MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICPIAL
SERIES TRUST
FUND LOGO
Annual Report
July 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 Trust unless
accompanied or preceded by the Trust'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
08543-9011
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Important Tax
Information
(unaudited)
All of the net investment income distributions paid monthly by
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
during its taxable year ended July 31, 1996 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by any Fund of
the Trust.
Please retain this information for your records.
<PAGE>
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
Edward J. Andrews, Vice President
Peter J. Hayes, Vice President
Helen M. Sheehan, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, New York 10005
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
TO OUR SHAREHOLDERS
The Municipal Market Environment
Yields on intermediate-term municipal bonds ended the July quarter
modestly lower after a prolonged period of volatility and mostly
rising interest rates. Yields on AAA-rated, general obligation bonds
fell 5 basis points--10 basis points (0.05%--0.10%) to end the July
quarter in the 4.45%--4.50% range. Municipal bond yields had traded
in a narrow range through early July as the domestic economy
continued to demonstrate ongoing strength. However, the combination
of the Federal Reserve Board suggesting that growth was expected to
slow later in 1996 and the stock market declining in early July
allowed tax-exempt bond yields to fall as investors scrambled to
purchase relatively scarce securities. As it has in recent quarters,
the municipal bond market continued to outperform its taxable
counterpart. During the July quarter, US Treasury bond yields rose
somewhat to end the six-month period ended July 31, 1996 at 6.97%,
up 7 basis points.
<PAGE>
The municipal bond market continued to enjoy the same strong
technical position during the July quarter that it has for much of
1996. The rate of increase in new bond issuance recently slowed.
Over the last six months, approximately $90 billion in new long-term
municipal securities were underwritten. This represents an increase
of slightly more than 20% versus the comparable period a year
earlier. However, during the July quarter, approximately $43 billion
in securities were issued, essentially unchanged from the amount
issued during the July 1995 quarter. In July 1996 less than $10
billion in new municipal securities were underwritten. This is the
lowest issuance for the month of July since 1990. This relative
decline in bond issuance can be expected to continue as bond
issuance historically declines during the summer months. Also, bond
issuance dedicated toward refinancing existing debt fell in response
to higher bond yields.
At the same time investor demand remained consistently strong. With
nominal long-term new issue yields above 6%, retail investor
interest was steady. Additionally, investors received over $50
billion this June and July in assets derived from coupon income,
bond maturities and proceeds from early redemptions. Annual new bond
issuance has declined in recent years and is expected to remain
below levels seen in the early 1990s. Consequently, as the higher-
couponed bonds issued in the early-to-mid 1980s were redeemed at
their first optional call date, the total number of outstanding tax-
exempt bonds has declined. This combination of a declining net
supply and significant amounts of new assets has helped maintain
investor demand in recent months.
It is unlikely that the municipal bond market will continue to
significantly outperform US Treasury securities in the near future.
The tax-exempt bond market's recent performance led to the yield
ratio between long-term taxable and tax-exempt securities falling
from in excess of 90% to approximately 85%. Some institutional
investors, particularly short-term traders, have viewed the tax-
exempt bond market's recent outperformance as an opportunity to sell
a relatively expensive asset. However, to the long-term investor
such a sale would represent the loss of an attractively priced asset
which may not be easily replaced given the relative scarcity of
municipal bonds under present supply conditions.
Looking forward, no clear consensus for the direction of interest
rates currently exists. Perhaps, the primary focus going forward
will be the extent to which the increase in interest rates seen thus
far in 1996 will negatively affect future economic growth. Should
growth slow in the interest rate-sensitive sectors of the economy,
like housing, auto, and consumer spending, as many economists assert
is likely, then bond yields are likely to decline. Under such a
scenario, the municipal bond market's performance is likely to
closely mirror that of the US Treasury bond market.
<PAGE>
Fiscal Year in Review
Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund
Throughout the fiscal year ended July 31, 1996, we maintained a core
position of highly liquid securities that also provided an
attractive yield and portfolio diversification. We maintained an
average portfolio maturity of approximately 4.5 years for much of
the fiscal year which, together with a low cash position, benefited
the Fund's total returns in the favorable interest rate environment
during the first half of the fiscal year.
In the July quarter, we increased the Fund's cash position in an
effort to meet shareholder redemptions and also seek to insulate the
Fund from short-term interest rate volatility. Our sales in this
quarter included securities with maturities of five years or less,
since we felt that these securities were most vulnerable to short-
term market fluctuations. In addition, in the last six months we
increased the average coupon of the Fund as a further defensive
move.
In the July quarter, the Fund's portfolio composition of higher-
couponed, AA-rated or insured Arizona municipal bonds cushioned the
Fund somewhat from the volatility of the market. In the upcoming
October 1996 quarter, we expect to maintain our core position of
securities while adding selectively when the opportunity arises. We
expect to continue to concentrate our purchases in higher-quality
securities since they tend to provide more liquidity.
Merrill Lynch California Limited
Maturity Municipal Bond Fund
Interest rates fell dramatically for most of the first five months
of the Fund's fiscal year as investors anticipated slower economic
growth and moderate inflation. During this time the portfolio was
aggressively structured to take advantage of a falling interest rate
environment by remaining close to fully invested, with limited cash
reserves and the maximum allowable average maturity under the Fund's
prospectus. However, in January 1996 investor sentiment began to
change in response to concerns that higher commodity prices and
stronger growth would lead to inflation and an ultimate tightening
of Federal Reserve Board monetary policy. Thus began the bear market
in bonds which persisted through July 31, 1996. During this time the
Fund was repositioned to a less bullish investment posture, with an
average maturity range of approximately 4 years--4.7 years and a
defensive cash position being maintained in the 20%--25% range. As a
result, the Fund's more aggressive posture caused it to benefit from
the fall in interest rates for the first five months of the fiscal
year, while the Fund's more defensive posture during the last two
fiscal quarters insulated it somewhat from the volatility seen thus
far in 1996. We expect to maintain a more aggressive investment
posture in the upcoming October 1996 quarter with the expectation of
slowing economic growth causing interest rates to be flat to lower.
<PAGE>
At fiscal year-end, the net assets of Merrill Lynch California
Limited Maturity Municipal Bond Fund stood at approximately $15.3
million, almost flat from April 1996 quarter-end. The Fund's average
maturity is being maintained at 4.1 years, and the Fund currently
has 18% of its assets in cash equivalent securities. Approximately
53% of the Fund's long-term assets are currently invested in bonds
rated AA or better, which tend to outperform lower-rated securities
in periods of volatility.
Merrill Lynch Florida Limited
Maturity Municipal Bond Fund
Interest rates fell dramatically for most of the first five months
of the fiscal year ended July 31, 1996 as investors anticipated
slower economic growth and moderate inflation. During this time the
portfolio was aggressively structured to take advantage of a falling
interest rate environment by remaining close to fully invested, with
limited cash reserves and the maximum allowable average portfolio
maturity under the Fund's prospectus. However, in January 1996
investor sentiment began to change in response to concerns that
higher commodity prices and stronger growth would lead to inflation
and an ultimate tightening of Federal Reserve Board monetary policy.
Thus began the bear market in bonds which has persisted through July
31, 1996. During this time the Fund was repositioned to a less
bullish investment posture, with an average maturity range of
approximately 4 years--4.7 years and a defensive cash position being
maintained in the 20%--25% range. As a result, the Fund's more
aggressive posture caused it to benefit from the fall in interest
rates for the first five months of the fiscal year, while the Fund's
more defensive posture during the last two fiscal quarters insulated
it somewhat from the volatility seen thus far in 1996. We expect to
maintain a more aggressive investment posture in the upcoming
October 1996 quarter with the expectation of slowing economic growth
causing interest rates to be flat to lower.
At the close of the July quarter, the net assets of Merrill Lynch
Florida Limited Maturity Municipal Bond Fund stood at approximately
$28.0 million. The Fund's average portfolio maturity is being
maintained at 4.7 years, and the Fund current-ly has 14% of its
assets in cash equivalent securities. Approximately 70% of the
Fund's long-term assets are currently invested in bonds rated AA or
better, which tend to outperform lower-rated securities in periods
of interest rate volatility.
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
<PAGE>
Interest rates fell dramatically for most of the first five months
of the fiscal year ended July 31, 1996 as investors anticipated
slower economic growth and moderate inflation. During this time the
portfolio was aggressively structured to take advantage of a falling
interest rate environment by remaining close to fully invested, with
limited cash reserves and the maximum allowable average portfolio
maturity under the Fund's prospectus. However, in January 1996
investor sentiment began to change in response to concerns that
higher commodity prices and stronger growth would lead to inflation
and an ultimate tightening of Federal Reserve Board monetary policy.
Thus began the bear market in bonds which has persisted through July
31, 1996. During this time, the Fund was repositioned to a more
neutral investment posture, with an average maturity of
approximately four years and a relatively defensive cash position of
25%. As a result, the Fund's more aggressive posture caused it to
benefit from the fall in interest rates for the first five months of
the fiscal year, while the Fund's more defensive posture during the
last two fiscal quarters insulated it somewhat from the volatility
seen thus far in 1996. We expect to maintain this neutral approach
to the market in the upcoming October 1996 quarter as we await both
a clearer picture of the economy and the outcome of the Presidential
election in November.
At the close of the July quarter, the net assets of Merrill Lynch
Massachusetts Limited Maturity Municipal Bond Fund stood at
approximately $7.4 million. The Fund's average portfolio maturity is
being maintained at 4 years, and the Fund currently has
approximately 24% of its assets in cash equivalent securities.
Approximately 40% of the Fund's long-term assets are currently
invested in bonds rated AA or better, which tend to outperform lower-
rated securities in periods of interest rate volatility.
Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund
Interest rates fell dramatically for most of the first five months
of the recent fiscal year as investors anticipated slower economic
growth and moderate inflation. During this time the portfolio was
aggressively structured to take advantage of a falling interest rate
environment by remaining close to fully invested, with limited cash
reserves and the maximum allowable average maturity under the Fund's
prospectus. However, in January 1996 investor sentiment began to
change in response to concerns that higher commodity prices and
stronger growth would lead to inflation and an ultimate tightening
of Federal Reserve Board monetary policy. Thus began the bear market
in bonds which has persisted through July 31, 1996. During this time
the Fund was repositioned to a less bullish investment posture, with
an average maturity range of approximately 4 years--4.7 years and a
defensive cash position being maintained in the 20%--25% range. As a
result, the Fund's more aggressive posture caused it to benefit from
the fall in interest rates for the first five months of the fiscal
year, while the Fund's more defensive posture during the last two
fiscal quarters insulated it somewhat from the volatility seen thus
far in 1996. We expect to maintain a more aggressive investment
posture in the upcoming October 1996 quarter with the expectation of
slowing economic growth causing interest rates to be flat to lower.
<PAGE>
At the completion of the fiscal year, the net assets of Merrill
Lynch Michigan Limited Maturity Municipal Bond Fund stood at
approximately $4.0 million, a decrease of approximately 12% from
April quarter-end. The Fund's average portfolio maturity is
currently being maintained at 4.9 years, and the Fund currently has
18% of its net assets in cash equivalent securities. Approximately
60% of the Fund's long-term assets are currently invested in bonds
rated AA or better, which tend to outperform lower-rated securities
in periods of interest rate volatility.
Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund
Throughout the Fund's fiscal year ended July 31, 1996, we maintained
a core position of highly liquid securities that also provided an
attractive yield and portfolio diversification. We maintained an
average portfolio maturity of close to 5 years for the first nine
months of the fiscal year which, together with a low cash position,
benefited the Fund's total returns in the favorable interest rate
environment during the first half of the fiscal year.
In the July quarter, we increased the Fund's cash position in an
effort to meet shareholder redemptions and to seek to insulate the
Fund from short-term interest rate volatility. Our sales in this
quarter included securities with maturities of five years or less,
since we felt that these securities were most vulnerable to short-
term market fluctuations.
In the July quarter, the Fund's portfolio composition of higher-
couponed, AA-rated or insured New Jersey municipal bonds cushioned
the Fund somewhat from the volatility of the market. In the upcoming
October 1996 quarter, we expect to maintain our core position of
securities while adding selectively to them when the opportunity
arises. We expect to continue to concentrate our purchases in higher-
quality securities since they tend to provide more liquidity.
Merrill Lynch New York Limited
Maturity Municipal Bond Fund
<PAGE>
Interest rates fell dramatically for most of the first five months
of the fiscal year ended July 31, 1996 as investors anticipated
slower economic growth and moderate inflation. During this time the
portfolio was aggressively structured to take advantage of a falling
interest rate environment by remaining close to fully invested, with
limited cash reserves and the maximum allowable average portfolio
maturity under the Fund's prospectus. However, in January 1996
investor sentiment began to change in response to concerns that
higher commodity prices and stronger growth would lead to inflation
and an ultimate tightening of Federal Reserve Board monetary policy.
Thus began the bear market in bonds which has persisted through July
31, 1996. During that time the Fund was repositioned to a less
bullish investment posture, with an average portfolio maturity range
of approximately 4 years--4.7 years and a defensive cash position
being maintained in the 20%--25% range. As a result, the Fund's more
aggressive posture caused it to benefit from the fall in interest
rates for the first five months of the fiscal year, while the Fund's
more defensive posture during the last two quarters insulated it
somewhat from the volatility seen thus far in 1996. We expect to
maintain a more aggressive investment posture in the upcoming
October 1996 quarter with the expectation of slowing economic growth
causing interest rates to be flat to lower.
At the completion of the fiscal year, the net assets of Merrill
Lynch New York Limited Maturity Municipal Bond Fund stood at
approximately $17.9 million, an increase of approximately 5% from
April quarter-end. We maintained the Fund's average portfolio
maturity at approximately 4.7 years, and the Fund currently has 22%
of its assets in cash equivalent securities. Approximately 60% of
the Fund's long-term assets are currently invested in bonds rated AA
or better, which tend to outperform lower-rated securities in
periods of interest rate volatility.
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
Throughout the fiscal year ended July 31, 1996, we maintained a core
position of highly liquid securities that also provided an
attractive yield and portfolio diversification. We maintained an
average portfolio maturity of 4.5 years for the first nine months of
the Fund's fiscal year which, together with a low cash position,
benefited the Fund's total returns in the favorable interest rate
environment during the first half of the fiscal year.
In the July quarter, we increased the Fund's cash position in an
effort to meet shareholder redemptions and to seek to insulate the
Fund from short-term interest rate volatility. Our sales in this
quarter included discounted securities which we replaced with larger-
couponed securities as a further defensive measure.
<PAGE>
In the July quarter, the Fund's portfolio composition of higher-
couponed, AA-rated or insured Pennsylvania municipal bonds cushioned
the Fund somewhat from the volatility of the market. In the upcoming
October 1996 quarter, we expect to maintain our core position of
securities while adding selectively when the opportunity arises. We
expect to continue to concentrate our purchases in higher-quality
securities as they tend to provide more liquidity.
In Conclusion
We appreciate your interest in Merrill Lynch Multi-State Limited
Maturity Series Trust, and we look forward to assisting you with
your financial needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Edward J. Andrews)
Edward J. Andrews
Vice President and Portfolio Manager
(Peter J. Hayes)
Peter J. Hayes
Vice President and Portfolio Manager
<PAGE>
(Helen M. Sheehan)
Helen M. Sheehan
Vice President and Portfolio Manager
September 6, 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 maintenance
fees. Class A Shares are available only to eligible investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 1% if redeemed during the first year, decreasing 1% the
next year to 0%. In addition, Class B Shares are subject to a
distribution fee of 0.20% and an account maintenance fee of 0.15%.
These shares automatically convert to Class D Shares after
approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
* 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 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. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
<PAGE>
PERFORMANCE DATA (continued)
Total Return
Based on a
$10,000
Investment
Arizona Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
AZ Limited Maturity++--
Class A* $ 9,900 $11,093
AZ Limited Maturity++--
Class B* $10,000 $11,099
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
AZ Limited Maturity++--
Class C* $10,000 $10,885
AZ Limited Maturity++--
Class D* $ 9,900 $10,849
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Arizona Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of Arizona or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
<PAGE>
California Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
CA Limited Maturity++--
Class A* $ 9,900 $11,066
CA Limited Maturity++--
Class B* $10,000 $11,061
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
CA Limited Maturity++--
Class C* $10,000 $11,020
CA Limited Maturity++--
Class D* $ 9,900 $10,946
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++California Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of California or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
Florida Limited Maturity
<PAGE>
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
FL Limited Maturity++--
Class A* $ 9,900 $10.983
FL Limited Maturity++--
Class B* $10,000 $10,990
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
FL Limited Maturity++--
Class C* $10,000 $10,827
FL Limited Maturity++--
Class D* $ 9,900 $10,853
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Florida Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of Florida or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
Massachusetts Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
<PAGE>
11/26/93** 7/96
MA Limited Maturity++--
Class A* $ 9,900 $11,015
MA Limited Maturity++--
Class B* $10,000 $11,019
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
MA Limited Maturity++--
Class C* $10,000 $10,900
MA Limited Maturity++--
Class D* $ 9,900 $10,817
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Massachusetts Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the Commonwealth of Massachusetts or its
political subdivisions, agencies or instrumentalities, and obligations
of other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
PERFORMANCE DATA (continued)
Michigan Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
<PAGE>
11/26/93** 7/96
MI Limited Maturity++--
Class A* $ 9,900 $10,976
MI Limited Maturity++--
Class B* $10,000 $10,980
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
MI Limited Maturity++--
Class C* $10,000 $10,877
MI Limited Maturity++--
Class D* $ 9,900 $10,855
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Michigan Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of Michigan or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
New Jersey Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
NJ Limited Maturity++--
Class A* $ 9,900 $11,115
<PAGE>
NJ Limited Maturity++--
Class B* $10,000 $11,121
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
NJ Limited Maturity++--
Class C* $10,000 $ 9,911
NJ Limited Maturity++--
Class D* $ 9,900 $10,911
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New Jersey Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of New Jersey or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
New York Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
NY Limited Maturity++--
Class A* $ 9,900 $11,142
NY Limited Maturity++--
Class B* $10,000 $11,147
ML U1A0++++ $10,000 $11,185
<PAGE>
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
10/21/94** 7/96
NY Limited Maturity++--
Class C* $10,000 $11,050
NY Limited Maturity++--
Class D* $ 9,900 $10,989
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++New York Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of New York or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
Pennsylvania Limited Maturity
A line graph depicting the growth of an investment in the Fund's Class
A Shares and Class B Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
11/26/93** 7/96
PA Limited Maturity++--
Class A* $ 9,900 $11,123
PA Limited Maturity++--
Class B* $10,000 $11,129
ML U1A0++++ $10,000 $11,185
A line graph depicting the growth of an investment in the Fund's Class
C Shares and Class D Shares compared to growth of an investment in the
ML U1A0 Index. Beginning and ending values are:
<PAGE>
10/21/94** 7/96
PA Limited Maturity++--
Class C* $10,000 $11,020
PA Limited Maturity++--
Class D* $ 9,900 $10,931
ML U1A0++++ $10,000 $10,953
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++Pennsylvania Limited Maturity invests in a portfolio of securities
consisting primarily of intermediate-term investment-grade obligations
issued by or on behalf of the State of Pennsylvania or its political
subdivisions, agencies or instrumentalities, and obligations of
other qualifying issuers.
++++This unmanaged Index is comprised of AAA-rated bonds maturing within
three years.
Past performance is not predictive of future performance.
PERFORMANCE DATA (continued)
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.34% +2.30%
Inception (11/26/93) through 6/30/96 +4.23 +3.83
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +2.97% +1.97%
Inception (11/26/93) through 6/30/96 +3.86 +3.86
<PAGE>
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.05% +2.05%
Inception (10/21/94) through 6/30/96 +4.81 +4.81
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.34% +2.30%
Inception (10/21/94) through 6/30/96 +5.23 +4.61
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.27% +3.23%
Inception (11/26/93) through 6/30/96 +3.99 +3.58
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.90% +2.90%
Inception (11/26/93) through 6/30/96 +3.62 +3.62
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +4.06% +3.06%
Inception (10/21/94) through 6/30/96 +5.29 +5.29
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.17% +3.13%
Inception (10/21/94) through 6/30/96 +5.50 +4.88
<PAGE>
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.44% +2.40%
Inception (11/26/93) through 6/30/96 +3.75 +3.35
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.07% +2.07%
Inception (11/26/93) through 6/30/96 +3.39 +3.39
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +2.44% +1.45%
Inception (10/21/94) through 6/30/96 +4.30 +4.30
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.44% +2.40%
Inception (10/21/94) through 6/30/96 +5.13 +4.51
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.08% +3.04%
Inception (11/26/93) through 6/30/96 +3.91 +3.51
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.70% +2.70%
Inception (11/26/93) through 6/30/96 +3.54 +3.54
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.81% +2.82%
Inception (10/21/94) through 6/30/96 +4.79 +4.79
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.98% +2.94%
Inception (10/21/94) through 6/30/96 +4.93 +4.31
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.81% +2.78%
Inception (11/26/93) through 6/30/96 +3.80 +3.40
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.43% +2.44%
Inception (11/26/93) through 6/30/96 +3.43 +3.43
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.31% +2.31%
Inception (10/21/94) through 6/30/96 +4.72 +4.72
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.71% +2.67%
Inception (10/21/94) through 6/30/96 +5.13 +4.51
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.66% +2.62%
Inception (11/26/93) through 6/30/96 +4.23 +3.83
<PAGE>
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.29% +2.29%
Inception (11/26/93) through 6/30/96 +3.86 +3.86
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.21% +2.22%
Inception (10/21/94) through 6/30/96 -1.03 -1.03
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +3.56% +2.52%
Inception (10/21/94) through 6/30/96 +5.41 +4.78
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.34% +3.30%
Inception (11/26/93) through 6/30/96 +4.36 +3.96
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.97% +2.97%
Inception (11/26/93) through 6/30/96 +3.99 +3.99
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +4.27% +3.27%
Inception (10/21/94) through 6/30/96 +5.62 +5.62
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.34% +3.30%
Inception (10/21/94) through 6/30/96 +5.96 +5.33
<PAGE>
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.29% +3.24%
Inception (11/26/93) through 6/30/96 +4.34 +3.94
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +3.91% +2.91%
Inception (11/26/93) through 6/30/96 +3.97 +3.97
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/96 +4.39% +3.39%
Inception (10/21/94) through 6/30/96 +5.54 +5.54
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/96 +4.29% +3.24%
Inception (10/21/94) through 6/30/96 +5.71 +5.09
[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>
Standardized
12 Month 3 Month 30-day Yield
12 Month 3 Month Total Total As of
7/31/96 4/30/96 7/31/95 % Change % Change Return Return 7/31/96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.08 $10.09 $10.17 -0.88% -0.10% +3.16%(1) +0.92%(2) 3.63%
Arizona Limited Maturity Class B Shares 10.08 10.09 10.16 -0.79 -0.10 +2.88(3) +0.83(4) 3.31
Arizona Limited Maturity Class C Shares 10.08 10.10 10.17 -0.88 -0.20 +2.78(3) +0.78(5) 3.51
Arizona Limited Maturity Class D Shares 10.08 10.09 10.17 -0.88 -0.10 +3.05(6) +0.89(7) 3.53
California Limited Maturity Class A Shares 10.05 9.99 9.99 +0.60 +0.60 +4.56(8) +1.51(9) 3.26
California Limited Maturity Class B Shares 10.04 9.99 9.99 +0.50 +0.50 +4.08(10) +1.32(11) 2.94
California Limited Maturity Class C Shares 10.05 9.99 9.99 +0.60 +0.60 +4.35(3) +1.49(12) 3.21
California Limited Maturity Class D Shares 10.05 9.99 9.99 +0.60 +0.60 +4.46(13) +1.49(12) 3.16
Florida Limited Maturity Class A Shares 9.96 9.95 10.02 -0.60 +0.10 +3.45(14) +1.09(5) 3.61
Florida Limited Maturity Class B Shares 9.96 9.95 10.02 -0.60 +0.10 +3.08(15) +1.00(16) 3.29
Florida Limited Maturity Class C Shares 9.90 9.90 10.01 -1.10 0.00 +2.48(17) +0.95(4) 3.47
Florida Limited Maturity Class D Shares 9.95 9.95 10.01 -0.60 0.00 +3.35(18) +0.96(19) 3.51
Massachusetts Limited Maturity Class A Shares 9.96 9.96 9.96 0.00 0.00 +4.08(20) +0.99(5) 3.63
Massachusetts Limited Maturity Class B Shares 9.96 9.96 9.96 0.00 0.00 +3.70(15) +0.90(21) 3.31
Massachusetts Limited Maturity Class C Shares 9.95 9.96 9.96 -0.10 -0.10 +3.81(22) +0.85(19) 3.51
Massachusetts Limited Maturity Class D Shares 9.96 9.96 9.96 0.00 0.00 +3.97(8) +0.96(23) 3.53
Michigan Limited Maturity Class A Shares 9.94 9.96 9.98 -0.40 -0.20 +3.71(24) +0.82(25) 3.68
Michigan Limited Maturity Class B Shares 9.94 9.96 9.98 -0.40 -0.20 +3.32(26) +0.73(27) 3.35
Michigan Limited Maturity Class C Shares 9.94 9.96 9.98 -0.40 -0.20 +3.20(28) +0.67(29) 3.35
Michigan Limited Maturity Class D Shares 9.94 9.96 9.97 -0.30 -0.20 +3.71(30) +0.79(5) 3.58
New Jersey Limited Maturity Class A Shares 10.11 10.10 10.15 -0.39 +0.10 +3.68(31) +1.11(2) 3.54
New Jersey Limited Maturity Class B Shares 10.11 10.11 10.16 -0.49 0.00 +3.21(32) +0.92(4) 3.23
New Jersey Limited Maturity Class C Shares 9.16 9.15 9.20 -0.43 +0.11 +3.24(33) +1.08(16) 3.43
New Jersey Limited Maturity Class D Shares 10.11 10.10 10.16 -0.49 +0.10 +3.48(34) +1.08(7) 3.45
New York Limited Maturity Class A Shares 10.06 10.04 10.05 +0.10 +0.20 +4.46(35) +1.25(36) 3.92
New York Limited Maturity Class B Shares 10.06 10.04 10.05 +0.10 +0.20 +4.08(30) +1.16(23) 3.61
New York Limited Maturity Class C Shares 10.06 10.04 10.05 +0.10 +0.20 +4.28(37) +1.21(38) 3.80
New York Limited Maturity Class D Shares 10.06 10.04 10.05 +0.10 +0.20 +4.35(39) +1.22(2) 3.83
Pennsylvania Limited Maturity Class A Shares 10.11 10.11 10.10 +0.10 0.00 +4.18(1) +0.98(7) 3.54
Pennsylvania Limited Maturity Class B Shares 10.11 10.11 10.10 +0.10 0.00 +3.80(40) +0.89(21) 3.22
Pennsylvania Limited Maturity Class C Shares 10.15 10.09 10.10 +0.50 +0.59 +4.28(41) +1.45(42) 3.38
Pennsylvania Limited Maturity Class D Shares 10.11 10.12 10.10 +0.10 -0.10 +4.07(6) +0.85(23) 3.44
<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
$0.407 per share ordinary income dividends.
(2)Percent change includes reinvestment of
$0.101 per share ordinary income dividends.
(3)Percent change includes reinvestment of
$0.370 per share ordinary income dividends.
(4)Percent change includes reinvestment of
$0.092 per share ordinary income dividends.
(5)Percent change includes reinvestment of
$0.097 per share ordinary income dividends.
<PAGE>
(6)Percent change includes reinvestment of
$0.397 per share ordinary income dividends.
(7)Percent change includes reinvestment of
$0.098 per share ordinary income dividends.
(8)Percent change includes reinvestment of
$0.391 per share ordinary income dividends.
(9)Percent change includes reinvestment of
$0.090 per share ordinary income dividends.
(10)Percent change includes reinvestment of
$0.355 per share ordinary income dividends.
(11)Percent change includes reinvestment of
$0.081 per share ordinary income dividends.
(12)Percent change includes reinvestment of
$0.087 per share ordinary income dividends.
(13)Percent change includes reinvestment of
$0.381 per share ordinary income dividends.
(14)Percent change includes reinvestment of
$0.402 per share ordinary income dividends.
(15)Percent change includes reinvestment of
$0.366 per share ordinary income dividends.
(16)Percent change includes reinvestment of
$0.088 per share ordinary income dividends.
(17)Percent change includes reinvestment of
$0.356 per share ordinary income dividends.
(18)Percent change includes reinvestment of
$0.392 per share ordinary income dividends.
(19)Percent change includes reinvestment of
$0.094 per share ordinary income dividends.
(20)Percent change includes reinvestment of
$0.401 per share ordinary income dividends.
(21)Percent change includes reinvestment of
$0.089 per share ordinary income dividends.
(22)Percent change includes reinvestment of
$0.386 per share ordinary income dividends.
(23)Percent change includes reinvestment of
$0.095 per share ordinary income dividends.
(24)Percent change includes reinvestment of
$0.405 per share ordinary income dividends.
(25)Percent change includes reinvestment of
$0.100 per share ordinary income dividends.
(26)Percent change includes reinvestment of
$0.369 per share ordinary income dividends.
(27)Percent change includes reinvestment of
$0.091 per share ordinary income dividends.
(28)Percent change includes reinvestment of
$0.357 per share ordinary income dividends.
(29)Percent change includes reinvestment of
$0.085 per share ordinary income dividends.
(30)Percent change includes reinvestment of
$0.395 per share ordinary income dividends.
<PAGE>
(31)Percent change includes reinvestment of
$0.409 per share ordinary income dividends.
(32)Percent change includes reinvestment of
$0.373 per share ordinary income dividends.
(33)Percent change includes reinvestment of
$0.336 per share ordinary income dividends.
(34)Percent change includes reinvestment of
$0.399 per share ordinary income dividends.
(35)Percent change includes reinvestment of
$0.431 per share ordinary income dividends.
(36)Percent change includes reinvestment of
$0.104 per share ordinary income dividends.
(37)Percent change includes reinvestment of
$0.414 per share ordinary income dividends.
(38)Percent change includes reinvestment of
$0.099 per share ordinary income dividends.
(39)Percent change includes reinvestment of
$0.421 per share ordinary income dividends.
(40)Percent change includes reinvestment of
$0.371 per share ordinary income dividends.
(41)Percent change includes reinvestment of
$0.378 per share ordinary income dividends.
(42)Percent change includes reinvestment of
$0.086 per share ordinary income dividends.
</TABLE>
Portfolio
Abbreviations
To simplify the listings of Merrill
Lynch Multi-State Limited Maturity
Municipal Series Trust's portfolio
holdings in the Schedule of
Investments, we have abbreviated
the names of many of the securities
according to the list at right.
<PAGE>
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
TRAN Tax Revenue AnticipationNotes
UPDATES Unit Priced Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
Arizona Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Arizona--92.9% NR* Aa $ 200 Arizona Educational Loan Marketing Corp.,
Educational Loan Revenue Bonds, AMT, Senior Series,
5.875% due 9/01/2000 $ 206
A1+ VMIG1++ 200 Arizona Health Facilities Authority Revenue Bonds
(Arizona Volunteer Hospital Federation), VRDN, Series B,
3.55% due 10/01/2015 (a)(c) 200
AAA Aaa 200 Arizona State Transportation Board Excise Tax Revenue
Bonds (Maricopa County Regional Area Road), Series A,
5.75% due 7/01/2004 (b) 211
AA- A1 200 Central Arizona Water Conservation District,
Contract Revenue Bonds (Central Arizona Project), Series B,
6.50% due 5/01/2001 (e) 219
SP1 MIG1++ 200 Maricopa County, Arizona, Pollution Control Corporation,
PCR, Refunding (Arizona Public Service Co.),
VRDN, Series E, 3.60% due 5/01/2029 (a) 200
Phoenix, Arizona, Airport Revenue Refunding Bonds, AMT, Series C (d):
AAA Aaa 465 5.60% due 7/01/2002 483
AAA Aaa 480 5.70% due 7/01/2003 501
AA+ Aa1 1,000 Phoenix, Arizona, Refunding, UT, Series C, 6.375% due 7/01/2002 1,089
A1+ NR* 200 Pima County, Arizona, IDA, Revenue Refunding Bonds,
VRDN, 3.85% due 6/30/2021 (a) 200
A+ Aa 200 Pima County, Arizona, Refunding, Series A, 5.60% due 7/01/1999 207
AAA Aaa 200 Pima County, Arizona, Sewer Revenue Bonds, 6.20%
due 7/01/2002 (b)(e) 217
A1+ NR* 200 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont
Mining Corporation), VRDN,
3.75% due 12/01/2009 (a) 200
AAA Aaa 200 Tucson, Arizona, Refunding, 5.10% due 7/01/1999 (c) 204
Total Investments (Cost--$3,992)--92.9% 4,137
<PAGE>
Other Assets Less Liabilities--7.1% 315
-------
Net Assets--100.0% $ 4,452
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</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--97.2% California Educational Facilities Authority,
Revenue Refunding Bonds:
NR* A1 $ 500 (Loyola Marymount University), 5.70% due 10/01/2002 $ 528
NR* A 685 (Saint Mary's College), 4.90% due 10/01/2003 688
AAA Aaa 500 California Health Facilities Financing Authority,
Revenue Refunding Bonds (Catholic Healthcare West),
Series A, 5.30% due 7/01/2003 (d) 516
California Pollution Control Financing Authority,
PCR, Refunding, VRDN (a):
A-1 NR* 600 (Pacific Gas and Electric Co.), AMT, Series G, 3.50% due 2/01/2016 600
A1+ VMIG1++ 400 (Shell Oil Company Project), Series C, 3.30% due 11/01/2000 400
California Pollution Control Financing Authority,
Resource Recovery Revenue Bonds, VRDN, AMT (a):
NR P1 500 (Delano Project), Series 1991, 3.65% due 8/01/2019 500
NR P1 200 Refunding (Ultra Power Malaga Project), Series A, 3.70%
due 4/01/2017 200
California State, GO, UT:
A+ A1 750 6.75% due 10/01/2003 840
A+ A1 1,000 6.10% due 9/01/2004 1,083
AAA Aaa 750 6.35% due 11/01/2004 (b) 829
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) 669
<PAGE> AAA Aaa 500 California Statewide Communities Development Authority,
Lease Revenue Refunding Bonds
(Oakland Convention Center Project), 5.70% due 10/01/2002 (d) 527
A+ NR* 700 East Bay, California, Municipal Utility District, Water System
Revenue Bonds, Sub-Series, 7.40% due 6/01/2000 (e) 785
AAA Aaa 200 Los Angeles, California, Department of Airports, Airport Revenue
Refunding Bonds, Series A, 6% due 5/15/2005 (b) 215
AA- Aa 650 Los Angeles, California, Department of Water and Power, Electric
Plant Revenue Bonds, 6% due 4/01/2002 694
Los Angeles, California, Harbor Department Revenue Bonds, AMT,
Series B:
AA Aa 275 6% due 8/01/2000 289
AA Aa 295 6% due 8/01/2001 312
AA Aa 500 6% due 8/01/2004 535
Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Bonds (Proposition C-Second Senior):
A1+ VMIG1++ 200 Refunding, VRDN, Series A, 3.25% due 7/01/2020 (a)(c) 200
AAA Aaa 400 Series B, 8% due 7/01/2003 (d) 474
AA- Aa1 1,000 Los Angeles County, California, Public Works Financing Authority,
Revenue Refunding Bonds (Capital Construction), 4.80% due 3/01/2004 990
A1+ NR* 400 Moor Park, California, M/F Mortgage Revenue Refunding Bonds
(Le Club Apartments Project), VRDN, Series A,
3.25% due 11/01/2015 (a) 400
AAA Aaa 750 San Diego County, California, Regional Transportation Commission,
Sales Tax Revenue Bonds (Second Senior Sales Tax), Series A,
4% due 4/01/1997 (b) 752
AAA Aaa 700 San Francisco, California, City and County Sewer Revenue Bonds,
Series A, 5.375% due 10/01/1999 (b) 723
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) 527
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multi-Purpose
Projects), Series C, 10% due 9/01/2001 (d) 620
Puerto Rico--1.3% A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank,
Refunding, VRDN, 3.20% due 12/01/2015 (a) 200
Total Investments (Cost--$14,538)--98.5% 15,096
Other Assets Less Liabilities--1.5% 225
-------
Net Assets--100.0% $15,321
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)FGIC Insured.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Florida Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Florida--92.0% AAA Aaa $ 1,000 Broward County, Florida, School District, UT, 7.125%
due 2/15/1999 (e) $ 1,088
Dade County, Florida, Aviation Revenue Refunding Bonds,
Series A (b):
AAA Aaa 300 5.60% due 10/01/2004 315
AAA Aaa 1,000 AMT, 5.25% due 10/01/1997 1,014
A1+ VMIG1++ 1,200 Dade County, Florida, IDA, IDR (Dolphins Stadium Project),
VRDN, Series D, 3.55% due 1/01/2016 (a) 1,200
AAA Aaa 800 Dade County, Florida, Special Obligation, Refunding, Series B,
4.80% due 10/01/2002 (b) 807
AAA Aaa 1,185 Dunedin, Florida, Hospital Revenue Bonds (Mease Health Care),
6.75% due 11/15/2001 (d)(e) 1,325
Florida State Board of Education, Capital Outlay (Public Education):
AA Aa 850 Refunding, 5.50% due 6/01/2001 884
AAA Aaa 1,000 Refunding, Series A, 7.25% due 6/01/2000 (e) 1,114
AA Aa 1,000 Series B, 5.625% due 6/01/2005 1,047
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) 1,853
AAA Aaa 1,000 Series 2000-A, 5.75% due 7/01/2000 (d) 1,047
AAA Aaa 1,900 Series 2000-A, 6.40% due 7/01/2002 (b) 2,072
A A 100 Hillsborough County, Florida, Capital Improvement Revenue Bonds
(County Center Project), Second Series,
6.75% due 7/01/2002 (e) 112
Jacksonville, Florida, Electric Authority, Revenue Refunding
Bonds (Saint John's), Issue 2:
AA Aa1 1,000 Series 6-C, 6.50% due 10/01/2001 1,082
AA Aa1 1,000 (Special Obligation) Series 6-B, 6.65% due 10/01/2002 1,081
NR VMIG1++ 300 Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Genesis Rehabilitation Hospital), VRDN,
3.65% due 5/01/2021 (a) 300
AAA Aaa 1,000 Kissimmee, Florida, Water and Sewer Revenue Refunding Bonds,
5.50% due 10/01/2003 (b) 1,042
AA- Aa 800 Lakeland, Florida, Electric and Water Revenue Bonds, 6.70%
due 10/01/1999 856
AAA Aaa 500 Lee County, Florida, Capital Improvement Revenue Bonds,
Sub-Series 2, 6.75% due 10/01/1997 (d)(e) 526
AAA Aaa 1,200 North Miami, Florida, Health Facilities Authority, Health Facility
Revenue Bonds (Bon Secours Health System Project), 6% due
8/15/2002 (e)(f) 1,303
<PAGE> AAA Aaa 1,300 Okaloosa County, Florida, School Board Sales Tax Revenue Bonds,
5% due 9/01/1997 (c) 1,316
AAA Aaa 1,000 Palm Bay, Florida, Utility Revenue Bonds (Palm Bay Utility Corp.
Project), Series B, 6.20% due 10/01/2002 (d)(e) 1,099
SP1+ NR* 250 Palm Beach County, Florida, School District, TAN, 4.50% due 9/27/1996 250
NR* Baa1 1,440 Pembroke Pines, Florida, Special Assessment No. 94-1, 4.80% due
11/01/1998 1,448
A1 VMIG1++ 200 Pinellas County, Florida, Health Facilities Authority, Revenue
Refunding Bonds (Pooled Hospital Loan Program),
DATES, 3.70% due 12/01/2015 (a) 200
AAA Aaa 1,235 Saint Lucie County, Florida, School Board, COP, Series A,
7.25% due 7/01/2000 (b)(e) 1,378
Puerto Rico--5.4% A Baa1 500 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 517
A Baa1 1,000 Puerto Rico Commonwealth, Refunding, Improvement Bonds,
UT, 5.30% due 7/01/2004 1,013
Total Investments (Cost--$26,691)--97.4% 27,289
Other Assets Less Liabilities--2.6% 733
-------
Net Assets--100.0% $28,022
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)AMBAC Insured.
(c)FSA Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<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 $ 295 Boston, Massachusetts, Economic Development and Industrial Corp.,
97.2% Public Parking Facility, Series 1990,
5% due 7/01/2000 $ 291
AAA Aaa 300 Chelsea, Massachusetts, School Project Loan Act of 1948, UT, 6%
due 6/15/2002 (c) 319
AAA Aaa 215 Fall River, Massachusetts, GO, 6.30% due 6/01/1998 (b) 223
<PAGE> A1+ NR* 200 Holyoke, Massachusetts, PCR, Refunding (Holyoke Water Power
Project), VRDN, 3.25% due 11/01/2013 (a) 200
AAA Aaa 400 Lynn, Massachusetts, Water and Sewer Commission, Refunding,
4.95% due 12/01/2002 (e) 405
A+ A1 100 Massachusetts Bay Transportation Authority, Massachusetts General
Transportation System, Series A, 4.90% due 3/01/2004 100
AAA Aaa 250 Massachusetts Educational Loan Authority, EducationalLoan
Revenue Bonds, AMT, Issue E, Series B, 5.50% due 7/01/2001 (c) 258
BBB+ A 500 Massachusetts Municipal Wholesale Electric Company, Power Supply
System, Revenue Refunding Bonds, Series B, 6.375% due 7/01/2001 533
A+ A1 750 Massachusetts State, GO, Refunding, Series B, 6.25% due 8/01/2001 802
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
A1+ VMIG1++ 200 (Capital Assets Program), VRDN, Series D, 3.45% due 1/01/2035 (a)(b) 200
A1+ VMIG1++ 300 (Harvard University), VRDN, Series I, 3.50% due 8/01/2017 (a) 300
AAA Aaa 200 Refunding (Baystate Medical Center), Series D, 4.60% due 7/01/2002 (e) 197
AAA Aaa 540 Massachusetts State HFA, Housing Revenue Refunding Bonds
(Insured-Rental), AMT, Series A, 5.90% due 7/01/2003 (c) 553
NR* MIG1++ 100 Massachusetts State Industrial Finance Agency, Health Care
Facility Revenue Bonds (Beverly Enterprises, Inc.), VRDN, 3.40%
due 10/01/2022 (a) 100
NR* VMIG1++ 300 Massachusetts State Industrial Finance Agency, PCR, Refunding
(North East Power Company), VRDN, 3.55% due 8/01/1996 (a) 300
AAA Aaa 320 Massachusetts State Industrial Finance Agency, Revenue Bonds
(Babson College), Series A, 5.40% due 10/01/2003 (b) 331
Massachusetts State Port Authority, Revenue Refunding Bonds, VRDN (a):
A1+ P1 100 AMT, Series B, 2.65% due 7/01/2018 100
A1+ P1 200 Series A, 3.45% due 7/01/2015 200
AA A1 300 Massachusetts State Special Obligation Revenue Bonds (Highway
Improvement Loan), Series A, 5.90% due 6/01/2001 316
AAA Aaa 500 Massachusetts State Water Resource Authority, Series A, 6.75%
due 7/15/2002 (d) 561
NR* A1 500 New England Educational Loan Marketing Corp., Massachusetts Student
Loan Revenue Bonds, AMT, Sub-Issue F, 6.60% due 9/01/2002 538
NR* NR* 365 South Hadley, Massachusetts, Industrial Revenue Bonds (South Hadley
Health Care), AMT, Series A, 5% due 12/01/1996 364
Total Investments (Cost--$7,011)--97.2% 7,191
Other Assets Less Liabilities--2.8% 205
-------
Net Assets--100.0% $ 7,396
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)MBIA Insured.
(c)AMBAC Insured.
(d)Prerefunded.
(e)FGIC Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
Michigan Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Michigan--90.0% A1+ VMIG1++$ 200 Bruce Township, Michigan, Hospital Finance Authority,
Health Care System Revenue Bonds (Sisters
Charity-Saint Joseph's), VRDN, Series A, 3.45% 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) 279
AAA Aaa 200 Detroit, Michigan, Distributable State Aid, Refunding Bonds,
UT, 5.70% due 5/01/2001 (b) 208
AAA Aaa 250 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds,
6.20% due 7/01/2004 (c) 270
AAA Aaa 200 Eastern Michigan University, Revenue Refunding Bonds, 5.40%
due 6/01/1998 (b) 204
Michigan Municipal Bond Authority Revenue Bonds:
AAA Aaa 200 (Local Government Loan Program), Series C, 5.50% due 5/01/2003 (d) 207
AA Aa 500 Refunding (Local Government--Qualified School), Series A, 6%
due 5/01/2001 527
AA Aa 200 (State Revolving Fund), 7% due 10/01/2004 226
AA- A1 200 Michigan State Building Authority, Revenue Refunding Bonds,
Series I, 6.40% due 10/01/2004 216
AA- A1 200 Michigan State Comprehensive Transportation, Revenue Refunding Bonds,
Series B, 5.625% due 5/15/2003 209
A1+ NR* 200 Michigan State Housing Development Authority, Rental Housing Revenue
Refunding Bonds, VRDN, Series C, 3.50% due 4/01/2019 (a) 200
AA Aa 200 Michigan State Recreation Program, GO, 6% due 11/01/2004 215
AAA Aaa 150 Michigan State South Central Power Agency, Power Supply System
Revenue Refunding Bonds, 7% due 11/01/1996 (b)(e) 154
A1+ VMIG1++ 100 Michigan State Strategic Fund, Limited Obligation Revenue Bonds
(United Waste Systems, Inc. Project), VRDN, AMT, 3.65% due
4/01/2010 (a) 100
AAA Aaa 160 Michigan State Underground Storage Tank, Financial Assurance
Authority, Revenue Refunding Bonds, Series I, 6% due 5/01/2004 (b) 171
AAA Aaa 235 Royal Oak, Michigan, Refunding, UT, 4% due 10/01/1997 (b) 235
Puerto Rico--6.8% A Baa1 265 Puerto Rico Commonwealth, GO, UT, 5.55% due 7/01/2001 274
Total Investments (Cost--$3,771)--96.8% 3,895
Other Assets Less Liabilities--3.2% 130
-------
Net Assets--100.0% $ 4,025
<PAGE> =======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investor's Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<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--99.8% AAA Aaa $ 600 Elizabeth, New Jersey, General Improvement and Sewer Utility
Refunding Bonds, GO, UT, 6% due 8/15/2004 (b) $ 643
SP1+ VMIG1++ 400 Mercer County, New Jersey, Improvement Authority Revenue
Bonds, VRDN, 3.25% due 11/01/1998 (a) 400
AA+ Aa1 400 Monmouth County, New Jersey, General Improvement Bonds, GO,
UT, 6.625% due 8/01/2000 425
NR* Aa1 400 New Jersey EDA, Economic Development Revenue Bonds (400
International Drive Partners), VRDN, 3.20% due 9/01/2005 (a) 400
New Jersey, EDA, Industrial and Economic Development Revenue Bonds (a):
NR* NR* 100 (Burmah Castrol Inc.), VRDN, 3.30% due 8/01/2005 100
A-1 NR* 100 (Toys `R' Us, Inc.), DATES, 3.05% due 4/01/2019 100
AAA Aaa 1,000 New Jersey, EDA, Market Transition Facility Revenue Bonds,
Senior Lien, Series A, 7% due 7/01/2004 (c) 1,132
New Jersey, EDA, Natural Gas Facilities Revenue Bonds, VRDN,
Series A (a)(b):
A-1 VMIG1++ 100 (NUI Corp. Project), AMT, 3.75% due 7/01/2005 100
A1+ VMIG1++ 300 Refunding (New Jersey Natural Gas Co.), 3.40% due 8/01/2030 300
NR* Aaa 300 New Jersey EDA, Revenue Bonds (Hoffman-La Roche Incorporated
Project), VRDN, AMT, 3.55% due 11/01/2011 (a) 300
AAA Aaa 100 New Jersey Health Care Facilities Financing Authority Revenue
Bonds (Carrier Foundation), VRDN, Series C, 3.60% due 7/01/2005 (a)(d) 100
A1+ VMIG1++ 400 New Jersey Sports and Exposition Authority Revenue Bonds
(State Contract), VRDN, Series C, 3.30% 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) 1,050
BBB+ Baa1 400 New Jersey State Turnpike Authority, Turnpike Revenue Bonds,
Series A, 5.70% due 1/01/2001 412
<PAGE> AA Aa 400 North Brunswick Township, New Jersey, Board of Education Refunding
Bonds, GO, UT, 6.25% due 2/01/2004 434
NR* Aa 400 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue
Bonds, UT, Series A, 6.125% due 1/01/2003 429
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) 1,485
AA+ Aaa 400 Union County, New Jersey (General Improvement and County
Collection), UT, 4.40% due 9/01/1998 403
Total Investments (Cost--$8,322)--99.8% 8,613
Other Assets Less Liabilities--0.2% 14
-------
Net Assets--100.0% $ 8,627
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
New York Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York--100.4% Nassau County, New York, General Improvement Bonds, UT (c):
AAA Aaa $ 400 Series O, 5.625% due 8/01/2004 $ 421
AAA Aaa 700 Series Q, 5.10% due 8/01/2003 714
A1+ VMIG1++ 100 New York City, New York, GO, VRDN, UT, Series B,
Sub-Series B-10, 3.35% 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) 802
A1+ NR* 1,400 New York City, New York, IDA, IDR (Japan Airlines Company Ltd.
Project), VRDN, AMT, 3.65% due 11/01/2015 (a) 1,400
AA- Aa 800 New York City, New York, Municipal Assistance Corporation,
Series 68, 7.10% due 7/01/2000 869
<PAGE> New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, VRDN (a)(c):
A1+ VMIG1++ 500 Series C, 3.55% due 6/15/2023 500
A1+ VMIG1++ 300 Series G, 3.55% due 6/15/2024 300
BBB+ Baa1 610 New York City, New York, Refunding, UT, Series A, 6% due 8/01/2000 630
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 500 (College and University Educational Loan), AMT, 6.30% due
7/01/2002 (e) 541
BBB Aaa 750 (Department of Health-Issue), 7.70% due 7/01/2000 (b) 849
AAA Aaa 670 (Rensselaer Polytechnic Institute), 4.90% due 7/01/2004 (e) 672
NR* VMIG1++ 400 New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, AMT,
Series B, 3.35% due 11/01/2023 (a) 400
A- Aa 400 New York State Environmental Facilities Corporation, PCR (State
Water--Revolving Fund), Series E, 5.60% due 6/15/1999 414
A1+ NR* 200 New York State Environmental Facilities Corporation, Resource
Recovery Revenue Bonds (OFS Equity Huntington Project), VRDN,
AMT, 3.65% due 11/01/2014 (a) 200
A- A 600 New York State Environmental Quality, GO, 6% due 12/01/2004 643
A- A 735 New York State, GO, Refunding, Series B, 6.25% due 8/15/2004 798
A1+ VMIG1++ 400 New York State HFA, Revenue Bonds (Normandie Court--I Project),
VRDN, 2.20% due 8/01/2016 (a) 400
New York State Local Government Assistance Corporation Revenue Bonds:
A A 625 Series A, 7% due 4/01/2005 692
AAA Aaa 600 Series D, 7% due 4/01/2002 (b) 679
New York State Medical Care Facilities, Finance Agency Revenue
Bonds, Series A:
AA Aa 655 (Adult Day Care), 6% due 11/15/2003 690
AAA Aaa 725 (Mental Health Services Facilities), 7.75% due 2/15/2001 (b) 832
NR* Aa3 500 (Saratoga Hospital Project), 5.25% due 11/01/2004 505
AA NR* 675 New York State Tax Exempt Revenue Bonds (Rochester Museum &
Science), 5.60% due 12/01/2015 688
BBB Baa1 450 New York State Urban Development Corporation, Revenue Refunding
Bonds (Center for Industrial Innovation), 4.60% due 1/01/1998 451
AAA Aaa 760 Port Authority of New York and New Jersey, Refunding (Construction),
AMT, UT, 97th Series, 7.10% due 7/15/2003 (c) 855
AA A1 700 Rockland County, New York, Sewer District, UT, 7.70% due 6/01/1997 (b) 736
AA A1 800 Syracuse, New York, GO, 5.70% due 6/15/2002 843
A+ Aa 340 Triborough Bridge and Tunnel Authority, New York, Revenue Bonds,
Series R, 6.90% due 1/01/2000 366
Total Investments (Cost--$17,666)--100.4% 17,990
Liabilities in Excess of Other Assets--(0.4%) (70)
-------
Net Assets--100.0% $17,920
<PAGE> =======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)Prerefunded.
(c)FGIC Insured.
(d)FSA Insured.
(e)MBIA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<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
82.6% (Commercial Development Parkway Center Mall Project), VRDN,
Series A, 3.75% 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) 413
A1+ P1 100 Beaver County, Pennsylvania, IDA, PCR, Refunding (Duquesne
Light Project--Beaver Valley), VRDN, Series A,
3.45% due 8/01/2020 (d) 100
A1+ P1 200 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project),
UPDATES, 3.60% due 12/01/2009 (d) 200
AA Aa 250 Delaware County, Pennsylvania, Refunding Bonds, GO, UT, 4.80%
due 10/01/2004 248
A1+ Aaa 250 Lehigh County, Pennsylvania, Authority Water Revenue Bonds,
VRDN, 3.60% due 11/01/2004 (b)(d) 250
NR* VMIG1++ 400 Pennsylvania Energy Development Authority, Energy Development
Revenue Bonds (B&W Ebensburg Project),
VRDN, AMT, 3.70% 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 392
AA Aa 275 (University of Pennsylvania), 4.70% due 9/01/1997 277
AAA Aaa 300 Pennsylvania State, Refunding (Projects--First), UT, Series A,
6.60% due 1/01/2001 (c) 324
AA- A1 1,100 Pennsylvania State University, Refunding, 5.85% due 3/01/2002 1,158
Philadelphia, Pennsylvania, Hospitals and Higher Education
Facilities Authority, Hospital Revenue Bonds:
<PAGE> NR* Aaa 1,000 (Children's Hospital of Philadelphia Project), Series A, 6.50%
due 2/15/2002 (e) 1,101
A- NR* 650 (Children's Seashore House), Series B, 7% due 8/15/2003 705
SP1+ MIG1++ 400 Philadelphia, Pennsylvania, School District, TRAN, 4.50%
due 6/30/1997 402
SP-1 MIG1++ 400 Philadelphia, Pennsylvania, TRAN, Series A, 4.50% due 6/30/1997 402
AAA Aaa 400 Union County, Pennsylvania, Higher Educational Facilities Authority
Revenue Refunding Bonds (Bucknell University), 6% due 4/01/2002 (f) 423
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) 366
Puerto Rico--11.7% A- Baa1 1,000 Puerto Rico Municipal Finance Agency, GO, UT, Series A, 5.80%
due 7/01/2004 1,037
Total Investments (Cost--$8,237)--94.3% 8,398
Other Assets Less Liabilities--5.7% 507
-------
Net Assets--100.0% $ 8,905
=======
<FN>
(a)Escrowed to maturity.
(b)Secured by escrow.
(c)AMBAC Insured.
(d)The interest rate is subject to change periodically based on
prevailing market rates. The rates shown are those in effect at
July 31, 1996.
(e)Prerefunded.
(f)MBIA Insured.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
As of July 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 4,136,875 $ 15,096,081 $ 27,288,445 $ 7,190,978
Cash. 56,502 37,176 76,040 168,110
Receivables:
Interest 25,595 240,691 347,804 73,352
Securities sold 241,346 -- 433,216 --
Investment adviser (Note 2) 19,404 -- -- 24,485
Beneficial interest sold -- 1,708 -- --
Deferred organization expenses
(Note 1e) -- 8,453 28,115 4,599
Prepaid registration fees and
other assets (Note 1e) 16,154 643 11,244 10,162
------------ ------------ ------------ ------------
Total assets 4,495,876 15,384,752 28,184,864 7,471,686
------------ ------------ ------------ ------------
<PAGE>
Liabilities: Payables:
Beneficial interest redeemed -- 711 75,095 10,129
Dividends to shareholders
(Note 1f) 4,209 12,435 25,396 6,526
Investment adviser (Note 2) -- 1,933 8,332 --
Distributor (Note 2) 1,000 3,122 4,630 1,472
Accrued expenses and other
liabilities 38,639 45,740 49,326 57,389
------------ ------------ ------------ ------------
Total liabilities 43,848 63,941 162,779 75,516
------------ ------------ ------------ ------------
Net Assets: Net assets $ 4,452,028 $ 15,320,811 $ 28,022,085 $ 7,396,170
============ ============ ============ ============
Net Assets Class A Shares of beneficial
Consist of: interest, $.10 par value,
unlimited shares authorized $ 8,069 $ 31,471 $ 79,091 $ 17,264
Class B Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 28,629 98,750 137,513 45,949
Class C Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 1,339 549 521 2,113
Class D Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 6,142 21,753 64,376 8,934
Paid-in capital in excess
of par 4,334,656 15,140,165 28,023,107 7,494,663
Accumulated realized capital
losses on investments --net
(Note 5) (71,438) (529,724) (879,594) (352,257)
Unrealized appreciation on
investments --net 144,631 557,847 597,071 179,504
------------ ------------ ------------ ------------
Net assets $ 4,452,028 $ 15,320,811 $ 28,022,085 $ 7,396,170
============ ============ ============ ============
Net Asset Value: Class A: Net assets. $ 813,180 $ 3,161,461 $ 7,874,368 $ 1,719,269
============ ============ ============ ============
Shares outstanding 80,693 314,706 790,910 172,634
============ ============ ============ ============
Net asset value $ 10.08 $ 10.05 $ 9.96 $ 9.96
============ ============ ============ ============
Class B: Net assets $ 2,884,780 $ 9,918,998 $ 13,690,359 $ 4,576,988
============ ============ ============ ============
Shares outstanding 286,287 987,501 1,375,127 459,494
============ ============ ============ ============
Net asset value $ 10.08 $ 10.04 $ 9.96 $ 9.96
<PAGE> ============ ============ ============ ============
Class C: Net assets $ 135,060 $ 55,114 $ 51,502 $ 210,323
============ ============ ============ ============
Shares outstanding 13,395 5,486 5,204 21,134
============ ============ ============ ============
Net asset value $ 10.08 $ 10.05 $ 9.90 $ 9.95
============ ============ ============ ============
Class D: Net assets $ 619,008 $ 2,185,238 $ 6,405,856 $ 889,590
============ ============ ============ ============
Shares outstanding 61,417 217,532 643,764 89,337
============ ============ ============ ============
Net asset value $ 10.08 $ 10.05 $ 9.95 $ 9.96
============ ============ ============ ============
*Identified cost $ 3,992,244 $ 14,538,234 $ 26,691,374 $ 7,011,474
============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
As of July 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 3,895,326 $ 8,613,187 $ 17,990,267 $ 8,398,278
Cash 77,643 56,519 16,531 39,650
Receivables:
Beneficial interest sold -- -- 627,229 --
Securities sold -- 51,148 -- 507,488
Interest 49,221 80,725 206,771 124,471
Investment adviser (Note 2) 24,857 16,407 20,090 7,414
Deferred organization expenses
(Note 1e) 4,045 6,610 7,246 6,183
Prepaid registration fees and
other assets (Note 1e) 7,914 10,280 5,166 8,464
------------ ------------ ------------ ------------
Total assets 4,059,006 8,834,876 18,873,300 9,091,948
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased -- 100,000 845,597 --
Beneficial interest redeemed -- 32,288 26,087 129,736
Dividends to shareholders
(Note 1f) 3,791 7,948 16,817 7,827
Distributor (Note 2) 590 1,674 3,304 2,044
Accrued expenses and other
liabilities 29,554 65,879 61,371 47,840
------------ ------------ ------------ ------------
Total liabilities 33,935 207,789 953,176 187,447
------------ ------------ ------------ ------------
<PAGE>
Net Assets: Net assets $ 4,025,071 $ 8,627,087 $ 17,920,124 $ 8,904,501
============ ============ ============ ============
Net Assets Class A Shares of beneficial
Consist of: interest, $.10 par value,
unlimited shares authorized $ 16,499 $ 26,344 $ 37,016 $ 8,240
Class B Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 18,522 50,942 100,111 61,965
Class C Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 12 2,970 2,130 12
Class D Shares of beneficial
interest, $.10 par value,
unlimited shares authorized 5,446 5,343 38,884 17,865
Paid-in capital in excess
of par 4,031,709 8,543,116 17,678,636 8,756,463
Accumulated realized capital
losses on investments--net
(Note 5) (171,774) (293,217) (261,279) (100,866)
Unrealized appreciation on
investments --net 124,657 291,589 324,626 160,822
------------ ------------ ------------ ------------
Net assets $ 4,025,071 $ 8,627,087 $ 17,920,124 $ 8,904,501
============ ============ ============ ============
Net Asset Value: Class A: Net assets $ 1,640,666 $ 2,662,645 $ 3,723,308 $ 832,986
============ ============ ============ ============
Shares outstanding 164,986 263,436 370,162 82,402
============ ============ ============ ============
Net asset value $ 9.94 $ 10.11 $ 10.06 $ 10.11
============ ============ ============ ============
Class B: Net assets $ 1,841,924 $ 5,152,224 $ 10,070,519 $ 6,263,404
============ ============ ============ ============
Shares outstanding 185,219 509,424 1,001,114 619,654
============ ============ ============ ============
Net asset value $ 9.94 $ 10.11 $ 10.06 $ 10.11
============ ============ ============ ============
Class C: Net assets $ 1,163 $ 271,989 $ 214,138 $ 1,188
============ ============ ============ ============
Shares outstanding 117 29,696 21,296 117
============ ============ ============ ============
Net asset value $ 9.94 $ 9.16 $ 10.06 $ 10.15
============ ============ ============ ============
Class D: Net assets $ 541,318 $ 540,229 $ 3,912,159 $ 1,806,923
============ ============ ============ ============
Shares outstanding 54,464 53,434 388,837 178,650
============ ============ ============ ============
Net asset value $ 9.94 $ 10.11 $ 10.06 $ 10.11
============ ============ ============ ============
*Identified cost $ 3,770,669 $ 8,321,598 $ 17,665,641 $ 8,237,456
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
For the Year Ended July 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of
Income (Note 1d): premium and discount earned $ 291,905 $ 748,162 $ 1,527,243 $ 424,149
Expenses: Investment advisory fees (Note 2) 21,459 54,033 108,720 30,736
Professional fees 41,571 48,058 52,985 53,005
Accounting services (Note 2) 30,172 38,245 34,053 53,983
Account maintenance and
distribution fees--Class B (Note 2) 15,724 35,889 53,229 17,257
Printing and shareholder reports 10,156 20,449 47,046 20,077
Registration fees (Note 1e) 24,744 19,983 13,634 18,980
Trustees' fees and expenses 3,015 7,114 13,676 4,419
Amortization of organization
expenses (Note 1e) -- 3,653 12,163 1,990
Custodian fees 2,321 1,167 5,841 2,964
Pricing fees 2,329 4,831 4,015 2,981
Transfer agent fees--Class B
(Note 2) 2,475 3,153 4,405 2,733
Account maintenance fees--Class D
(Note 2) 655 1,776 6,850 565
Transfer agent fees--Class A
(Note 2) 444 846 2,031 1,247
Transfer agent fees--Class D
(Note 2) 319 451 1,551 264
Account maintenance and
distribution fees --Class C
(Note 2) 68 103 20 558
Transfer agent fees--Class C
(Note 2) 33 27 10 182
Other 669 -- 2,049 2,701
------------ ------------ ------------ ------------
Total expenses before
reimbursement 156,154 239,778 362,278 214,642
Reimbursement of expenses (Note 2) (93,656) (54,497) (24,123) (126,014)
------------ ------------ ------------ ------------
Total expenses after reimbursement 62,498 185,281 338,155 88,628
------------ ------------ ------------ ------------
Investment income--net 229,407 562,881 1,189,088 335,521
------------ ------------ ------------ ------------
Realized & Realized gain (loss) on
Unrealized Gain investments --net (691) (14,506) (1,278) 18,219
(Loss) on Change in unrealized appreciation
Investments--Net on investments --net (45,086) 102,333 (174,866) (13,084)
(Notes 1b, 1d & 3): ------------ ------------ ------------ ------------
Net Increase in Net Assets
Resulting from Operations $ 183,630 $ 650,708 $ 1,012,944 $ 340,656
============ ============ ============ ============
<PAGE>
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Year Ended July 31, 1996 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Interest and amortization of
Income (Note 1d): premium and discount earned $ 225,785 $ 462,228 $ 793,554 $ 415,685
Expenses: Accounting services (Note 2) 47,178 43,508 62,140 43,426
Professional fees 44,286 43,780 42,051 40,761
Investment advisory fees (Note 2) 16,413 33,770 57,995 30,196
Account maintenance and
distribution fees--Class B
(Note 2) 7,629 22,973 34,048 24,307
Printing and shareholder reports -- 18,765 20,581 14,335
Registration fees (Note 1e) 11,903 13,375 19,353 --
Trustees' fees and expenses 2,243 4,589 6,879 197
Custodian fees 2,326 3,420 4,702 3,352
Transfer agent fees--Class B
(Note 2) 1,782 2,895 3,938 3,550
Pricing fees 2,119 2,271 4,161 2,169
Amortization of organization
expenses (Note 1e) 1,748 2,860 3,131 2,675
Transfer agent fees--Class A
(Note 2) 1,420 991 1,306 391
Account maintenance fees--
Class D (Note 2) 415 310 2,638 725
Transfer agent fees--Class D
(Note 2) 302 115 858 300
Account maintenance and
distribution fees --Class C
(Note 2) 1 174 206 41
Transfer agent fees--Class C
(Note 2) 6 53 70 20
Other -- 1,275 4,638 --
------------ ------------ ------------ ------------
Total expenses before
reimbursement 139,771 195,124 268,695 166,445
Reimbursement of expenses
(Note 2) (96,532) (98,714) (146,290) (71,504)
------------ ------------ ------------ ------------
Total expenses after
reimbursement 43,239 96,410 122,405 94,941
------------ ------------ ------------ ------------
Investment income--net 182,546 365,818 671,149 320,744
------------ ------------ ------------ ------------
<PAGE>
Realized & Realized gain (loss) on
Unrealized investments--net 10,083 (12,586) 27,501 364
Gain (Loss) on Change in unrealized appreciation
Investments--Net on investments--net (23,665) (41,469) (22,206) 12,631
(Notes 1b, 1d & 3): ------------ ------------ ------------ ------------
Net Increase in Net Assets
Resulting from Operations $ 168,964 $ 311,763 $ 676,444 $ 333,739
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Arizona Limited Maturity California Limited Maturity
For the Year Ended For the Year Ended
July 31, July 31,
Increase (Decrease) in Net Assets: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 229,407 $ 305,477 $ 562,881 $ 612,890
Realized loss on investments
--net (691) (48,045) (14,506) (365,740)
Change in unrealized appreciation/
depreciation on investments--net (45,086) 182,975 102,333 501,542
Investments--Net ------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 183,630 440,407 650,708 748,692
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (37,685) (78,637) (130,650) (159,781)
(Note 1f): Class B (164,444) (226,411) (362,918) (422,409)
Class C (1,762) (33) (2,149) (585)
Class D (25,516) (396) (67,164) (30,115)
------------ ------------ ------------ ------------
Net decrease in net assets
resulting from dividends to
shareholders (229,407) (305,477) (562,881) (612,890)
------------ ------------ ------------ ------------
Beneficial Interest Net increase (decrease) in net
Transactions assets derived from beneficial
(Note 4): interest transactions (1,767,011) (1,547,482) (491,496) 354,485
------------ ------------ ------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in
net assets (1,812,788) (1,412,552) (403,669) 490,287
Beginning of year 6,264,816 7,677,368 15,724,480 15,234,193
------------ ------------ ------------ ------------
End of year $ 4,452,028 $ 6,264,816 $ 15,320,811 $ 15,724,480
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<CAPTION>
Florida Massachusetts
Limited Maturity Limited Maturity
For the Year Ended For the Year Ended
July 31, July 31,
Increase (Decrease) in Net Assets: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 1,189,088 $ 1,343,126 $ 335,521 $ 505,228
Realized gain (loss) on
investments --net (1,278) (425,603) 18,219 (370,476)
Change in unrealized appreciation/
depreciation on investments--net (174,866) 839,494 (13,084) 274,970
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 1,012,944 1,757,017 340,656 409,722
------------ ------------ ------------ ------------
Dividends & Investment income--net:
Distributions to Class A (361,872) (531,680) (118,129) (252,210)
Shareholders Class B (557,931) (756,233) (180,877) (242,775)
(Note 1f): Class C (522) (32) (14,474) (7,683)
Class D (268,763) (55,181) (22,041) (2,560)
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. (1,189,088) (1,343,126) (335,521) (520,363)
------------ ------------ ------------ ------------
<PAGE>
Beneficial Interest Net decrease in net assets
Transactions derived from beneficial
(Note 4): interest transactions (5,075,030) (187,273) (2,526,578) (6,114,591)
------------ ------------ ------------ ------------
Net Assets: Total increase (decrease)
in net assets (5,251,174) 226,618 (2,521,443) (6,225,232)
(1,026,965) (793,586)
Beginning of year 33,273,259 33,046,641 9,917,613 16,142,845
------------ ------------ ------------ ------------
End of year $ 28,022,085 $ 33,273,259 $ 7,396,170 $ 9,917,613
============ ============ ============ ============
<CAPTION>
Michigan
Limited Maturity
For the Year Ended
July 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 182,546 $ 235,302
Realized gain (loss) on
investments--net 10,083 (132,641)
Change in unrealized appreciation/
depreciation on investments--net (23,665) 150,310
------------ ------------
Net increase in net assets
resulting from operations 168,964 252,971
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (85,288) (123,016)
Shareholders Class B (80,829) (102,718)
(Note 1f): Class C (41) (33)
Class D (16,388) (9,535)
Realized gain on investments--net
Class A -- --
Class B -- --
Class C -- --
Class D -- --
------------ ------------
Net decrease in net assets
resulting from dividends and
distributions to shareholders (182,546) (235,302)
------------ ------------
<PAGE>
Beneficial Interest Net decrease in net assets
Transactions derived from beneficial
(Note 4): interest transactions (1,013,383) (811,255)
------------ ------------
Net Assets: Total increase (decrease)
in net assets (1,026,965) (793,586)
Beginning of year 5,052,036 5,845,622
------------ ------------
End of year $ 4,025,071 $ 5,052,036
============ ============
<CAPTION>
New Jersey New York
Limited Maturity Limited Maturity
For the Year Ended For the Year Ended
July 31, July 31,
Increase (Decrease) in Net Assets: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 365,818 $ 441,857 $ 671,149 $ 634,544
Realized gain (loss) on
investments--net (12,586) (190,903) 27,501 (166,770)
Change in unrealized appreciation/
depreciation on investments--net (41,469) 328,757 (22,206) 337,132
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations 311,763 579,711 676,444 804,906
------------ ------------ ------------ ------------
Dividends & Investment income--net:
Distributions to Class A (107,284) (147,854) (174,431) (247,259)
Shareholders Class B (241,855) (287,858) (381,150) (370,411)
(Note 1f): Class C (4,447) (761) (5,588) (219)
Class D (12,232) (5,384) (109,980) (16,655)
------------ ------------ ------------ ------------
Net decrease in net assets
resulting from dividends to
shareholders. (365,818) (441,857) (671,149) (634,544)
------------ ------------ ------------ ------------
Beneficial Interest Net increase (decrease) in net
Transactions assets derived from beneficial
(Note 4): interest transactions (1,750,465) (3,524,093) 1,937,339 774,385
------------ ------------ ------------ ------------
<PAGE>
Net Assets: Total increase (decrease) in
net assets (1,804,520) (3,386,239) 1,942,634 944,747
Beginning of year 10,431,607 13,817,846 15,977,490 15,032,743
------------ ------------ ------------ ------------
End of year $ 8,627,087 $ 10,431,607 $ 17,920,124 $ 15,977,490
============ ============ ============ ============
<CAPTION>
Pennsylvania
Limited Maturity
For the Year Ended
July 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 320,744 $ 385,356
Realized gain (loss) on
investments--net 364 (38,604)
Change in unrealized appreciation/
depreciation on investments--net 12,631 150,668
------------ ------------
Net increase in net assets
resulting from operations 333,739 497,420
------------ ------------
Dividends & Investment income--net:
Distributions to Class A (37,384) (43,161)
Shareholders Class B (254,375) (334,652)
(Note 1f): Class C (1,049) (32)
Class D (27,936) (7,511)
------------ ------------
Net decrease in net assets
resulting from dividends to
shareholders. (320,744) (385,356)
------------ ------------
Beneficial Interest Net increase (decrease) in net
Transactions assets derived from beneficial
(Note 4): interest transactions 150,949 (1,893,824)
------------ ------------
Net Assets: Total increase (decrease) in
net assets 163,944 (1,781,760)
Beginning of year 8,740,557 10,522,317
------------ ------------
End of year $ 8,904,501 $ 8,740,557
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Arizona Limited Maturity
Class A Class B
The following per share data For the For the
and ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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. .41 .43 .23 .37 .39 .20
Realized and unrealized gain (loss)
on investments--net (.09) .20 (.03) (.08) .19 (.03)
------- ------- ------- ------- ------- -------
Total from investment operations .32 .63 .20 .29 .58 .17
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.41) (.43) (.23) (.37) (.39) (.20)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.08 $ 10.17 $ 9.97 $ 10.08 $ 10.16 $ 9.97
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 3.16% 6.47% 2.02%+++ 2.88% 5.99% 1.78%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .74% .35% .02%* 1.09% .72% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 2.27% 2.05% 1.82%* 2.61% 2.44% 2.18%*
======= ======= ======= ======= ======= =======
Investment income--net 4.01% 4.31% 3.37%* 3.65% 3.95% 3.02%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 813 $ 1,054 $ 2,103 $ 2,885 $ 5,191 $ 5,575
======= ======= ======= ======= ======= =======
Portfolio turnover 43.53% 182.58% 142.37% 43.53% 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>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Arizona Limited Maturity
Class C Class D
The following per share data and For the For the
ratios have been derived from For the Period For the Period
information provided in the Year Oct. 21, Year Oct. 21,
financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .37 .29 .40 .33
Realized and unrealized gain (loss)
on investments--net (.09) .28 (.09) .28
-------- -------- -------- --------
Total from investment operations .28 .57 .31 .61
-------- -------- -------- --------
Less dividends from investment
income--net (.37) (.29) (.40) (.33)
-------- -------- -------- --------
Net asset value, end of period $ 10.08 $ 10.17 $ 10.08 $ 10.17
======== ======== ======== ========
Total Investment Based on net asset value per share 2.78% 5.90%+++ 3.05% 6.34%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.03% 1.05%* .90% .55%*
Net Assets: ======== ======== ======== ========
Expenses 2.80% 2.79%* 2.42% 2.39%*
======== ======== ======== ========
Investment income--net 3.86% 3.80%* 3.88% 4.31%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 135 $ 1 $ 619 $ 19
======== ======== ======== ========
Portfolio turnover 43.53% 182.58% 43.53% 182.58%
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
California Limited Maturity
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .39 .42 .24 .36 .39 .21
Realized and unrealized gain (loss)
on investments--net .06 .11 (.12) .05 .11 (.12)
------- ------- ------- ------- ------- -------
Total from investment operations .45 .53 .12 .41 .50 .09
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.39) (.42) (.24) (.36) (.39) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.05 $ 9.99 $ 9.88 $ 10.04 $ 9.99 $ 9.88
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.56% 5.60% 1.23%+++ 4.08% 5.23% .99%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .94% .40% .02%* 1.30% .76% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.30% 1.44% 1.16%* 1.66% 1.80% 1.52%*
======= ======= ======= ======= ======= =======
Investment income--net 3.89% 4.36% 3.54%* 3.53% 4.00% 3.19%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 3,162 $ 3,527 $ 3,804 $ 9,919 $10,363 $11,430
======= ======= ======= ======= ======= =======
Portfolio turnover 11.09% 124.72% 130.10% 11.09% 124.72% 130.10%
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
California Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived from For the Period For the Period
information provided in the Year Oct. 21, Year Oct. 21,
financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .37 .31 .38 .33
Realized and unrealized gain on
investments --net .06 .23 .06 .23
-------- -------- -------- --------
Total from investment operations .43 .54 .44 .56
-------- -------- -------- --------
Less dividends from investment
income--net (.37) (.31) (.38) (.33)
-------- -------- -------- --------
Net asset value, end of period $ 10.05 $ 9.99 $ 10.05 $ 9.99
======== ======== ======== ========
Total Investment Based on net asset value per share 4.35% 5.60%+++ 4.46% 5.85%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.14% .82%* 1.06% .66%*
Net Assets: ======== ======== ======== ========
Expenses 1.50% 1.98%* 1.40% 1.81%*
======== ======== ======== ========
Investment income--net 3.69% 4.04%* 3.77% 4.28%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 55 $ 64 $ 2,185 $ 1,771
======== ======== ======== ========
Portfolio turnover 11.09% 124.72% 11.09% 124.72%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Florida Limited Maturity
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .40 .43 .24 .37 .40 .21
Realized and unrealized gain (loss)
on investments--net (.06) .15 (.13) (.06) .14 (.12)
------- ------- ------- ------- ------- -------
Total from investment operations .34 .58 .11 .31 .54 .09
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.40) (.43) (.24) (.37) (.40) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.96 $ 10.02 $ 9.87 $ 9.96 $ 10.02 $ 9.88
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 3.45% 6.05% 1.12%+++ 3.08% 5.57% .99%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .89% .39% .02%* 1.24% .75% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses .97% 1.03% .86%* 1.32% 1.38% 1.23%*
======= ======= ======= ======= ======= =======
Investment income--net 4.01% 4.39% 3.54%* 3.66% 4.05% 3.19%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 7,874 $ 9,849 $14,868 $13,690 $16,213 $18,179
======= ======= ======= ======= ======= =======
Portfolio turnover 39.90% 138.97% 136.71% 39.90% 138.97% 136.71%
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Florida Limited Maturity
Class C Class D
The following per share data and For the For the
ratios have been derived from For the Period For the Period
information provided in the Year Oct. 21, Year Oct. 21,
financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .36 .29 .39 .33
Realized and unrealized gain (loss)
on investments --net (.11) .25 (.06) .25
-------- -------- -------- --------
Total from investment operations .25 .54 .33 .58
-------- -------- -------- --------
Less dividends from investment
income--net (.36) (.29) (.39) (.33)
-------- -------- -------- --------
Net asset value, end of period $ 9.90 $ 10.01 $ 9.95 $ 10.01
======== ======== ======== ========
Total Investment Based on net asset value per share 2.48% 5.65%+++ 3.35% 6.07%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.21% 1.09%* .99% .67%*
Net Assets: ======== ======== ======== ========
Expenses 1.23% 1.67%* 1.07% 1.19%*
======== ======== ======== ========
Investment income--net 3.75% 3.83%* 3.91% 4.23%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 52 $ 1 $ 6,406 $ 7,210
======== ======== ======== ========
Portfolio turnover 39.90% 138.97% 39.90% 138.97%
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Massachusetts Limited Maturity
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .40 .44 .25 .37 .40 .22
Realized and unrealized gain (loss)
on investments--net -- .02 (.05) -- .02 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .40 .46 .20 .37 .42 .17
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.40) (.44) (.25) (.37) (.40) (.22)
Realized gain on investments--net -- (.01) -- -- (.01) --
------- ------- ------- ------- ------- -------
Total dividends and distributions (.40) (.45) (.25) (.37) (.41) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.96 $ 9.96 $ 9.95 $ 9.96 $ 9.96 $ 9.95
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.08% 4.79% 2.01%+++ 3.70% 4.41% 1.77%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .77% .37% .03%* 1.16% .74% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 2.15% 1.71% 1.17%* 2.61% 2.08% 1.54%*
======= ======= ======= ======= ======= =======
Investment income--net 4.04% 4.45% 3.69%* 3.66% 4.08% 3.28%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 1,719 $ 4,453 $ 8,097 $ 4,577 $ 4,800 $ 8,046
======= ======= ======= ======= ======= =======
Portfolio turnover 22.71% 89.96% 57.80% 22.71% 89.96% 57.80%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Massachusetts Limited Maturity
Class C Class D
The following per share data and For the For the
ratios have been derived from For the Period For the Period
information provided in the Year Oct. 21, Year Oct. 21,
financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 .39 .33 .39 .34
Realized and unrealized gain (loss)
on investments--net (.01) .15 -- .15
-------- -------- -------- --------
Total from investment operations .38 .48 .39 .49
-------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.39) (.33) (.39) (.34)
Realized gain on investments
--net -- (.01) -- (.01)
-------- -------- -------- --------
Total dividends and distributions (.39) (.34) (.39) (.35)
-------- -------- -------- --------
Net asset value, end of period $ 9.95 $ 9.96 $ 9.96 $ 9.96
======== ======== ======== ========
Total Investment Based on net asset value per
Return:** share 3.81% 5.00%+++ 3.97% 5.09%+++
======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .94% .67%* .93% .70%*
Net Assets: ======== ======== ======== ========
Expenses 2.37% 2.23%* 2.42% 2.31%*
======== ======== ======== ========
Investment income--net 3.88% 4.32%* 3.89% 4.21%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 210 $ 413 $ 890 $ 253
======== ======== ======== ========
Portfolio turnover 22.71% 89.96% 22.71% 89.96%
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Michigan Limited Maturity
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .41 .44 .24 .37 .40 .22
Realized and unrealized gain (loss)
on investments--net (.04) .06 (.08) (.04) .06 (.08)
------- ------- -------- ------- ------- -------
Total from investment operations .37 .50 .16 .33 .46 .14
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.41) (.44) (.24) (.37) (.40) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.94 $ 9.98 $ 9.92 $ 9.94 $ 9.98 $ 9.92
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 3.71% 5.16% 1.66%+++ 3.32% 4.78% 1.42%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .74% .27% .02%* 1.10% .65% .38%*
Net Assets ======= ======= ======= ======= ======= =======
Expenses 2.78% 2.18% 2.01%* 3.14% 2.56% 2.38%*
======= ======= ======= ======= ======= =======
Investment income--net 4.06% 4.42% 3.59%* 3.70% 4.09% 3.21%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 1,641 $ 2,302 $ 3,435 $ 1,842 $ 2,494 $ 2,411
======= ======= ======= ======= ======= =======
Portfolio turnover 32.92% 93.08% 204.15% 32.92% 93.08% 204.15%
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Michigan Limited Maturity
Class C Class D
For the For the
The following per share data and ratios For the Period For the Period
have been derived from information Year Oct. 21, Year Oct. 21
provided in the financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .36 .30 .40 .34
Realized and unrealized gain (loss)
on investments--net (.04) .22 (.03) .21
-------- -------- -------- --------
Total from investment operations .32 .52 .37 .55
-------- -------- -------- --------
Less dividends from investment
income--net (.36) (.30) (.40) (.34)
-------- -------- -------- --------
Net asset value, end of period $ 9.94 $ 9.98 $ 9.94 $ 9.97
======== ======== ======== ========
Total Investment Based on net asset value per share 3.20% 5.40%+++ 3.71% 5.72%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.24% .96%* .87% .44%*
Net Assets: ======== ======== ======== ========
Expenses 3.31% 2.90%* 3.06% 2.38%*
======== ======== ======== ========
Investment income--net 3.57% 3.80%* 3.94% 4.47%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 1 $ 1 $ 541 $ 254
======== ======== ======== ========
Portfolio turnover 32.92% 93.08% 32.92% 93.08%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
New Jersey Limited Maturity
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .41 .42 .23 .37 .38 .20
Realized and unrealized gain (loss)
on investments--net (.04) .21 (.06) (.05) .21 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .37 .63 .17 .32 .59 .15
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.41) (.42) (.23) (.37) (.38) (.20)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.11 $ 10.15 $ 9.94 $ 10.11 $ 10.16 $ 9.95
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 3.68% 6.45% 1.73%+++ 3.21% 6.07% 1.59%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .76% .34% .03%* 1.10% .73% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.78% 1.69% 1.14%* 2.12% 2.15% 1.52%*
======= ======= ======= ======= ======= =======
Investment income--net 4.02% 4.10% 3.45%* 3.67% 3.80% 3.04%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 2,663 $ 2,401 $ 5,933 $ 5,152 $ 7,593 $ 7,885
======= ======= ======= ======= ======= =======
Portfolio turnover 6.57% 131.56% 205.04% 6.57% 131.56% 205.04%
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
New Jersey Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived For the Period For the Period
from information provided in the Year Oct. 21, Year Oct. 21,
financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .34 .26 .40 .32
Realized and unrealized gain (loss)
on investments--net (.04) (.66) (.05) .31
-------- -------- -------- --------
Total from investment operations .30 (.40) .35 .63
-------- -------- -------- --------
Less dividends from investment
income--net (.34) (.26) (.40) (.32)
-------- -------- -------- --------
Net asset value, end of period $ 9.16 $ 9.20 $ 10.11 $ 10.16
======== ======== ======== ========
Total Investment Based on net asset value per share 3.24% (4.01%)+++ 3.48% 6.51%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement 1.00% .55%* .84% .62%*
Net Assets: ======== ======== ======== ========
Expenses 2.04% 2.22%* 1.86% 2.07%*
======== ======== ======== ========
Investment income--net 3.82% 4.06%* 3.93% 4.17%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 272 $ 1 $ 540 $ 437
======== ======== ======== ========
Portfolio turnover 6.57% 131.56% 6.57% 131.56%
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
New York Limited Maturity
Class A Class B
For the For the
The following per share data and ratios Period Period
have been derived from information For the Nov. 26, For the Nov. 26,
provided in the financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .43 .44 .25 .40 .41 .22
Realized and unrealized gain (loss)
on investments--net .01 .14 (.09) .01 .14 (.09)
------- ------- ------- ------- ------- -------
Total from investment operations .44 .58 .16 .41 .55 .13
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.43) (.44) (.25) (.40) (.41) (.22)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.06 $ 10.05 $ 9.91 $ 10.06 $ 10.05 $ 9.91
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.46% 6.03% 1.61%+++ 4.08% 5.66% 1.37%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .50% .33% .03%* .87% .69% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.38% 1.30% 1.24%* 1.75% 1.65% 1.60%*
======= ======= ======= ======= ======= =======
Investment income--net 4.28% 4.49% 3.68%* 3.91% 4.11% 3.31%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 3,723 $ 4,811 $ 5,290 $10,071 $ 8,822 $ 9,743
======= ======= ======= ======= ======= =======
Portfolio turnover 51.47% 139.16% 152.73% 51.47% 139.16% 152.73%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
New York Limited Maturity
Class C Class D
The following per share data and For the For the
ratios have been derived from For the Period For the Period
information provided in the financial Year Oct. 21, Year Oct. 21,
statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .42 .30 .42 .34
Realized and unrealized gain on
investments--net .01 .27 .01 .27
-------- -------- -------- --------
Total from investment operations .43 .57 .43 .61
-------- -------- -------- --------
Less dividends from investment
income--net (.42) (.30) (.42) (.34)
-------- -------- -------- --------
Net asset value, end of period $ 10.06 $ 10.05 $ 10.06 $ 10.05
======== ======== ======== ========
Total Investment Based on net asset value per share 4.28% 5.97%+++ 4.35% 6.37%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .71% .63%* .62% .48%*
Net Assets: ======== ======== ======== ========
Expenses 1.59% 1.63%* 1.49% 1.48%*
======== ======== ======== ========
Investment income--net 4.06% 4.21%* 4.16% 4.47%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 214 $ 38 $ 3,912 $ 2,306
======== ======== ======== ========
Portfolio turnover 51.47% 139.16% 51.47% 139.16%
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE>
Pennsylvania Limited Maturity
<CAPTION>
Class A Class B
The following per share data and For the For the
ratios have been derived from Period Period
information provided in the For the Nov. 26, For the Nov. 26,
financial statements. Year Ended 1993++ to Year Ended 1993++ to
July 31, July 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 .41 .42 .23 .37 .39 .21
Realized and unrealized gain (loss)
on investments--net .01 .15 (.05) .01 .15 (.05)
------- ------- ------- ------- ------- -------
Total from investment operations .42 .57 .18 .38 .54 .16
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.41) (.42) (.23) (.37) (.39) (.21)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.11 $ 10.10 $ 9.95 $ 10.11 $ 10.10 $ 9.95
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.18% 5.89% 1.85%+++ 3.80% 5.51% 1.61%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .80% .38% .02%* 1.15% .73% .38%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.63% 1.90% 1.48%* 1.99% 2.25% 1.83%*
======= ======= ======= ======= ======= =======
Investment income--net 4.01% 4.25% 3.46%* 3.65% 3.87% 3.05%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 833 $ 943 $ 990 $ 6,264 $ 7,414 $ 9,532
======= ======= ======= ======= ======= =======
Portfolio turnover 30.90% 141.52% 237.47% 30.90% 141.52% 237.47%
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity
Class C Class D
For the For the
The following per share data and ratios For the Period For the Period
have been derived from information Year Oct. 21, Year Oct. 21
provided in the financial statements Ended 1994++ to Ended 1994++ to
July 31, July 31, July 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 . .38 .29 .40 .33
Realized and unrealized gain on
investments--net .05 .26 .01 .26
-------- -------- -------- --------
Total from investment operations .43 .55 .41 .59
-------- -------- -------- --------
Less dividends from investment
income--net (.38) (.29) (.40) (.33)
-------- -------- -------- --------
Net asset value, end of period $ 10.15 $ 10.10 $ 10.11 $ 10.10
======== ======== ======== ========
Total Investment Based on net asset value per share 4.28% 5.68%+++ 4.07% 6.10%+++
Return:** ======== ======== ======== ========
Ratios to Average Expenses, net of reimbursement .97% 1.05%* .96% .57%*
Net Assets: ======== ======== ======== ========
Expenses 1.83% 2.55%* 1.71% 2.08%*
======== ======== ======== ========
Investment income--net 3.84% 3.77%* 3.84% 4.30%*
======== ======== ======== ========
Supplemental Net assets, end of period
Data: (in thousands) $ 1 $ 1 $ 1,807 $ 382
======== ======== ======== ========
Portfolio turnover 30.90% 141.52% 30.90% 141.52%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
(the "Trust") is registered under the Investment Company Act of 1940
as a non-diversified, open-end management investment company
consisting of eight separate series: Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund, Merrill Lynch California Limited
Maturity Municipal Bond Fund, Merrill Lynch Florida Limited Maturity
Municipal Bond Fund, Merrill Lynch Massachusetts Limited Maturity
Municipal Bond Fund, Merrill Lynch Michigan Limited Maturity
Municipal Bond Fund, Merrill Lynch New Jersey Limited Maturity
Municipal Bond Fund, Merrill Lynch New York Limited Maturity
Municipal Bond Fund, and Merrill Lynch Pennsylvania Limited Maturity
Municipal Bond Fund. Each series of the Trust is referred to herein
as a "Fund." The Trust offers four classes of shares under the
Merrill Lynch Select Pricing SM System. Shares of Class A and Class D
are sold with a front-end sales charge. Shares of Class B and Class
C may be subject to a contingent deferred sales charge. All classes
of shares have identical voting, dividend, 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.
(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.
Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or
under the direction of the Board of Trustees of the Trust, including
valuations furnished by a pricing service retained by the Trust,
which may utilize a matrix system for valuations. The 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.
<PAGE>
*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
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to 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
subsidiary 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.
<PAGE>
FAM is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of each Fund. For such
services, each Fund pays a monthly fee at the annual rate of 0.35%
of each Fund's average daily net assets. The Investment Advisory
Agreement obligates FAM to reimburse each Fund to the extent each
Fund's expenses (excluding interest, taxes, distribution fees,
brokerage fees and commissions, and extraordinary items) exceed 2.5%
of 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 payment will be made during any fiscal year which will cause
such expenses to exceed expense limitations at the time of such
payment.
For the year ended July 31, 1996, FAM had voluntarily waived manage-
ment fees and reimbursed each Fund for additional expenses as
follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
Management fee $21,459 $54,033 $24,123
Additional expenses 72,197 464 --
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $30,736 $16,413 $33,770
Additional expenses 95,278 80,119 64,944
New York Pennsylvania
Limited Maturity Limited Maturity
Management fee $57,995 $30,196
Additional expenses 88,295 41,308
<PAGE>
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 Distributor
voluntarily did not collect any Class C distribution fees for the
year ended July 31, 1996. The fees are accrued daily and paid
monthly at annual rates based upon the average daily net assets of
the shares as follows:
Account Maintenance Fee Distribution 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
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the year ended July 31, 1996, MLFD earned underwriting 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 $ 17 $ 67 $ 22 $ 93
MLPF&S 446 513 475 871
Class D:
MLFD $ 14 $ 299 $ 373 $ 298
MLPF&S 227 2,849 2,570 3,089
<PAGE>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 4 $ 2 $ 1 --
MLPF&S 98 237 33 $ 5
Class D:
MLFD $ 59 $ 31 $ 476 $ 14
MLPF&S 420 1,097 4,314 519
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 $10,222
California Limited Maturity 3,456
Florida Limited Maturity 18,456
Massachusetts Limited Maturity 4,849
Michigan Limited Maturity 6,724
New Jersey Limited Maturity 8,141
New York Limited Maturity 6,475
Pennsylvania Limited Maturity 3,775
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Trust's transfer agent.
Accounting services are provided to the Trust by FAM at cost.
Certain officers and/or trustees of the Trust are officers and/or
directors of FAM, PSI, MLPF&S, MLFD, MLFDS, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1996 were as follows:
Purchases Sales
Arizona Limited Maturity $ 1,965,889 $ 2,436,738
California Limited Maturity 3,066,927 1,317,493
Florida Limited Maturity 10,307,012 10,835,712
Massachusetts Limited Maturity 1,610,060 3,817,465
Michigan Limited Maturity 1,291,375 1,370,658
New Jersey Limited Maturity 452,439 647,468
New York Limited Maturity 10,824,437 6,698,374
Pennsylvania Limited Maturity 2,033,165 2,014,355
<PAGE>
Net realized and unrealized gains (losses) as of July 31, 1996 were
as follows:
Realized Unrealized
Arizona Limited Maturity Gains (Losses) Gains
Long-term investments $ 1,540 $ 144,631
Short-term investments 11 --
Financial futures contracts (2,242) --
--------- ---------
Total $ (691) $ 144,631
========= =========
NOTES TO FINANCIAL STATEMENTS (continued)
Realized Unrealized
California Limited Maturity Gains (Losses) Gains
Long-term investments $ (10,233) $ 557,847
Short-term investments 960 --
Financial futures contracts (5,233) --
--------- ---------
Total $ (14,506) $ 557,847
========= =========
Realized Unrealized
Florida Limited Maturity Gains (Losses) Gains
Long-term investments $ 9,277 $ 597,062
Short-term investments 658 9
Financial futures contracts (11,213) --
--------- ---------
Total $ (1,278) $ 597,071
========= =========
<PAGE>
Realized Unrealized
Massachusetts Limited Maturity Gains (Losses) Gains
Long-term investments $ 21,469 $ 179,504
Financial futures contracts (3,250) --
--------- ---------
Total $ 18,219 $ 179,504
========= =========
Realized Unrealized
Michigan Limited Maturity Gains (Losses) Gains
Long-term investments $ 9,749 $ 124,657
Short-term investments 1,954 --
Financial futures contracts (1,620) --
--------- ---------
Total $ 10,083 $ 124,657
========= =========
Realized Unrealized
New Jersey Limited Maturity Gains (Losses) Gains
Long-term investments $ (9,159) $ 291,589
Short-term investments 218 --
Financial futures contracts (3,645) --
--------- ---------
Total $ (12,586) $ 291,589
========= =========
Realized Unrealized
New York Limited Maturity Gains (Losses) Gains
Long-term investments $ 33,981 $ 324,626
Financial futures contracts (6,480) --
--------- ---------
Total $ 27,501 $ 324,626
========= =========
Realized Unrealized
Pennsylvania Limited Maturity Gains (Losses) Gains
Long-term investments $ 3,604 $ 160,822
Financial futures contracts (3,240) --
--------- ---------
Total $ 364 $ 160,822
========= =========
<PAGE>
As of July 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
Fund Appreciation Depreciation Appreciation Investments
Arizona $144,631 -- $144,631 $ 3,992,244
California 535,204 -- 535,204 14,560,877
Florida 618,787 $ (21,716) 597,071 26,691,374
Massachusetts 183,699 (4,195) 179,504 7,011,474
Michigan 109,879 (101) 109,778 3,785,548
New Jersey 291,589 -- 291,589 8,321,598
New York 324,626 -- 324,626 17,665,641
Pennsylvania 161,811 (989) 160,822 8,237,456
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial
interest transactions for the years ended July 31, 1996 and July
31, 1995 were as follows:
Increase (Decrease) in For the Year Ended July 31,
Beneficial Interest Transactions 1996 1995
Arizona Limited Maturity $ (1,767,011) $ (1,547,482)
California Limited Maturity (491,496) 354,485
Florida Limited Maturity (5,075,030) (187,273)
Massachusetts Limited Maturity (2,526,578) (6,114,591)
Michigan Limited Maturity (1,013,383) (811,255)
New Jersey Limited Maturity (1,750,465) (3,524,093)
New York Limited Maturity 1,937,339 774,385
Pennsylvania Limited Maturity 150,949 (1,893,824)
Transactions in shares of beneficial interest for each class were as
follows:
Arizona Limited Maturity
<PAGE>
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 5,200 $ 52,303
Shares issued to shareholders in
reinvestment of dividends 1,441 14,637
----------- -----------
Total issued 6,641 66,940
Shares redeemed (29,641) (304,005)
----------- -----------
Net decrease (23,000) $ (237,065)
=========== ===========
Arizona Limited Maturity
Class A Shares for the Year 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)
=========== ===========
Arizona Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 43,937 $ 449,980
Shares issued to shareholders in
reinvestment of dividends 7,003 66,184
----------- -----------
Total issued 50,940 516,164
Shares redeemed (275,350) (2,797,058)
----------- -----------
Net decrease (224,410) $(2,280,894)
=========== ===========
<PAGE>
Class B Shares for the Year 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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 13,124 $ 132,973
Shares issued to shareholders in
reinvestment of dividends 162 1,633
----------- -----------
Total issued 13,286 134,606
Shares redeemed (4) (41)
----------- -----------
Net increase 13,282 $ 134,565
=========== ===========
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.
<PAGE>
Arizona Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 104,371 $ 1,066,013
Shares issued to shareholders in
reinvestment of dividends 2,220 22,565
----------- -----------
Total issued 106,591 1,088,578
Shares redeemed (47,001) (472,195)
----------- -----------
Net increase 59,590 $ 616,383
=========== ===========
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 1,801 $ 17,929
Shares issued to shareholders in
reinvestment of dividends 26 262
----------- -----------
Net increase 1,827 $ 18,191
=========== ===========
[FN]
++Commencement of Operations.
California Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 8,087 $ 80,919
Shares issued to shareholders in
reinvestment of dividends 3,445 34,639
----------- -----------
Total issued 11,532 115,558
Shares redeemed (49,796) (500,770)
----------- -----------
Net decrease (38,264) $ (385,212)
=========== ===========
<PAGE>
Class A Shares for the Year Dollar
Ended 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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 210,376 $ 2,110,120
Shares issued to shareholders in
reinvestment of dividends 15,717 158,020
----------- -----------
Total issued 226,093 2,268,140
Automatic conversion of shares (7,895) (80,134)
Shares redeemed (267,935) (2,686,717)
----------- -----------
Net decrease (49,737) $ (498,711)
=========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
California Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 275,065 $ 2,701,344
Shares issued to shareholders in
reinvestment of dividends 19,605 192,424
----------- -----------
Total issued 294,670 2,893,768
Shares redeemed (414,211) (4,043,475)
----------- -----------
Net decrease (119,541) $(1,149,707)
=========== ===========
<PAGE>
California Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 24 $ 250
Shares issued to shareholders in
reinvestment of dividends 8 78
----------- -----------
Total issued 32 328
Shares redeemed (983) (9,913)
----------- -----------
Net decrease (951) $ (9,585)
=========== ===========
Class C Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 6,910 $ 68,864
Shares issued to shareholders in
reinvestment of dividends 26 260
----------- -----------
Total issued 6,936 69,124
Shares redeemed (499) (4,971)
----------- -----------
Net increase 6,437 $ 64,153
=========== ===========
[FN]
++Commencement of Operations.
California Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 105,834 $ 1,060,270
Automatic conversion of shares 7,895 80,134
Shares issued to shareholders in
reinvestment of dividends 1,093 10,986
----------- -----------
Total issued 114,822 1,151,390
Shares redeemed (74,548) (749,378)
----------- -----------
Net increase 40,274 $ 402,012
=========== ===========
<PAGE>
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 299,589 $ 2,938,426
Shares issued to shareholders in
reinvestment of dividends 404 4,019
----------- -----------
Total issued 299,993 2,942,445
Shares redeemed (122,736) (1,203,760)
----------- -----------
Net increase 177,257 $ 1,738,685
=========== ===========
[FN]
++Commencement of Operations.
Florida Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 91,796 $ 926,979
Shares issued to shareholders in
reinvestment of dividends 11,780 118,180
----------- -----------
Total issued 103,576 1,045,159
Shares redeemed (296,045) (2,960,805)
----------- -----------
Net decrease (192,469) $(1,915,646)
=========== ===========
Class A Shares for the Year Dollar
Ended 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)
=========== ===========
<PAGE>
Florida Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 374,709 $ 3,773,344
Shares issued to shareholders in
reinvestment of dividends 28,155 282,558
----------- -----------
Total issued 402,864 4,055,902
Shares redeemed (646,498) (6,500,752)
----------- -----------
Net decrease (243,634) $(2,444,850)
=========== ===========
Class B Shares for the Year Dollar
Ended 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)
=========== ===========
Florida Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 6,623 $ 65,559
Shares issued to shareholders in
reinvestment of dividends 4 41
----------- -----------
Total issued 6,627 65,600
Shares redeemed (1,536) (15,483)
----------- -----------
Net increase 5,091 $ 50,117
=========== ===========
<PAGE>
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.
Florida Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 316,584 $ 3,192,506
Shares issued to shareholders in
reinvestment of dividends 4,342 43,518
----------- -----------
Total issued 320,926 3,236,024
Shares redeemed (397,363) (4,000,675)
----------- -----------
Net decrease (76,437) $ (764,651)
=========== ===========
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.
<PAGE>
Massachusetts Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 22,851 $ 226,189
Shares issued to shareholders in
reinvestment of dividends 7,410 74,223
----------- -----------
Total issued 30,261 300,412
Shares redeemed (304,602) (3,055,529)
----------- -----------
Net decrease (274,341) $(2,755,117)
=========== ===========
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 113,925 $ 1,124,479
Shares issued to shareholders in
reinvestment of dividends &
distributions 18,553 182,392
----------- -----------
Total issued 132,478 1,306,871
Shares redeemed (499,178) (4,904,822)
----------- -----------
Net decrease (366,700) $(3,597,951)
=========== ===========
Massachusetts Limited Maturity
Class B Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 163,902 $ 1,649,909
Shares issued to shareholders in
reinvestment of dividends 9,837 98,401
----------- -----------
Total issued 173,739 1,748,310
Shares redeemed (195,993) (1,955,850)
----------- -----------
Net decrease (22,254) $ (207,540)
=========== ===========
<PAGE>
Class B Shares for the
Year Ended Dollar
July 31, 1995 Shares Amount
Shares sold 144,229 $ 1,416,046
Shares issued to shareholders in
reinvestment of dividends &
distributions 12,243 120,528
----------- -----------
Total issued 156,472 1,536,574
Shares redeemed (483,231) (4,711,225)
----------- -----------
Net decrease (326,759) $(3,174,651)
=========== ===========
Massachusetts Limited Maturity
Class C Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 1,201 $ 12,027
Shares redeemed (21,496) (212,811)
----------- -----------
Net decrease (20,295) $ (200,784)
=========== ===========
Class C Shares for the
Period October 21, 1994++ to Dollar
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.
<PAGE>
Massachusetts Limited Maturity
Class D Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 101,394 $ 1,009,332
Shares issued to shareholders in
reinvestment of dividends 1,553 15,510
----------- -----------
Total issued 102,947 1,024,842
Shares redeemed (38,979) (387,979)
----------- -----------
Net increase 63,968 $ 636,863
=========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
Massachusetts Limited Maturity
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 32,116 $ 317,241
Shares issued to shareholders in
reinvestment of dividends &
distributions 123 1,219
----------- -----------
Total issued 32,239 318,460
Shares redeemed (6,870) (67,623)
----------- -----------
Net increase 25,369 $ 250,837
=========== ===========
[FN]
++Commencement of Operations.
Michigan Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
<PAGE>
Shares sold 40,664 $ 405,188
Shares issued to shareholders in
reinvestment of dividends 1,529 15,293
----------- -----------
Total issued 42,193 420,481
Shares redeemed (107,949) (1,077,796)
----------- -----------
Net decrease (65,756) $ (657,315)
=========== ===========
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 36,451 $ 365,718
Shares issued to shareholders in
reinvestment of dividends 5,013 50,143
----------- -----------
Total issued 41,464 415,861
Shares redeemed (106,251) (1,063,510)
----------- -----------
Net decrease (64,787) $ (647,649)
=========== ===========
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 116,190 $ 1,105,484
Shares issued to shareholders in
reinvestment of dividends 6,029 83,311
----------- -----------
Total issued 122,219 1,188,795
Shares redeemed (115,161) (1,122,677)
----------- -----------
Net increase 7,058 $ 66,118
=========== ===========
<PAGE>
Michigan Limited Maturity
Class C Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 4 $ 41
----------- -----------
Net increase 4 $ 41
=========== ===========
Class C Shares for the
Period October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 110 $ 1,073
Shares issued to shareholders in
reinvestment of dividends 3 32
----------- -----------
Net increase 113 $ 1,105
=========== ===========
[FN]
++Commencement of Operations.
Michigan Limited Maturity
Class D Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 29,731 $ 298,909
Shares issued to shareholders in
reinvestment of dividends 1,126 11,245
----------- -----------
Total issued 30,857 310,154
Shares redeemed (1,878) (18,614)
----------- -----------
Net increase 28,979 $ 291,540
=========== ===========
Class D Shares for the
Period October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 64,155 $ 622,185
Shares issued to shareholders in
reinvestment of dividends 689 6,780
----------- -----------
Total issued 64,844 628,965
Shares redeemed (39,359) (387,400)
----------- -----------
Net increase 25,485 $ 241,565
=========== ===========
[FN]
++Commencement of Operations.
<PAGE>
New Jersey Limited Maturity
Class A Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 102,101 $ 1,042,636
Shares issued to shareholders in
reinvestment of dividends 8,892 90,367
----------- -----------
Total issued 110,993 1,133,003
Shares redeemed (83,997) (856,193)
----------- -----------
Net increase 26,996 $ 276,810
=========== ===========
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 107,343 $ 1,095,824
Shares issued to shareholders in
reinvestment of dividends 14,061 143,043
----------- -----------
Total issued 121,404 1,238,867
Shares redeemed (359,338) (3,646,563)
----------- -----------
Net decrease (237,934) $(2,407,696)
=========== ===========
<PAGE>
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)
=========== ===========
New Jersey Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 29,124 $ 272,904
Shares issued to shareholders in
reinvestment of dividends 459 4,199
----------- -----------
Net increase 29,583 $ 277,103
=========== ===========
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 Year Dollar
Ended July 31, 1996 Shares Amount
<PAGE>
Shares sold 47,184 $ 477,087
Shares issued to shareholders in
reinvestment of dividends 728 7,411
----------- -----------
Total issued 47,912 484,498
Shares redeemed (37,500) (381,180)
----------- -----------
Net increase 10,412 $ 103,318
=========== ===========
Class D Shares for the Period Dollar
October 21, 1994++ to July 31, 1995 Shares Amount
Shares sold 69,049 $ 691,844
Shares issued to shareholders in
reinvestment of dividends 348 3,514
----------- -----------
Total issued 69,397 695,358
Shares redeemed (26,375) (264,833)
----------- -----------
Net increase 43,022 $ 430,525
=========== ===========
[FN]
++Commencement of Operations.
New York Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 44,189 $ 446,602
Shares issued to shareholders in
reinvestment of dividends 11,547 116,691
----------- -----------
Total issued 55,736 563,293
Shares redeemed (164,328) (1,659,912)
----------- -----------
Net decrease (108,592) $(1,096,619)
=========== ===========
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 465,594 $ 4,716,623
Shares issued to shareholders in
reinvestment of dividends 17,959 181,459
----------- -----------
Total issued 483,553 4,898,082
Automatic conversion of shares (3,459) (34,832)
Shares redeemed (356,773) (3,612,208)
----------- -----------
Net increase 123,321 $ 1,251,042
=========== ===========
NOTES TO FINANCIAL STATEMENTS (concluded)
New York Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 331,365 $ 3,261,544
Shares issued to shareholders in
reinvestment of dividends 18,265 180,012
----------- -----------
Total issued 349,630 3,441,556
Shares redeemed (454,750) (4,436,666)
----------- -----------
Net decrease (105,120) $ (995,110)
=========== ===========
New York Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 20,376 $ 206,729
Shares issued to shareholders in
reinvestment of dividends 398 4,008
----------- -----------
Total issued 20,774 210,737
Shares redeemed (3,295) (32,843)
----------- -----------
Net increase 17,479 $ 177,894
=========== ===========
<PAGE>
Class C Shares for the
Period October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 3,813 $ 38,224
Shares issued to shareholders in
reinvestment of dividends 4 40
----------- -----------
Net increase 3,817 $ 38,264
=========== ===========
[FN]
++Commencement of Operations.
New York Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 162,557 $ 1,636,956
Automatic conversion of shares 3,456 34,832
Shares issued to shareholders in
reinvestment of dividends 6,809 68,734
----------- -----------
Total issued 172,822 1,740,522
Shares redeemed (13,363) (135,500)
----------- -----------
Net increase 159,459 $ 1,605,022
=========== ===========
Class D Shares for the
Period October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 271,406 $ 2,697,692
Shares issued to shareholders in
reinvestment of dividends 754 7,474
----------- -----------
Total issued 272,160 2,705,166
Shares redeemed (42,782) (416,797)
----------- -----------
Net increase 229,378 $ 2,288,369
=========== ===========
[FN]
++Commencement of Operations.
<PAGE>
Pennsylvania Limited Maturity
Class A Shares for the
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 5,556 $ 56,865
Shares issued to shareholders in
reinvestment of dividends 1,095 11,133
----------- -----------
Total issued 6,651 67,998
Shares redeemed (17,647) (179,041)
----------- -----------
Net decrease (10,996) $ (111,043)
=========== ===========
Class A Shares for the
Year Ended Dollar
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 89,391 $ 910,583
Shares issued to shareholders in
reinvestment of dividends 17,173 174,586
----------- -----------
Total issued 106,564 1,085,169
Shares redeemed (220,973) (2,241,767)
----------- -----------
Net decrease (114,409) $(1,156,598)
=========== ===========
<PAGE>
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 Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 7,571 $ 82,082
Shares issued to shareholders in
reinvestment of dividends 83 850
----------- -----------
Total issued 7,654 82,932
Shares redeemed (7,650) (82,673)
----------- -----------
Net increase 4 $ 259
=========== ===========
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
Year Ended Dollar
July 31, 1996 Shares Amount
Shares sold 155,680 $ 1,569,272
Shares issued to shareholders in
reinvestment of dividends 1,844 18,653
----------- -----------
Total issued 157,524 1,587,925
Shares redeemed (16,678) (169,594)
----------- -----------
Net increase 140,846 $ 1,418,331
=========== ===========
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.
5. Capital Loss Carryforward:
At July 31, 1996, each Fund of the Trust had an approximate net
capital loss carryforward as follows: $69,000 in the Arizona Limited
Maturity Fund, of which $66,000 expires in 2003 and $3,000 expires
in 2004; $434,000 in the California Limited Maturity Fund, of which
$156,000 expires in 2003 and $278,000 expires in 2004; $718,000 in
the Florida Limited Maturity Fund, of which $518,000 expires in 2003
and $200,000 expires in 2004; $340,000 in Massachusetts Limited
Maturity Fund, of which $70,000 expires in 2003 and $270,000 expires
in 2004; $138,000 in the Michigan Limited Maturity Fund, of which
$53,000 expires in 2003 and $85,000 expires in 2004; $281,000 in the
New Jersey Limited Maturity Fund, of which $98,000 expires in 2003
and $183,000 expires in 2004; $207,000 in the New York Limited
Maturity Fund, of which $122,000 expires in 2002, $2,000 expires in
2003 and $83,000 expires in 2004; and $91,000 in the Pennsylvania
Limited Maturity Fund, all of which expires in 2003. These amounts
will be available to offset like amounts of any future taxable
gains.
<PAGE>
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders, Merrill Lynch
Multi-State Limited Maturity Municipal Series Trust:
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments, of Merrill
Lynch Limited Maturity Municipal Bond Funds for Arizona, California,
Florida, Massachusetts, Michigan, New Jersey, New York, and
Pennsylvania of the Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust (the "Trust") as of July 31, 1996, the
related statements of operations for the year then ended and changes
in net assets for each of the years in the two-year period then
ended and the financial highlights for each of the years in the two-
year period then ended and for the period November 26, 1993
(commencement of operations) to July 31, 1994. These financial
statements and the financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion
on these financial statements and the financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at July 31,
1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Limited Maturity Municipal Bond Funds for Arizona,
California, Florida, Massachusetts, Michigan, New Jersey, New York,
and Pennsylvania of the Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust as of July 31, 1996, the results of their
operations, the changes in their net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
September 6, 1996
</AUDIT-REPORT>
