MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Semi-Annual Report
January 31, 1996
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. Statements and other information herein
are as dated and are subject to change.
<PAGE>
Merrill Lynch Multi-State
Limited Maturity
Municipal Series Trust
Box 9011
Princeton, NJ
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Officers and
Trustees
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
Edward J. Andrews, Portfolio Manager
Helen M. Sheehan, Portfolio Manager
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, New York 10005
<PAGE>
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
TO OUR SHAREHOLDERS
Although the partial shutdown of the US
Government curtailed the release of most
economic data for the January quarter,
it was nonetheless apparent that gross
domestic product (GDP) growth contin-
ued to be lackluster. Consumer spending
is barely growing, the industrial sector is
at a virtual standstill and, despite lower
mortgage rates, there is little or no pick-up
in housing activity. With inflationary
pressures subdued, the Federal Reserve
Board responded to the slowing economy
by modestly lowering short-term interest
rates in both December and January. His-
torically, it has taken some time for shifts
in monetary policy to have an impact on
economic growth. Therefore, the Federal
Reserve Board's gradual shift to lowering
interest rates, which began early last year,
may not be reflected in a pick-up in real
economic growth until later this year.
The impasse between the Clinton Admin-
istration and Congress over the Federal
budget continues, although both sides
have made concessions since the debate
began. It appears that investors are cur-
rently focusing on the progress that has
been made rather than on the differences
that remain. Initially, President Clinton
proposed deficits of about $190 billion
annually through fiscal year 2002, but now
proposes balanced budgets, as do the
Republicans. Current indications are that
a piecemeal budget accord is the most
likely outcome. Even without the pro-
posed policy changes, it appears that the
US Federal budget deficit would remain
<PAGE>
stable at about 2% of GDP for the rest of
the decade. This would be far better than
is the case for most Group of Seven
industrial nations, and for the United
States would represent a great improve-
ment over the last 15 years. Although this
may fall short of investors' best expecta-
tions, it appears that the Federal budget
debate over the past year has resulted
in a trend toward a more conservative
fiscal policy.
The Municipal Market
The municipal bond market rallied strongly
over the three months ended January 31,
1996. Five-year AAA-rated, tax-exempt
general obligation bond yields, as meas-
ured by Municipal Market Data, declined
15 basis points--20 basis points (0.15%--
0.20%) to end the January period at
approximately 4.00%. Continued weak
economic conditions coupled with low
inflation fostered a very positive environ-
ment for almost all fixed-income invest-
ments during the last three months of
1995. Long-term US Treasury bond yields
declined approximately 35 basis points to
6.00% by January 31, 1996. Both US Treas-
ury and long-term tax-exempt bond yields
are near their lowest levels in the past
two years.
The municipal bond market had to con-
tend with a number of difficulties for
much of 1995. Various tax reform propos-
als have made the future tax advantage of
municipal bonds uncertain. This has, at a
minimum, reduced the overall demand for
tax-exempt securities. At the same time,
as municipal bond yields declined, tax-
exempt authorities have rushed to issue
debt at near historic low yield levels.
During the three-month period ended Jan-
uary 31, 1996, approximately $50 billion in
municipal securities were underwritten,
an increase of almost 50% compared to
the same period last year. However, as
early 1995 issuance was significantly
reduced, the last 12 months issuance of
approximately $160 billion remained the
same as that issued a year earlier. Tax-
exempt bond yields declined throughout
the three months ended January 31, 1996,
despite investor uncertainty and increased
supply pressures.
<PAGE>
It is likely that the municipal market will
regain much of the technical support it
enjoyed earlier in 1995. 1995 issuance
remained significantly below levels under-
written in 1993, when over $290 billion
in long-term tax-exempt securities were
issued. Also, municipal investors received
over $25 billion in bond maturities, coupon
income and early redemptions on Janu-
ary 1, 1996. This $25 billion is almost twice
the average monthly issuance for 1995.
The amount of outstanding municipal
securities will continue to decline through-
out 1996 and into early 1997. As the
uncertainties surrounding proposed tax
reforms are resolved in 1996, the tax-
exempt bond market's renewed technical
position should provide support to muni-
cipal bond prices.
Many of the features that made tax-exempt
products attractive to many investors last
year are still in place. Intermediate-term
AA-rated municipal revenue bonds con-
tinue to yield well over 78% of comparable
US Treasury bond yields. Historically,
analysts have considered yields in excess
of 72% attractive for municipal bond
investors. For example, currently available
intermediate tax-exempt bond yields
generate taxable equivalent yields in
excess of 7.25% for an investor in the 36%
Federal income tax bracket. While the
uncertainties regarding potential changes
in current tax law remain, it appears that,
at current price levels, bond investors
already have discounted at least some of
the uncertainty.
Looking ahead, it may be unreasonable to
expect to duplicate the double-digit
returns produced by most tax-exempt
issues in 1995, given current municipal
bond yields. Municipal bond yields would
have to decline to levels not seen since
the 1960s in order to generate such signifi-
cant returns in the coming years. While
the current economic environment may
still justify additional declines in interest
rates, it may be prudent to expect some
period of consolidation before the interest
rate decline resumes. Tax-exempt bond
market performance in 1996 is likely to
be generated more by enhancing current
income and limiting credit risk than by
significant interest rate declines.
<PAGE>
Portfolio Strategy
Merrill Lynch Arizona Limited Maturity
Municipal Bond Fund
During the quarter ended January 31,
1996, the Arizona economy continued to
slow from the boom conditions which
have existed since 1993. Employment
growth gains were expected to be 4.8%
for 1995 as compared to 6.2% in 1994.
Tucson and all of southern Arizona are
suffering from both the Mexican peso's
plunge and from fallen hopes for develop-
ment based on the North American Free
Trade Agreement. However, economists
are forecasting stable growth in the manu-
facturing, retail and commercial real
estate sectors in Maricopa County. A
shortage of skilled trade workers in the
State was created by the start of construc-
tion on Intel Corp.'s $1.5 billion factory as
well as the $250 million stadium being
built to house the State's new major league
baseball franchise. State and local econo-
mies also anticipate an incremental
increase of an estimated $187 million in
economic activity from hosting the Fiesta
Bowl and Super Bowl in January 1996.
During the January quarter, we continued
to maintain an aggressive portfolio stance
with cash reserves of 22% of net assets
and an average portfolio maturity of
4 years, 6 months. Our purchases con-
sisted of AA-rated bonds because of the
liquidity they provide. Should the current
economic weakness persist and short-
term interest rates remain low, we will
continue to maintain our current port-
folio strategy.
<PAGE>
Merrill Lynch California Limited Maturity
Municipal Bond Fund
During the quarter ended January 31,
1996, Governor Wilson proposed his
fiscal 1997 budget which projected rev-
enues of $45.6 billion and expenditures of
$45.2 billion, leaving a projected surplus
in the State's General Fund. The budget
anticipates continued moderate economic
expansion and includes a proposed 15%
reduction in personal and corporate
income taxes over the next three years.
If the State's moderate economic expansion
is unsustainable, the State will surely
face additional fiscal pressures in the
years ahead. California's unemployment
rate for December was 7.7%. On a positive
note, Wells Fargo & Co. plans to acquire
First Interstate Bancorp. Although this
would initially cut 5,000 banking jobs
over the next two years, Wells Fargo has
pledged to provide $45 billion in loans
to small businesses and community
programs during the next decade, a com-
mitment likely to translate into hundreds
of thousands of new jobs in the State's
poorest communities.
During the January quarter, we con-
tinued to maintain an aggressive invest-
ment posture. By January 31, 1996, the
average portfolio maturity of the Fund
stood at 4 years, 11 months, with 18% of
the Fund's net assets in cash equivalent
securities. Almost 79% of the Fund's
securities were rated Aa or better by at
least one of the major rating agencies.
We will continue to maintain this aggres-
sive stance should the slow-to-moderate
economic growth continue, which could
give the Federal Reserve Board further
justification to adjust the current
slightly restrictive monetary policy to a
more neutral one.
<PAGE>
Merrill Lynch Florida Limited Maturity
Municipal Bond Fund
During the quarter ended January 31,
1996, Florida's unemployment rate
dropped to 6.2% in December from 6.3%
in November. New factories for Eveready
Battery Co. and America On-Line Inc.
are giving Florida some employment
stability at a time of year when jobs usu-
ally decline because of retail and service
sector lay-offs after Christmas and the
holiday season. Many service businesses in
Florida, such as restaurants and hotels, are
tourism related. Last year, Florida tourism
rebounded after two years of declines,
adding thousands of jobs. A large per-
centage of the surge was attributed to the
dollar's decline and a subsequent influx
of international tourists. Job growth in
1996 is likely to fall short of last year's
3.3% rise when 196,000 jobs were added
to the State's economy. However, Florida
is expected to add jobs at twice the
national rate this year.
The State's adopted budget for fiscal 1996
increases general revenue fund spending
by about 3.7% to $14.8 billion. Revenues
are projected to grow by $872.6 millon,
or 6.6%. The budget continues to provide
for deposits into the Budget Stabilization
Reserve Fund, which will total approxi-
mately $260 million by the end of fiscal
year 1996.
During the January quarter, we continued
to maintain an aggressive investment
posture. The average portfolio maturity
of the Fund stood at 4 years, 11 months,
with 14% of the Fund's net assets in cash
equivalent securities. Almost 90% of the
Fund's securities were rated Aa or better
by at least one of the major rating agencies.
We will continue to maintain this aggres-
sive stance should the slow-to-moderate
economic growth continue, which would
give the Federal Reserve Board further
justification to adjust the current slightly
restrictive monetary policy to a more
neutral one.
<PAGE>
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
During the January quarter, Governor
Weld proposed a $16.7 billion spending
plan for the fiscal year 1997 budget. The
proposal includes a reorganization plan
for Commonwealth government which
would reduce the number of cabinet
secretaries and eliminate 74 operating
agencies and about 100 boards and com-
missions, providing approximately $600
million in savings over two years. These
savings generated by the streamlining
proposals will allow Governor Weld to
lower the personal income tax rate from
5.95% to 5.45% over the two-year period.
In addition, the savings will add $243
million to local aid for education, funds
to the criminal justice system, local aid to
help keep property taxes down and day
care for low-income families trying to
work off welfare rolls. One note to the
$16.7 billion spending figure is that it
assumes the Federal government will
approve a variety of new block grants re-
sulting in approximately $500 million of
reductions in spending. Without such
grants, spending would be $17.36 billion
for fiscal year 1997, a $425 million or 2.5%
increase over anticipated current spend-
ing. The budget also assumes projected
increases in tax revenues of 2.8%, or about
$328 million. Surprisingly, with economic
conditions as they are, revenue collections
in the Commonwealth for the three months
ended January 1996 were on target with
the fiscal 1996 budget estimates.
The Fund continued to be aggressively
positioned for the three-month period
ended January 31, 1996, as it has been
for the past several quarters. The lowering
of its key interest rates in December and
again in January confirmed that the
Federal Reserve Board was indeed con-
cerned over the anemic economic growth
of the nation, thus prompting a move to
a more accommodative monetary policy.
In such an environment, the lowering of
the Federal Funds rate is especially
favorable to short-term and intermediate-
term fixed-income products, the sector of
the market in which the Fund predomi-
nantly operates.
<PAGE>
We continue to maintain low cash reserves
of approximately 11% of net assets, while
maintaining an average portfolio maturity
of approximately five years, the maxi-
mum allowable as detailed in the Fund's
prospectus. This investment approach
enabled us to take advantage of the sub-
stantial fall in interest rates which oc-
curred and might still occur should the
Federal Reserve Board maintain its more
accommodative monetary policy. Credit
quality and diversification continue to be
paramount to the Fund.
Merrill Lynch Michigan Limited Maturity
Municipal Bond Fund
During the quarter ended January 31, 1996,
the Michigan economy continued to grad-
ually slow as the automobile industry
continued to cut back production. Auto
production declined 9.2% in the first eleven
months of 1995 from the same period a
year ago. Auto company work forces were
unchanged in 1995, after growing about
4% during the prior year. Economists
see lower factory activity as a sign that
Michigan's unemployment rate will edge
higher toward 6.0% from December's 5.3%.
The State's unemployment rate averaged
5.4% for all of 1995, the lowest since
1969's 4.0%. In the first four weeks of
1996, US auto production declined 14% to
766,175 units from 891,461 a year earlier,
according to Ward's Automotive Reports,
an industry journal. Additionally, con-
sumer confidence in the economy fell in
December for the third time in four
months, according to the Conference
Board. Lack of faith in the economy could
slow consumer spending for big ticket
items such as automobiles.
<PAGE>
During the January quarter, we continued
to maintain an aggressive investment
posture. The average portfolio maturity
of the Fund stood at 4 years, 11 months,
with 19% of the Fund's net assets in cash
equivalent securities. Almost 95% of the
Fund's securities were rated Aa or better
by at least one of the major rating agencies.
We will continue to maintain this aggres-
sive stance should slow-to-moderate
economic growth continue, which would
give the Federal Reserve Board further
justification to adjust the current slightly
restrictive monetary policy to a more
neutral one.
Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund
The State of New Jersey is still struggling
under the weight of corporate layoffs
and restructuring, primarily in tele-
communications, pharmaceuticals and
banking. Of greatest impact were AT&T
Corp.'s announcements of its intent to
reduce personnel by approximately 7%.
The State's unemployment rate rose to
7.3% in December from 6.1% in November,
approaching levels of unemployment
equaled only in the State of California.
This figure does not include AT&T's
layoffs. Compounding a decline in unem-
ployment and a loss of the State's manu-
facturing base is the partial Federal
shutdown which has restricted the flows
of Federal funds and has forced the
State to enter the short-term tax-exempt
market temporarily to bridge the loss
of revenues. In addition to the loss of
Federal funds, State revenues were below
expectations for the first six months of
fiscal year 1996.
During the January quarter we con-
tinued to maintain an aggressive portfolio
stance with cash reserves of 18% of net
assets and an average portfolio maturity
of five years, the maximum allowable as
detailed in the Fund's prospectus. The
Fund continues to be "barbelled," which
means that the Fund is invested primarily
in securities with very short maturities
and those with very long maturities at the
long end of the spectrum of the Fund's
permissible investments. The Fund is
heavily weighted in securities rated
AA or better because of the excellent
liquidity they provide. Should the cur-
rent economic weakness persist and
short-term interest rates remain low, we
will continue to maintain our current
portfolio strategy.
<PAGE>
Merrill Lynch New York Limited Maturity
Municipal Bond Fund
During the quarter ended January 31, 1996,
the New York State economy continued
to slow. As a state with a high concen-
tration of headquarters for banks, insur-
ance companies and large corporations,
New York is expected to continue to feel
the impact of mergers and widespread
firings in corporate America. In the three
months leading up to December, New York
State added 19,000 jobs to its work force,
only half the number of the previous three
months. The State's unemployment rate
rose to 6.4% in December from 6.0% in
November and 5.7% in December 1994.
Meanwhile, retail employment, which
reached its highest level in five years in
November 1995, is beginning to show signs
of trouble. The combination of high con-
sumer installment debt, job concerns and
overly high store capacity have analysts
predicting a surge in retail store closings
in the near future in New York State as
well as nationwide.
New York City's current budget gap may
be as large as $989 million for the current
fiscal year, according to a report by the
Comptroller's office. A combination of a
drop in tax revenues, personal income
collections as well as costs associated
with January's record snow falls were the
main reasons for the increase.
During the January quarter, we continued
to maintain an aggressive investment
posture. The average portfolio maturity
of the Fund stood at 4 years, 10 months,
with 20% of the Fund's net assets in cash
equivalent securities. Almost 80% of the
Fund's securities were rated Aa or better
by at least one of the major rating agencies.
We will continue to maintain this aggres-
sive stance should the slow-to-moderate
economic growth continue, which could
give the Federal Resere Board further
justification to adjust the current slightly
restrictive monetary policy to a more
neutral one.
<PAGE>
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
The Commonwealth of Pennsylvania
endured a sluggish economic quarter as
overall employment declined, led by a 1%
drop in manufacturing jobs and a 1.5%
drop in construction jobs from December
1995 to January 1996. A major factor in
this decline was the "Blizzard of '96" in
which 25 of 67 counties were declared
disaster areas. The Commonwealth's
unemployment rate jumped to 6.3% in
December 1995 versus 6.0% in December
1994. In November, the Commonwealth
issued $180 million in general obligation
debt, down from $290 million in November
1994, mainly in response to an improved
financial performance. The General Fund
of the Commonwealth is currently oper-
ating at its fourth consecutive surplus as
a result of budgetry control measures
which restricted growth in public health
and welfare expenditures to just 4.4%.
In the January quarter, we continued to
maintain an aggressive portfolio stance.
We extended our average portfolio maturity
to 4 years, 11 months and reduced our cash
reserves to 18.5% of net assets. Addi-
tionally, the Fund's average portfolio
maturity was extended with a purchase
of an AMBAC insured general obligation
bond which provided us with diversifica-
tion and liquidity. Should the current
economic weakness persist and short-term
interest rates remain low, we will continue
to maintain our current portfolio strategy.
In Conclusion
We appreciate your interest in Merrill
Lynch Multi-State Limited Maturity
Municipal Series Trust, and we look
forward to assisting you with your finan-
cial needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Edward J. Andrews)
Edward J. Andrews
Portfolio Manager
(Peter J. Hayes)
Peter J. Hayes
Portfolio Manager
(Helen M. Sheehan)
Helen M. Sheehan
Portfolio Manager
March 7, 1996
PERFORMANCE DATA
About Fund
Performance
Investors are 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.
<PAGE>
* 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).
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.
PERFORMANCE DATA
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.02% +7.93%
Inception (11/26/93) through 12/31/95 +5.31 +4.80
<PAGE>
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.53% +7.53%
Inception (11/26/93) through 12/31/95 +4.88 +4.88
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.33% +7.33%
Inception (10/21/94) through 12/31/95 +7.03 +7.03
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +8.81% +7.72%
Inception (10/21/94) through 12/31/95 +7.53 +6.63
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +10.12% +9.02%
Inception (11/26/93) through 12/31/95 + 4.87 +4.37
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.73% +8.73%
Inception (11/26/93) through 12/31/95 +4.50 +4.50
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.84% +8.84%
Inception (10/21/94) through 12/31/95 +7.53 +7.53
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +10.01% +8.91%
Inception (10/21/94) through 12/31/95 + 7.77 +6.87
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.68% +8.59%
Inception (11/26/93) through 12/31/95 +4.79 +4.29
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.30% +8.30%
Inception (11/26/93) through 12/31/95 +4.42 +4.42
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.41% +7.41%
Inception (10/21/94) through 12/31/95 +6.55 +6.55
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.69% +8.59%
Inception (10/21/94) through 12/31/95 +7.61 +6.71
<PAGE>
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +8.51% +7.43%
Inception (11/26/93) through 12/31/95 +4.67 +4.17
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.13% +7.13%
Inception (11/26/93) through 12/31/95 +4.30 +4.30
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.46% +7.46%
Inception (10/21/94) through 12/31/95 +6.67 +6.67
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +8.52% +7.43%
Inception (10/21/94) through 12/31/95 +6.77 +5.87
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.10% +8.01%
Inception (11/26/93) through 12/31/95 +4.58 +4.08
<PAGE>
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.70% +7.70%
Inception (11/26/93) through 12/31/95 +4.21 +4.21
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.52% +7.52%
Inception (10/21/94) through 12/31/95 +6.75 +6.75
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +8.99% +7.90%
Inception (10/21/94) through 12/31/95 +7.23 +6.33
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.30% +8.20%
Inception (11/26/93) through 12/31/95 +5.21 +4.71
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.02% +8.02%
Inception (11/26/93) through 12/31/95 +4.89 +4.89
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 -1.50% -2.45%
Inception (10/21/94) through 12/31/95 -1.38 -1.38
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.30% +8.20%
Inception (10/21/94) through 12/31/95 +7.78 +6.88
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (continued)
Average Annual
Total Returns
(concluded)
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +10.10% +9.00%
Inception (11/26/93) through 12/31/95 + 5.28 +4.77
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.71% +8.71%
Inception (11/26/93) through 12/31/95 +4.90 +4.90
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.67% +8.67%
Inception (10/21/94) through 12/31/95 +7.87 +7.87
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.99% +8.89%
Inception (10/21/94) through 12/31/95 +8.24 +7.33
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.60% +8.50%
Inception (11/26/93) through 12/31/95 +5.32 +4.81
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +9.21% +8.21%
Inception (11/26/93) through 12/31/95 +4.94 +4.94
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 12/31/95 +8.90% +7.90%
Inception (10/21/94) through 12/31/95 +7.39 +7.39
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 12/31/95 +9.60% +8.50%
Inception (10/21/94) through 12/31/95 +8.07 +7.17
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Recent
Performance
Results*
<CAPTION>
12 Month 3 Month Standardized
12 Month 3 Month Total Total 30-day Yield
1/31/95 10/31/94 1/31/94++ % Change++ % Change Return++ Return As of 1/31/95
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.30 $10.20 $9.92 +3.83% +0.98% +8.30%(1) +1.98%(2) 3.37%
Arizona Limited Maturity Class B Shares 10.30 10.20 9.92 +3.83 +0.98 +7.91(3) +1.89(4) 3.05
Arizona Limited Maturity Class C Shares 10.31 10.21 9.92 +3.93 +0.98 +7.84(5) +1.86(6) 2.85
Arizona Limited Maturity Class D Shares 10.31 10.21 9.92 +3.93 +0.98 +8.30(7) +1.95(8) 3.27
California Limited Maturity Class A Shares 10.20 10.09 9.73 +4.83 +1.09 +9.36(9) +2.11(10) 3.30
California Limited Maturity Class B Shares 10.20 10.09 9.73 +4.83 +1.09 +8.97(11) +2.02(12) 2.98
California Limited Maturity Class C Shares 10.20 10.09 9.73 +4.83 +1.09 +9.12(13) +2.06(14) 3.15
California Limited Maturity Class D Shares 10.20 10.09 9.73 +4.83 +1.09 +9.25(15) +2.08(8) 3.20
Florida Limited Maturity Class A Shares 10.18 10.07 9.72 +4.73 +1.09 +9.28(16) +2.11(2) 3.41
Florida Limited Maturity Class B Shares 10.18 10.07 9.72 +4.73 +1.09 +8.89(17) +2.02(4) 3.09
Florida Limited Maturity Class C Shares 10.12 10.07 9.72 +4.12 +0.50 +8.01(18) +1.35(19) 2.70
Florida Limited Maturity Class D Shares 10.17 10.07 9.72 +4.63 +0.99 +9.06(20) +1.98(8) 3.31
Massachusetts Limited Maturity Class A Shares 10.13 10.03 9.78 +3.58 +1.00 +8.13(21) +2.03(10) 3.58
Massachusetts Limited Maturity Class B Shares 10.13 10.03 9.78 +3.58 +1.00 +7.75(22) +1.93(12) 3.27
Massachusetts Limited Maturity Class C Shares 10.12 10.03 9.77 +3.58 +0.90 +7.97(23) +1.89(24) 3.47
Massachusetts Limited Maturity Class D Shares 10.12 10.03 9.77 +3.58 +0.90 +8.03(25) +1.90(26) 3.49
Michigan Limited Maturity Class A Shares 10.14 10.04 9.74 +4.11 +1.00 +8.70(27) +2.03(28) 3.54
Michigan Limited Maturity Class B Shares 10.14 10.04 9.74 +4.11 +1.00 +8.31(29) +1.94(30) 3.21
Michigan Limited Maturity Class C Shares 10.14 10.04 9.74 +4.11 +1.00 +8.13(31) +1.91(32) 3.21
Michigan Limited Maturity Class D Shares 10.13 10.03 9.73 +4.11 +1.00 +8.60(33) +2.01(2) 3.44
New Jersey Limited Maturity Class A Shares 10.31 10.21 9.86 +4.56 +0.98 +9.06(34) +2.00(35) 3.37
New Jersey Limited Maturity Class B Shares 10.32 10.21 9.87 +4.56 +1.08 +8.67(17) +2.01(36) 3.05
New Jersey Limited Maturity Class C Shares 9.34 9.25 9.70 -3.71 +0.97 -0.16(37) +1.82(38) 2.77
New Jersey Limited Maturity Class D Shares 10.32 10.21 9.87 +4.56 +1.08 +8.94(39) +2.08(2) 3.27
New York Limited Maturity Class A Shares 10.24 10.13 9.76 +4.92 +1.09 +9.71(40) +2.18(41) 3.74
New York Limited Maturity Class B Shares 10.24 10.13 9.76 +4.92 +1.09 +9.32(15) +2.09(2) 3.42
New York Limited Maturity Class C Shares 10.24 10.13 9.76 +4.92 +1.09 +9.31(15) +2.14(42) 3.61
New York Limited Maturity Class D Shares 10.25 10.14 9.77 +4.91 +1.08 +9.60(43) +2.15(44) 3.64
Pennsylvania Limited Maturity Class A Shares 10.31 10.19 9.83 +4.88 +1.18 +9.44(45) +2.20(35) 3.46
Pennsylvania Limited Maturity Class B Shares 10.31 10.19 9.82 +4.99 +1.18 +9.16(46) +2.11(36) 3.13
Pennsylvania Limited Maturity Class C Shares 10.29 10.19 9.83 +4.68 +0.98 +8.78(47) +1.94(14) 3.31
Pennsylvania Limited Maturity Class D Shares 10.32 10.19 9.83 +4.98 +1.28 +9.44(48) +2.28(2) 3.36
<PAGE>
<FN>
*Investment results shown do not reflect sales
charges; results shown would be lower if a sales
charge was included.
(1)Percent change includes reinvestment of
$0.428 per share ordinary income dividends.
(2)Percent change includes reinvestment of
$0.101 per share ordinary income dividends.
(3)Percent change includes reinvestment of
$0.392 per share ordinary income dividends.
(4)Percent change includes reinvestment of
$0.092 per share ordinary income dividends.
(5)Percent change includes reinvestment of
$0.375 per share ordinary income dividends.
(6)Percent change includes reinvestment of
$0.089 per share ordinary income dividends.
(7)Percent change includes reinvestment of
$0.419 per share ordinary income dividends.
(8)Percent change includes reinvestment of
$0.099 per share ordinary income dividends.
(9)Percent change includes reinvestment of
$0.424 per share ordinary income dividends.
(10)Percent change includes reinvestment of
$0.102 per share ordinary income dividends.
(11)Percent change includes reinvestment of
$0.388 per share ordinary income dividends.
(12)Percent change includes reinvestment of
$0.093 per share ordinary income dividends.
(13)Percent change includes reinvestment of
$0.402 per share ordinary income dividends.
(14)Percent change includes reinvestment of
$0.097 per share ordinary income dividends.
(15)Percent change includes reinvestment of
$0.414 per share ordinary income dividends.
(16)Percent change includes reinvestment of
$0.426 per share ordinary income dividends.
(17)Percent change includes reinvestment of
$0.391 per share ordinary income dividends.
(18)Percent change includes reinvestment of
$0.367 per share ordinary income dividends.
(19)Percent change includes reinvestment of
$0.085 per share ordinary income dividends.
(20)Percent change includes reinvestment of
$0.416 per share ordinary income dividends.
(21)Percent change includes reinvestment of
$0.430 per share ordinary income dividends.
(22)Percent change includes reinvestment of
$0.394 per share ordinary income dividends.
<PAGE>
(23)Percent change includes reinvestment of
$0.415 per share ordinary income dividends.
(24)Percent change includes reinvestment of
$0.098 per share ordinary income dividends.
(25)Percent change includes reinvestment of
$0.420 per share ordinary income dividends.
(26)Percent change includes reinvestment of
$0.100 per share ordinary income dividends.
(27)Percent change includes reinvestment of
$0.432 per share ordinary income dividends.
(28)Percent change includes reinvestment of
$0.103 per share ordinary income dividends.
(29)Percent change includes reinvestment of
$0.396 per share ordinary income dividends.
(30)Percent change includes reinvestment of
$0.094 per share ordinary income dividends.
(31)Percent change includes reinvestment of
$0.379 per share ordinary income dividends.
(32)Percent change includes reinvestment of
$0.091 per share ordinary income dividends.
(33)Percent change includes reinvestment of
$0.422 per share ordinary income dividends.
(34)Percent change includes reinvestment of
$0.427 per share ordinary income dividends.
(35)Percent change includes reinvestment of
$0.104 per share ordinary income dividends.
(36)Percent change includes reinvestment of
$0.095 per share ordinary income dividends.
(37)Percent change includes reinvestment of
$0.333 per share ordinary income dividends.
(38)Percent change includes reinvestment of
$0.078 per share ordinary income dividends.
(39)Percent change includes reinvestment of
$0.417 per share ordinary income dividends.
(40)Percent change includes reinvestment of
$0.450 per share ordinary income dividends.
(41)Percent change includes reinvestment of
$0.110 per share ordinary income dividends.
(42)Percent change includes reinvestment of
$0.106 per share ordinary income dividends.
(43)Percent change includes reinvestment of
$0.440 per share ordinary income dividends.
(44)Percent change includes reinvestment of
$0.108 per share ordinary income dividends.
(45)Percent change includes reinvestment of
$0.431 per share ordinary income dividends.
(46)Percent change includes reinvestment of
$0.395 per share ordinary income dividends.
(47)Percent change includes reinvestment of
$0.389 per share ordinary income dividends.
(48)Percent change includes reinvestment of
$0.421 per share ordinary income dividends.
</TABLE>
<PAGE>
Portfolio
Abbreviations
To simplify the listings of Merrill
Lynch Multi-State Limited Maturity
Municipal Series Trust's portfolio
holdings in the Schedule of
Investments, we have abbreviated
the names of many of the securities
according to the list at right.
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAW Revenue Anticipation Warrants
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
Arizona Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Arizona--93.9% NR* Aa $ 300 Arizona Educational Loan Marketing Corp., Educational Loan Revenue
Bonds, AMT, Senior Series, 5.875% due 9/01/2000 $ 314
A1+ VMIG1++ 200 Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary
Hospital Federation), VRDN, Series B, 3.30% 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) 304
AA- A1 350 Central Arizona, Water Conservation District, Contract Revenue Bonds
(Central Arizona Project), Series B, 6.50% due 5/01/2001 (e) 394
A1+ NR* 300 Chandler, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Southpark
Apartments Project), VRDN, 3.15% due 12/01/2002 (a) 300
A1+ P1 100 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding
(Arizona Public Service Co.), VRDN, Series B, 3.80% due 5/01/2029 (a) 100
SP1 MIG1++ 300 Maricopa County, Arizona, TAN, 4.50% due 7/31/1996 302
AAA Aaa 275 Mesa, Arizona, Refunding, 5.35% due 7/01/2000 (c) 289
AA+ Aa1 1,000 Phoenix, Arizona, Refunding, UT, Series C, 6.375% due 7/01/2002 1,123
Phoenix, Arizona, Revenue Refunding, AMT, Series C (d):
AAA Aaa 465 5.60% due 7/01/2002 495
AAA Aaa 480 5.70% due 7/01/2003 515
A+ Aa 250 Pima County, Arizona, Refunding, Series A, 5.60% due 7/01/1999 263
AAA Aaa 475 Pima County, Arizona, Sewer Revenue Bonds, 6.20% due 7/01/2002 (b) (e) 531
AA P1 100 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining
Corporation), VRDN, 3.80% due 12/01/2009 (a) 100
AA Aa 325 Salt River Project, Arizona, Agricultural Improvement and Power
District, Electric System Revenue Refunding Bonds, 4.55% due 1/01/2001 331
AA+ Aa 325 Tempe, Arizona, GO, UT, 4.50% due 7/01/1999 331
AAA Aaa 250 Tucson, Arizona, Refunding, 5.10% due 7/01/1999 (c) 259
NR* VMIG1++ 300 Yavapai County, Arizona, IDA, IDR, Refunding (Kachina Pointe Project),
VRDN, 3.10% due 1/01/2009 (a) 300
Puerto Rico--4.4% A1+ VMIG1++ 300 Puerto Rico Commonwealth, Government Development Bank, Refunding,
VRDN, 3.85% due 2/01/1996 (a) 300
Total Investments (Cost--$6,471)--98.3% 6,751
Other Assets Less Liabilities--1.7% 120
-------
Net Assets--100.0% $ 6,871
=======
<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 January 31, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
California Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
California--97.3% California Educational Facilities Authority, Revenue Refunding Bonds:
NR* A1 $ 500 (Loyola Marymount University), 5.70% due 10/01/2002 $ 540
NR* A 685 (Saint Mary's College), 4.90% due 10/01/2003 702
AAA Aaa 500 California Health Facilities Financing Authority, Revenue Refunding
Bonds (Catholic Healthcare West), Series A, 5.30% due 7/01/2003 (d) 527
AAA Aaa 600 California, HFA, Revenue Bonds, AMT, Series K, 5% due 2/01/2001 (d) 607
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN, AMT (a):
A1 VMIG1++ 400 (Atlantic Richfield Company Project), Series A, 3.85% due 12/01/2024 400
NR* P1 200 (Delano Project), Series 1991, 3.85% due 8/01/2019 200
NR* P1 200 Refunding (Ultra Power Malaga Project), Series A, 3.90% due 4/01/2017 200
NR* P1 100 Refunding (Ultra Power Malaga Project), Series B, 3.75% due 4/01/2017 100
NR* P1 200 Refunding (Ultra Power Rocklin Project), Series A, 3.90% due 6/01/2017 200
SP1 MIG1++ 1,000 California State, GO, RAW, Series C, 5.75% due 4/25/1996 1,005
California State, GO, UT:
A A1 750 6.75% due 10/01/2003 862
AAA Aaa 750 6.35% due 11/01/2004 (b) 852
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) 686
AAA Aaa 500 California Statewide Community Development Authority, Lease Revenue
Refunding Bonds (Oakland Convention Center Project), 5.70% due
10/01/2002 (d) 539
A+ NR* 700 East Bay, California, Municipal Utility District, Water System Revenue
Bonds, 7.40% due 6/01/2000 (e) 805
AAA Aaa 200 Los Angeles, California, Department of Airports, Revenue Refunding Bonds,
<PAGE> Series A, 6% due 5/15/2005 (b) 222
AA- Aa 650 Los Angeles, California, Department of Water and Power, Electric Plant
Revenue Bonds, 6% due 4/01/2002 709
Los Angeles, California, Harbor Department Revenue Bonds, AMT, Series B:
AA Aa 275 6% due 8/01/2000 295
AA Aa 295 6% due 8/01/2001 318
AA Aa 500 6% due 8/01/2004 544
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds (Proposition C--Second Senior):
A1+ VMIG1++ 200 Refunding, VRDN, Series A, 2.90% due 7/01/2020 (a) (c) 200
AAA Aaa 400 Series B, 8% due 7/01/2003 (d) 490
AA- Aa1 1,000 Los Angeles County, California, Public Works Financing Authority,
Revenue Refunding Bonds (Capital Construction), 4.80% due 3/01/2004 1,012
A1+ NR* 400 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 2.95% due 11/01/2015 (a) 400
AAA Aaa 750 San Diego County, California, Regional Transportation, Commission Sales
Tax Revenue Bonds, Second Series, Series A, 4% due 4/01/1997 (b) 755
AAA Aaa 700 San Francisco, California, City and County Sewer Revenue Bonds,
Series A, 5.375% due 10/01/1999 (b) 735
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) 538
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multi-Purpose
Projects), Series C, 10% due 9/01/2001 (d) 640
Puerto Rico--1.3% A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Revenue
Refunding Bonds, VRDN, 2.85% due 12/01/2015 (a) 200
Total Investments (Cost--$14,504)--98.6% 15,283
Other Assets Less Liabilities--1.4% 224
-------
Net Assets--100.0% $15,507
=======
<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 January 31, 1996.
(b)FGIC Insured.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Florida Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida--94.7% AAA Aaa $ 1,000 Broward County, Florida, School District Revenue Bonds, UT,
7.125% due 2/15/1999 (f) $ 1,113
AAA Aaa 1,300 Cape Coral, Florida, Water and Sewer Revenue Refunding Bonds, UT,
5.25% due 1/01/2004 (c) 1,374
Dade County, Florida, Aviation Revenue Refunding Bonds, Series A (b):
AAA Aaa 500 5.60% due 10/01/2004 542
AAA Aaa 1,000 AMT, 5.25% due 10/01/1997 1,025
AAA Aaa 695 Dade County, Florida, School District, Series 95, UT, 5% due
8/01/2005 (d) 722
A1++ VMIG1++ 400 Dade County, Florida, Water and Sewer System Revenue Bonds, VRDN,
3.05% 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) 1,364
Florida State Board of Education, Capital Outlay, Public Education
Revenue Bonds:
AA Aa 850 Refunding, 5.50% due 6/01/2001 907
AAA Aaa 1,000 Refunding, Series A, 7.25% due 6/01/2000 (f) 1,145
AAA Aa 1,000 Series A, 6.75% due 6/01/2001 (f) 1,131
AA Aa 1,000 Series B, 5.625% due 6/01/2005 1,086
Florida State Division, Bond Finance Department, General Services
Revenue Bonds (Department of Natural Resources Preservation):
AAA Aaa 1,730 Refunding (Save Our Coast), Series A, 6.30% due 7/01/2004 (d) 1,901
AAA Aaa 1,000 Series 2000-A, 5.75% due 7/01/2000 (d) 1,070
AAA Aaa 1,900 Series 2000-A, 6.40% due 7/01/2002 (b) 2,132
A A 100 Hillsborough County, Florida, Capital Improvement Revenue Bonds
(County Center Project), Second Series, 6.75% due 7/01/2002 (f) 116
NR* MIG1++ 1,400 Indian River County, Florida, School District, TAN, 4% due
6/30/1996 (e) 1,403
Jacksonville, Florida, Electric Authority, Special Obligation Revenue
Refunding Bonds (Saint John's), Issue 2:
AA Aa1 1,000 Series 6-B, Refunding, 6.65% due 10/01/2002 1,104
AA Aa1 1,000 Series 6-C, 6.50% due 10/01/2001 1,113
AA- Aa 800 Lakeland, Florida, Electric and Water Revenue Bonds, 6.70% due
10/01/1999 877
AAA Aaa 1,300 North Miami, Florida, Health Facilities Authority, Health Facility
Revenue Bonds (Bon Secours Health System Project), 6% due
8/15/2002 (f) (g) 1,452
AAA Aaa 1,300 Okaloosa County, Florida, School Board, Sales Tax Revenue Bonds,
5% due 9/01/1997 (g) 1,330
AAA Aaa 1,000 Palm Bay, Florida, Utility Revenue Bonds (Palm Bay Utility Corp.
<PAGE> Project), Series B, 6.20% due 10/01/2002 (d) (f) 1,130
SP1+ NR* 1,400 Palm Beach County, Florida, School District, TAN, 4.50% due 9/27/1996 1,410
NR* Baa1 1,440 Pembroke Pines, Florida, Special Assessment No. 94--1, 4.80% due
11/01/1998 1,462
A1 VMIG1++ 300 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program), DATES, 3.80% due
8/15/2002 (f) 300
AAA Aaa 1,335 Saint Lucie County, Florida, School Board, COP, Series A,
7.25% due 7/01/2000 (b) (f) 1,532
A1 VMIG1++ 1,400 Volusia County, Florida, Health Facilities Authority Revenue Bonds
(Pooled Hospital Loan Program), VRDN, ACES, 3.20% due 11/01/2015
(a) (c) 1,400
Puerto Rico--4.9% A Baa1 500 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 528
A Baa1 1,000 Puerto Rico Commonwealth, Refunding, Improvement Bonds, UT,
5.30% due 7/01/2004 1,042
Total Investments (Cost--$30,889)--99.6% 32,111
Other Assets Less Liabilities--0.4% 144
-------
Net Assets--100.0% $32,255
=======
<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 January 31, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Bank Qualified.
(f)Prerefunded.
(g)FSA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Massachusetts Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Massachusetts-- NR* A1 $ 400 Boston, Massachusetts, Economic Development and Industrial Corp.,
94.0% Public Parking Facility, Series 1990, 5% due 7/01/2000 $ 404
AAA Aaa 400 Boston, Massachusetts, Refunding, UT, Series A, 5.20% due 2/01/2004 (c) 418
A1+ VMIG1++ 300 Boston, Massachusetts, Water and Sewer Commission, General Revenue Bonds,
VRDN, Series A, 3% due 11/01/2024 (a) 300
AAA Aaa 300 Chelsea, Massachusetts, School Project Loan Act of 1948, UT,
6% due 6/15/2002 (c) 327
A1+ NR* 200 Holyoke, Massachusetts, PCR, Refunding (Holyoke Water Power Project),
VRDN, 3.30% due 11/01/2013 (a) 200
AAA Aaa 400 Lynn, Massachusetts, Water and Sewer Commission, Refunding,
4.95% due 12/01/2002 (e) 413
AAA Aaa 250 Massachusetts Educational Loan Authority Revenue Bonds, AMT, Issue E,
Series B, 5.50% due 7/01/2001 (c) 264
BBB+ A 500 Massachusetts Municipal Wholesale Electric Company, Power Supply System,
Revenue Refunding Bonds, Series B, 6.375% due 7/01/2001 545
A+ A1 750 Massachusetts State, GO, Refunding, Series B, 6.25% due 8/01/2001 823
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
A1 VMIG1++ 100 (Capital Asset Program), VRDN, Series B, 3.50% due 7/01/2005 (a) (b) 100
A1+ VMIG1++ 400 (Harvard University), VRDN, Series I, 2.75% due 8/01/2017 (a) 400
AAA Aaa 400 Refunding (Baystate Medical Center), Series D, 4.60% due 7/01/2002 (e) 404
AAA Aaa 540 Massachusetts State HFA, Housing Revenue Refunding Bonds (Insured--
Rental), AMT, Series A, 5.90% due 7/01/2003 (c) 561
AAA Aaa 320 Massachusetts State Industrial Finance Agency, Revenue Bonds
(Babson College), Series A, 5.40% due 10/01/2003 (b) 341
AA A1 400 Massachusetts State, Special Obligation Revenue Bonds (Highway
Improvement Loan), Series A, 5.90% due 6/01/2001 431
AAA Aaa 500 Massachusetts State, Water Resource Authority, Series A,
6.75% due 7/15/2002 (d) 577
NR* A1 500 New England Educational Loan Marketing Corp., Massachusetts, Student
Loan Revenue Bonds, AMT, Sub-Issue F, 6.60% due 9/01/2002 543
AAA Aaa 400 Somerville, Massachusetts, Municipal Purpose Loan, Series 95,
4.80% due 5/15/2004 (f) 409
NR* NR* 365 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley
Health Care), AMT, Series A, 5% due 12/01/1996 365
Puerto Rico--5.0% A Baa1 390 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 412
Total Investments (Cost--$7,898)--99.0% 8,237
Other Assets Less Liabilities--1.0% 80
-------
Net Assets--100.0% $ 8,317
=======
<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 January 31, 1996.
(b)MBIA Insured.
(c)AMBAC Insured.
(d)Prerefunded.
(e)FGIC Insured.
(f)FSA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
Michigan Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Michigan--92.1% A1+ VMIG1++ $ 200 Bruce Township, Michigan, Hospital Finance Authority, Health Care
System Revenue Bonds (Sisters Charity-Saint Joseph's), VRDN,
Series A, 3.10% 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) 288
AAA Aaa 200 Detroit, Michigan, Distributable State Aid Refunding Bonds, UT, 5.70%
due 5/01/2001 (b) 213
AAA Aaa 250 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, 6.20%
due 7/01/2004 (c) 277
AAA Aaa 200 Eastern Michigan University, Revenue Refunding Bonds, 5.40% due
6/01/1998 (b) 207
Michigan Municipal Bond Authority Revenue Bonds:
AAA Aaa 200 (Local Government Loan Program), Series C, 5.50% due 5/01/2003 (d) 212
AA A1 500 Refunding (Local Government--Qualified School), Series A, 6% due
5/01/2001 540
AA Aa 200 (State Revolving Fund), 7% due 10/01/2004 235
AA- A1 200 Michigan State Building Authority, Revenue Refunding Bonds,
Series I, 6.40% due 10/01/2004 221
AA- A1 200 Michigan State Comprehensive Transportation, Revenue Refunding Bonds,
Series B, 5.625% due 5/15/2003 216
NR* VMIG1++ 100 Michigan State Hospital Financing Authority Revenue Bonds (Mount
Clemens Hospital), VRDN, 3.15% due 8/15/2015 (a) 100
NR* VMIG1++ 100 Michigan State Housing Development Authority, Limited Obligation
<PAGE> Revenue Bonds (Laurel Valley), VRDN, 3.05% due 12/01/2007 (a) 100
AA Aa 200 Michigan State Recreation Program, GO, 6% due 11/01/2004 221
AAA Aaa 150 Michigan State South Central Power Agency, Power Supply System,
Revenue Refunding Bonds, 7% due 11/01/1996 (b) (e) 157
A1+ VMIG1++ 200 Michigan State Strategic Fund, Limited Obligation Revenue Bonds
(United Waste Systems, Inc. Project), VRDN, AMT, 3.35% due
4/01/2010 (a) 200
NR* VMIG1++ 100 Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds
(Grayling Generating Project), VRDN, AMT, 3.30% due 1/01/2014 (a) 100
AA- A1 200 Michigan State Trunk Line, GO, Series A, 5.75% due 10/01/2004 217
AAA Aaa 100 Reeths-Puffer Schools, Michigan, Refunding, GO, UT, Series Q, 6.75% due
5/01/1999 (c) 109
AAA Aaa 235 Royal Oak, Michigan, Refunding, UT, 4% due 10/01/1997 (b) 236
AA+ Aa1 150 University of Michigan Revenue Bonds (Student Fee), GO, Series C, 4%
due 4/01/1998 151
Puerto Rico--6.1% A Baa1 265 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 280
Total Investments (Cost--$4,275)--98.2% 4,480
Other Assets Less Liabilities--1.8% 81
-------
Net Assets--100.0% $ 4,561
=======
<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 January 31, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
New Jersey Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New Jersey--99.4% NR* Aaa $ 450 Bergen County, New Jersey, General Improvement Bonds, GO, UT, 4.70% due
7/15/2002 $ 464
AAA Aaa 600 Elizabeth, New Jersey, General Improvement and Sewer Utility Refunding
Bonds, GO, UT, 6% due 8/15/2004 (b) 664
NR* VMIG1++ 400 Essex County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Governmental Loan Program), VRDN, ACES, 2.90% due 7/01/2026 (a) 400
SP1+ VMIG1++ 400 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
3.05% due 11/01/1998 (a) 400
AA+ Aa1 400 Monmouth County, New Jersey, General Improvement Bonds, GO, UT, 6.625%
due 8/01/2000 432
NR* NR* 400 New Brunswick, New Jersey, BAN, 4.10% due 7/12/1996 (f) 401
NR* Aa1 200 New Jersey, EDA, Economic Development Revenue Bonds (400 International
Drive Partners), VRDN, 3.60% due 4/01/2019 (a) 200
AAA Aaa 1,000 New Jersey, EDA, Market Transition Facility Revenue Bonds, Senior Lien,
Series A, 7% due 7/01/2004 (c) 1,180
AAA Aaa 400 New Jersey Health Care Facilities Financing Authority Revenue Bonds
(Carrier Foundation), VRDN, Series C, 2.85% 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) 1,075
BBB+ Baa1 400 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series A,
5.70% due 1/01/2001 420
AA Aa 400 North Brunswick Township, New Jersey, Board of Education Refunding Bonds,
GO, UT, 6.25% due 2/01/2004 448
NR* Aa 400 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue Bonds,
Series A, 6.125% due 1/01/2003 442
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) 1,536
NR* NR* 400 South Plainfield, New Jersey, BAN, UT, 3.95% due 7/26/1996 401
AA+ Aaa 450 Union County, New Jersey (General Improvement and County Collection),
UT, 4.40% due 9/01/1998 458
Total Investments (Cost--$9,240)--99.4% 9,721
Other Assets Less Liabilities--0.6% 57
-------
Net Assets--100.0% $ 9,778
=======
<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 January 31, 1996.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)Escrowed to Maturity.
(f)Bank Qualified.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
New York Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York--96.5% Nassau County, New York, General Improvement Bonds, UT (c):
AAA Aaa $ 400 Series O, UT, 5.625% due 8/01/2004 $ 433
AAA Aaa 700 Series Q, 5.10% due 8/01/2003 734
A1+ VMIG1++ 100 New York City, New York, GO, VRDN, UT, Series B, Sub-Series B-10,
3% due 8/15/2024 (a) 100
AAA Aaa 750 New York City, New York, IDA, Civic Facilities Revenue Bonds (USTA
National Tennis Center Project), 6% due 11/15/2003 (d) 828
A1+ NR* 800 New York City, New York, IDA, IDR (Japan Airlines Company Ltd. Project),
VRDN, AMT, 3.90% due 11/01/2015 (a) 800
AA- Aa 800 New York City, New York, Municipal Assistance Corporation Revenue Bonds,
Series 68, 7.10% due 7/01/2000 890
New York City, New York, Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, VRDN (a) (c):
AAA VMIG1++ 1,100 Series A, 3.80% due 6/15/2023 1,100
AAA VMIG1++ 100 Series C, 3.75% due 6/15/2025 100
BBB+ Baa1 610 New York City, New York, Refunding Bonds, UT, Series A, 6% due
8/01/2000 636
New York State Dormitory Authority Revenue Bonds (e):
AAA Aaa 600 (College and University Educational Loan), AMT, 6.30% due 7/01/2002 667
AAA Aaa 670 (Rensselaer Polytechnic Institute), 4.90% due 7/01/2004 691
NR* VMIG1++ 400 New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, Series B, 3%
due 11/01/2023 (a) 400
New York State Energy Research and Development Authority, PCR:
<PAGE> A1+ Aa1 600 (New York State Electric & Gas), 4.65% due 3/15/2015 601
NR* NR* 100 (New York State Electric & Gas), VRDN, Series B, 3.90% due
12/01/2026 (a) 100
NR* P1 100 (Niagara--Mohawk Power Corporation Project), Series A, 3.45%
due 2/01/2029 100
A1+ NR* 200 New York State Environmental Facilities, Corporate Resource
Recovery Revenue Bonds (OFS Equity Huntington Project), VRDN,
AMT, 3.85% due 11/01/2014 (a) 200
A- Aa 400 New York State Environmental Facilities Corporation, PCR (State
Water--Revolving Fund), Series E, 5.60% due 6/15/1999 421
A- A 600 New York State Environmental Quality, GO, 6% due 12/01/2004 663
New York State Local Government Assistance Corporation Revenue Bonds:
A A 625 Series A, 7% due 4/01/2005 704
AAA Aaa 600 Series D, 7% due 4/01/2002 (b) 701
New York State Medical Care Facilities, Finance Agency Revenue Bonds,
Series A:
AA Aa 655 (Adult Day Care), 6% due 11/15/2003 713
AAA Aaa 725 (Mental Health Services Facilities), 7.75% due 2/15/2001 (b) 857
NR* Aa3 500 (Saratoga Hospital Project), 5.25% due 11/01/2004 522
AA NR* 675 New York State Tax Exempt Revenue Bonds (Rochester Museum & Science),
5.60% due 12/01/1997 691
BBB Baa1 450 New York State Urban Development Corporation, Revenue Refunding Bonds
(Center For Industrial Innovation), 4.60% due 1/01/1998 454
AAA Aaa 760 Port Authority of New York and New Jersey, Refunding (Construction),
AMT, UT, 97th Series, 7.10% due 7/15/2003 (c) 883
AA A1 700 Rockland County, New York, Sewer District, 7.70% due 6/01/1997 (b) 752
A+ Aa 340 Triborough Bridge and Tunnel Authority, New York, Revenue Bonds,
Series R, 6.90% due 1/01/2000 375
A+ Aa 400 Triborough Bridge and Tunnel Authority, Revenue Refunding and General
Purpose Bonds, Series A, 4.40% due 1/01/2002 403
Total Investments (Cost--$15,929)--96.5% 16,519
Other Assets Less Liabilities--3.5% 601
-------
Net Assets--100.0% $17,120
=======
<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 January 31, 1996.
(b)Prerefunded.
(c)FGIC Insured.
(d)FSA Insured.
(e)MBIA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
Pennsylvania Limited Maturity Municipal Bond Fund
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Pennsylvania-- NR* A1 $ 200 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
84.6% Development Parkway Center Mall Project), VRDN, Series A, 3.55% due
5/01/2009 (d) $ 200
AAA Aaa 400 Beaver County, Pennsylvania, Hospital Authority, Revenue Refunding Bonds
(Beaver County Medical Center Inc.), 5.70% due 7/01/1999 (c) 420
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
AAA Aaa 400 Bucks County, Pennsylvania, Technical School Authority Revenue Bonds,
4.45% due 8/15/2001 (c) 405
AA Aa 250 Delaware County, Pennsylvania, Refunding Bonds, GO, UT, 4.80% due
10/01/2004 256
A1 NR* 200 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Sub-Series
B-10, 3.25% due 3/01/2024 (d) 200
A1+ Aaa 350 Lehigh County, Pennsylvania, Authority Water Revenue Bonds, VRDN, 3.05%
due 11/01/2004 (b) (d) 350
NR* VMIG1++ 400 Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (B&W Ebensburg Project), VRDN, AMT, 3.20% due 12/01/2011 (d) 400
Pennsylvania State Higher Educational Facilities Authority, College
and University Revenue Refunding Bonds, Series A:
A+ Aa 380 (Thomas Jefferson University), 5.75% due 8/15/1998 398
AA Aa 275 (University of Pennsylvania), 4.70% due 9/01/1997 280
AAA Aaa 300 Pennsylvania State, Refunding (Projects-First), UT, Series A, 6.60%
due 1/01/2001 (c) 332
AA- A1 1,100 Pennsylvania State University, Refunding, 5.85% due 3/01/2002 1,188
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) 1,133
A- NR* 650 (Children's Seashore House), Series B, 7% due 8/15/2003 730
AAA Aaa 325 Washington County, Pennsylvania, Lease Authority, Municipal Facility
(Shadyside Hospital Project), Series C, Sub-Series C1-A, 7.45% due
6/15/2000 (a) (c) (e) 377
Puerto Rico--12.8% A- Baa1 1,000 Puerto Rico Municipal Finance Agency, GO, UT, Series A,
5.80% due 7/01/2004 1,068
Total Investments (Cost--$7,828)--97.4% 8,137
Other Assets Less Liabilities--2.6% 216
-------
Net Assets--100.0% $ 8,353
=======
<PAGE>
<FN>
(a)Escrowed to Maturity.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)The interest rate is subject to change periodically based
is upon prevailing market rates. The interest rate shown
the rate in effect at January 31, 1996.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
As of January 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 6,751,012 $ 15,282,942 $ 32,110,925 $ 8,236,911
Cash 36,200 70,272 69,417 41,906
Receivables
Interest 40,157 268,788 389,490 85,905
Investment adviser (Note 2) 15,904 1,084 -- 23,461
Beneficial interest sold 35,010 -- -- --
Deferred organization expenses (Note 1e) 28,131 12,106 44,278 28,131
Prepaid registration fees and
other assets (Note 1e) 17,003 13,349 15,497 16,464
------------ ------------ ------------ ------------
Total assets 6,923,417 15,648,541 32,629,607 8,432,778
------------ ------------ ------------ ------------
Liabilities: Payables:
Beneficial interest redeemed -- -- 305,546 62,188
Securities purchased -- 100,000 -- --
Dividends to shareholders (Note 1f) 6,133 13,795 29,577 7,932
Distributor (Note 2) 1,476 3,127 5,197 1,494
Investment adviser (Note 2) -- -- 7,995 --
Accrued expenses and other liabilities 44,392 24,912 26,620 44,133
------------ ------------ ------------ ------------
Total liabilities 52,001 141,834 374,935 115,747
------------ ------------ ------------ ------------
Net Assets: Net assets $ 6,871,416 $ 15,506,707 $ 32,254,672 $ 8,317,031
============ ============ ============ ============
<PAGE>
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited shares
authorized $ 9,816 $ 32,216 $ 90,737 $ 25,403
Class B Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 46,728 102,313 155,968 47,707
Class C Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 12 549 124,212 4,209
Class D Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 10,141 16,959 70,245 4,808
Paid-in capital in excess of par 6,595,167 15,090,777 31,528,222 8,261,671
Accumulated realized capital losses
on investments--net (Note 5) (70,746) (515,218) (812,658) (365,460)
Unrealized appreciation on
investments--net 280,298 779,111 1,222,146 338,693
------------ ------------ ------------ ------------
Net assets $ 6,871,416 $ 15,506,707 $ 32,254,672 $ 8,317,031
============ ============ ============ ============
Net Asset Class A: Net assets $ 1,011,317 $ 3,286,079 $ 9,234,699 $ 2,572,452
Value: ============ ============ ============ ============
Shares outstanding 98,160 322,160 907,371 254,028
============ ============ ============ ============
Net asset value $ 10.30 $ 10.20 $ 10.18 $ 10.13
============ ============ ============ ============
Class B: Net assets $ 4,813,885 $ 10,435,015 $ 15,873,430 $ 4,831,850
============ ============ ============ ============
Shares outstanding 467,280 1,023,134 1,559,680 477,075
============ ============ ============ ============
Net asset value $ 10.30 $ 10.20 $ 10.18 $ 10.13
============ ============ ============ ============
Class C: Net assets $ 1,186 $ 55,940 $ 1,164 $ 426,053
============ ============ ============ ============
Shares outstanding 115 5,485 115 42,089
============ ============ ============ ============
Net asset value $ 10.31 $ 10.20 $ 10.12 $ 10.12
============ ============ ============ ============
Class D: Net assets $ 1,045,028 $ 1,729,673 $ 7,145,379 $ 486,676
============ ============ ============ ============
Shares outstanding 101,409 169,587 702,450 48,076
============ ============ ============ ============
Net asset value $ 10.31 $ 10.20 $ 10.17 $ 10.12
============ ============ ============ ============
<FN>
*Identified cost $ 6,470,714 $ 14,503,831 $ 30,888,779 $ 7,898,218
============ ============ ============ ============
<PAGE>
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
As of January 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 4,479,679 $ 9,721,313 $ 16,519,258 $ 8,137,212
Cash 92,873 86,242 -- 10,293
Receivables:
Interest 58,032 100,511 198,332 121,597
Beneficial interest sold -- -- 399,348 --
Securities sold -- -- -- 110,253
Investment adviser (Note 2) 19,622 15,238 21,814 11,484
Deferred organization expenses (Note 1e) 5,792 28,318 10,377 29,460
Prepaid registration fees and other
assets (Note 1e) 26,004 16,292 26,803 12,900
------------ ------------ ------------ ------------
Total assets 4,682,002 9,967,914 17,175,932 8,433,199
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased 100,000 100,000 -- --
Dividends to shareholders (Note 1f) 4,242 8,905 16,463 7,417
Beneficial interest redeemed -- 20,696 4 14,147
Distributor (Note 2) 651 1,945 3,044 2,030
Accrued expenses and other liabilities 16,448 57,889 36,686 56,885
------------ ------------ ------------ ------------
Total liabilities 121,341 189,435 56,197 80,479
------------ ------------ ------------ ------------
Net Assets: Net assets $ 4,560,661 $ 9,778,479 $17,119,735 $ 8,352,720
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited shares
authorized $ 20,423 $ 27,214 $ 41,276 $ 9,333
Class B Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 21,188 64,582 100,635 67,401
Class C Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 11 11 959 402
Class D Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 3,373 2,995 24,265 3,850
Paid-in capital in excess of par 4,470,752 9,482,473 16,584,547 8,048,080
Accumulated realized capital losses on
investments--net (Note 5) (160,239) (280,515) (222,294) (85,953)
Unrealized appreciation on
investments--net 205,153 481,719 590,347 309,607
------------ ------------ ------------ ------------
Net assets $ 4,560,661 $ 9,778,479 $ 17,119,735 $ 8,352,720
============ ============ ============ ============
<PAGE>
Net Asset Class A: Net assets $ 2,070,134 $ 2,805,695 $ 4,227,430 $ 962,623
Value: ============ ============ ============ ============
Shares outstanding 204,230 272,141 412,761 93,326
============ ============ ============ ============
Net asset value $ 10.14 $ 10.31 $ 10.24 $ 10.31
============ ============ ============ ============
Class B: Net assets $ 2,147,673 $ 6,662,785 $ 10,307,936 $ 6,951,491
============ ============ ============ ============
Shares outstanding 211,876 645,824 1,006,349 674,014
============ ============ ============ ============
Net asset value $ 10.14 $ 10.32 $ 10.24 $ 10.31
============ ============ ============ ============
Class C: Net assets $ 1,166 $ 1,074 $ 98,251 $ 41,333
============ ============ ============ ============
Shares outstanding 115 115 9,594 4,017
============ ============ ============ ============
Net asset value $ 10.14 $ 9.34 $ 10.24 $ 10.29
============ ============ ============ ============
Class D: Net assets $ 341,688 $ 308,925 $ 2,486,118 $ 397,273
============ ============ ============ ============
Shares outstanding 33,726 29,945 242,648 38,502
============ ============ ============ ============
Net asset value $ 10.13 $ 10.32 $ 10.25 $ 10.32
============ ============ ============ ============
<FN>
*Identified cost $ 4,274,526 $ 9,239,594 $ 15,928,911 $ 7,827,605
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
For the Six Months Ended January 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment
Income Interest and amortization of premium and
(Note 1d): discount earned $ 154,586 $ 383,124 $ 792,665 $ 236,102
------------ ------------ ------------ ------------
<PAGE>
Expenses: Investment advisory fees (Note 2) 11,534 27,548 56,850 17,142
Professional fees 18,130 20,113 25,065 23,920
Accounting services (Note 2) 16,169 15,878 15,279 27,628
Account maintenance and distribution
fees--Class B (Note 2) 9,039 18,259 28,075 8,589
Printing and shareholder reports 5,855 11,364 22,254 11,802
Registration fees (Note 1e) 11,358 9,577 6,509 9,353
Trustees' fees and expenses 1,569 3,366 6,500 2,309
Amortization of organization expenses
(Note 1e) -- 1,767 5,758 886
Custodian fees 1,188 2,288 2,847 1,572
Pricing fees 1,332 2,149 1,950 1,738
Transfer agent fees--Class B (Note 2) 1,448 1,601 2,283 1,269
Account maintenance fees--Class D
(Note 2) 185 875 3,530 218
Transfer agent fees--Class A (Note 2) 255 443 1,035 821
Transfer agent fees--Class D (Note 2) 82 222 779 90
Account maintenance and
distribution fees--Class C (Note 2) -- 47 2 315
Transfer agent fees--Class C (Note 2) 3 15 4 96
Other 294 765 1,282 1,283
------------ ------------ ------------ ------------
Total expenses before reimbursement 78,441 116,277 180,002 109,031
Reimbursement of expenses (Note 2) (46,865) (34,284) (22,143) (64,189)
------------ ------------ ------------ ------------
Total expenses after reimbursement 31,576 81,993 157,859 44,842
------------ ------------ ------------ ------------
Investment income--net 123,010 301,131 634,806 191,260
------------ ------------ ------------ ------------
Realized & Realized gain on investments--net -- -- 65,657 5,017
Unrealized Change in unrealized appreciation
Gain on on investments--net 90,581 323,597 450,209 146,105
Investments-- ------------ ------------ ------------ ------------
Net (Notes 1b, Net Increase in Net Assets
1d & 3): Resulting from Operations $ 213,591 $ 624,728 $ 1,150,672 $ 342,382
============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Six Months Ended January 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of
Income premium and discount earned $ 119,533 $ 239,065 $ 389,392 $ 207,100
(Note 1d): ------------ ------------ ------------ ------------
<PAGE>
Expenses: Accounting services (Note 2) 17,089 21,625 23,530 18,594
Professional fees 19,411 19,985 18,461 18,697
Investment advisory fees (Note 2) 8,713 17,562 28,312 14,950
Account maintenance and distribution
fees--Class B (Note 2) 4,146 12,379 16,377 12,515
Registration fees (Note 1e) 9,390 6,615 15,926 1,789
Printing and shareholder reports -- 9,359 8,415 8,473
Trustees' fees and expenses 1,189 2,270 2,998 125
Transfer agent fees--Class B (Note 2) 965 1,613 1,770 1,900
Pricing fees 1,497 1,259 1,669 1,052
Custodian fees -- 1,640 2,063 1,512
Amortization of organization expenses
(Note 1e) 825 1,413 1,422 1,306
Transfer agent fees--Class A (Note 2) 778 506 644 211
Account maintenance fees--Class D
(Note 2) 160 172 1,193 203
Transfer agent fees--Class D (Note 2) 110 67 355 90
Account maintenance and distribution
fees--Class C (Note 2) 1 -- 63 22
Transfer agent fees--Class C (Note 2) 3 3 21 11
Other -- 596 -- 450
------------ ------------ ------------ ------------
Total expenses before reimbursement 64,277 97,064 123,219 81,900
Reimbursement of expenses (Note 2) (43,234) (50,408) (70,283) (38,211)
------------ ------------ ------------ ------------
Total expenses after reimbursement 21,043 46,656 52,936 43,689
------------ ------------ ------------ ------------
Investment income--net 98,490 192,409 336,456 163,411
------------ ------------ ------------ ------------
Realized & Realized gain on investments--net 21,618 116 66,485 15,277
Unrealized Change in unrealized appreciation on
Gain on investments--net 56,831 148,661 243,515 161,416
Investments-- ------------ ------------ ------------ ------------
Net (Notes 1b, Net Increase in Net Assets
1d & 3): Resulting from Operations $ 176,939 $ 341,186 $ 646,456 $ 340,104
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Arizona Limited Maturity California Limited Maturity
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
January 31, July 31, January 31, July 31,
Increase (Decrease) in Net Assets: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 123,010 $ 305,477 $ 301,131 $ 612,890
Realized loss on investments--net -- (48,045) -- (365,740)
Change in unrealized appreciation on
investments--net 90,581 182,975 323,597 501,542
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 213,591 440,407 624,728 748,692
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (21,208) (78,637) (71,228) (159,781)
(Note 1f): Class B (94,673) (226,411) (193,924) (422,409)
Class C (21) (33) (1,197) (585)
Class D (7,108) (396) (34,782) (30,115)
------------ ------------ ------------ ------------
Net decrease in net assets resulting
from dividends to shareholders (123,010) (305,477) (301,131) (612,890)
------------ ------------ ------------ ------------
Beneficial Net increase (decrease) in net assets
Interest derived from beneficial interest
Transactions transactions 516,019 (1,547,482) (541,370) 354,485
(Note 4): ------------ ------------ ------------ ------------
Net Assets: Total increase (decrease) in net assets 606,600 (1,412,552) (217,773) 490,287
Beginning of period 6,264,816 7,677,368 15,724,480 15,234,193
------------ ------------ ------------ ------------
End of period $ 6,871,416 $ 6,264,816 $ 15,506,707 $ 15,724,480
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<CAPTION>
Florida Massachusetts Michigan
Limited Maturity Limited Maturity Limited Maturity
For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
Increase (Decrease) January 31, July 31, January 31, July 31, January 31, July 31,
in Net Assets: 1996 1995 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment income--net $ 634,806 $ 1,343,126 $ 191,260 $ 505,228 $ 98,490 $ 235,302
Realized gain (loss) on
investments--net 65,657 (425,603) 5,017 (370,476) 21,618 (132,641)
Change in unrealized
appreciation on
investments--net 450,209 839,494 146,105 274,970 56,831 150,310
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net
assets resulting from
operations 1,150,672 1,757,017 342,382 409,722 176,939 252,971
------------ ------------ ------------ ------------ ------------ ------------
Dividends & Investment income--net:
Distributions Class A (192,579) (531,680) (82,594) (252,210) (47,331) (123,016)
to Class B (300,723) (756,233) (91,674) (242,775) (44,691) (102,718)
Shareholders Class C (69) (32) (8,284) (7,683) (21) (33)
(Note 1f): Class D (141,435) (55,181) (8,708) (2,560) (6,447) (9,535)
Realized gain on
investments--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 (634,806) (1,343,126) (191,260) (520,363) (98,490) (235,302)
------------ ------------ ------------ ------------ ------------ ------------
Beneficial Net decrease in net assets
Interest derived from beneficial
Transactions interest transactions (1,534,453) (187,273) (1,751,704) (6,114,591) (569,824) (811,255)
(Note 4): ------------ ------------ ------------ ------------ ------------ ------------
<PAGE>
Net Assets: Total increase (decrease)
in net assets (1,018,587) 226,618 (1,600,582) (6,225,232) (491,375) (793,586)
Beginning of period 33,273,259 33,046,641 9,917,613 16,142,845 5,052,036 5,845,622
------------ ------------ ------------ ------------ ------------ ------------
End of period $ 32,254,672 $ 33,273,259 $ 8,317,031 $ 9,917,613 $ 4,560,661 $ 5,052,036
============ ============ ============ ============ ============ ============
<CAPTION>
New Jersey New York Pennsylvania
Limited Maturity Limited Maturity Limited Maturity
For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
Increase (Decrease) January 31, July 31, January 31, July 31, January 31, July 31,
in Net Assets: 1996 1995 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment income--net $ 192,409 $ 441,857 $ 336,456 $ 634,544 $ 163,411 $ 385,356
Realized gain (loss) on
investments--net 116 (190,903) 66,485 (166,770) 15,277 (38,604)
Change in unrealized
appreciation on
investments--net 148,661 328,757 243,515 337,132 161,416 150,668
------------ ------------ ------------ ------------ ------------ ------------
Net increase in net
assets resulting from
operations 341,186 579,711 646,456 804,906 340,104 497,420
------------ ------------ ------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (53,472) (147,854) (95,357) (247,259) (19,759) (43,161)
(Note 1f): Class B (132,032) (287,858) (188,258) (370,411) (134,902) (334,652)
Class C (19) (761) (1,747) (219) (570) (32)
Class D (6,886) (5,384) (51,094) (16,655) (8,180) (7,511)
------------ ------------ ------------ ------------ ------------ ------------
Net decrease in net assets
resulting from dividends
to shareholders (192,409) (441,857) (336,456) (634,544) (163,411) (385,356)
------------ ------------ ------------ ------------ ------------ ------------
Beneficial Net increase (decrease)
Interest in net assets derived
Transactions from beneficial interest
(Note 4): transactions (801,905) (3,524,093) 832,245 774,385 (564,530) (1,893,824)
------------ ------------ ------------ ------------ ------------ ------------
<PAGE>
Net Assets: Total increase (decrease)
in net assets (653,128) (3,386,239) 1,142,245 944,747 (387,837) (1,781,760)
Beginning of period 10,431,607 13,817,846 15,977,490 15,032,743 8,740,557 10,522,317
------------ ------------ ------------ ------------ ------------ ------------
End of period $ 9,778,479 $ 10,431,607 $ 17,119,735 $ 15,977,490 $ 8,352,720 $ 8,740,557
============ ============ ============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Arizona Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.17 $ 9.97 $ 10.00 $ 10.16 $ 9.97 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .43 .23 .19 .39 .20
Realized and unrealized gain (loss) on
investments--net .13 .20 (.03) .14 .19 (.03)
------- ------- ------- ------- ------- -------
Total from investment operations .34 .63 .20 .33 .58 .17
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.21) (.43) (.23) (.19) (.39) (.20)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.30 $ 10.17 $ 9.97 $ 10.30 $ 10.16 $ 9.97
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 3.33%+++ 6.47% 2.02%+++ 3.25%+++ 5.99% 1.78%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .67%* .35% .02%* 1.02%* .72% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 2.10%* 2.05% 1.82%* 2.45%* 2.44% 2.18%*
======= ======= ======= ======= ======= =======
Investment income--net 4.01%* 4.31% 3.37%* 3.66%* 3.95% 3.02%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 1,011 $ 1,054 $ 2,103 $ 4,814 $ 5,191 $ 5,575
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 0.00% 182.58% 142.37% 0.00% 182.58% 142.37%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Arizona Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.17 $ 9.89 $ 10.17 $ 9.89
Operating ------- ------- ------- -------
Performance: Investment income--net .18 .29 .20 .33
Realized and unrealized gain on investments--net .14 .28 .14 .28
------- ------- ------- -------
Total from investment operations .32 .57 .34 .61
------- ------- ------- -------
Less dividends from investment income--net (.18) (.29) (.20) (.33)
------- ------- ------- -------
Net asset value, end of period $ 10.31 $ 10.17 $ 10.31 $ 10.17
======= ======= ======= =======
Total Based on net asset value per share 3.21%+++ 5.90%+++ 3.38%+++ 6.34%+++
Investment ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement 1.11%* 1.05%* .84%* .55%*
Average ======= ======= ======= =======
Net Assets: Expenses 3.05%* 2.79%* 2.04%* 2.39%*
======= ======= ======= =======
Investment income--net 3.58%* 3.80%* 3.83%* 4.31%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1 $ 1 $ 1,045 $ 19
Data: ======= ======= ======= =======
Portfolio turnover 0.00% 182.58% 0.00% 182.58%
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
California Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.99 $ 9.88 $ 10.00 $ 9.99 $ 9.88 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .42 .24 .19 .39 .21
Realized and unrealized gain (loss) on
investments--net .21 .11 (.12) .21 .11 (.12)
------- ------- ------- ------- ------- -------
Total from investment operations .42 .53 .12 .40 .50 .09
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.21) (.42) (.24) (.19) (.39) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period 10.20 $ 9.99 $ 9.88 $ 10.20 $ 9.99 $ 9.88
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 4.19%+++ 5.60% 1.23%+++ 4.01%+++ 5.23% .99%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement .79%* .40% .02%* 1.15%* .76% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 1.23%* 1.44% 1.16%* 1.58%* 1.80% 1.52%*
======= ======= ======= ======= ======= =======
Investment income--net 4.06%* 4.36% 3.54%* 3.71%* 4.00% 3.19%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 3,286 $ 3,527 $ 3,804 $10,435 $10,363 $11,430
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 0.00% 124.72% 130.10% 0.00% 124.72% 130.10%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
California Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.99 $ 9.76 $ 9.99 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net .20 .31 .20 .33
Realized and unrealized gain on investments--net .21 .23 .21 .23
------- ------- ------- -------
Total from investment operations .41 .54 .41 .56
------- ------- ------- -------
Less dividends from investment income--net (.20) (.31) (.20) (.33)
------- ------- ------- -------
Net asset value, end of period $ 10.20 $ 9.99 $ 10.20 $ 9.99
======= ======= ======= =======
Total Based on net asset value per share 4.10%+++ 5.60%+++ 4.14%+++ 5.85%+++
Investment ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .96%* .82%* .89%* .66%*
Average ======= ======= ======= =======
Net Assets: Expenses 1.40%* 1.98%* 1.33%* 1.81%*
======= ======= ======= =======
Investment income--net 3.89%* 4.04%* 3.96%* 4.28%*
======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 56 $ 64 $ 1,730 $ 1,771
Data: ======= ======= ======= =======
Portfolio turnover 0.00% 124.72% 0.00% 124.72%
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTIOIN>
Florida Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.02 $ 9.87 $ 10.00 $ 10.02 $ 9.88 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .22 .43 .24 .20 .40 .21
Realized and unrealized gain (loss) on
investments--net .16 .15 (.13) .16 .14 (.12)
------- ------- ------- ------- ------- -------
Total from investment operations .38 .58 .11 .36 .54 .09
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.22) (.43) (.24) (.20) (.40) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.18 $ 10.02 $ 9.87 $ 10.18 $ 10.02 $ 9.88
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 3.69%+++ 6.05% 1.12%+++ 3.51%+++ 5.57% .99%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .77%* .39% .02%* 1.13%* .75% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses .91%* 1.03% .86%* 1.26%* 1.38% 1.23%*
======= ======= ======= ======= ======= =======
Investment income--net 4.10%* 4.39% 3.54%* 3.74%* 4.05% 3.19%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 9,235 $ 9,849 $14,868 $15,874 $16,213 $18,179
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 14.24% 138.97% 136.71% 14.24% 138.97% 136.71%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Florida Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.01 $ 9.76 $ 10.01 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net .19 .29 .21 .33
Realized and unrealized gain on investments--net .11 .25 .16 .25
------- ------- ------- -------
Total from investment operations .30 .54 .37 .58
------- ------- ------- -------
Less dividends from investment income--net (.19) (.29) (.21) (.33)
------- ------- ------- -------
Net asset value, end of period $ 10.12 $ 10.01 $ 10.17 $ 10.01
======= ======= ======= =======
Total Based on net asset value per share 2.90%+++ 5.65%+++ 3.64%+++ 6.07%+++
Investment ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement 1.08%* 1.09%* .87%* .67%*
Average ======= ======= ======= =======
Net Assets: Expenses 1.21%* 1.67%* 1.01%* 1.19%*
======= ======= ======= =======
Investment income--net 3.78%* 3.83%* 4.00%* 4.23%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1 $ 1 $ 7,145 $ 7,210
Data: ======= ======= ======= =======
Portfolio turnover 14.24% 138.97% 14.24% 138.97%
======= ======= ======= =======
</TABLE>
<TABLE>
Massachusetts Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 9.95 $ 10.00 $ 9.96 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .44 .25 .19 .40 .22
Realized and unrealized gain (loss) on
investments--net .17 .02 (.05) .17 .02 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .38 .46 .20 .36 .42 .17
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.21) (.44) (.25) (.19) (.40) (.22)
Realized gain on investments--net -- (.01) -- -- (.01) --
------- ------- ------- ------- ------- -------
Total dividends and distributions (.21) (.45) (.25) (.19) (.41) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.13 $ 9.96 $ 9.95 $ 10.13 $ 9.96 $ 9.95
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 3.79%+++ 4.79% 2.01%+++ 3.61%+++ 4.41% 1.77%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement .72%* .37% .03%* 1.08%* .74% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 2.02%* 1.71% 1.17%* 2.40%* 2.08% 1.54%*
======= ======= ======= ======= ======= =======
Investment income--net 4.09%* 4.45% 3.69%* 3.73%* 4.08% 3.28%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 2,572 $ 4,453 $ 8,097 $ 4,832 $4,800 $ 8,046
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 16.28% 89.96% 57.80% 16.28% 89.96% 57.80%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Massachusetts Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 9.82 $ 9.96 $ 9.82
Operating ------- ------- ------- -------
Performance: Investment income--net .20 .33 .20 .34
Realized and unrealized gain on investments--net .16 .15 .16 .15
------- ------- ------- -------
Total from investment operations .36 .48 .36 .49
------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.20) (.33) (.20) (.34)
Realized gain on investments--net -- (.01) -- (.01)
------- ------- ------- -------
Total dividends and distributions (.20) (.34) (.20) (.35)
------- ------- ------- -------
Net asset value, end of period $ 10.12 $ 9.96 $ 10.12 $ 9.96
======= ======= ======= =======
Total Based on net asset value per share 3.61%+++ 5.00%+++ 3.64%+++ 5.09%+++
Investment ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement .88%* .67%* .83%* .70%*
Average ======= ======= ======= =======
Net Assets: Expenses 2.19%* 2.23%* 2.14%* 2.31%*
======= ======= ======= =======
Investment income--net 3.93%* 4.32%* 3.98%* 4.21%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 426 $ 413 $ 487 $ 253
Data: ======= ======= ======= =======
Portfolio turnover 16.28% 89.96% 16.28% 89.96%
======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Michigan Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.98 $ 9.92 $ 10.00 $ 9.98 $ 9.92 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .44 .24 .19 .40 .22
Realized and unrealized gain (loss) on
investments--net .16 .06 (.08) .16 .06 (.08)
------- ------- ------- ------- ------- -------
Total from investment operations .37 .50 .16 .35 .46 .14
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.21) (.44) (.24) (.19) (.40) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.14 $ 9.98 $ 9.92 $ 10.14 $ 9.98 $ 9.92
======= ======= ======= ======= ======= =======
<PAGE>
Total Based on net asset value per share 3.71%+++ 5.16% 1.66%+++ 3.53%+++ 4.78% 1.42%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .66%* .27% .02%* 1.03%* .65% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 2.39%* 2.18% 2.01%* 2.75%* 2.56% 2.38%*
======= ======= ======= ======= ======= =======
Investment income--net 4.12%* 4.42% 3.59%* 3.76%* 4.09% 3.21%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 2,070 $ 2,302 $ 3,435 $ 2,148 $2,494 $ 2,411
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 17.06% 93.08% 204.15% 17.06% 93.08% 204.15%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Michigan Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.98 $ 9.76 $ 9.97 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net .19 .30 .20 .34
Realized and unrealized gain on investments--net .16 .22 .16 .21
------- ------- ------- -------
Total from investment operations .35 .52 .36 .55
------- ------- ------- -------
Less dividends from investment income--net (.19) (.30) (.20) (.34)
------- ------- ------- -------
Net asset value, end of period $ 10.14 $ 9.98 $ 10.13 $ 9.97
======= ======= ======= =======
Total Based on net asset value per share 3.50%+++ 5.40%+++ 3.66%+++ 5.72%+++
Investment ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement 1.09%* .96%* .77%* .44%*
Average ======= ======= ======= =======
Net Assets: Expenses 2.80%* 2.90%* 2.52%* 2.38%*
======= ======= ======= =======
Investment income--net 3.70%* 3.80%* 4.02%* 4.47%*
<PAGE> ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1 $ 1 $ 342 $ 254
Data: ======= ======= ======= =======
Portfolio turnover 17.06% 93.08% 17.06% 93.08%
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.15 $ 9.94 $ 10.00 $ 10.16 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .42 .23 .19 .38 .20
Realized and unrealized gain (loss) on
investments--net .16 .21 (.06) .16 .21 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .37 .63 .17 .35 .59 .15
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.21) (.42) (.23) (.19) (.38) (.20)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.31 $ 10.15 $ 9.94 $ 10.32 $10.16 $ 9.95
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 3.66%+++ 6.45% 1.73%+++ 3.48%+++ 6.07% 1.59%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .68%* .34% .03%* 1.03%* .73% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 1.68%* 1.69% 1.14%* 2.03%* 2.15% 1.52%*
======= ======= ======= ======= ======= =======
Investment income--net 4.08%* 4.10% 3.45%* 3.72%* 3.80% 3.04%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 2,805 $ 2,401 $ 5,933 $ 6,663 $ 7,593 $ 7,885
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 2.17% 131.56% 205.04% 2.17% 131.56% 205.04%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.20 $ 9.86 $ 10.16 $ 9.85
Operating ------- ------- ------- -------
Performance: Investment income--net .16 .26 .20 .32
Realized and unrealized gain (loss) on investments--net .14 (.66) .16 .31
------- ------- ------- -------
Total from investment operations .30 (.40) .36 .63
------- ------- ------- -------
Less dividends from investment income--net (.16) (.26) (.20) (.32)
------- ------- ------- -------
Net asset value, end of period $ 9.34 $ 9.20 $ 10.32 $ 10.16
======= ======= ======= =======
Total Based on net asset value per share 3.32%+++ (4.01%)+++ 3.61%+++ 6.51%+++
Investment ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement 1.26%* .55%* .77%* .62%*
Average ======= ======= ======= =======
Net Assets: Expenses 2.28%* 2.22%* 1.77%* 2.07%*
======= ======= ======= =======
Investment income--net 3.51%* 4.06%* 3.98%* 4.17%*
======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 1 $ 1 $ 309 $ 437
Data: ======= ======= ======= =======
Portfolio turnover 2.17% 131.56% 2.17% 131.56%
======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<TABLE>
<CAPTION>
New York Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.05 $ 9.91 $ 10.00 $ 10.05 $ 9.91 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .22 .44 .25 .21 .41 .22
Realized and unrealized gain (loss) on
investments--net .19 .14 (.09) .19 .14 (.09)
------- ------- ------- ------- ------- -------
Total from investment operations .41 .58 .16 .40 .55 .13
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.22) (.44) (.25) (.21) (.41) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.24 $ 10.05 $ 9.91 $ 10.24 $ 10.05 $ 9.91
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 4.13%+++ 6.03% 1.61%+++ 3.95%+++ 5.66% 1.37%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement .43%* .33% .03%* .79%* .69% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 1.30%* 1.30% 1.24%* 1.65%* 1.65% 1.60%*
======= ======= ======= ======= ======= =======
Investment income--net 4.37%* 4.49% 3.68%* 4.01%* 4.11% 3.31%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 4,228 $ 4,811 $ 5,290 $10,308 $ 8,822 $ 9,743
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 29.09% 139.16% 152.73% 29.09% 139.16% 152.73%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
New York Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.05 $ 9.78 $ 10.05 $ 9.78
Operating ------- ------- ------- -------
Performance: Investment income--net .21 .30 .22 .34
Realized and unrealized gain on investments--net .19 .27 .20 .27
------- ------- ------- -------
Total from investment operations .40 .57 .42 .61
------- ------- ------- -------
Less dividends from investment income--net (.21) (.30) (.22) (.34)
------- ------- ------- -------
Net asset value, end of period $ 10.24 $ 10.05 $ 10.25 $ 10.05
======= ======= ======= =======
Total Based on net asset value per share 4.04%+++ 5.97%+++ 4.18%+++ 6.37%+++
Investment ======= ======= ======= =======
Return:**
<PAGE>
Ratios to Expenses, net of reimbursement .61%* .63%* .53%* .48%*
Average ======= ======= ======= =======
Net Assets: Expenses 1.48%* 1.63%* 1.40%* 1.48%*
======= ======= ======= =======
Investment income--net 4.20%* 4.21%* 4.27%* 4.47%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 98 $ 38 $ 2,486 $ 2,306
Data: ======= ======= ======= =======
Portfolio turnover 29.09% 139.16% 29.09% 139.16%
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity
Class A Class B
For the For the For the For the
Six For the Period Six For the Period
The following per share data and ratios have been derived Months Year Nov. 26, Months Year Nov. 26,
from information provided in the financial statements. Ended Ended 1993++ to Ended Ended 1993++ to
Jan. 31, July 31, July 31, Jan. 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1996 1995 1994
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.10 $ 9.95 $ 10.00 $ 10.10 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .21 .42 .23 .19 .39 .21
Realized and unrealized gain (loss) on
investments--net .21 .15 (.05) .21 .15 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .42 .57 .18 .40 .54 .16
------- ------- ------- ------- ------- -------
Less dividends from investment income--net (.21) (.42) (.23) (.19) (.39) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.31 $ 10.10 $ 9.95 $ 10.31 $ 10.10 $ 9.95
======= ======= ======= ======= ======= =======
Total Based on net asset value per share 4.20%+++ 5.89% 1.85%+++ 4.01%+++ 5.51% 1.61%+++
Investment ======= ======= ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .72%* .38% .02%* 1.07%* .73% .38%*
Average ======= ======= ======= ======= ======= =======
Net Assets: Expenses 1.61%* 1.90% 1.48%* 1.96%* 2.25% 1.83%*
======= ======= ======= ======= ======= =======
Investment income--net 4.12%* 4.25% 3.46%* 3.76%* 3.87% 3.05%*
======= ======= ======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 963 $ 943 $ 990 $ 6,952 $ 7,414 $ 9,532
Data: ======= ======= ======= ======= ======= =======
Portfolio turnover 6.22% 141.52% 237.47% 6.22% 141.52% 237.47%
======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity
Class C Class D
For the For the For the For the
Six Period Six Period
The following per share data and ratios have been derived Months Oct. 21, Months Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
Jan. 31, July 31, Jan. 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.10 $ 9.84 $ 10.10 $ 9.84
Operating ------- ------- ------- -------
Performance: Investment income--net .20 .29 .21 .33
Realized and unrealized gain on investments--net .19 .26 .22 .26
------- ------- ------- -------
Total from investment operations .39 .55 .43 .59
------- ------- ------- -------
Less dividends from investment income--net (.20) (.29) (.21) (.33)
------- ------- ------- -------
Net asset value, end of period $ 10.29 $ 10.10 $ 10.32 $ 10.10
======= ======= ======= =======
Total Based on net asset value per share 3.87%+++ 5.68%+++ 4.25%+++ 6.10%+++
Investment ======= ======= ======= =======
Return:**
Ratios to Expenses, net of reimbursement .91%* 1.05%* .82%* .57%*
Average ======= ======= ======= =======
Net Assets: Expenses 1.80%* 2.55%* 1.71%* 2.08%*
======= ======= ======= =======
Investment income--net 3.93%* 3.77%* 4.02%* 4.30%*
======= ======= ======= =======
<PAGE>
Supplemental Net assets, end of period (in thousands) $ 41 $ 1 $ 397 $ 382
Data: ======= ======= ======= =======
Portfolio turnover 6.22% 141.52% 6.22% 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>
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. These unaudited
financial statements reflect all adjustments which are, in the opinion
of management, necessary to a fair statement of the results for the
interim period presented. All such adjustments are of a normal
recurring nature. Each series of the Trust is referred to herein as a
"Fund." The Trust offers four classes of shares under the Merrill
Lynch Select Pricingj 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, liquidation 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 Fund 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.
<PAGE>
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period beginning with commencement
of operations. Prepaid registration fees are charged to expense as the
related shares are issued.
(f) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
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
the 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 six months ended January 31, 1996, 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 $11,534 $27,548 $22,143
Additional expenses 35,331 6,736 --
<PAGE>
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $17,142 $ 8,713 $17,562
Additional expenses 47,047 34,521 32,846
New York Pennsylvania
Limited Limited
Maturity Maturity
Management fee $28,312 $14,950
Additional expenses 41,971 23,261
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, the Fund pays the Distributor
ongoing account maintenance and distribution fees. 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 Dis-
tributor 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 share-
holder and distribution-related services to Class B and Class C
shareholders.
<PAGE>
For the six months ended January 31, 1996, MLFD earned under-
writing discounts and MLPF&S earned dealer concessions on sales
of the Fund's Class A and Class D Shares as follows:
Arizona California Florida Massachusetts
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 2 $ 20 $ -- $ 28
MLPF&S 66 163 -- 282
Class D:
MLFD $ -- $ 19 $ 271 $ 90
MLPF&S -- 89 1,397 693
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 4 $ -- $ -- $ --
MLPF&S 98 -- 12 --
MLFD $ 59 $ 31 $ 64 $ 6
MLPF&S 420 1,097 457 228
MLPF&S received contingent deferred sales charges relating to
transactions in Class B Shares of beneficial interest as follows:
Class B
Shares
Arizona Limited Maturity $2,481
California Limited Maturity 136
Florida Limited Maturity 7,437
Massachusetts Limited Maturity 1,841
Michigan Limited Maturity 5,428
New Jersey Limited Maturity 2,387
New York Limited Maturity 2,782
Pennsylvania Limited Maturity 3,265
<PAGE>
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Trust's transfer agent.
NOTES TO FINANCIAL STATEMENTS (continued)
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 six months ended January 31, 1996 were as follows:
Purchases Sales
Arizona Limited Maturity $1,198,799 --
California Limited Maturity 1,276,465 --
Florida Limited Maturity 4,303,178 $3,706,203
Massachusetts Limited Maturity 1,287,580 2,198,529
Michigan Limited Maturity 910,571 701,879
New Jersey Limited Maturity 452,439 151,617
New York Limited Maturity 5,684,193 3,573,633
Pennsylvania Limited Maturity 400,000 413,690
Net realized and unrealized gains (losses) as of January 31, 1996 were
as follows:
Realized Unrealized
Arizona Limited Maturity Gains (Losses) Gains
Long-term investments $ -- $ 279,533
Short-term investments -- 765
---------- ----------
Total $ -- $ 280,298
========== ==========
<PAGE>
Realized Unrealized
California Limited Maturity Gains (Losses) Gains
Long-term investments $ -- $ 773,381
Short-term investments -- 5,730
---------- ----------
Total $ -- $ 779,111
========== ==========
Realized Unrealized
Florida Limited Maturity Gains (Losses) Gains
Long-term investments $ 65,657 $1,216,444
Short-term investments -- 5,702
---------- ----------
Total $ 65,657 $1,222,146
========== ==========
Realized Unrealized
Massachussets Limited Maturity Gains (Losses) Gains
Long-term investments $ 5,017 $ 338,693
---------- ----------
Total $ 5,017 $ 338,693
========== ==========
Realized Unrealized
Michigan Limited Maturity Gains (Losses) Gains
Long-term investments $ 19,664 $ 205,153
Short-term investments 1,954 --
---------- ----------
Total $ 21,618 $ 205,153
========== ==========
Realized Unrealized
New Jersey Limited Maturity Gains (Losses) Gains
Long-term investments $ (102) $ 479,792
Short-term investments 218 1,927
---------- ----------
Total $ 116 $ 481,719
========== ==========
<PAGE>
Realized Unrealized
New York Limited Maturity Gains (Losses) Gains
Long-term investments $ 66,485 $ 589,375
Short-term investments -- 972
---------- ----------
Total $ 66,485 $ 590,347
========== ==========
Realized Unrealized
Pennsylvania Limited Maturity Gains (Losses) Gains
Long-term investments $ 15,277 $ 309,607
---------- ----------
Total $ 15,277 $ 309,607
========== ==========
As of January 31, 1996, net unrealized appreciation and the aggregate
cost of investments for Federal income tax purposes were as follows:
Limited Gross Gross Net Aggregate
Maturity Unrealized Unrealized Unrealized Cost of
Portfolio Appreciation Depreciation Appreciation Investments
Arizona $ 280,298 -- $ 280,298 $ 6,470,714
California 779,111 -- 779,111 14,503,831
Florida 1,222,146 -- 1,222,146 30,888,779
Massachusetts 338,693 -- 338,693 7,898,218
Michigan 205,153 -- 205,153 4,274,526
New Jersey 481,719 -- 481,719 9,239,594
New York 590,347 -- 590,347 15,928,911
Pennsylvania 309,607 -- 309,607 7,827,605
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions for the six months ended January 31, 1996 and the year
ended July 31, 1995, respectively, were as follows:
<PAGE>
For the Six For the
Increase (Decrease) in Months Ended Year Ended
Beneficial Interest Transactions Jan. 31, 1996 July 31, 1995
Arizona Limited Maturity $ 516,019 $(1,547,482)
California Limited Maturity (541,370) 354,485
Florida Limited Maturity (1,534,453) (187,273)
Massachusetts Limited Maturity (1,751,704) (6,114,591)
Michigan Limited Maturity (569,824) (811,255)
New Jersey Limited Maturity (801,905) (3,524,093)
New York Limited Maturity 832,245 774,385
Pennsylvania Limited Maturity (564,530) (1,893,824)
Transactions in shares of beneficial interest for each class were
as follows:
Arizona Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 1,245 12,709
Shares issued to shareholders in
reinvestment of dividends 812 8,275
---------- -----------
Total issued 2,057 20,984
Shares redeemed (7,590) (77,620)
---------- -----------
Net decrease (5,533) $ (56,636)
========== ===========
Arizona Limited Maturity
Class A Shares for the Six Months Dollar
Ended 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 B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 41,947 $ 429,431
Shares issued to shareholders in
reinvestment of dividends 3,837 34,152
---------- -----------
Total issued 45,784 463,583
Shares redeemed (89,201) (907,716)
---------- -----------
Net decrease (43,417) $ (444,133)
========== ===========
Arizona Limited Maturity
Class B Shares for the Six Months Dollar
Ended 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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 2 $ 21
---------- -----------
Net increase 2 $ 21
========== ===========
<PAGE>
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.
NOTES TO FINANCIAL STATEMENTS (continued)
Arizona Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 99,002 $ 1,010,814
Shares issued to shareholders in
reinvestment of dividends 580 5,953
---------- -----------
Net increase 99,582 $ 1,016,767
========== ===========
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.
<PAGE>
California Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 3,121 $ 31,308
Shares issued to shareholders in
reinvestment of dividends 1,944 19,595
---------- -----------
Total issued 5,065 50,903
Shares redeemed (35,875) (361,766)
---------- -----------
Net decrease (30,810) $ (310,863)
========== ===========
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)
========== ===========
California Limited Maturity
Class B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 108,814 $ 1,093,921
Shares issued to shareholders in
reinvestment of dividends 8,457 85,244
---------- -----------
Total issued 117,271 1,179,165
---------- -----------
Automatic conversion of shares (7,895) (80,134)
Shares redeemed (123,480) (1,243,876)
---------- -----------
Net decrease (14,104) $ (144,845)
========== ===========
<PAGE>
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)
========== ===========
California Limited Maturity
Class C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 25 $ 250
Shares issued to shareholders in
reinvestment of dividends 6 58
---------- -----------
Total issued 31 308
Shares redeemed (983) (9,913)
---------- -----------
Net decrease (952) $ (9,605)
========== ===========
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.
<PAGE>
California Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 10,702 $ 108,006
Automatic conversion of shares 7,895 80,134
Shares issued to shareholders in
reinvestment of dividends 611 6,154
---------- -----------
Total issued 19,208 194,294
Shares redeemed (26,879) (270,351)
---------- -----------
Net decrease (7,671) $ (76,057)
========== ===========
California Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++1/2 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.
Florida Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 86,608 $ 875,312
Shares issued to shareholders in
reinvestment of dividends 6,082 61,258
---------- -----------
Total issued 92,690 936,570
Shares redeemed (168,698) (1,697,295)
---------- -----------
Net decrease (76,008) $ (760,725)
========== ===========
<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 B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 281,445 $ 2,839,390
Shares issued to shareholders in
reinvestment of dividends 15,697 158,089
---------- -----------
Total issued 297,142 2,997,479
Shares redeemed (356,223) (3,591,888)
---------- -----------
Net decrease (59,081) $ (594,409)
========== ===========
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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 1,536 $ 15,500
Shares issued to shareholders in
reinvestment of dividends 2 20
---------- -----------
Total issued 1,538 15,520
Shares redeemed (1,536) (15,483)
---------- -----------
Net increase 2 $ 37
========== ===========
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.
NOTES TO FINANCIAL STATEMENTS (continued)
Florida Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 277,933 $ 2,803,666
Shares issued to shareholders in
reinvestment of dividends 2,050 20,650
---------- -----------
Total issued 279,983 2,824,316
Shares redeemed (297,734) (3,003,672)
---------- -----------
Net decrease (17,751) $ (179,356)
========== ===========
<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 Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 1,966 $ 19,838
Shares issued to shareholders in
reinvestment of dividends 5,824 58,354
---------- -----------
Total issued 7,790 78,192
Shares redeemed (200,737) (2,014,330)
---------- -----------
Net decrease (192,947) $(1,936,138)
========== ===========
Massachusetts Limited Maturity
Class A Shares for the Year Dollar
Ended January 31, 1996 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)
========== ===========
<PAGE>
Massachusetts Limited Maturity
Class B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 54,514 $ 545,843
Shares issued to shareholders in
reinvestment of dividends 4,779 47,919
---------- -----------
Total issued 59,293 593,762
Shares redeemed (63,966) (642,259)
---------- -----------
Net decrease (4,673) $ (48,497)
========== ===========
Massachusetts Limited Maturity
Class B Shares for the Year Dollar
Ended January 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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 660 $ 6,618
---------- -----------
Net increase 660 $ 6,618
========== ===========
<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 Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 28,398 $ 283,737
Shares issued to shareholders in
reinvestment of dividends 574 5,760
---------- -----------
Total issued 28,972 289,497
Shares redeemed (6,265) (63,184)
---------- -----------
Net increase 22,707 $ 226,313
========== ===========
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.
<PAGE>
Michigan Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 40,665 $ 405,188
Shares issued to shareholders in
reinvestment of dividends 777 7,793
---------- -----------
Total issued 41,442 412,981
Shares redeemed (67,954) (680,964)
---------- -----------
Net decrease (26,512) $ (267,983)
========== ===========
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)
========== ===========
Michigan Limited Maturity
Class B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 32,511 $ 325,727
Shares issued to shareholders in
reinvestment of dividends 2,591 25,977
---------- -----------
Total issued 35,102 351,704
Shares redeemed (73,232) (735,736)
---------- -----------
Net decrease (38,130) $ (384,032)
========== ===========
<PAGE>
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
========== ===========
Michigan Limited Maturity
Class C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 2 $ 21
---------- -----------
Net increase 2 $ 21
========== ===========
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.
<PAGE>
Michigan Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 7,831 $ 78,063
Shares issued to shareholders in
reinvestment of dividends 410 4,107
---------- -----------
Net increase 8,241 $ 82,170
========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
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.
New Jersey Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 44,334 $ 452,541
Shares issued to shareholders in
reinvestment of dividends 4,265 43,508
---------- -----------
Total issued 48,599 496,049
Shares redeemed (12,898) (131,818)
---------- -----------
Net increase 35,701 $ 364,231
========== ===========
<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 B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 53,512 $ 546,765
Shares issued to shareholders in
reinvestment of dividends 7,477 76,336
---------- -----------
Total issued 60,989 623,101
Shares redeemed (162,523) (1,656,122)
---------- -----------
Net decrease (101,534) $(1,033,021)
========== ===========
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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 2 $ 19
---------- -----------
Net increase 2 $ 19
========== ===========
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)
========== ===========
[FN]
++Commencement of Operations.
New Jersey Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 17,422 $ 177,086
Shares issued to shareholders in
reinvestment of dividends 395 4,040
---------- -----------
Total issued 17,817 181,126
Shares redeemed (30,894) (314,260)
---------- -----------
Net decrease (13,077) $ (133,134)
========== ===========
<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 Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 42,786 $ 432,468
Shares issued to shareholders in
reinvestment of dividends 6,025 61,057
---------- -----------
Total issued 48,811 493,525
Shares redeemed (114,804) (1,155,711)
---------- -----------
Net decrease (65,993) $ (662,186)
========== ===========
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)
========== ===========
<PAGE>
New York Limited Maturity
Class B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 307,436 $ 3,120,593
Shares issued to shareholders in
reinvestment of dividends 9,120 92,395
---------- -----------
Total issued 316,556 3,212,988
Automatic conversion of shares (1,024) (10,413)
Shares redeemed (186,976) (1,901,383)
---------- -----------
Net increase 128,556 $ 1,301,192
========== ===========
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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 5,785 $ 58,399
Shares issued to shareholders in
reinvestment of dividends 91 921
---------- -----------
Total issued 5,876 59,320
Shares redeemed (99) (993)
---------- -----------
Net increase 5,777 $ 58,327
========== ===========
<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.
NOTES TO FINANCIAL STATEMENTS (concluded)
New York Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 17,630 $ 178,895
Automatic conversion of shares 1,023 10,413
Shares issued to shareholders in
reinvestment of dividends 1,708 17,345
---------- -----------
Total issued 20,361 206,653
Shares redeemed (7,091) (71,741)
---------- -----------
Net increase 13,270 $ 134,912
========== ===========
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
========== ===========
<PAGE>
[FN]
++Commencement of Operations.
Pennsylvania Limited Maturity
Class A Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 1,295 $ 13,196
Shares issued to shareholders in
reinvestment of dividends 561 5,720
---------- -----------
Total issued 1,856 18,916
Shares redeemed (1,928) (19,638)
---------- -----------
Net decrease (72) $ (722)
========== ===========
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)
========== ===========
Pennsylvania Limited Maturity
Class B Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 37,764 $ 385,361
Shares issued to shareholders in
reinvestment of dividends 9,192 93,631
---------- -----------
Total issued 46,956 478,992
Shares redeemed (107,005) (1,089,050)
---------- -----------
Net decrease (60,049) $ (610,058)
========== ===========
<PAGE>
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 C Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 6,900 $ 70,174
Shares issued to shareholders in
reinvestment of dividends 45 456
---------- -----------
Total issued 6,945 70,630
Shares redeemed (3,041) (31,048)
---------- -----------
Net increase 3,904 $ 39,582
========== ===========
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.
<PAGE>
Pennsylvania Limited Maturity
Class D Shares for the Six Months Dollar
Ended January 31, 1996 Shares Amount
Shares sold 9,640 $ 98,219
Shares issued to shareholders in
reinvestment of dividends 414 4,219
---------- -----------
Total issued 10,054 102,438
Shares redeemed (9,356) (95,770)
---------- -----------
Net increase 698 $ 6,668
========== ===========
Pennsylvania Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to 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.
<PAGE>
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 Municipal Bond Fund, all of which expires in 2003; $156,000
in the California Limited Maturity Municipal Bond Fund, all of
which expires in 2003; $518,000 in the Florida Limited Maturity
Municipal Bond Fund, all of which expires in 2003; $71,000 in
Massachusetts Limited Maturity Municipal Bond Fund, all of which
expires in 2003; $53,000 in the Michigan Limited Maturity Munici-
pal Bond Fund, all of which expires in 2003; $98,000 in the New
Jersey Limited Maturity Municipal Bond Fund, all of which expires
in 2003; $124,000 in the New York Limited Maturity Municipal
Bond Fund, of which $122,000 expires in 2002 and $2,000 expires in
2003; and $102,000 in the Pennsylvania Limited Maturity Municipal
Bond Fund, all of which expires in 2003. These amounts will be
available to offset like amounts of any future taxable gains.
