MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Quarterly Report
April 30, 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
Officers and
Trustees
Arthur Zeikel, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Peter J. Hayes, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Robert Harris, Secretary
<PAGE>
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
Investor perceptions regarding the US economy changed over the
course of the April quarter. In February, it appeared that the US
economy was losing momentum. Lackluster retail sales, increases in
initial unemployment claims (along with weak job and income growth),
and evidence of slowing in the manufacturing sector all suggested
that the rate of economic growth was decelerating, with some
forecasters even suggesting the possibility of an imminent
recession.
However, the consensus outlook for the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result,
investors began to anticipate renewed economic growth. Long-term
interest rates rose, and the Federal Reserve Board left monetary
policy on hold. Adding to investor concerns was the report that the
Knight Ridder-Commodity Research Bureau Index was near an eight-year
high, largely because of an increase in agricultural prices and an
upward spike in the price of crude oil.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the capital spending, housing and consumption
sectors are still relatively weak, which suggest that the economy is
not on the verge of overheating. Nevertheless, it is likely that
further indications of stronger economic activity in the weeks ahead
may add to investor concerns that accelerating economic activity
could lead to higher inflation and interest rates.
<PAGE>
The Municipal Market
During the three months ended April 30, 1996, tax-exempt bond yields
rose dramatically as investors became increasingly concerned that
earlier forecasts of continued moderate economic growth were overly
optimistic. As indications of stronger growth were released during
the April quarter, particularly the strong employment report
released in early March, fears of associated inflationary pressures
mounted and yields rose in response. As measured by Municipal Market
Data, AAA-rated five-year general obligation bond yields rose
approximately 55 basis points (0.55%) to end the April quarter at
4.55%. The rise in US Treasury bond yields was even more
significant. During the April quarter, yields on five-year US
Treasury notes increased by almost 120 basis points and at April 30,
1996 stood at 6.40%. During the quarter ended April 30, 1996, the
municipal bond market reversed the trend seen throughout much of
1995 and significantly outperformed its taxable counterpart.
The second major factor leading to the municipal bond market's
recent outperformance was the return of a more favorable technical
environment. Over the past six months, approximately $40 billion in
municipal securities were underwritten, an increase of approximately
35% versus the comparable period a year earlier. However, much of
this increase was biased by recent underwritings dedicated toward
refinancing. Like individual homeowners, municipal issuers sought to
refinance their existing higher-couponed debt as tax-exempt bond
yields declined from their highs in 1995. In recent months such
refinancings were estimated to represent at least 50% of total
issuance. However, the recent rise in tax-exempt interest rates
slowed the pace of such refinancings. At current interest rate
levels large amounts of refundings are unlikely and the rate of new
bond issuance should continue to decline.
Additionally, investors continue to receive significant amounts of
assets derived from coupon income, bond maturities, and proceeds
from early redemptions. In recent months investors received over $30
billion in such assets. These cash flows helped maintain individual
retail investor demand in recent months. Additionally, major
institutional investors, such as certain insurance companies whose
underwriting profits were cyclically high, demonstrated significant
ongoing interest in the tax-exempt bond market, particularly on
higher-quality securities. Individual and institutional investor
demand was strong enough during the six-month period ended April 30,
1996 to absorb the relative increase in bond issuance.
Looking ahead, we believe the municipal bond market is likely to
continue to outperform the US Treasury market. Investor demand
should remain adequate to absorb new bond issuance. It is also
unlikely that the rapid pace of issuance seen thus far in 1996 will
be maintained. The recent rise in yields made further bond
refinancings economically unfeasible. Since these refinancings were
the driving force of recent bond issuance, as the amount of these
refundings decline, overall issuance should decline. This should
allow the current demand/supply balance to be easily maintained in
upcoming months.
<PAGE>
Additionally, as a percentage of US Treasury bond yields, long-term
municipal bond yields remain historically attractive. It is likely
that recent interest rate increases will have a negative impact on
economic growth, perhaps as early as late summer 1996. With long-
term mortgage rates above 8%, the domestic housing sector has
already indicated signs of slower growth. If other interest rate
sectors of the economy, such as the automobile industry, begin to
show similar adverse effects, taxable interest rates would be poised
to resume their decline. With long-term tax-exempt revenue bonds
yielding approximately 90% of their taxable counterparts, municipal
bond yields are poised to decline further.
Portfolio Strategy
Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund
Arizona's housing market continued its strong performance during the
quarter ended April 30, 1996. Single-family housing increased by
40,800 and 38,500 units, respectively, over the last two years, the
strongest showing since the inflation-stimulated market of the late
1970s. Additionally, multi-family building permits made a strong
comeback with 11,600 units, the State's largest increase since 1987.
Population growth of 3.9% in 1995, as well as relatively low
interest rates were major contributors to the strong performance of
the housing industry. Increasing growth in economic activity, led by
prospects in the manufacturing industry and strong commercial real
estate markets, should help the housing market maintain its pattern
of growth for 1996.
During the quarter ended April 30, 1996, we continued to maintain an
aggressive portfolio stance with an average portfolio maturity of 4
years, 10 months. Maintaining a 15% of net assets cash reserve level
provided a defensive measure for the Fund in a rising interest rate
environment. Although the Fund was adversely affected by the
magnitude of the rise in interest rates, the Fund's intermediate-
term investment focus helped to limit losses to some degree. We will
monitor economic data in the upcoming quarter and adjust our
investment strategy accordingly.
<PAGE>
Merrill Lynch California Limited
Maturity Municipal Bond Fund
California's economy continued to show modest growth improvement
during the quarter ended April 30, 1996. The continued strong eco-
nomic performance of the State's technology and computer sectors as
well as related services helped California move toward recovering
the hundreds of thousands of jobs lost in the previous recession.
California's unemployment rate fell slightly to 7.6% in March from
7.7% in February, as the State added thousands of new jobs in the
manufacturing, trade and service sectors. Existing home sales and
new home sales grew 4.6% during the April quarter while new housing
starts grew at a 2% rate. The State continued getting its fiscal
house in order with the timely repayment of $4 billion in issued
revenue anticipation warrants in April. California's long-term
general obligation rating is A, with a stable outlook. Although the
State made significant progress in reducing its large accumulated
deficit, the deficit is likely to remain large when adjusted for
cash "loans" to schools. In addition, California remains vulnerable
to structural spending pressures for prisons and social service
programs. The State projects to end fiscal 1996 with a budgetary
basis general fund accumulated surplus of $402 million. This would
fall to a deficit of $1.2 billion if adjusted for school loans,
which continue to drain the State's cash position.
At April 30, 1996, the net assets of Merrill Lynch California
Limited Maturity Municipal Bond Fund stood at approximately $15.4
million, an increase of approximately 2% from the previous quarter-
end. The Fund's average portfolio maturity is currently 4 years, 8
months with 23% of its assets in cash equivalent securities as a
defensive measure against rising interest rates. 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 volatility.
Merrill Lynch Florida Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1996, Florida's economy continued
to exhibit signs of healthy growth. The State's economic forecast
envisions modest growth through 1996. Strong growth in the service,
construction and trade sectors continued to lead Florida's growth
with more than 64% of the State's workforce tied to those sectors.
Steady economic performance led to an upward revision of the 1996
revenue forecast by the State's Revenue Estimation Conference. Year-
end results for fiscal 1996 are projected to show a working capital
reserve of $52.6 million and a $261 million Budget Stabilization
Reserve Fund balance. This follows an upward revenue revision of
$142.4 million largely because of the strong performance of
corporate and sales and use tax revenues. Governor Chiles proposed
budget for fiscal 1997 shifts the emphasis on spending to education
from public protection. Revenue growth is estimated at $730.8
million or 4.8%. As in other states, the absence of a complete
Federal budget causes uncertainty for both revenues and expenditures
for the current and future fiscal years. Standard & Poor's Corp.
affirmed its AA rating on Florida's $7.1 billion of outstanding full
faith and credit debt.
At April 30, 1996, the net assets of Merrill Lynch Florida Limited
Maturity Municipal Bond Fund stood at approximately $29.3 million.
The Fund's average portfolio maturity is 4 years, 8 months with 23%
of its net assets in cash equivalent securities and bonds with a
maturity within one and one-half years as a defensive measure
against rising interest rates. Approximately 73% 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.
<PAGE>
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
After a harsh winter, pent up consumer demand enabled the
Commonwealth of Massachusetts to reassert itself economically with
an improving growth trend. A combination of warmer weather and
improvements in retail sales and housing allowed Massachusetts to
record job gains, although predominately in the service sector,
during the April quarter. The result contributed to a decline in the
seasonally adjusted unemployment rate to 4.8% in March, which
represented the lowest level in six years. Despite these positive
developments, increasing interest rates and the Federal Reserve
Board's apparent reluctance to ease monetary policy further has
economists questioning how long economic growth will continue.
During the April quarter, the Commonwealth continued to generate an
impressive revenue stream which brought fiscal year 1996 tax
receipts to $9.4 billion or 6% higher than fiscal year 1995. This
consistency allowed the various rating agencies to maintain a
favorable outlook toward the Commonwealth with the possibility of an
upgrade from its current rating levels. Despite these positive cash
flows, the Commonwealth continued to use its tax-exempt commercial
paper line of credit during the quarter ended April 30, 1996 to
assist in financing daily operations as timing differences with
Federal allocations persisted. However, as the April quarter ended,
Massachusetts completely paid down its outstanding commercial paper
balances.
For the three months ended April 30, 1996, we reduced the Fund's
aggressive position by increasing cash reserves to approximately 20%
of net assets from the previous quarter's 11%. This helped insulate
the Fund from the rise in interest rates, although the Fund did
suffer somewhat because of the dramatic rise in interest rates in
such a short time period. However, the Fund's intermediate-term
investment focus helped to limit losses to some degree. The upcoming
quarter appears to be an important one for the future direction of
interest rates as economic data should show if the economy is truly
heating up or just rebounding from an unusually dismal fourth
quarter 1995. We will monitor the situation very carefully and
adjust our investment approach accordingly while continuing to focus
on credit quality and diversification.
<PAGE>
Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1996, the Michigan economy
rebounded from a slow fourth quarter 1995 led by the automobile
industry. The quarter started off with four General Motors Corp.'s
plants idled by striking Ohio workers concerned about the
outplacement of automobile jobs. Although the strike lasted for 17
days, rebounding consumer confidence during the April quarter
combined with increased use of purchasing incentives, helped the big
three automakers reduce inventory and set the stage for an announced
3% production increase for second quarter 1996. Michigan's
unemployment rate fell in March, for the fourth consecutive month,
to 4.6% as most industries boosted hiring, according to the Michigan
Employment Security Commission. Analysts expect the unemployment
number to increase later this year as automakers reduce production
of cars and trucks from last year's levels. Even the loss of 20,000
manufacturing jobs related to the Ohio strike against General Motors
Corp. did not offset gains in other industries such as construction,
retail trade and services.
At April 30, 1996, the net assets of Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund stood at approximately $4.6 million, an
increase of approximately 3% from the previous quarter end. The
Fund's average portfolio maturity is currently being maintained at 4
years, 8 months and currently has 21% of its net assets in cash
equivalent securities as a defensive measure against rising interest
rates. 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
New Jersey's economy continued to stagnate. The March 1996
unemployment rate was 6.4%, which is above the national average of
5.6%. The rate remained unchanged from the month of February and
higher than March 1995's 6.2%. The manufacturing sector continued
its long declining trend with 492,700 jobs compared to 506,300 in
March 1995. Governor Christine Todd Whitman proposed a budget plan
that called for a $132 million reduction in State spending, a merger
of the State's banking and insurance departments resulting in the
dismissal of 1,200 employees, and a revamping of the welfare
program. On a positive note, the Port Authority of New York and New
Jersey reported net income of $68.3 million in 1995 compared to
$15.5 million in 1994, and earnings at Atlantic City's 12 casinos
tripled from $48.2 million in 1994 to $146.6 million in 1995.
During the April quarter, we continued to maintain an aggressive
investment strategy with an average portfolio maturity of 4 years,
10 months. The maintenance of an 18% cash reserve level provided a
defensive measure for the Fund in a rising interest rate
environment. Although the Fund was adversely affected by the
magnitude of the rise in interest rates, its intermediate-term
investment focus helped to limit losses to some degree. We will
monitor economic data in the upcoming quarter and adjust our
investment strategy accordingly.
<PAGE>
Merrill Lynch New York Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1996, New York's economy began to
show signs of slow growth. In March, the State added 59,400 non-farm
jobs compared with 28,900 in February, even though the State's
unemployment rate rose to 6.9% in March from 6.6% in February. The
majority of the rise in the unemployment rate was caused by the loss
of 22,300 government jobs, with the majority in New York City,
reflecting the City's attempts to pare its government agencies. The
State also lost 10,000 finance, insurance and real estate jobs in
March as those industries continued to downsize. On a positive note,
construction spending rose 3.2% during the April quarter and the
wholesale and retail trade sector continued to show job growth and
revenue improvement. One area of the State's economy that is
expected to show job growth in the near future is New York City's
multi-media industry which includes software, computer, internet,
and media companies. In an effort to create new jobs and continue
New York's economic revitalization, the State Senate approved a
package of business tax cuts which would provide $60 million in tax
relief in 1996--1997 and grow to almost $1 billion by the year
2000. This plan is expected to be signed by Governor Pataki and send
a message to New York businesses and companies nationwide that New
York is friendly to business and its expansion.
At the close of the April quarter, the net assets of Merrill Lynch
New York Limited Maturity Municipal Bond Fund stood at approximately
$17 million, an increase of approximately 3% from the previous
quarter end. By April 30, 1996, the Fund's average portfolio
maturity was currently 4 years, 8 months with 26% of its assets in
cash equivalent securities as a defensive measure against rising
interest rates. Approximately 60% of the Fund's long-term assets
were 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
Pennsylvania's economy remained sluggish as new jobs were generated
in 1995 at half the nation's growth rate. Manufacturing employment
declined from 20.4% of total jobs in 1989 to 18% at the end of 1995.
The financial sector moved from a mode of expansion to contraction
as bank mergers ultimately resulted in layoffs. Retail sales growth
of 3.2% in 1995 reflects poor growth in real personal income
throughout the Commonwealth while home-building in 1995 fell nearly
13%. In the upcoming quarter, Pennsylvania's legislature will review
Governor Tom Ridge's budget. Highlights of the budget include a $30
million spending cut, a revamping of the welfare system and an
overhaul of operations at the Commonwealth's Department of
Transportation and the Environmental Protection Agency.
<PAGE>
During the quarter ended April 30, 1996, we continued to maintain an
aggressive investment strategy with an average portfolio maturity of
4 years, 10 months. The Fund's 22% cash reserve level provided a
defensive measure for the Fund in a rising interest rate
environment. Although the Fund was adversely affected by the
magnitude of the rise in interest rates, its intermediate-term
investment focus helped to limit losses to some degree. We will
monitor economic data in the upcoming quarter and adjust our
investment strategy accordingly.
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
(Peter J. Hayes)
Peter J. Hayes
Vice President Portfolio Manager
<PAGE>
(Edward J. Andrews)
Edward J. Andrews
Portfolio Manager
(Helen M. Sheehan)
Helen M. Sheehan
Portfolio Manager
June 11, 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.
* 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.
<PAGE>
* 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.
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +4.92% +3.87%
Inception (11/26/93) through 3/31/96 +4.61 +4.16
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +4.44% +3.44%
Inception (11/26/93) through 3/31/96 +4.20 +4.20
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +4.46% +3.46%
Inception (10/21/94) through 3/31/96 +5.49 +5.49
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +4.82% +3.77%
Inception (10/21/94) through 3/31/96 +5.97 +5.24
<PAGE>
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (continued)
Average Annual
Total Returns
(concluded)
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.77% +4.71%
Inception (11/26/93) through 3/31/96 +4.20 +3.76
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.29% +4.29%
Inception (11/26/93) through 3/31/96 +3.79 +3.79
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.44% +4.44%
Inception (10/21/94) through 3/31/96 +5.84 +5.84
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.67% +4.61%
Inception (10/21/94) through 3/31/96 +6.14 +5.41
Florida Limited Maturity
<PAGE>
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.60% +4.55%
Inception (11/26/93) through 3/31/96 +4.14 +3.70
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.23% +4.23%
Inception (11/26/93) through 3/31/96 +3.78 +3.78
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +4.39% +3.39%
Inception (10/21/94) through 3/31/96 +5.07 +5.07
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.50% +4.44%
Inception (10/21/94) through 3/31/96 +6.03 +5.29
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.10% +4.05%
Inception (11/26/93) through 3/31/96 +4.26 +3.81
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +4.72% +3.72%
Inception (11/26/93) through 3/31/96 +3.89 +3.89
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +4.94% +3.94%
Inception (10/21/94) through 3/31/96 +5.55 +5.55
<PAGE>
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.00% +3.95%
Inception (10/21/94) through 3/31/96 +5.64 +4.90
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.67% +4.61%
Inception (11/26/93) through 3/31/96 +4.14 +3.69
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.29% +4.29%
Inception (11/26/93) through 3/31/96 +3.77 +3.77
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.17% +4.17%
Inception (10/21/94) through 3/31/96 +5.56 +5.56
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.67% +4.61%
Inception (10/21/94) through 3/31/96 +6.01 +5.28
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.56% +4.50%
Inception (11/26/93) through 3/31/96 +4.61 +4.16
<PAGE>
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.19% +4.19%
Inception (11/26/93) through 3/31/96 +4.24 +4.24
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.13% +4.13%
Inception (10/21/94) through 3/31/96 -1.24 -1.24
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +5.45% +4.40%
Inception (10/21/94) through 3/31/96 +6.25 +5.52
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +6.37% +5.31%
Inception (11/26/93) through 3/31/96 +4.69 +4.25
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.99% +4.99%
Inception (11/26/93) through 3/31/96 +4.32 +4.32
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.97% +4.97%
Inception (10/21/94) through 3/31/96 +6.35 +6.35
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
<PAGE>
Year Ended 3/31/96 +6.27% +5.20%
Inception (10/21/94) through 3/31/96 +6.74 +6.00
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +6.02% +4.96%
Inception (11/26/93) through 3/31/96 +4.70 +4.26
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.65% +4.65%
Inception (11/26/93) through 3/31/96 +4.33 +4.33
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/96 +5.47% +4.47%
Inception (10/21/94) through 3/31/96 +5.99 +5.99
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/96 +6.02% +4.96%
Inception (10/21/94) through 3/31/96 +6.56 +5.82
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (concluded)
<PAGE>
<TABLE>
Recent
Performance
Results*
<CAPTION>
Standardized
12 Month 3 Month 30-day Yield
12 Month 3 Month Total Total As of
4/30/96 1/31/96 4/30/95 % Change % Change Return Return 4/30/96
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.09 $10.30 $10.05 +0.40% -2.04% +4.56%(1) -1.06%(2) 3.63%
Arizona Limited Maturity Class B Shares 10.09 10.30 10.05 +0.40 -2.04 +4.19(3) -1.15(4) 3.31
Arizona Limited Maturity Class C Shares 10.10 10.31 10.06 +0.40 -2.04 +4.09(5) -1.17(6) 3.51
Arizona Limited Maturity Class D Shares 10.09 10.31 10.06 +0.30 -2.13 +4.35(7) -1.18(8) 3.54
California Limited Maturity Class A Shares 9.99 10.20 9.88 +1.11 -2.06 +5.29(9) -1.12(10) 3.41
California Limited Maturity Class B Shares 9.99 10.20 9.88 +1.11 -2.06 +4.92(11) -1.21(12) 3.09
California Limited Maturity Class C Shares 9.99 10.20 9.88 +1.11 -2.06 +5.05(13) -1.21(12) 3.07
California Limited Maturity Class D Shares 9.99 10.20 9.88 +1.11 -2.06 +5.18(14) -1.14(15) 3.31
Florida Limited Maturity Class A Shares 9.95 10.18 9.88 +0.71 -2.26 +4.92(16) -1.29(17) 3.60
Florida Limited Maturity Class B Shares 9.95 10.18 9.88 +0.71 -2.26 +4.55(3) -1.38(6) 3.28
Florida Limited Maturity Class C Shares 9.90 10.12 9.87 +0.30 -2.17 +3.96(18) -1.32(19) 3.36
Florida Limited Maturity Class D Shares 9.95 10.17 9.87 +0.81 -2.16 +4.93(20) -1.22(10) 3.49
Massachusetts Limited Maturity Class A Shares 9.96 10.13 9.89 +0.71 -1.68 +4.92(21) -0.70(22) 3.75
Massachusetts Limited Maturity Class B Shares 9.96 10.13 9.89 +0.71 -1.68 +4.55(23) -0.79(24) 3.43
Massachusetts Limited Maturity Class C Shares 9.96 10.12 9.88 +0.81 -1.58 +4.87(25) -0.64(10) 3.64
Massachusetts Limited Maturity Class D Shares 9.96 10.12 9.88 +0.81 -1.58 +4.93(26) -0.62(27) 3.65
Michigan Limited Maturity Class A Shares 9.96 10.14 9.88 +0.81 -1.78 +5.09(28) -0.81(17) 3.71
Michigan Limited Maturity Class B Shares 9.96 10.14 9.88 +0.81 -1.78 +4.71(29) -0.90(30) 3.39
Michigan Limited Maturity Class C Shares 9.96 10.14 9.88 +0.81 -1.78 +4.60(31) -0.92(12) 3.08
Michigan Limited Maturity Class D Shares 9.96 10.13 9.87 +0.91 -1.68 +5.09(9) -0.73(10) 3.61
New Jersey Limited Maturity Class A Shares 10.10 10.31 10.00 +1.00 -2.04 +5.20(32) -1.07(22) 3.57
New Jersey Limited Maturity Class B Shares 10.11 10.32 10.01 +1.00 -2.03 +4.83(33) -1.15(24) 3.25
New Jersey Limited Maturity Class C Shares 9.15 9.34 9.06 +0.99 -2.03 +4.70(34) -1.12(35) 3.45
New Jersey Limited Maturity Class D Shares 10.10 10.32 10.01 +0.90 -2.13 +4.99(36) -1.19(8) 3.47
New York Limited Maturity Class A Shares 10.04 10.24 9.91 +1.31 -1.95 +5.82(37) -0.92(38) 3.97
New York Limited Maturity Class B Shares 10.04 10.24 9.91 +1.31 -1.95 +5.44(7) -1.01(27) 3.66
New York Limited Maturity Class C Shares 10.04 10.24 9.91 +1.31 -1.95 +5.56(32) -0.96(39) 3.85
New York Limited Maturity Class D Shares 10.04 10.25 9.91 +1.31 -2.05 +5.71(40) -1.04(41) 3.88
Pennsylvania Limited Maturity Class A Shares 10.11 10.31 9.97 +1.40 -1.94 +5.66(42) -0.98(17) 3.64
Pennsylvania Limited Maturity Class B Shares 10.11 10.31 9.97 +1.40 -1.94 +5.29(43) -1.07(6) 3.32
Pennsylvania Limited Maturity Class C Shares 10.09 10.29 9.97 +1.20 -1.94 +5.15(44) -1.03(45) 3.49
Pennsylvania Limited Maturity Class D Shares 10.12 10.32 9.97 +1.50 -1.94 +5.66(46) -1.00(27) 3.54
<PAGE>
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.414 per share
ordinary income dividends.
(2)Percent change includes reinvestment of $0.101 per share
ordinary income dividends.
(3)Percent change includes reinvestment of $0.377 per share
ordinary income dividends.
(4)Percent change includes reinvestment of $0.092 per share
ordinary income dividends.
(5)Percent change includes reinvestment of $0.368 per share
ordinary income dividends.
(6)Percent change includes reinvestment of $0.090 per share
ordinary income dividends.
(7)Percent change includes reinvestment of $0.404 per share
ordinary income dividends.
(8)Percent change includes reinvestment of $0.098 per share
ordinary income dividends.
(9)Percent change includes reinvestment of $0.407 per share
ordinary income dividends.
(10)Percent change includes reinvestment of $0.096 per share
ordinary income dividends.
(11)Percent change includes reinvestment of $0.372 per share
ordinary income dividends.
(12)Percent change includes reinvestment of $0.087 per share
ordinary income dividends.
(13)Percent change includes reinvestment of $0.385 per share
ordinary income dividends.
(14)Percent change includes reinvestment of $0.397 per share
ordinary income dividends.
(15)Percent change includes reinvestment of $0.093 per share
ordinary income dividends.
(16)Percent change includes reinvestment of $0.413 per share
ordinary income dividends.
(17)Percent change includes reinvestment of $0.099 per share
ordinary income dividends.
(18)Percent change includes reinvestment of $0.359 per share
ordinary income dividends.
(19)Percent change includes reinvestment of $0.086 per share
ordinary income dividends.
(20)Percent change includes reinvestment of $0.402 per share
ordinary income dividends.
(21)Percent change includes reinvestment of $0.411 per share
ordinary income dividends.
(22)Percent change includes reinvestment of $0.100 per share
ordinary income dividends.
(23)Percent change includes reinvestment of $0.375 per share
ordinary income dividends.
(24)Percent change includes reinvestment of $0.091 per share
ordinary income dividends.
(25)Percent change includes reinvestment of $0.396 per share
ordinary income dividends.
(26)Percent change includes reinvestment of $0.401 per share
ordinary income dividends.
(27)Percent change includes reinvestment of $0.097 per share
ordinary income dividends.
(28)Percent change includes reinvestment of $0.417 per share
ordinary income dividends.
(29)Percent change includes reinvestment of $0.381 per share
ordinary income dividends.
(30)Percent change includes reinvestment of $0.089 per share
ordinary income dividends.
(31)Percent change includes reinvestment of $0.370 per share
ordinary income dividends.
(32)Percent change includes reinvestment of $0.416 per share
ordinary income dividends.
(33)Percent change includes reinvestment of $0.380 per share
ordinary income dividends.
(34)Percent change includes reinvestment of $0.333 per share
ordinary income dividends.
(35)Percent change includes reinvestment of $0.085 per share
ordinary income dividends.
(36)Percent change includes reinvestment of $0.406 per share
ordinary income dividends.
(37)Percent change includes reinvestment of $0.440 per share
ordinary income dividends.
(38)Percent change includes reinvestment of $0.106 per share
ordinary income dividends.
(39)Percent change includes reinvestment of $0.102 per share
ordinary income dividends.
(40)Percent change includes reinvestment of $0.431 per share
ordinary income dividends.
(41)Percent change includes reinvestment of $0.104 per share
ordinary income dividends.
(42)Percent change includes reinvestment of $0.419 per share
ordinary income dividends.
(43)Percent change includes reinvestment of $0.383 per share
ordinary income dividends.
(44)Percent change includes reinvestment of $0.390 per share
ordinary income dividends.
(45)Percent change includes reinvestment of $0.095 per share
ordinary income dividends.
(46)Percent change includes reinvestment of $0.409 per share
ordinary income dividends.
</TABLE>
<PAGE>
PORTFOLIO COMPOSITION
For the Quarter Ended April 30, 1996
Arizona
Limited
Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 48.0%
General Obligations & Tax Revenue Bonds 41.0
Prerefunded Bonds** 11.0
------
Total 100.0%
======
Net assets as of April 30, 1996 were $5,735,608.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 40%
AA/Aa 44%
Other++ 16%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
<PAGE>
California
Limited
Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 80.2%
General Obligations & Tax Revenue Bonds 10.6
Prerefunded Bonds** 9.2
------
Total 100.0%
======
Net assets as of April 30, 1996 were $15,511,478.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 42%
AA/Aa 18%
A/A 18%
Other++ 22%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
Florida
Limited
Maturity
Municipal
Bond Fund
<PAGE>
Distribution by Market Sector*
Other Revenue Bonds 53.6%
Prerefunded Bonds** 25.4
General Obligations & Tax Revenue Bonds 21.0
------
Total 100.0%
======
Net assets as of April 30, 1996 were $29,952,492.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 55%
AA/Aa 16%
A/A 5%
BBB/Baa 5%
Other++ 19%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
Massachusetts
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
<PAGE>
Other Revenue Bonds 46.2%
General Obligations & Tax Revenue Bonds 34.7
Utility Revenue Bonds 12.3
Prerefunded Bonds** 6.8
------
Total 100.0%
======
Net assets as of April 30, 1996 were $7,518,019.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 42%
AA/Aa 4%
A/A 37%
Other++ 12%
NR++++ 5%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
++++Not Rated.
PORTFOLIO COMPOSITION (concluded)
For the Quarter Ended April 30, 1996
Michigan
Limited
Maturity
Municipal
Bond Fund
<PAGE>
Distribution by Market Sector*
Other Revenue Bonds 54.2%
General Obligations & Tax Revenue Bonds 30.5
Prerefunded Bonds* * 9.4
Utility Revenue Bonds 5.9
------
Total 100.0%
======
Net assets as of April 30, 1996 were $4,514,470.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 41%
AA/Aa 37%
A/A 6%
Other++ 16%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
New Jersey
Limited
Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 60.0%
General Obligations & Tax Revenue Bonds 40.0
------
Total 100.0%
======
Net assets as of April 30, 1996 were $9,429,346.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 45%
AA/Aa 25%
BAA1/Baa1 5%
Other++ 25%
<PAGE>
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
New York
Limited
Maturity
Municipal
Bond Fund
Distribution by Market Sector*
Other Revenue Bonds 53.1%
General Obligations & Tax Revenue Bonds 34.3
Prerefunded Bonds** 12.6
------
Total 100.0%
======
Net assets as of April 30, 1996 were $16,989,506.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 33%
AAA/Aa 27%
A/A 13%
BBB/Baa 6%
Other++ 21%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
For the Quarter Ended April 30, 1996
Pennsylvania
Limited Maturity
Municipal
Bond Fund
Distribution by Market Sector*
<PAGE>
Other Revenue Bonds 49.9%
General Obligations & Tax Revenue Bonds 33.4
Prerefunded Bonds** 16.7
------
Total 100.0%
======
Net assets as of April 30, 1996 were $8,357,859.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa 32%
AA/Aa 25%
A/A 21%
Other 22%
[FN]
*Based on total market value of the portfolio as of April 30, 1996.
**Backed by a Fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
