Florida Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.63% +4.63%
Inception (11/26/93) through 6/30/95 +3.59 +3.59
Massachusetts Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +4.27% +3.27%
Inception (11/26/93) through 6/30/95 +3.44 +3.44
Michigan Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.14% +4.14%
Inception (11/26/93) through 6/30/95 +3.43 +3.43
<PAGE>
New Jersey Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +6.03% +5.03%
Inception (11/26/93) through 6/30/95 +4.23 +4.23
New York Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.80% +4.80%
Inception (11/26/93) through 6/30/95 +4.01 +4.01
Pennsylvania Limited Maturity
% Return % Return
Class B Shares* Without CDSC With CDSC**
Year Ended 6/30/95 +5.56% +4.56%
Inception (11/26/93) through 6/30/95 +4.02 +4.02
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Returns
Arizona Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +5.08% +4.08%
<PAGE>
California Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +4.86% +3.86%
Florida Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +4.83% +3.83%
Massachusetts Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +4.26% +3.26%
Michigan Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +4.66% +3.66%
New Jersey Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 -4.80% -5.73%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Returns
<PAGE>
Arizona Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.49% +4.44%
California Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.11% +4.06%
Florida Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.22% +4.17%
Massachusetts Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +4.35% +3.30%
Michigan Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +4.95% +3.90%
New Jersey Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.57% +4.51%
<PAGE>
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
PERFORMANCE DATA (concluded)
Aggregate
Total Returns
(concluded)
New York Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +5.21% +4.21%
Pennsylvania Limited Maturity
% Return % Return
Class C Shares* Without CDSC With CDSC**
Inception (10/21/94) through 6/30/95 +4.95% +3.95%
[FN]
*Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
Aggregate
Total Returns
(concluded)
New York Limited Maturity
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.71% +4.65%
Pennsylvania Limited Maturity
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Inception (10/21/94) through 6/30/95 +5.34% +4.29%
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
<TABLE>
Recent
Performance
Results*
<CAPTION>
Standardized
12 Month 3 Month 30-day Yield
12-Month 3-Month Total Total As of
7/31/95 4/30/95 7/31/94** % Change % Change Return++ Return 7/31/94
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.17 $10.05 $9.97 +2.01% +1.19% +6.47%(1) +2.28%(2) 3.86%
Arizona Limited Maturity Class B Shares 10.16 10.05 9.97 +1.91 +1.09 +5.99(3) +2.09(4) 3.54
Arizona Limited Maturity Class C Shares 10.17 10.06 9.89 +2.83 +1.09 +5.90(5) +2.04(6) 3.51
Arizona Limited Maturity Class D Shares 10.17 10.06 9.89 +2.83 +1.09 +6.34(7) +2.15(8) 3.77
California Limited Maturity Class A Shares 9.99 9.88 9.88 +1.11 +1.11 +5.60(9) +2.20(10) 3.75
California Limited Maturity Class B Shares 9.99 9.88 9.88 +1.11 +1.11 +5.23(11) +2.11(12) 3.43
California Limited Maturity Class C Shares 9.99 9.88 9.76 +2.36 +1.11 +5.60(13) +2.14(14) 3.61
California Limited Maturity Class D Shares 9.99 9.88 9.76 +2.36 +1.11 +5.85(15) +2.17(16) 3.65
Florida Limited Maturity Class A Shares 10.02 9.88 9.87 +1.52 +1.42 +6.05(17) +2.51(2) 3.86
Florida Limited Maturity Class B Shares 10.02 9.88 9.88 +1.42 +1.42 +5.57(18) +2.42(4) 3.54
Florida Limited Maturity Class C Shares 10.01 9.87 9.76 +2.56 +1.42 +5.65(19) +2.38(6) 3.51
Florida Limited Maturity Class D Shares 10.01 9.87 9.76 +2.56 +1.42 +6.07(15) +2.49(20) 3.77
Massachusetts Limited Maturity Class A Shares 9.96 9.89 9.95 +0.23(21) +0.71 +4.79(22) +1.80(10) 3.99
Massachusetts Limited Maturity Class B Shares 9.96 9.89 9.95 +0.23(21) +0.71 +4.41(23) +1.71(12) 3.67
Massachusetts Limited Maturity Class C Shares 9.96 9.88 9.82 +1.55(21) +0.81 +5.00(24) +1.86(25) 3.87
Massachusetts Limited Maturity Class D Shares 9.96 9.88 9.82 +1.55(21) +0.81 +5.09(26) +1.88(20) 3.89
Michigan Limited Maturity Class A Shares 9.98 9.88 9.92 +0.60 +1.01 +5.16(27) +2.15(28) 4.24
Michigan Limited Maturity Class B Shares 9.98 9.88 9.92 +0.60 +1.01 +4.78(29) +2.05(30) 3.90
Michigan Limited Maturity Class C Shares 9.98 9.88 9.76 +2.25 +1.01 +5.40(31) +2.01(12) 3.87
Michigan Limited Maturity Class D Shares 9.97 9.87 9.76 +2.15 +1.01 +5.72(32) +2.12(33) 4.14
New Jersey Limited Maturity Class A Shares 10.15 10.00 9.94 +2.11 +1.50 +6.45(34) +2.58(2) 3.72
New Jersey Limited Maturity Class B Shares 10.16 10.01 9.95 +2.11 +1.50 +6.07(35) +2.49(4) 3.40
New Jersey Limited Maturity Class C Shares 9.20 9.06 9.86 -6.69 +1.55 -4.01(36) +2.49(37) 3.47
New Jersey Limited Maturity Class D Shares 10.16 10.01 9.85 +3.15 +1.50 +6.51(38) +2.55(20) 3.63
New York Limited Maturity Class A Shares 10.05 9.91 9.91 +1.41 +1.41 +6.03(39) +2.56(40) 4.13
New York Limited Maturity Class B Shares 10.05 9.91 9.91 +1.41 +1.41 +5.66(41) +2.47(16) 3.81
New York Limited Maturity Class C Shares 10.05 9.91 9.78 +2.76 +1.41 +5.97(42) +2.45(14) 3.99
New York Limited Maturity Class D Shares 10.05 9.91 9.78 +2.76 +1.41 +6.37(43) +2.53(44) 4.04
Pennsylvania Limited Maturity Class A Shares 10.10 9.97 9.95 +1.51 +1.30 +5.89(45) +2.41(33) 4.03
Pennsylvania Limited Maturity Class B Shares 10.10 9.97 9.95 +1.51 +1.30 +5.51(46) +2.32(47) 3.72
Pennsylvania Limited Maturity Class C Shares 10.10 9.97 9.84 +2.64 +1.30 +5.68(48) +2.28(49) 3.70
Pennsylvania Limited Maturity Class D Shares 10.10 9.97 9.84 +2.64 +1.30 +6.10(50) +2.38(10) 3.94
<PAGE>
<FN>
*Investment results shown do not reflect sales charges; results shown would
be lower if a sales charge was included.
++Investment results shown for Class C and Class D Shares are since inception
(10/21/94).
(1)Percent change includes reinvestment of $0.429 per share ordinary income
dividends.
(2)Percent change includes reinvestment of $0.108 per share ordinary income
dividends.
(3)Percent change includes reinvestment of $0.393 per share ordinary income
dividends.
(4)Percent change includes reinvestment of $0.099 per share ordinary income
dividends.
(5)Percent change includes reinvestment of $0.285 per share ordinary income
dividends.
(6)Percent change includes reinvestment of $0.095 per share ordinary income
dividends.
(7)Percent change includes reinvestment of $0.327 per share ordinary income
dividends.
(8)Percent change includes reinvestment of $0.106 per share ordinary income
dividends.
(9)Percent change includes reinvestment of $0.427 per share ordinary income
dividends.
(10)Percent change includes reinvestment of $0.107 per share ordinary income
dividends.
(11)Percent change includes reinvestment of $0.392 per share ordinary income
dividends.
(12)Percent change includes reinvestment of $0.098 per share ordinary income
dividends.
(13)Percent change includes reinvestment of $0.298 per share ordinary income
dividends.
(14)Percent change includes reinvestment of $0.102 per share ordinary income
dividends.
<PAGE>
(15)Percent change includes reinvestment of $0.321 per share ordinary income
dividends.
(16)Percent change includes reinvestment of $0.104 per share ordinary income
dividends.
(17)Percent change includes reinvestment of $0.430 per share ordinary income
dividends.
(18)Percent change includes reinvestment of $0.395 per share ordinary income
dividends.
(19)Percent change includes reinvestment of $0.282 per share ordinary income
dividends.
(20)Percent change includes reinvestment of $0.105 per share ordinary income
dividends.
(21)Percent change includes reinvestment of $0.012 per share capital gains
distributions.
(22)Percent change includes reinvestment of $0.439 per share ordinary income
dividends and $0.012 per share capital gains distribution.
(23)Percent change includes reinvestment of $0.404 per share ordinary income
dividends and $0.012 per share capital gains distributions.
(24)Percent change includes reinvestment of $0.319 per share ordinary income
dividends and $0.012 per share capital gains distributions.
(25)Percent change includes reinvestment of $0.103 per share ordinary income
dividends.
(26)Percent change includes reinvestment of $0.328 per share ordinary income
dividends and $0.012 per share capital gains distributions.
(27)Percent change includes reinvestment of $0.435 per share ordinary income
dividends.
(28)Percent change includes reinvestment of $0.112 per share ordinary income
dividends.
(29)Percent change includes reinvestment of $0.400 per share ordinary income
dividends.
(30)Percent change includes reinvestment of $0.103 per share ordinary income
dividends.
(31)Percent change includes reinvestment of $0.288 per share ordinary income
dividends.
(32)Percent change includes reinvestment of $0.328 per share ordinary income
dividends.
(33)Percent change includes reinvestment of $0.109 per share ordinary income
dividends.
(34)Percent change includes reinvestment of $0.414 per share ordinary income
dividends.
(35)Percent change includes reinvestment of $0.379 per share ordinary income
dividends.
(36)Percent change includes reinvestment of $0.255 per share ordinary income
dividends.
(37)Percent change includes reinvestment of $0.085 per share ordinary income
dividends.
(38)Percent change includes reinvestment of $0.311 per share ordinary income
dividends.
<PAGE>
(39)Percent change includes reinvestment of $0.440 per share ordinary income
dividends.
(40)Percent change includes reinvestment of $0.113 per share ordinary income
dividends.
(41)Percent change includes reinvestment of $0.405 per share ordinary income
dividends.
(42)Percent change includes reinvestment of $0.294 per share ordinary income
dividends.
(43)Percent change includes reinvestment of $0.332 per share ordinary income
dividends.
(44)Percent change includes reinvestment of $0.111 per share ordinary income
dividends.
(45)Percent change includes reinvestment of $0.420 per share ordinary income
dividends.
(46)Percent change includes reinvestment of $0.385 per share ordinary income
dividends.
(47)Percent change includes reinvestment of $0.100 per share ordinary income
dividends.
(48)Percent change includes reinvestment of $0.280 per share ordinary income
dividends.
(49)Percent change includes reinvestment of $0.097 per share ordinary income
dividends.
(50)Percent change includes reinvestment of $0.320 per share ordinary income
dividends.
</TABLE>
Portfolio
Abbreviation:
To simplify the listings of Merrill
Lynch Multi-State Limited Maturity
Municipal Series Trust's portfolio
holdings in the Schedule of
Investments, we have abbreviated
the names of many of the securities
according to the list at right.
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
<PAGE>
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAW Revenue Anticipation Warrants
UPDATES Unit Price Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<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--96.8% NR* Aa $ 300 Arizona Educational Loan Marketing Corp., Educational Loan Revenue
Bonds, AMT, Senior Series, 5.875% due 9/01/2000 $ 309
A1+ VMIG1++ 200 Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary
Hospital Federation), VRDN, Series B, 3.85% due 10/01/2015 (a) (c) 200
AAA Aaa 280 Arizona State Transportation Board, Excise Tax Revenue Bonds (Maricopa
County Regional Area Road), Series A, 5.75% due 7/01/2004 (b) 298
AA- A1 350 Central Arizona Water Conservation District, Contract Revenue Bonds
(Central Arizona Project), Series B, 6.50% due 5/01/2001 (e) 389
A1+ NR* 300 Chandler, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Southpark
Apartments Project), VRDN, 3.90% due 12/01/2002 (a) 300
A1+ VMIG1++ 300 Maricopa County, Arizona, IDA, Hospital Facilities Revenue Bonds
(Samaritan Health Service Hospital), VRDN, Series B-2, 3.90%
due 12/01/2008 (a) (d) 300
NR* VMIG1++ 300 Maricopa County, Arizona, Pollution Control Corporation, PCR
(El Paso Electric Co.--Palo Verde Project), VRDN, Series E, 4.35%
due 12/01/2014 (a) 300
A1+ P1 200 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding
(Arizona Public Service Co.), VRDN, Series B, 3.85% due 5/01/2029 (a) 200
Phoenix, Arizona, Airport Revenue Refunding Bonds, AMT, Series C (d):
AAA Aaa 465 5.60% due 7/01/2002 488
AAA Aaa 480 5.70% due 7/01/2003 506
A1+ NR* 300 Phoenix, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Lynwood
Apartments Project), VRDN, 3.90% due 10/01/2025 (a) 300
AA+ Aa 1,000 Phoenix, Arizona, Revenue Refunding Bonds, UT, Series C, 6.375%
due 7/01/2002 1,099
AAA Aaa 475 Pima County, Arizona, Sewer Revenue Bonds, 6.20% due 7/01/2002 (b) (e) 521
A1 NR* 300 Tucson, Arizona, IDA, M/F Revenue Refunding Bonds (Lincoln Garden
Project), VRDN, 3.90% due 2/01/2006 (a) 300
AAA Aaa 250 Tucson, Arizona, Revenue Refunding Bonds, 5.10% due 7/01/1999 (c) 257
NR* VMIG1++ 300 Yavapai County, Arizona, IDA, IDR, Refunding (Kachina Pointe Project),
VRDN, 3.75% due 1/01/2009 (a) 300
<PAGE>
Total Investments (Cost--$5,877)--96.8% 6,067
Other Assets Less Liabilities--3.2% 198
-------
Net Assets--100.0% $ 6,265
=======
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
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--97.2% NR* A $ 685 California Educational Facilities Authority Revenue Refunding Bonds
(Saint Mary's College), 4.90% due 10/01/2003 $ 674
California Health Facilities Financing Authority Revenue Bonds, Series A:
AAA Aaa 500 Refunding (Catholic Healthcare West), 5.30% due 7/01/2003 (d) 510
A1+ VMIG1++ 180 Refunding (Saint Joseph Health System), VRDN, 3.75% due 7/01/2013 (a) 180
A1+ VMIG1++ 200 (Sutter Health), VRDN, 3.75% due 3/01/2020 (a) 200
AAA Aaa 600 California, HFA, Revenue Refunding Bonds, AMT, Series K, 5% due 2/01/2001 595
California Pollution Control Financing Authority, PCR, Refunding,
VRDN (a):
A1+ P1 200 (Exxon Project), 3.75% due 8/01/1995 200
A1+ VMIG1++ 200 (Shell Oil Company Project), Series B, 3.80% due 10/01/2011 200
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN, AMT (a):
A1 VMIG1++ 400 (Atlantic Richfield Company Project), Series A, 4% due 8/01/1995 400
NR* P1 300 (Delano Project), 4% due 8/01/2019 300
NR* P1 200 Refunding (Ultra Power Malaga Project), Series A, 3.95% due 8/01/1995 200
NR* P1 100 Refunding (Ultra Power Malaga Project), Series B, 4.35% due 8/01/1995 100
NR* P1 200 Refunding (Ultra Power Rocklin Project), Series A, 4.05% due 6/01/2017 200
<PAGE>
A1+ VMIG1++ 100 California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Shell Oil Co.--Martinez Project), VRDN, AMT, Series A,
3.95% due 10/01/2024 (a) 100
California State, GO, UT:
A A1 750 6.75% due 10/01/2003 836
AAA Aaa 750 6.35% due 11/01/2004 (b) 818
AAA Aaa 600 California State Public Works Board, Lease Revenue Bonds (Department of
Corrections--State Prison/Central California Women's Facility, Madera
County), Series A, 7% due 9/01/2000 (e) 681
SP1 MIG1++ 1,000 California State, RAW, Series C, 5.75% due 4/25/1996 1,014
AAA Aaa 500 California Statewide Community Development Authority, Lease Revenue
Refunding Bonds (Oakland Convention Center Project), 5.70%
due 10/01/2002 (d) 524
A+ NR* 700 East Bay, California, Municipal Utility District, Water System Revenue
Bonds, 7.40% due 6/01/2000 (e) 799
AAA Aaa 200 Los Angeles, California, Department of Airports, Revenue Refunding Bonds,
Series A, 6% due 5/15/2005 (b) 212
AA Aa 650 Los Angeles, California, Department of Water and Power, Electric Plant
Revenue Bonds, 6% due 4/01/2002 689
Los Angeles, California, Harbor Department Revenue Bonds, AMT, Series B:
AA Aa 275 6% due 8/01/2000 288
AA Aa 295 6% due 8/01/2001 310
AA Aa 500 6% due 8/01/2004 524
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds (Proposition C--Second Senior):
A1+ VMIG1++ 1,000 Refunding, VRDN, Series A, 3.70% due 7/01/2020 (a) (c) 1,000
AAA Aaa 400 Series B, 8% due 7/01/2003 (d) 480
AA- Aa1 1,000 Los Angeles County, California, Public Works Financing Authority Revenue
Refunding Bonds (Capital Construction), 4.80% due 3/01/2004 964
A1+ NR* 400 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 3.80% due 11/01/2015 (a) 400
AAA Aaa 700 San Francisco, California, City and County Sewer Revenue Bonds, Series A,
5.375% due 10/01/1999 (b) 726
AAA Aaa 500 Santa Clara County, California, Financing Authority Lease Revenue Bonds
(VMC Facility Replacement Project), Series A, 5.80% due 11/15/2000 (d) 528
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multi-Purpose Projects),
Series C, 10% due 9/01/2001 (d) 638
Puerto Rico--1.3% A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Revenue Refunding
Bonds, VRDN, 3.45% due 12/01/2015 (a) 200
Total Investments (Cost--$15,034)--98.5% 15,490
Other Assets Less Liabilities--1.5% 234
-------
Net Assets--100.0% $15,724
=======
<PAGE>
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)FGIC Insured.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
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--91.3% NR* VMIG1++ $ 1,400 Atlantic Beach, Florida, Revenue Refunding and Improvement Bonds (Fleet
Landing), VRDN, Series B, 4.05% due 10/01/2024 (a) $ 1,400
AAA Aaa 1,000 Broward County, Florida, School District Revenue Bonds, UT, 7.125%
due 2/15/1999 (f) 1,111
AAA Aaa 1,300 Cape Coral, Florida, Water and Sewer Revenue Refunding Bonds, UT,
5.25% due 1/01/2004 (c) 1,333
Dade County, Florida, Aviation Revenue Refunding Bonds, Series A (b):
AAA Aaa 500 5.60% due 10/01/2004 524
AAA Aaa 1,000 AMT, 5.25% due 10/01/1997 1,022
AA- VMIG1++ 100 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds
(Florida Power and Light Co.), VRDN, 3.85% due 6/01/2021 (a) 100
Dade County, Florida, Solid Waste Authority, IDR (Montenay-Dade
Limited Project), VRDN (a):
A1 VMIG1++ 280 AMT, 4.05% due 12/01/2010 280
A1 VMIG1++ 800 Series A, 4.05% due 12/01/2013 800
A1 VMIG1++ 400 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN, 3.80%
due 10/05/2022 (a) (c) 400
AAA Aaa 1,185 Dunedin, Florida, Hospital Revenue Bonds (Mease Health Care), 6.75%
due 11/15/2001 (d) (f) 1,348
Florida State Board of Education, Capital Outlay, Public Education
Revenue Refunding Bonds:
AA Aa 850 5.50% due 6/01/2001 890
AAA Aaa 1,000 Series A, 7.25% due 6/01/2000 (f) 1,140
AA Aa 1,000 Series A, 5% due 6/01/2004 1,007
<PAGE>
Florida State Division, Board of Finance Department, General Services
Revenue Bonds (Department of Natural Resources):
AAA Aaa 1,730 Refunding, Series A, 6.30% due 7/01/2004 (d) 1,867
AAA Aaa 1,000 Series 2000-A, 5.75% due 7/01/2000 (d) 1,057
AAA Aaa 1,900 Series 2000-A, 6.40% due 7/01/2002 (b) 2,091
Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric
Company Project), VRDN (a):
A1+ VMIG1++ 300 3.75% due 5/15/2018 300
AA VMIG1++ 800 3.90% due 9/01/2025 800
AA Aa1 1,000 Jacksonville, Florida, Electric Authority, Special Obligation Revenue
Bonds (Saint John's River), 4th Series, 6.65% due 10/01/2002 1,090
AA Aa1 1,000 Jacksonville, Florida, Electric Authority, Special Obligation Revenue
Refunding Bonds (Saint John's River--2), Series 6-B, 6.50% due
10/01/2001 1,089
AAA Aaa 750 Lake County, Florida, Sales Tax Revenue Bonds, 7.70% due
12/01/1995 (c) (f) 775
AA- Aa 800 Lakeland, Florida, Electric and Water Revenue Bonds, 6.70%
due 10/01/1999 868
A1+ VMIG1++ 1,100 Martin County, Florida, PCR, Refunding (Florida Power and Light Company
Project), VRDN, 3.85% due 9/01/2024 (a) 1,100
AAA Aaa 1,300 North Miami, Florida, Health Facilities Authority, Health Facility
Revenue Bonds (Bon Secours Health System Project), 6% due 8/15/2027 (e) 1,429
AAA Aaa 1,000 Palm Bay, Florida, Utility Revenue Bonds (Palm Bay Utility Corp.
Project), Series B, 6.20% due 10/01/2002 (d) (f) 1,112
Palm Beach County, Florida, GO, UT:
AA Aa 500 5.60% due 12/01/2001 530
AA Aa 250 5.70% due 12/01/2002 267
NR* Baa1 1,440 Pembroke Pines, Florida, Special Assessment No. 94-1, 4.80% due
11/01/1998 1,436
A1 VMIG1++ 200 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding
Bonds (Pooled Hospital Loan Program), DATES, 3.85% due 12/01/2015 (a) 200
A1+ VMIG1++ 100 Putnam County, Florida, Development Authority, PCR, Refunding (Florida
Power and Light Company Project), VRDN, 3.80% due 9/01/2024 (a) 100
AAA Aaa 1,335 Saint Lucie County, Florida, School Board, COP, Series A, 7.25% due
7/01/2000 (b) (f) 1,525
A1 VMIG1++ 1,400 Volusia County, Florida, Health Facilities Authority Revenue Bonds
(Pooled Hospital Loan Program), VRDN, ACES, 3.80% due 11/01/2015 (a) (c) 1,400
Puerto Rico--8.0% A Baa1 500 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 514
AAA NR* 1,000 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Refunding Bonds, Series T, 6.50% due 7/01/2002 (f) 1,124
A Baa1 1,000 Puerto Rico Commonwealth, Refunding, Series I, 5.30% due 7/01/2004 999
Total Investments (Cost--$32,256)--99.3% 33,028
Other Assets Less Liabilities--0.7% 245
-------
Net Assets--100.0% $33,273
=======
<PAGE>
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)FSA Insured.
(f)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
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-- NR* A1 $ 400 Boston, Massachusetts, Economic Development and Industrial Corp.,
93.9% Public Parking Facility, Series 1990, 5% due 7/01/2000 $ 401
AAA Aaa 400 Boston, Massachusetts, Revenue Refunding Bonds, UT, Series A, 5.20%
due 2/01/2004 (c) 406
A1+ VMIG1++ 300 Boston, Massachusetts, Water and Sewer Commission, General Revenue Bonds,
VRDN, Series A, 3.75% due 11/01/2024 (a) 300
AAA Aaa 300 Chelsea, Massachusetts, School Project Loan Act of 1948, UT, 6% due
6/15/2002 (c) 321
AAA Aaa 400 Lynn, Massachusetts, Water and Sewer Commission, Revenue Refunding Bonds,
4.95% due 12/01/2002 (e) 402
AAA Aaa 250 Massachusetts Educational Loan Authority Revenue Refunding Bonds, AMT,
Issue E, Series B, 5.50% due 7/01/2001 (c) 253
BBB+ A 500 Massachusetts Municipal Wholesale Electric Company, Power Supply System
Revenue Refunding Bonds, Series B, 6.375% due 7/01/2001 529
A A1 500 Massachusetts State Convention Center Authority Refunding Bonds (Hynes
Convention Center), 5.20% due 9/01/1995 501
A+ A1 750 Massachusetts State, GO, Refunding, Series B, 6.25% due 8/01/2001 809
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
A1+ VMIG1++ 400 (Capital Asset Program), VRDN, Series C, 4% due 7/01/2005 (a) (b) 400
A1+ VMIG1++ 400 (Harvard University), VRDN, Series I, 3.50% due 7/01/2005 (a) 400
NR* A1 350 (New England Medical Centers), Series E, 7.875% due 7/01/1998 (d) 390
AAA Aaa 400 Refunding (Baystate Medical Center), Series D, 4.60% due 7/01/2002 (e) 391
AAA Aaa 540 Massachusetts State HFA, Housing Revenue Refunding Bonds (Insured--
Rental), AMT, Series A, 5.90% due 7/01/2003 (c) 558
Massachusetts State Industrial Finance Agency, Revenue Bonds:
AAA Aaa 320 (Babson College), Series A, 5.40% due 10/01/2003 (b) 331
NR* P3 400 (Saint Mark's School--Southborough), 5.25% due 1/09/1996 403
AA A1 400 Massachusetts State Special Obligation Revenue Bonds (Highway Improvement
Loan), Series A, 5.90% due 6/01/2001 423
A1 VMIG1++ 200 Massachusetts State, UPDATES, Series B, 3.75% due 12/01/1997 (a) 200
AAA Aaa 500 Massachusetts State, Water Resource Authority, Series A, 6.75% due
7/15/2002 (d) (e) 568
NR* A1 500 New England Educational Loan Marketing Corp., Massachusetts, Student Loan
Revenue Refunding Bonds, AMT, Sub-Issue F, 6.60% due 9/01/2002 533
NR* NR* 390 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley
Health Care), AMT, Series A, 5% due 12/01/1996 390
NR* Aaa 400 Wellesley, Massachusetts, Municipal Purpose Bonds, 4.10% due 6/15/1998 401
<PAGE>
Puerto Rico--4.0% A Baa1 390 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 401
Total Investments (Cost--$9,519)--97.9% 9,711
Other Assets Less Liabilities--2.1% 207
-------
Net Assets--100.0% $ 9,918
=======
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)MBIA Insured.
(c)AMBAC Insured.
(d)Prerefunded.
(e)FGIC Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
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--87.7% A1+ VMIG1++ $ 200 Bruce Township, Michigan, Hospital Finance Authority, Health Care
System Revenue Bonds (Sisters Charity-Saint Joseph's), VRDN, Series A,
3.80% due 5/01/2018 (a) (d) $ 200
AAA Aaa 250 Dearborn, Michigan, Economic Development Corp., Hospital Revenue Bonds
(Oakwood Obligated Group), Series A, 6.95% due 8/15/2001 (d) (e) 285
AAA Aaa 200 Detroit, Michigan, Distributable State Aid, Refunding Bonds, UT, 5.70%
due 5/01/2001 (b) 209
AAA Aaa 250 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 6.20%
due 7/01/2004 (c) 271
A1+ VMIG1++ 200 Michigan Higher Education Student Loan Authority, Revenue Refunding
Bonds, VRDN, AMT, Series XII-B, 3.90% due 10/01/2013 (a) (b) 200
AAA Aaa 200 Michigan Municipal Bond Authority Revenue Bonds (Local Government Loan
Program), Series C, 5.50% due 5/01/2003 (d) 207
AA Aa 200 Michigan Municipal Bond Authority Revenue Bonds (State Revolving Fund),
7% due 10/01/2004 228
AA A1 500 Michigan Municipal Bond Authority Revenue Refunding Bonds (Local
Government--Qualified School), Series A, 6% due 5/01/2001 530
AA- A1 200 Michigan State Building Authority, Revenue Refunding Bonds, Series I,
6.40% due 10/01/2004 217
AA- A1 200 Michigan State Comprehensive Transportation, Revenue Refunding Bonds,
Series B, 5.625% due 5/15/2003 210
AAA Aaa 175 Michigan State Hospital Finance Authority Revenue Bonds (Henry Ford
Hospital), Series B, 9% due 5/01/2004 (f) 215
NR* VMIG1++ 200 Michigan State Housing Development Authority, Limited Obligation Revenue
Bonds (Laurel Valley), VRDN, 3.90% due 12/01/2007 (a) 200
AA Aa 200 Michigan State Recreation Program, GO, 6% due 11/01/2004 216
AAA Aaa 150 Michigan State South Central Power Agency, Power Supply System Revenue
Refunding Bonds, 7% due 11/01/1996 (b) (e) 159
A1 VMIG1++ 200 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (United
Waste System, Inc. Project), 4% due 4/01/2010 200
NR* VMIG1++ 200 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(Grayling Generating Project), VRDN, AMT, 3.95% due 1/01/2014 (a) 200
AA- A1 100 Michigan State Trunk Line, GO, Series A, 5.75% due 10/01/2004 105
NR* P1 200 Monroe County, Michigan, Economic Development Corp., Limited Obligation
Revenue Refunding Bonds (Detroit Edison Co.), VRDN, Series CC, 3.80%
due 10/01/2024 (a) 200
AAA Aaa 100 Reeths-Puffer Schools, Michigan, Refunding, GO, UT, Series Q, 6.75%
due 5/01/1999 (c) 108
AA Aa 250 Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue
Refunding Bonds (William Beaumont Hospital), Series A, 7.75%
due 1/01/2003 269
Puerto Rico--9.3% A Baa1 265 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 272
A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Revenue
Refunding Bonds, VRDN, 3.45% due 12/01/2015 (a) 200
<PAGE>
Total Investments (Cost--$4,752)--97.0% 4,901
Other Assets Less Liabilities--3.0% 151
-------
Net Assets--100.0% $ 5,052
=======
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
(f)Escrowed to maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
<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--96.7% NR* Aaa $ 600 Bergen County, New Jersey, General Improvement Bonds, GO, UT, 4.70%
due 7/15/2002 $ 603
AAA Aaa 600 Elizabeth, New Jersey, General Improvement and Sewer Utility Refunding
Bonds, GO, UT, 6% due 8/15/2004 (b) 643
NR* VMIG1++ 400 Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Governmental Loan Program), ACES, 3.65% due 7/01/2026 (a) 400
SP1+ VMIG1++ 400 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
3.45% due 11/01/1998 (a) 400
AA Aa1 400 Monmouth County, New Jersey, General Improvement Bonds, GO, UT, 6.625%
due 8/01/2000 431
NR* VMIG1++ 200 New Jersey, EDA, Dock Facility Revenue Refunding Bonds (Bayonne
International Matex Tank Terminal Project), VRDN, Series A, 3.75%
due 12/01/2027 (a) 200
New Jersey, EDA, Economic Development Revenue Bonds, VRDN (a):
NR* Aa1 400 (400 International Drive Partners), 3.45% due 4/01/2019 400
A1 VMIG1++ 300 (Dac Realty Corporation), AMT, Series A, 3.70% due 7/01/2006 300
A1 NR* 400 New Jersey, EDA, Industrial and Economic Development Revenue Bonds
(Toys 'R' Us, Inc. Project), VRDN, 3.95% due 9/01/2005 (a) 400
AAA Aaa 1,000 New Jersey, EDA, Market Transition Facility Revenue Bonds, Senior Lien,
Series A, 7% due 7/01/2004 (c) 1,150
AAA Aaa 400 New Jersey Health Care Facilities Financing Authority Revenue Bonds
(Carrier Foundation), VRDN, Series C, 3.60% due 7/01/2005 (a) (d) 400
A1 VMIG1++ 400 New Jersey Sports and Exposition Authority Revenue Bonds (State
Contract), VRDN, Series C, 3.70% due 9/01/2024 (a) (c) 400
A+ Aa 1,000 New Jersey State Transportation Trust Fund Authority, Transportation
System Revenue Bonds, Series A, 6% due 6/15/2000 (e) 1,065
A A 400 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series A,
5.70% due 1/01/2001 417
AA Aa 400 North Brunswick Township, New Jersey, Board of Education, Refunding
Bonds, GO, UT, 6.25% due 2/01/2004 437
NR* Aa 400 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue Bonds,
UT, Series A, 6.125% due 1/01/2003 432
AAA Aaa 1,310 Port Authority of New York and New Jersey, Consolidated Refunding Bonds,
AMT, UT, 97th Series, 7.10% due 7/15/2004 (d) 1,506
A1+ VMIG1++ 200 Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligation), VRDN, Series 2, 3.55% due
5/01/2019 (a) 200
A1+ P1 300 Union County, New Jersey, Industrial Pollution Control Financing
Authority, PCR, Refunding (Exxon Project), VRDN, 3.95% due
7/01/2033 (a) 300
<PAGE>
Total Investments (Cost--$9,751)--96.7% 10,084
Other Assets Less Liabilities--3.3% 348
-------
Net Assets--100.0% $10,432
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in effect at
July 31, 1995.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)Escrowed to maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
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 Jersey--4.4% A1+ VMIG1++ $ 700 Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (Versatile Structure Obligation), VRDN, Series 1, 4% due
8/01/2028 (a) $ 700
New York--94.1% AAA Aaa 400 Nassau County, New York, General Improvement Bonds, UT, Series O,
5.625% due 8/01/2004 (c) 422
AAA Aaa 750 New York City, New York, IDA, Civic Facilities Revenue Bonds (USTA
National Tennis Center Project), 6% due 11/15/2003 (d) 802
A1+ NR* 700 New York City, New York, IDA, IDR (Japan Airlines Company Ltd.
Project), VRDN, AMT, 3.90% due 11/01/2015 (a) 700
AA- Aa 800 New York City, New York, Municipal Assistance Corporation Revenue
Bonds, Series 68, 7.10% due 7/01/2000 884
New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, VRDN (a) (c):
A1+ VMIG1++ 200 Series C, 3.90% due 6/15/2022 200
AAA VMIG1++ 500 Series G, 3.80% due 6/15/2024 500
BBB+ Baa1 610 New York City, New York, Refunding Bonds, UT, Series A, 6% due 8/01/2000 626
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 600 (College and University Educational Loan), AMT, 6.30% due
7/01/2002 (e) 643
NR* VMIG1++ 500 (Oxford University Press Inc.), VRDN, 4.05% due 7/01/2023 (a) 500
NR* VMIG1++ 400 New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, Series B,
3.55% due 11/01/2023 (a) 400
New York State Energy Research and Development Authority, PCR:
A1+ Aa1 600 (New York State Electric & Gas), 4.65% due 3/15/2015 601
A1+ A2 500 (Niagara-Mohawk Power Corporation Project), VRDN, AMT, Series A, 4.40%
due 12/01/2023 (a) 500
NR* Aa2 100 (Niagara-Mohawk Power Corporation Project), VRDN, Series B, 3.80%
due 12/01/2025 (a) 100
A- Aa 600 New York State Environmental Facilities Corporation, PCR (State Water--
Revolving Fund), Series E, 5.60% due 6/15/1999 624
A- A 600 New York State Environmental Quality, GO, 6% due 12/01/2004 642
NR* VMIG1++ 300 New York State Job Development Authority, State Guaranteed Special
Purpose Revenue Bonds, VRDN, AMT, Series A-1 thru A-25, 3.90%
due 3/01/2007 (a) 300
New York State Local Government Assistance Corporation Revenue Bonds:
A A 625 Series A, 7% due 4/01/2005 694
AAA Aaa 600 Series D, 7% due 4/01/2002 (b) 691
<PAGE>
New York State Medical Care Facilities, Finance Agency Revenue Bonds,
Series A:
AAA Aaa 725 (Mental Health Services Facilities), 7.75% due 2/15/2001 (b) 851
AAA Aaa 500 (New York Hospital Mortgage), 6.20% due 2/15/2005 (f) (g) 537
AA- Aa 600 New York State Power Authority, Revenue Refunding and General Purpose
Bonds, Series CC, 4.375% due 1/01/2001 590
A- A 600 New York State, Refunding Bonds, Series B, 5.10% due 8/15/1999 615
A2 VMIG1++ 675 New York State Tax Exempt Revenue Bonds (Rochester Museum & Science),
5.60% due 12/01/2015 689
600 Niagara County, New York, IDA, Solid Waste Disposal, Revenue Bonds
(American Fuel Company), Series B, 4% due 8/08/1995 600
A+ Aa 340 Triborough Bridge and Tunnel Authority, New York, Revenue Bonds,
Series R, 6.90% due 1/01/2000 371
A+ Aa 985 Triborough Bridge and Tunnel Authority, New York, Revenue Refunding and
General Purpose Bonds, Series A, 4.60% due 1/01/2004 949
Total Investments (Cost--$15,384)--98.5% 15,731
Other Assets Less Liabilities--1.5% 246
-------
Net Assets--100.0% $15,977
=======
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at July 31, 1995.
(b)Prerefunded.
(c)FGIC Insured.
(d)FSA Insured.
(e)MBIA Insured.
(f)AMBAC Insured.
(g)FHA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
<PAGE>
<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-- NR* A1 $ 400 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
83.9% Development Parkway Center Project), VRDN, Series A, 4.05% due
5/01/2009 (d) $ 400
AAA Aaa 400 Beaver County, Pennsylvania, Hospital Authority, Revenue Refunding
Bonds (Beaver County Medical Center Inc.), 5.70% due 7/01/1999 (c) 417
A1+ P1 400 Beaver County, Pennsylvania, IDA, PCR, Refunding (Duquesne Light
Company Project-Mansfield), VRDN, Series B, 3.80% due 8/01/2009 (d) 400
A1+ P1 100 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES,
4.10% due 12/01/2009 (d) 100
AA Aa 250 Delaware County, Pennsylvania, Refunding Bonds, GO, 4.80% due 10/01/2004 247
A1 NR* 200 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Sub-Series
B-10, 3.85% due 3/01/2024 (d) 200
A1+ Aaa 400 Lehigh County, Pennsylvania, Authority Water Revenue Bonds, VRDN, 3.75%
due 11/01/2004 (b) (d) 400
NR* VMIG1++ 400 Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (B&W Ebensburg Project), VRDN, AMT, 3.90% due 12/01/2011 (d) 400
AA Aa 275 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (University of Pennsylvania), Series A, 4.70%
due 9/01/1997 279
A+ Aa 380 Pennsylvania State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Thomas Jefferson University), Series A, 5.75% due
8/15/1998 395
AAA Aaa 400 Pennsylvania State Revenue Refunding Bonds, UT, Series A, 6.60% due
1/01/2001 (c) 436
AA- A1 1,385 Pennsylvania State University, Revenue Refunding Bonds, 5.85% due
3/01/2002 1,464
Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Bonds:
NR* Aaa 1,000 (Children's Hospital of Philadelphia Project), Series A, 6.50% due
2/15/2002 (e) 1,116
A- NR* 650 (Children's Seashore House), Series B, 7% due 8/15/2003 701
AAA Aaa 325 Washington County, Pennsylvania, Lease Authority, Municipal Facility
(Shadyside Hospital Project--Pool Capital), Series C, Sub-Series A,
7.45% due 6/15/2000 (a) (c) (e) 375
Puerto Rico--11.5% A- Baa1 1,000 Puerto Rico Municipal Finance Agency, GO, UT, Series A, 5.80% due
7/01/2004 1,008
Total Investments (Cost--$8,190)--95.4% 8,338
Other Assets Less Liabilities--4.6% 403
-------
Net Assets--100.0% $ 8,741
=======
<PAGE>
<FN>
(a)Escrowed to maturity.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)The interest rate is subject to change periodically based on prevailing market
rates. The interest rate shown is the rate in effect at July 31, 1995.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
As of July 31, 1995 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 6,066,532 $ 15,489,950 $ 33,028,318 $ 9,711,148
Cash 33,671 65,869 181,089 64,381
Receivables:
Interest 36,068 207,211 319,262 109,402
Investment adviser (Note 2) 34,111 41,529 17,074 40,794
Securities sold 109,625 -- -- --
Beneficial interest sold 4,995 3,696 -- --
Deferred organization expenses (Note 1e) 28,131 12,106 44,278 28,131
Prepaid registration fees and other assets
(Note 1e) 16,970 13,267 15,341 16,414
------------ ------------ ------------ ------------
Total assets 6,330,103 15,833,628 33,605,362 9,970,270
------------ ------------ ------------ ------------
Liabilities: Payables:
Beneficial interest redeemed 3 61,439 259,481 3,547
Dividends to shareholders (Note 1f) 4,742 11,996 26,396 7,405
Distributor (Note 2) 1,416 3,049 5,047 1,416
Accrued expenses and other liabilities 59,126 32,664 41,179 40,289
------------ ------------ ------------ ------------
Total liabilities 65,287 109,148 332,103 52,657
------------ ------------ ------------ ------------
<PAGE>
Net Assets: Net assets $ 6,264,816 $ 15,724,480 $ 33,273,259 $ 9,917,613
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest, $.10 par
Consist of: value, unlimited number of shares authorized $ 10,369 $ 35,297 $ 98,338 $ 44,698
Class B Shares of beneficial interest, $.10 par
value, unlimited number of shares authorized 51,070 103,724 161,876 48,175
Class C Shares of beneficial interest, $.10 par
value, unlimited number of shares authorized 11 643 11 4,143
Class D Shares of beneficial interest, $.10 par
value, unlimited number of shares authorized 183 17,726 72,020 2,537
Paid-in capital in excess of par 6,084,212 15,626,794 33,047,393 9,995,949
Accumulated realized capital losses on
investments--net (Note 5) (70,746) (515,218) (878,316) (370,477)
Unrealized appreciation on investments--net 189,717 455,514 771,937 192,588
------------ ------------ ------------ ------------
Net assets $ 6,264,816 $ 15,724,480 $ 33,273,259 $ 9,917,613
============ ============ ============ ============
Net Asset Class A: Net assets $ 1,054,046 $ 3,526,712 $ 9,849,207 $ 4,452,799
Value: ============ ============ ============ ============
Shares of beneficial interest outstanding 103,693 352,970 983,379 446,975
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.17 $ 9.99 $ 10.02 $ 9.96
============ ============ ============ ============
Class B: Net assets $ 5,191,042 $ 10,362,511 $ 16,212,708 $ 4,799,691
============ ============ ============ ============
Shares of beneficial interest outstanding 510,697 1,037,238 1,618,761 481,748
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.16 $ 9.99 $ 10.02 $ 9.96
============ ============ ============ ============
Class C: Net assets $ 1,149 $ 64,309 $ 1,131 $ 412,541
============ ============ ============ ============
Shares of beneficial interest
outstanding 113 6,437 113 41,429
============ ============ ============ ============
Net asset value and redemption price
per share $ 10.17 $ 9.99 $ 10.01 $ 9.96
============ ============ ============ ============
Class D: Net assets $ 18,579 $ 1,770,948 $ 7,210,213 $ 252,582
============ ============ ============ ============
Shares of beneficial interest
outstanding 1,827 177,258 720,201 25,369
============ ============ ============ ============
Net asset value and redemption
price per share $ 10.17 $ 9.99 $ 10.01 $ 9.96
============ ============ ============ ============
<PAGE>
<FN>
*Identified cost $ 5,876,815 $ 15,034,436 $ 32,256,381 $ 9,518,560
============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
As of July 31, 1995 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 4,900,531 $ 10,084,223 $ 15,731,264 $ 8,337,811
Cash 62,265 388,350 -- 74,363
Receivables:
Securities sold -- -- -- 458,482
Interest 52,867 86,730 180,035 119,266
Investment adviser (Note 2) 27,731 34,889 32,907 33,704
Beneficial interest sold -- -- -- 3,766
Deferred organization expenses (Note 1e) 5,792 28,318 10,377 29,460
Prepaid registration fees and other assets
(Note 1e) 25,978 16,241 154,328 12,853
------------ ------------ ------------ ------------
Total assets 5,075,164 10,638,751 16,108,911 9,069,705
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased -- -- -- 249,072
Beneficial interest redeemed -- 132,760 15,257 6
Dividends to shareholders (Note 1f) 3,943 7,564 12,308 6,755
Distributor (Note 2) 722 2,082 2,528 2,106
Accrued expenses and other liabilities 18,463 64,738 101,328 71,209
------------ ------------ ------------ ------------
Total liabilities 23,128 207,144 131,421 329,148
------------ ------------ ------------ ------------
Net Assets: Net assets $ 5,052,036 $ 10,431,607 $ 15,977,490 $ 8,740,557
============ ============ ============ ============
<PAGE>
Net Assets Class A Shares of beneficial interest, $.10 par
Consist of: value, unlimited shares authorized $ 23,074 $ 23,644 $ 47,875 $ 9,340
Class B Shares of beneficial interest, $.10 par
value, unlimited shares authorized 25,001 74,736 87,779 73,406
Class C Shares of beneficial interest, $.10 par
value, unlimited shares authorized 11 11 382 11
Class D Shares of beneficial interest, $.10 par
value, unlimited shares authorized 2,549 4,302 22,938 3,781
Paid-in capital in excess of par 5,034,936 10,276,487 15,760,464 8,607,058
Accumulated realized capital losses on
investments--net (Note 5) (181,857) (280,631) (288,780) (101,230)
Unrealized appreciation on investments--net 148,322 333,058 346,832 148,191
------------ ------------ ------------ ------------
Net assets $ 5,052,036 $ 10,431,607 $ 15,977,490 $ 8,740,557
============ ============ ============ ============
Net Asset Class A: Net assets $ 2,302,328 $ 2,400,567 $ 4,811,410 $ 943,403
Value: ============ ============ ============ ============
Shares of beneficial interest
outstanding 230,742 236,440 478,754 93,398
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.98 $ 10.15 $ 10.05 $ 10.10
============ ============ ============ ============
Class B: Net assets $ 2,494,402 $ 7,592,897 $ 8,821,861 $ 7,414,019
============ ============ ============ ============
Shares of beneficial interest
outstanding 250,006 747,358 877,793 734,063
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.98 $ 10.16 $ 10.05 $ 10.10
============ ============ ============ ============
Class C: Net assets $ 1,128 $ 1,040 $ 38,358 $ 1,141
============ ============ ============ ============
Shares of beneficial interest
outstanding 113 113 3,817 113
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.98 $ 9.20 $ 10.05 $ 10.10
============ ============ ============ ============
Class D: Net assets $ 254,178 $ 437,103 $ 2,305,861 $ 381,994
============ ============ ============ ============
Shares of beneficial interest
outstanding 25,485 43,022 229,378 37,804
============ ============ ============ ============
Net asset value and redemption price
per share $ 9.97 $ 10.16 $ 10.05 $ 10.10
============ ============ ============ ============
<FN>
*Identified cost $ 4,752,209 $ 9,751,165 $ 15,384,432 $ 8,189,620
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
For the Year Ended July 31, 1995 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium and discount
Income earned $ 353,154 $ 712,283 $ 1,540,356 $ 571,735
(Note 1d): ------------ ------------ ------------ ------------
Expenses: Investment advisory fees (Note 2) 26,468 52,287 112,421 41,496
Accounting services (Note 2) 36,140 50,033 32,012 49,502
Printing and shareholder reports 18,089 37,423 71,498 24,669
Account maintenance and distribution fees--
Class B (Note 2) 20,042 36,941 65,414 20,819
Professional fees 31,891 31,260 42,201 34,620
Registration fees (Note 1e) 19,300 21,185 22,333 25,451
Amortization of organization expenses (Note 1e) 8,472 3,643 13,335 8,472
Trustees' fees and expenses 3,352 6,326 14,121 6,108
Transfer agent fees--Class B (Note 2) 4,263 4,518 7,274 4,047
Custodian fees 3,186 3,852 6,273 3,560
Pricing fees 2,473 3,782 3,642 2,748
Transfer agent fees--Class A (Note 2) 1,200 1,385 4,028 3,241
Account maintenance fees--Class D (Note 2) 9 704 1,305 61
Transfer agent fees--Class D (Note 2) 7 331 472 47
Account maintenance and distribution fees--
Class C (Note 2) -- 22 1 266
Transfer agent fees--Class C (Note 2) 6 15 5 136
Other 2,749 2,625 2,386 974
------------ ------------ ------------ ------------
Total expenses before reimbursement 177,647 256,332 398,721 226,217
Reimbursement of expenses (Note 2) (129,970) (156,939) (201,491) (159,710)
------------ ------------ ------------ ------------
Total expenses after reimbursement 47,677 99,393 197,230 66,507
------------ ------------ ------------ ------------
Investment income--net 305,477 612,890 1,343,126 505,228
------------ ------------ ------------ ------------
<PAGE>
Realized & Realized loss on investments--net (48,045) (365,740) (425,603) (370,476)
Unrealized Change in unrealized appreciation/depreciation
Gain (Loss) on investments--net 182,975 501,542 839,494 274,970
on ------------ ------------ ------------ ------------
Investments-- Net Increase in Net Assets Resulting from
Net (Notes Operations $ 440,407 $ 748,692 $ 1,757,017 $ 409,722
1b, 1d & 3): ============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Year Ended July 31, 1995 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of premium and discount
Income earned $ 260,146 $ 510,440 $ 716,947 $ 452,988
(Note 1d): ------------ ------------ ------------ ------------
Expenses: Investment advisory fees (Note 2) 19,277 39,629 52,164 34,403
Professional fees 28,380 40,083 36,276 38,775
Printing and shareholder reports 14,922 37,544 38,558 28,633
Registration fees (Note 1e) 21,081 15,126 35,428 33,473
Account maintenance and distribution fees--
Class B (Note 2) 8,793 26,488 31,553 30,236
Accounting services (Note 2) 19,568 36,998 3,623 15,577
Trustees' fees and expenses 2,616 5,828 6,409 8,699
Amortization of organization expenses (Note 1e) 1,743 8,528 3,123 8,872
Transfer agent fees--Class B (Note 2) 2,181 4,830 4,797 7,560
Custodian fees 3,067 3,826 4,769 3,759
Pricing fees 3,195 2,342 3,817 2,200
Transfer agent fees--Class A (Note 2) 2,062 1,902 2,504 818
Account maintenance fees--Class D (Note 2) 213 129 373 175
Transfer agent fees--Class D (Note 2) 167 82 183 148
Account maintenance and distribution fees--Class C
(Note 2) 1 28 7 --
Transfer agent fees--Class C (Note 2) 6 18 8 5
Other 2,757 2,936 2,820 3,910
------------ ------------ ------------ ------------
Total expenses before reimbursement 130,029 226,317 226,412 217,243
Reimbursement of expenses (Note 2) (105,185) (157,734) (144,009) (149,611)
------------ ------------ ------------ ------------
Total expenses after reimbursement 24,844 68,583 82,403 67,632
------------ ------------ ------------ ------------
Investment income--net 235,302 441,857 634,544 385,356
------------ ------------ ------------ ------------
<PAGE>
Realized & Realized loss on investments--net (132,641) (190,903) (166,770) (38,604)
Unrealized Change in unrealized appreciation/depreciation
Gain (Loss) on investments--net 150,310 328,757 337,132 150,668
on ------------ ------------ ------------ ------------
Investments-- Net Increase in Net Assets Resulting from
- --Net (Notes Operations $ 252,971 $ 579,711 $ 804,906 $ 497,420
1b, 1d & 3): ============ ============ ============ ============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Arizona Limited Maturity California Limited Maturity
For the For the Period For the For the Period
Year Ended Nov. 26, 1993++ Year Ended Nov. 26, 1993++
July 31, to July 31, July 31, to July 31,
Increase (Decrease) in Net Assets: 1995 1994 1995 1994
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 305,477 $ 143,624 $ 612,890 $ 322,517
Realized loss on investments--net (48,045) (22,701) (365,740) (149,477)
Change in unrealized appreciation/depreciation
on investments--net 182,975 6,742 501,542 (46,028)
------------ ------------ ------------ ------------
Net increase in net assets resulting from
operations 440,407 127,665 748,692 127,012
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (78,637) (44,448) (159,781) (87,891)
(Note 1f): Class B (226,411) (99,176) (422,409) (234,626)
Class C (33) -- (585) --
Class D (396) -- (30,115) --
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends to shareholders (305,477) (143,624) (612,890) (322,517)
------------ ------------ ------------ ------------
Beneficial Net increase (decrease) in net assets derived
Interest from beneficial interest transactions (1,547,482) 7,593,327 354,485 15,329,698
Transactions ------------ ------------ ------------ ------------
(Note 4):
<PAGE>
Net Assets: Total increase (decrease) in net assets (1,412,552) 7,577,368 490,287 15,134,193
Beginning of period 7,677,368 100,000 15,234,193 100,000
------------ ------------ ------------ ------------
End of period $ 6,264,816 $ 7,677,368 $ 15,724,480 $ 15,234,193
============ ============ ============ ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<CAPTION>
Massachusetts
Florida Limited Maturity Limited Maturity Michigan Limited Maturity
For the For the Period For the For the Period For the For the Period
Year Ended Nov. 26, 1993++ Year Ended Nov. 26, 1993++ Year Ended Nov. 26, 1993++
Increase (Decrease) July 31, to July 31, July 31, to July 31, July 31, to July 31,
in Net Assets: 1995 1994 1995 1994 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment income-net $ 1,343,126 $ 803,885 $ 505,228 $ 327,953 $ 235,302 $ 133,350
Realized gain (loss)
on investments--net (425,603) (452,713) (370,476) 15,134 (132,641) (49,216)
Change in unrealized
appreciation/depreciation
on investments--net 839,494 (67,557) 274,970 (82,382) 150,310 (1,988)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net
assets resulting from
operations 1,757,017 283,615 409,722 260,705 252,971 82,146
------------ ------------ ------------ ------------ ------------ ------------
Dividends & Investment income--net:
Distributions Class A (531,680) (424,360) (252,210) (151,876) (123,016) (80,245)
to Class B (756,233) (379,525) (242,775) (176,077) (102,718) (53,105)
Shareholders Class C (32) -- (7,683) -- (33) --
(Note 1f): Class D (55,181) -- (2,560) -- (9,535) --
Realized gain on invest-
ments--net:
Class A -- -- (7,555) -- -- --
Class B -- -- (7,096) -- -- --
Class C -- -- (476) -- -- --
Class D -- -- (8) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net decrease in net assets
resulting from dividends
and distributions to
shareholders (1,343,126) (803,885) (520,363) (327,953) (235,302) (133,350)
------------ ------------ ------------ ------------ ------------ ------------
<PAGE>
Beneficial Net increase (decrease)
Interest in net assets derived from
Transactions beneficial interest
(Note 4): transactions (187,273) 33,466,911 (6,114,591) 16,110,093 (811,255) 5,796,826
------------ ------------ ------------ ------------ ------------ ------------
Net Assets: Total increase (decrease)
in net assets 226,618 32,946,641 (6,225,232) 16,042,845 (793,586) 5,745,622
Beginning of period 33,046,641 100,000 16,142,845 100,000 5,845,622 100,000
------------ ------------ ------------ ------------ ------------ ------------
End of period $ 33,273,259 $ 33,046,641 $ 9,917,613 $ 16,142,845 $ 5,052,036 $ 5,845,622
============ ============ ============ ============ ============ ============
<CAPTION>
Pennsylvania
New Jersey Limited Maturity New York Limited Maturity Limited Maturity
For the For the Period For the For the Period For the For the Period
Year Ended Nov. 26, 1993++ Year Ended Nov. 26, 1993++ Year Ended Nov. 26, 1993++
Increase (Decrease) July 31, to July 31, July 31, to July 31, July 31, to July 31,
in Net Assets: 1995 1994 1995 1994 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment income--
net $ 441,857 $ 283,444 $ 634,544 $ 314,551 $ 385,356 $ 221,987
Realized loss on
investments--net (190,903) (89,728) (166,770) (122,010) (38,604) (62,626)
Change in unrealized
appreciation/depreciation
on investments--net 328,757 4,301 337,132 9,700 150,668 (2,477)
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net
assets resulting from
operations 579,711 198,017 804,906 202,241 497,420 156,884
------------ ------------ ------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (147,854) (131,310) (247,259) (110,834) (43,161) (20,350)
(Note 1f): Class B (287,858) (152,134) (370,411) (203,717) (334,652) (201,637)
Class C (761) -- (219) -- (32) --
Class D (5,384) -- (16,655) -- (7,511) --
------------ ------------ ------------ ------------ ------------ ------------
Net decrease in net assets
resulting from dividends
to shareholders (441,857) (283,444) (634,544) (314,551) (385,356) (221,987)
------------ ------------ ------------ ------------ ------------ ------------
<PAGE>
Beneficial Net increase (decrease) in
Interest net assets derived from
Transactions beneficial interest
(Note 4): transactions (3,524,093) 13,803,273 774,385 15,045,053 (1,893,824) 10,487,420
------------ ------------ ------------ ------------ ------------ ------------
Net Assets: Total increase (decrease)
in net assets (3,386,239) 13,717,846 944,747 14,932,743 (1,781,760) 10,422,317
Beginning of period 13,817,846 100,000 15,032,743 100,000 10,522,317 100,000
------------ ------------ ------------ ------------ ------------ ------------
End of period $ 10,431,607 $ 13,817,846 $ 15,977,490 $ 15,032,743 $ 8,740,557 $ 10,522,317
============ ============ ============ ============ ============ ============
<FN>
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Arizona Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.97 $ 10.00 $ 9.97 $ 10.00 $ 9.89 $ 9.89
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .43 .23 .39 .20 .29 .33
Realized and unrealized gain (loss) on
investments--net .20 (.03) .19 (.03) .28 .28
------- ------- ------- ------- ------- -------
Total from investment operations .63 .20 .58 .17 .57 .61
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.43) (.23) (.39) (.20) (.29) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.17 $ 9.97 $ 10.16 $ 9.97 $ 10.17 $ 10.17
======= ======= ======= ======= ======= =======
<PAGE>
Total Based on net asset value per share 6.47% 2.02%+++ 5.99% 1.78%+++ 5.90%+++ 6.34%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .35% .02%* .37% .03%* .90%* .45%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .35% .02%* .72% .38%* 1.05%* .55%*
======= ======= ======= ======= ======= =======
Expenses 2.05% 1.82%* 2.44% 2.18%* 2.79%* 2.39%*
======= ======= ======= ======= ======= =======
Investment income--net 4.31% 3.37%* 3.95% 3.02%* 3.80%* 4.31%
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1,054 $ 2,103 $ 5,191 $ 5,575 $ 1 $ 19
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 182.58% 142.37% 182.58% 142.37% 182.58% 182.58%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
California Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.88 $ 10.00 $ 9.88 $ 10.00 $ 9.76 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .42 .24 .39 .21 .31 .33
Realized and unrealized gain (loss) on
investments--net .11 (.12) .11 (.12) .23 .23
------- ------- ------- ------- ------- -------
Total from investment operations .53 .12 .50 .09 .54 .56
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.42) (.24) (.39) (.21) (.31) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.99 $ 9.88 $ 9.99 $ 9.88 $ 9.99 $ 9.99
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 5.60% 1.23%+++ 5.23% .99%+++ 5.60%+++ 5.85%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .40% .02%* .41% .03%* .67%* .56%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .40% .02%* .76% .38%* .82%* .66%*
======= ======= ======= ======= ======= =======
Expenses 1.44% 1.16%* 1.80% 1.52%* 1.98%* 1.81%*
======= ======= ======= ======= ======= =======
Investment income--net 4.36% 3.54%* 4.00% 3.19%* 4.04%* 4.28%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 3,527 $ 3,804 $10,363 $11,430 $ 64 $ 1,771
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 124.72% 130.10% 124.72% 130.10% 124.72% 124.72%
======= ======= ======= ======= ======= =======
<PAGE>
<CAPTION>
Florida Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.87 $ 10.00 $ 9.88 $ 10.00 $ 9.76 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .43 .24 .40 .21 .29 .33
Realized and unrealized gain (loss) on
investments--net .15 (.13) .14 (.12) .25 .25
------- ------- ------- ------- ------- -------
Total from investment operations .58 .11 .54 .09 .54 .58
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.43) (.24) (.40) (.21) (.29) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.02 $ 9.87 $ 10.02 $ 9.88 $ 10.01 $ 10.01
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 6.05% 1.12%+++ 5.57% .99%+++ 5.65%+++ 6.07%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .39% .02%* .40% .03%* .94%* .57%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .39% .02%* .75% .38%* 1.09%* .67%*
======= ======= ======= ======= ======= =======
Expenses 1.03% .86%* 1.38% 1.23%* 1.67%* 1.19%*
======= ======= ======= ======= ======= =======
Investment income--net 4.39% 3.54%* 4.05% 3.19%* 3.83%* 4.23%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 9,849 $14,868 $16,213 $18,179 $ 1 $ 7,210
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 138.97% 136.71% 138.97% 136.71% 138.97% 138.97%
======= ======= ======= ======= ======= =======
<PAGE>
<CAPTION>
Massachusetts Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.95 $ 10.00 $ 9.95 $ 10.00 $ 9.82 $ 9.82
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .44 .25 .40 .22 .33 .34
Realized and unrealized gain (loss) on
investments--net .02 (.05) .02 (.05) .15 .15
------- ------- ------- ------- ------- -------
Total from investment operations .46 .20 .42 .17 .48 .49
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.44) (.25) (.40) (.22) (.33) (.34)
Realized gain on investments--net (.01) -- (.01) -- (.01) (.01)
------- ------- ------- ------- ------- -------
Total dividends and distributions (.45) (.25) (.41) (.22) (.34) (.35)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.96 $ 9.95 $ 9.96 $ 9.95 $ 9.96 $ 9.96
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 4.79% 2.01%+++ 4.41% 1.77%+++ 5.00%+++ 5.09%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .37% .03%* .39% .03%* .52%* .60%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .37% .03%* .74% .38%* .67%* .70%*
======= ======= ======= ======= ======= =======
Expenses 1.71% 1.17%* 2.08% 1.54%* 2.23%* 2.31%*
======= ======= ======= ======= ======= =======
Investment income--net 4.45% 3.69%* 4.08% 3.28%* 4.32%* 4.21%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 4,453 $ 8,097 $ 4,800 $ 8,046 $ 413 $ 253
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 89.96% 57.80% 89.96% 57.80% 89.96% 89.96%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Michigan Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.92 $ 10.00 $ 9.92 $ 10.00 $ 9.76 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .44 .24 .40 .22 .30 .34
Realized and unrealized gain (loss) on
investments--net .06 (.08) .06 (.08) .22 .21
------- ------- ------- ------- ------- -------
Total from investment operations .50 .16 .46 .14 .52 .55
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.44) (.24) (.40) (.22) (.30) (.34)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.98 $ 9.92 $ 9.98 $ 9.92 $ 9.98 $ 9.97
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 5.16% 1.66%+++ 4.78% 1.42%+++ 5.40%+++ 5.72%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .27% .02%* .30% .03%* .81%* .34%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .27% .02%* .65% .38%* .96%* .44%*
======= ======= ======= ======= ======= =======
Expenses 2.18% 2.01%* 2.56% 2.38%* 2.90%* 2.38%*
======= ======= ======= ======= ======= =======
Investment income--net 4.42% 3.59%* 4.09% 3.21%* 3.80%* 4.47%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 2,302 $ 3,435 $ 2,494 $ 2,411 $ 1 $ 254
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 93.08% 204.15% 93.08% 204.15% 93.08% 93.08%
======= ======= ======= ======= ======= =======
<CAPTION>
New Jersey Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.94 $ 10.00 $ 9.95 $ 10.00 $ 9.86 $ 9.85
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .42 .23 .38 .20 .26 .32
Realized and unrealized gain (loss) on
investments--net .21 (.06) .21 (.05) (.66) .31
------- ------- ------- ------- ------- -------
Total from investment operations .63 .17 .59 .15 (.40) .63
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.42) (.23) (.38) (.20) (.26) (.32)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.15 $ 9.94 $ 10.16 $ 9.95 $ 9.20 $ 10.16
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 6.45% 1.73%+++ 6.07% 1.59%+++ (4.01)%+++ 6.51%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .34% .03%* .38% .03%* .40%* .52%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .34% .03%* .73% .38%* .55%* .62%*
======= ======= ======= ======= ======= =======
Expenses 1.69% 1.14%* 2.15% 1.52%* 2.22%* 2.07%*
======= ======= ======= ======= ======= =======
Investment income--net 4.10% 3.45%* 3.80% 3.04%* 4.06%* 4.17%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 2,401 $ 5,933 $ 7,593 $ 7,885 $ 1 $ 437
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 131.56% 205.04% 131.56% 205.04% 131.56% 131.56%
======= ======= ======= ======= ======= =======
<CAPTION>
New York Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.91 $ 10.00 $ 9.91 $ 10.00 $ 9.78 $ 9.78
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .44 .25 .41 .22 .30 .34
Realized and unrealized gain (loss) on
investments--net .14 (.09) .14 (.09) .27 .27
------- ------- ------- ------- ------- -------
Total from investment operations .58 .16 .55 .13 .57 .61
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.44) (.25) (.41) (.22) (.30) (.34)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.05 $ 9.91 $ 10.05 $ 9.91 $ 10.05 $ 10.05
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 6.03% 1.61%+++ 5.66% 1.37%+++ 5.97%+++ 6.37%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .33% .03%* .34% .03%* .48%* .38%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .33% .03%* .69% .38%* .63%* .48%*
======= ======= ======= ======= ======= =======
Expenses 1.30% 1.24%* 1.65% 1.60% 1.63%* 1.48%*
======= ======= ======= ======= ======= =======
Investment income--net 4.49% 3.68%* 4.11% 3.31%* 4.21%* 4.47%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 4,811 $ 5,290 $ 8,822 $ 9,743 $ 38 $ 2,306
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 139.16% 152.73% 139.16% 152.73% 139.16% 139.16%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
Pennsylvania Limited Maturity
Class A Class B Class C Class D
For the For the For the For the
The following per share data and ratios For the Period For the Period Period Period
have been derived from information provided Year Nov. 26, Year Nov. 26, Oct. 21, Oct. 21,
in the financial statements. Ended 1993++ to Ended 1993++ to 1994++ to 1994++ to
July 31, July 31, July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1995 1994 1995 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.95 $ 10.00 $ 9.95 $ 10.00 $ 9.84 $ 9.84
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .42 .23 .39 .21 .29 .33
Realized and unrealized gain (loss) on
investments--net .15 (.05) .15 (.05) .26 .26
------- ------- ------- ------- ------- -------
Total from investment operations .57 .18 .54 .16 .55 .59
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.42) (.23) (.39) (.21) (.29) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.10 $ 9.95 $ 10.10 $ 9.95 $ 10.10 $ 10.10
======= ======= ======= ======= ======= =======
<PAGE>
Total Based on net asset value per share 5.89% 1.85%+++ 5.51% 1.61%+++ 5.68%+++ 6.10%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, excluding account maintenance
Average and distribution fees and net of
Net Assets: reimbursement .38% .02%* .38% .03%* .90%* .47%*
======= ======= ======= ======= ======= =======
Expenses, net of reimbursement .38% .02%* .73% .38%* 1.05%* .57%*
======= ======= ======= ======= ======= =======
Expenses 1.90% 1.48%* 2.25% 1.83%* 2.55%* 2.08%*
======= ======= ======= ======= ======= =======
Investment income--net 4.25% 3.46%* 3.87% 3.05%* 3.77%* 4.30%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 943 $ 990 $ 7,414 $ 9,532 $ 1 $ 382
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 141.52% 237.47% 141.52% 237.47% 141.52% 141.52%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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 non-diversified, open-end management investment
company consisting of eight separate series: Merrill Lynch Arizona
Limited Maturity Municipal Bond Fund, Merrill Lynch California
Limited Maturity Municipal Bond Fund, Merrill Lynch Florida
Limited Maturity Municipal Bond Fund, Merrill Lynch Massachusetts
Limited Maturity Municipal Bond Fund, Merrill Lynch Michigan
Limited Maturity Municipal Bond Fund, Merrill Lynch New Jersey
Limited Maturity Municipal Bond Fund, Merrill Lynch New York
Limited Maturity Municipal Bond Fund, and Merrill Lynch Pennsyl-
vania Limited Maturity Municipal Bond Fund. Each series of the
Trust is referred to herein as a "Fund." The Trust offers four classes
of shares under the Merrill Lynch Select Pricing SM System. Shares of
Class A and Class D are sold with a front-end sales charge. Shares of
Class B and Class C may be subject to a contingent deferred sales
charge. All classes of shares have identical voting, dividend, liquida-
tion and other rights and the same terms and conditions, except
that Class B, Class C and Class D Shares bear certain expenses related
to the account maintenance of such shares, and Class B and Class C
Shares also bear certain expenses related to the distribution of
such shares. Each class has exclusive voting rights with respect to
matters relating to its account maintenance and distribution
expenditures. The following is a summary of significant accounting
policies followed by the Trust.
<PAGE>
(a) Valuation of investments--Municipal bonds and other portfolio
securities in which the Funds invest are traded primarily in the
over-the-counter municipal bond and money markets and are valued
at the last available bid price in the over-the-counter market or on
the basis of yield equivalents as obtained from one or more dealers
that make markets in the securities. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their
settlement prices as of the close of such exchanges. Short-term
investments with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value. Securi-
ties and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees of the Trust, including valuations
furnished by a pricing service retained by the Trust, which may
utilize a matrix system for valuations. The procedures of the pricing
service and its valuations are reviewed by the officers of the Trust
under the general supervision of the Trustees.
(b) Derivative financial instruments--The Funds may engage in
various portfolio strategies to seek to increase its return by hedging
its portfolio against adverse movements in the debt markets. Losses
may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Funds may purchase or sell
interest rate futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund 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 each Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated invest-
ment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Interest income is recognized on the accrual basis.
Discounts and market premiums are amortized into interest income.
Realized gains and losses on security transactions are determined
on the identified cost basis.
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expenses on a straight-
line basis over a five-year period beginning with the commencement
of operations. Prepaid registration fees are charged to expense as the
related shares are issued.
<PAGE>
(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"). The general partner of FAM
is Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidi-
ary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited
partner. The Trust has also entered into a Distribution Agreement
and Distribution Plans with Merrill Lynch Funds Distributor, Inc.
("MLFD" or "Distributor"), a wholly-owned subsidiary of Merrill
Lynch Group, Inc.
FAM is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such
services, each Fund pays a monthly fee at the annual rate of 0.35% of
each Fund's average daily net assets. The Investment Advisory
Agreement obligates FAM to reimburse each Fund to the extent each
Fund's expenses (excluding interest, taxes, distribution fees, broker-
age fees and commissions, and extraordinary items) exceed 2.5% of
each Fund's first $30 million of average daily net assets, 2.0% of the
next $70 million of average daily net assets and 1.5% of the average
daily net assets in excess thereof. FAM's obligation to reimburse each
Fund is limited to the amount of the management fee. No fee pay-
ment will be made during any fiscal year which will cause such ex-
penses to exceed expense limitations at the time of such payment.
For the year ended July 31, 1995, FAM had voluntarily waived
management fees and reimbursed each Fund for additional expenses
as follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 26,468 $ 52,287 $112,421
Additional expenses 103,502 104,652 89,070
<PAGE>
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $ 41,496 $ 19,277 $ 39,629
Additional expenses 118,214 85,908 118,105
New York Pennsylvania
Limited Limited
Maturity Maturity
Management fee $ 52,164 $ 34,403
Additional expenses 91,845 115,208
NOTES TO FINANCIAL STATEMENTS (continued)
Pursuant to the distribution plans ("the Distribution Plans")
adopted by the Trust in accordance with Rule 12b-1 under the
Investment Company Act of 1940, each Fund pays the Distributor
ongoing account maintenance fees and distribution fees. The
Distributor voluntarily did not collect any Class C distribution fees
for the period ended July 31, 1995. The fees are accrued daily and
paid monthly at annual rates based upon the average daily net
assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.15% 0.20%
Class C 0.15% 0.20%
Class D 0.10% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Trust. The ongoing account maintenance fee compensates the Distri-
butor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C shareholders.
For the year ended July 31, 1995, MLFD earned underwriting dis-
counts and MLPF&S earned dealer concessions on sales of each
Fund's Class A and Class D Shares as follows:
<PAGE>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 101 $ 83 $ 154 $ 284
MLPF&S 925 671 2,474 1,260
Class D:
MLFD $ 3 $ 115 $ 1,099 $ 33
MLPF&S 95 2,030 10,964 31
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 56 $ 30 $ 157 $ 9
MLPF&S 859 421 5,033 70
Class D:
MLFD $ 91 $ 222 $ 232 $ 49
MLPF&S 797 1,886 3,645 1,149
MLPF&S received contingent deferred sales charges relating to
transactions in Class B and Class C Shares of beneficial interest
as follows:
Class B Class C
Shares Shares
Arizona Limited Maturity $ 13,587 --
California Limited Maturity 5,805 $ 7
Florida Limited Maturity 202,558 --
Massachusetts Limited Maturity 7,599 --
Michigan Limited Maturity 3,977 --
New Jersey Limited Maturity 6,305 --
New York Limited Maturity 6,435 --
Pennsylvania Limited Maturity 7,971 --
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, PSI, MLPF&S, MLFD, MLFDS, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1995 were as follows:
Purchases Sales
Arizona Limited Maturity $ 8,055,024 $ 7,916,965
California Limited Maturity 12,962,752 12,488,433
Florida Limited Maturity 38,372,233 33,511,778
Massachusetts Limited Maturity 8,532,139 11,847,549
Michigan Limited Maturity 3,467,037 3,799,152
New Jersey Limited Maturity 9,164,174 11,669,232
New York Limited Maturity 15,547,343 14,863,942
Pennsylvania Limited Maturity 8,920,524 8,410,776
Net realized and unrealized gains (losses) as of July 31, 1995 were
as follows:
Realized Unrealized
Arizona Limited Maturity Losses Gains
Long-term investments $ (47,790) $ 189,717
Short-term investments (255) --
---------- ----------
Total $ (48,045) $ 189,717
========== ==========
<PAGE>
Realized Unrealized
California Limited Maturity Losses Gains
Long-term investments $ (308,957) $ 440,654
Short-term investments (11,923) 14,860
Financial futures contracts (44,860) --
---------- ----------
Total $ (365,740) $ 455,514
========== ==========
Realized Unrealized
Florida Limited Maturity Losses Gains
Long-term investments $ (330,381) $ 771,937
Short-term investments (600) --
Financial futures contracts (94,622) --
---------- ----------
Total $ (425,603) $ 771,937
========== ==========
Realized Unrealized
Massachusetts Limited Maturity Losses Gains
Long-term investments $ (292,861) $ 189,912
Short-term investments (9,184) 2,676
Financial futures contracts (68,431) --
---------- ----------
Total $ (370,476) $ 192,588
========== ==========
Realized Unrealized
Michigan Limited Maturity Losses Gains
Long-term investments $ (114,507) $ 148,322
Short-term investments (912) --
Financial futures contracts (17,222) --
---------- ----------
Total $ (132,641) $ 148,322
========== ==========
<PAGE>
Realized Unrealized
New Jersey Limited Maturity Losses Gains
Long-term investments $ (188,323) $ 333,058
Short-term investments (2,580) --
---------- ----------
Total $ (190,903) $ 333,058
========== ==========
Realized Unrealized
New York Limited Maturity Losses Gains
Long-term investments $ (122,053) $ 345,482
Short-term investments (560) 1,350
Financial futures contracts (44,157) --
---------- ----------
Total $ (166,770) $ 346,832
========== ==========
Realized Unrealized
Pennsylvania Limited Maturity Gains (Losses) Gains
Long-term investments $ (39,033) $ 148,191
Short-term investments 429 --
---------- ----------
Total $ (38,604) $ 148,191
========== ==========
As of July 31, 1995, net unrealized appreciation/depreciation and
the aggregate cost of investments for Federal income tax purposes
were as follows:
Limited Gross Gross Aggregate
Maturity Unrealized Unrealized Net Unrealized Cost of
Fund Appreciation Depreciation Appreciation Investments
Arizona $189,717 -- $ 189,717 $ 5,876,815
California 429,939 $(10,617) 419,322 15,070,628
Florida 771,937 -- 771,937 32,256,381
Massachusetts 192,835 (247) 192,588 9,518,560
Michigan 134,039 (595) 133,444 4,767,087
New Jersey 337,328 (4,270) 333,058 9,751,165
New York 346,832 -- 346,832 15,384,432
Pennsylvania 150,381 (2,190) 148,191 8,189,620
<PAGE>
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions for the year ended July 31, 1995 and the period ended
July 31, 1994, respectively, were as follows:
Increase (Decrease) in For the Year Ended July 31,
Beneficial Interest Transactions 1995 1994
Arizona Limited Maturity $(1,547,482) $ 7,593,327
California Limited Maturity 354,485 15,329,698
Florida Limited Maturity (187,273) 33,466,911
Massachusetts Limited Maturity (6,114,591) 16,110,093
Michigan Limited Maturity (811,255) 5,796,826
New Jersey Limited Maturity (3,524,093) 13,803,273
New York Limited Maturity 774,385 15,045,053
Pennsylvania Limited Maturity (1,893,824) 10,487,420
Transactions in shares of beneficial interest for each class were
as follows:
Arizona Limited Maturity
Class A Shares for the Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 34,228 $ 339,577
Shares issued to shareholders in
reinvestment of dividends 3,317 33,017
----------- -----------
Total issued 37,545 372,594
Shares redeemed (144,716) (1,448,887)
----------- -----------
Net decrease (107,171) $(1,076,293)
=========== ===========
<PAGE>
Arizona Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 278,239 $ 2,779,806
Shares issued to shareholders in
reinvestment of dividends 2,135 21,321
----------- -----------
Total issued 280,374 2,801,127
Shares redeemed (74,510) (744,870)
----------- -----------
Net increase 205,864 $ 2,056,257
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
NOTES TO FINANCIAL STATEMENTS (continued)
Arizona Limited Maturity
Class B Shares for the Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 327,604 $ 3,257,316
Shares issued to shareholders in
reinvestment of dividends 10,498 104,547
----------- -----------
Total issued 338,102 3,361,863
Shares redeemed (386,410) (3,852,363)
----------- -----------
Net decrease (48,308) $ (490,500)
=========== ===========
Arizona Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 616,984 $ 6,164,185
Shares issued to shareholders in
reinvestment of dividends 5,114 51,044
----------- -----------
Total issued 622,098 6,215,229
Shares redeemed (68,093) (678,159)
----------- -----------
Net increase 554,005 $ 5,537,070
=========== ===========
<PAGE>
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Arizona Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 110 $ 1,091
Shares issued to shareholders in
reinvestment of dividends 3 29
----------- -----------
Net increase 113 $ 1,120
=========== ===========
[FN]
++Commencement of Operations.
Arizona Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 1,801 $ 17,929
Shares issued to shareholders in
reinvestment of dividends 26 262
----------- -----------
Net increase 1,827 $ 18,191
=========== ===========
[FN]
++Commencement of Operations.
California Limited Maturity
Class A Shares for the Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 81,782 $ 801,557
Shares issued to shareholders in
reinvestment of dividends 4,844 47,495
----------- -----------
Total issued 86,626 849,052
Shares redeemed (118,656) (1,147,698)
----------- -----------
Net decrease (32,030) $ (298,646)
=========== ===========
<PAGE>
California Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 498,638 $ 4,981,335
Shares issued to shareholders in
reinvestment of dividends 3,211 31,885
----------- -----------
Total issued 501,849 5,013,220
Shares redeemed (121,849) (1,206,841)
----------- -----------
Net increase 380,000 $ 3,806,379
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
California Limited Maturity
Class B Shares for the Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 275,065 $ 2,701,344
Shares issued to shareholders in
reinvestment of dividends 19,605 192,424
----------- -----------
Total issued 294,670 2,893,768
Shares redeemed (414,211) (4,043,475)
----------- -----------
Net decrease (119,541) $(1,149,707)
=========== ===========
<PAGE>
California Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,286,485 $12,864,329
Shares issued to shareholders in
reinvestment of dividends 9,784 97,043
----------- -----------
Total issued 1,296,269 12,961,372
Shares redeemed (144,490) (1,438,053)
----------- -----------
Net increase 1,151,779 $11,523,319
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
California Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 6,910 $ 68,864
Shares issued to shareholders in
reinvestment of dividends 26 260
----------- -----------
Total issued 6,936 69,124
Shares redeemed (499) (4,971)
----------- -----------
Net increase 6,437 $ 64,153
=========== ===========
[FN]
++Commencement of Operations.
California Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 299,589 $ 2,938,426
Shares issued to shareholders in
reinvestment of dividends 404 4,019
----------- -----------
Total issued 299,993 2,942,445
Shares redeemed (122,736) (1,203,760)
----------- -----------
Net increase 177,257 $ 1,738,685
=========== ===========
[FN]
++Commencement of Operations.
<PAGE>
Florida Limited Maturity
Class A Shares for the Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 189,974 $ 1,875,261
Shares issued to shareholders in
reinvestment of dividends 24,282 237,815
----------- -----------
Total issued 214,256 2,113,076
Shares redeemed (736,537) (7,241,200)
----------- -----------
Net decrease (522,281) $(5,128,124)
=========== ===========
Florida Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 2,423,924 $24,249,083
Shares issued to shareholders in
reinvestment of dividends 19,775 195,813
----------- -----------
Total issued 2,443,699 24,444,896
Shares redeemed (943,039) (9,343,654)
----------- -----------
Net increase 1,500,660 $15,101,242
=========== ===========
[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 Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 1,210,069 $11,716,749
Shares issued to shareholders in
reinvestment of dividends 40,299 395,075
----------- -----------
Total issued 1,250,368 12,111,824
Shares redeemed (1,472,459) (14,333,879)
----------- -----------
Net decrease (222,091) $(2,222,055)
=========== ===========
<PAGE>
Florida Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 2,024,566 $20,228,524
Shares issued to shareholders in
reinvestment of dividends 17,982 178,003
----------- -----------
Total issued 2,042,548 20,406,527
Shares redeemed (206,696) (2,040,858)
----------- -----------
Net increase 1,835,852 $18,365,669
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Florida Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 110 $ 1,074
Shares issued to shareholders in
reinvestment of dividends 3 31
----------- -----------
Net increase 113 $ 1,105
=========== ===========
[FN]
++Commencement of Operations.
<PAGE>
Florida Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 835,832 $ 8,301,886
Shares issued to shareholders in
reinvestment of dividends 1,523 15,096
----------- -----------
Total issued 837,355 8,316,982
Shares redeemed (117,154) (1,155,181)
----------- -----------
Net increase 720,201 $ 7,161,801
=========== ===========
[FN]
++Commencement of Operations.
Massachusetts Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 113,925 $ 1,124,479
Shares issued to shareholders in
reinvestment of dividends & distributions 18,553 182,392
----------- -----------
Total issued 132,478 1,306,871
Shares redeemed (499,178) (4,904,822)
----------- -----------
Net decrease (366,700) $(3,597,951)
=========== ===========
Massachusetts Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 986,106 $ 9,847,094
Shares issued to shareholders in
reinvestment of dividends & distributions 10,151 101,086
----------- -----------
Total issued 996,257 9,948,180
Shares redeemed (187,582) (1,874,872)
----------- -----------
Net increase 808,675 $ 8,073,308
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
Massachusetts Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 144,229 $ 1,416,046
Shares issued to shareholders in
reinvestment of dividends & distributions 12,243 120,528
----------- -----------
Total issued 156,472 1,536,574
Shares redeemed (483,231) (4,711,225)
----------- -----------
Net decrease (326,759) $(3,174,651)
=========== ===========
Massachusetts Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 918,615 $ 9,181,458
Shares issued to shareholders in
reinvestment of dividends & distributions 8,777 87,462
----------- -----------
Total issued 927,392 9,268,920
Shares redeemed (123,885) (1,232,135)
----------- -----------
Net increase 803,507 $ 8,036,785
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
Massachusetts Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 61,378 $ 600,360
Shares issued to shareholders in
reinvestment of dividends & distributions 667 6,580
----------- -----------
Total issued 62,045 606,940
Shares redeemed (20,616) (199,766)
----------- -----------
Net increase 41,429 $ 407,174
=========== ===========
[FN]
++Commencement of Operations.
Massachusetts Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 32,116 $ 317,241
Shares issued to shareholders in
reinvestment of dividends & distributions 123 1,219
----------- -----------
Total issued 32,239 318,460
Shares redeemed (6,870) (67,623)
----------- -----------
Net increase 25,369 $ 250,837
=========== ===========
[FN]
++Commencement of Operations.
Michigan Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 28,337 $ 279,211
Shares issued to shareholders in
reinvestment of dividends 3,430 33,654
----------- -----------
Total issued 31,767 312,865
Shares redeemed (147,187) (1,432,908)
----------- -----------
Net decrease (115,420) $(1,120,043)
=========== ===========
<PAGE>
Michigan Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 401,323 $ 4,013,429
Shares issued to shareholders in
reinvestment of dividends 2,478 24,576
----------- -----------
Total issued 403,801 4,038,005
Shares redeemed (62,639) (622,769)
----------- -----------
Net increase 341,162 $ 3,415,236
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Michigan Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 116,190 $ 1,105,484
Shares issued to shareholders in
reinvestment of dividends 6,029 83,311
----------- -----------
Total issued 122,219 1,188,795
Shares redeemed (115,161) (1,122,677)
----------- -----------
Net increase 7,058 $ 66,118
=========== ===========
<PAGE>
Michigan Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 278,617 $ 2,783,049
Shares issued to shareholders in
reinvestment of dividends 2,148 21,328
----------- -----------
Total issued 280,765 2,804,377
Shares redeemed (42,817) (422,787)
----------- -----------
Net increase 237,948 $ 2,381,590
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Michigan Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 110 $ 1,073
Shares issued to shareholders in
reinvestment of dividends 3 32
----------- -----------
Net increase 113 $ 1,105
=========== ===========
[FN]
++Commencement of Operations.
Michigan Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 64,155 $ 622,185
Shares issued to shareholders in
reinvestment of dividends 689 6,780
----------- -----------
Total issued 64,844 628,965
Shares redeemed (39,359) (387,400)
----------- -----------
Net increase 25,485 $ 241,565
=========== ===========
[FN]
++Commencement of Operations.
<PAGE>
New Jersey Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 147,003 $ 1,452,568
Shares issued to shareholders in
reinvestment of dividends 6,968 69,363
----------- -----------
Total issued 153,971 1,521,931
Shares redeemed (514,441) (5,055,460)
----------- -----------
Net decrease (360,470) $(3,533,529)
=========== ===========
New Jersey Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 713,522 $ 7,132,561
Shares issued to shareholders in
reinvestment of dividends 3,582 35,606
----------- -----------
Total issued 717,104 7,168,167
Shares redeemed (125,194) (1,242,893)
----------- -----------
Net increase 591,910 $ 5,925,274
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
New Jersey Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 318,885 $ 3,174,748
Shares issued to shareholders in
reinvestment of dividends 18,151 180,493
----------- -----------
Total issued 337,036 3,355,241
Shares redeemed (382,526) (3,775,067)
----------- -----------
Net decrease (45,490) $ (419,826)
=========== ===========
<PAGE>
New Jersey Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 911,860 $ 9,110,233
Shares issued to shareholders in
reinvestment of dividends 8,809 87,675
----------- -----------
Total issued 920,669 9,197,908
Shares redeemed (132,821) (1,319,909)
----------- -----------
Net increase 787,848 $ 7,877,999
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
New Jersey Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 65,242 $ 620,177
Shares issued to shareholders in
reinvestment of dividends 67 621
----------- -----------
Total issued 65,309 620,798
Shares redeemed (65,196) (622,061)
----------- -----------
Net increase (decrease) 113 $ (1,263)
=========== ===========
<PAGE>
New Jersey Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 69,049 $ 691,844
Shares issued to shareholders in
reinvestment of dividends 348 3,514
----------- -----------
Total issued 69,397 695,358
Shares redeemed (26,375) (264,833)
----------- -----------
Net increase 43,022 $ 430,525
=========== ===========
[FN]
++Commencement of Operations.
New York Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 189,338 $ 1,861,355
Shares issued to shareholders in
reinvestment of dividends 16,001 157,598
----------- -----------
Total issued 205,339 2,018,953
Shares redeemed (260,265) (2,576,091)
----------- -----------
Net decrease (54,926) $ (557,138)
=========== ===========
New York Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 688,129 $ 6,868,576
Shares issued to shareholders in
reinvestment of dividends 7,715 76,559
----------- -----------
Total issued 695,844 6,945,135
Shares redeemed (167,164) (1,662,649)
----------- -----------
Net increase 528,680 $ 5,282,486
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
New York Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 331,365 $ 3,261,544
Shares issued to shareholders in
reinvestment of dividends 18,265 180,012
----------- -----------
Total issued 349,630 3,441,556
Shares redeemed (454,750) (4,436,666)
----------- -----------
Net decrease (105,120) $ (995,110)
=========== ===========
New York Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,107,860 $11,052,622
Shares issued to shareholders in
reinvestment of dividends 9,226 91,580
----------- -----------
Total issued 1,117,086 11,144,202
Shares redeemed (139,173) (1,381,635)
----------- -----------
Net increase 977,913 $ 9,762,567
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
<PAGE>
New York Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 3,813 $ 38,224
Shares issued to shareholders in
reinvestment of dividends 4 40
----------- -----------
Net increase 3,817 $ 38,264
=========== ===========
[FN]
++Commencement of Operations.
New York Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 271,406 $ 2,697,692
Shares issued to shareholders in
reinvestment of dividends 754 7,474
----------- -----------
Total issued 272,160 2,705,166
Shares redeemed (42,782) (416,797)
----------- -----------
Net increase 229,378 $ 2,288,369
=========== ===========
[FN]
++Commencement of Operations.
Pennsylvania Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 33,049 $ 326,744
Shares issued to shareholders in
reinvestment of dividends 1,339 13,282
----------- -----------
Total issued 34,388 340,026
Shares redeemed (40,535) (402,246)
----------- -----------
Net decrease (6,147) $ (62,220)
=========== ===========
<PAGE>
Pennsylvania Limited Maturity
Class A Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 106,856 $ 1,069,053
Shares issued to shareholders in
reinvestment of dividends 969 9,663
----------- -----------
Total issued 107,825 1,078,716
Shares redeemed (13,280) (132,350)
----------- -----------
Net increase 94,545 $ 946,366
=========== ===========
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Pennsylvania Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 151,037 $ 1,497,108
Shares issued to shareholders in
reinvestment of dividends 23,340 231,300
----------- -----------
Total issued 174,377 1,728,408
Shares redeemed (398,422) (3,933,111)
----------- -----------
Net decrease (224,045) $(2,204,703)
=========== ===========
Pennsylvania Limited Maturity
Class B Shares for the Period Dollar
November 26, 1993++ to July 31, 1994 Shares Amount
Shares sold 1,067,442 $10,675,486
Shares issued to shareholders in
reinvestment of dividends 12,521 124,741
----------- -----------
Total issued 1,079,963 10,800,227
Shares redeemed (126,855) (1,259,173)
----------- -----------
Net increase 953,108 $ 9,541,054
=========== ===========
<PAGE>
[FN]
++Prior to November 26, 1993 (commencement of operations), the Fund issued
5,000 shares to FAM for $50,000.
Pennsylvania Limited Maturity
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 110 $ 1,082
Shares issued to shareholders in
reinvestment of dividends 3 31
----------- -----------
Net increase 113 $ 1,113
=========== ===========
[FN]
++Commencement of Operations.
Pennsylvania Limited Maturity
Class D Shares for the Period
October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 37,328 $ 367,223
Shares issued to shareholders in
reinvestment of dividends 476 4,763
----------- -----------
Net increase 37,804 $ 371,986
=========== ===========
[FN]
++Commencement of Operations.
5. Capital Loss Carryforward:
At July 31, 1995, each Fund of the Trust had an approximate net
capital loss carryforward as follows: $66,000 in the Arizona Limited
Maturity Fund, all of which expires in 2003; $156,000 in the Califor-
nia Limited Maturity Fund, all of which expires in 2003; $518,000
in the Florida Limited Maturity Fund, all of which expires in 2003;
$71,000 in Massachusetts Limited Maturity Fund, all of which
expires in 2003; $53,000 in the Michigan Limited Maturity Fund,
all of which expires in 2003; $98,000 in the New Jersey Limited
Maturity Fund, all of which expires in 2003; $124,000 in the New York
Limited Maturity Fund, of which $122,000 expires in 2002 and
$2,000 expires in 2003; and $102,000 in the Pennsylvania Limited
Maturity Fund, all of which expires in 2003. These amounts will be
available to offset like amounts of any future taxable gains.
<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust:
We have audited the accompanying statement of assets and liabili-
ties, including the schedule of investments, of Merrill Lynch Limited
Maturity Municipal Bond Funds for Arizona, California, Florida,
Massachusetts, Michigan, New Jersey, New York, and Pennsylvania
of the Merrill Lynch Multi-State Limited Maturity Municipal Series
Trust (the "Trust") as of July 31, 1995, the related statement of
operations for the year ended and statements of changes in net
assets and the financial highlights for the year then ended and for
the period November 26, 1993 (commencement of operations)
to July 31, 1994. These financial statements and the financial
highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial state-
ments and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and per-
form the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of mater-
ial misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities
owned at July 31, 1995 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Limited Maturity Municipal Bond Funds for Arizona,
California, Florida, Massachusetts, Michigan, New Jersey, New York,
and Pennsylvania of the Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust as of July 31, 1995, the results of their
operations, the changes in their net assets, and the financial high-
lights for the respective stated periods in conformity with generally
accepted accounting principles.
<PAGE>
Deloitte & Touche LLP
Princeton, New Jersey
September 7, 1995
</AUDIT-REPORT>
