MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Annual Report
July 31, 1997
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
Lawrence A. Rogers, Secretary
Custodian
The Bank of New York
90 Washington Street, 12th Floor
New York, NY 10005
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
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.
Merrill Lynch Multi-State
Limited Maturity
Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS
The Municipal Market Environment
During the three months ended July 31, 1997, a number of very
favorable factors combined to push both tax-exempt and taxable bond
yields to recent historic lows. A slowing domestic economy, a
continued benign, if not improving, inflationary environment, a
declining Federal budget deficit with resultant reduced Treasury
borrowing needs, and a successful Congressional budget accord all
resulted in significant declines in fixed-income yields. By the end
of July, three-year US Treasury note yields declined approximately
62 basis points (0.62%) to 5.77%, their lowest level in almost a
year. Similarly, as measured by Municipal Market Data, three-year
municipal AAA general obligation bond yields fell over 60 basis
points to end the July 31, 1997 quarter at 4%, their lowest level of
the year.
The decline in tax-exempt bond yields in recent months was even more
impressive given that the municipal market has lost much of the
technical support it had enjoyed for over a year. In previous
quarters, new tax-exempt bond issuance declined or remained stable.
However, during the last three months of 1997, many municipal bond
issuers took this opportunity to both issue new debt and refinance
older, higher-couponed issues with lower-yielding issues. Consequently,
during the July quarter, new tax-exempt bond issuance totaled over
$54 billion, an increase of over 15% versus the July 31, 1996 quarter.
The decline in municipal bond yields has also resulted in some
reduction in retail investor demand. In earlier episodes of rapidly
declining interest rates, individual investor demand initially fell
until investors became more acclimated to the current levels. If
interest rates stabilize, we expect investor demand to return to
earlier levels. In addition, this past June and July, municipal bond
investors received over $50 billion in assets from coupon income
payments, bond maturities, and the proceeds from early bond
redemptions. Despite the continued allure of the US equity market,
most of these assets are expected to be reallocated to the municipal
bond market as investors adjust to the new investment environment.
Looking forward, given the extent of the recent bond market rally,
some retrenchment or at least a period of consolidation is likely.
However, the positive backdrop of modest economic growth and low
inflation suggests that any such adjustment is not likely to be
excessive. Despite recent increases in new bond issuance, supply for
all of 1997 is not expected to be materially different than earlier
estimates of approximately $175 billion. It is likely that the
recent increase in issuance has largely borrowed from that
originally scheduled for later this year. Additionally, any
significant increase in tax-exempt bond yields will prevent any
further bond refinancings, reducing future supply. Unless the
current positive economic fundamentals undergo immediate and
meaningful deterioration, any increase in municipal bond yields is
likely to be viewed as an opportunity to purchase more attractively
priced tax-exempt securities.
Fiscal Year in Review
Merrill Lynch Arizona Limited Maturity Municipal Bond Fund
During much of the fiscal year ended July 31, 1997, we maintained a
somewhat defensive strategy in response to concerns surrounding
Federal Reserve Board monetary policy. We maintained the Fund's
average portfolio maturity at just under 4 years for much of the
fiscal year, which benefited the Fund's total returns in the
favorable interest rate environment which characterized most of the
period. Because we had pursued a more aggressive stance in the
beginning of the Fund's fiscal year, we were able to maintain a core
position of higher-yielding securities which provided our
shareholders with a more attractive yield than a money market fund.
At the close of the year ended July 31, 1997, Merrill Lynch Arizona
Limited Maturity Municipal Bond Fund's net assets were $3.3 million.
During the July quarter, we maintained cash reserves of approximately
27% of net assets and an average portfolio maturity of about 3.5
years. We maintained a somewhat defensive posture during the July
quarter as we had in the first quarter of the year because it
appeared that the economy was operating at a strong pace and that
the Federal Reserve Board was likely to continue to raise interest
rates. We believed that securities in the two-year--ten-year range
would be most vulnerable to a move by the Federal Reserve Board.
At July 31, 1997, we began to extend our average portfolio maturity
and slowly decrease our cash reserves. While the future of interest
rates remains uncertain, the Fund's core composition leaves us well
positioned, in our view. We expect to maintain our current portfolio
strategy during upcoming months, continuing to reduce our cash
reserves as economic data indicate a more neutral Federal Reserve
Board policy.
Merrill Lynch California Limited
Maturity Municipal Bond Fund
During the Fund's fiscal year, we used periods of rising interest
rates as buying opportunities to lock in attractive yields.
Conversely, we used periods of falling interest rates to take
advantage of market strength and to book capital gains.
Additionally, quality spreads have narrowed so much, especially in
the last six months, that purchases were concentrated on higher-
rated securities since there was little yield advantage to
purchasing lower-rated issuers. This strategy served to enhance the
Fund's performance by enabling us to maintain a yield well above
that of similar tax-exempt money funds while keeping the net asset
values of the Fund as stable as possible, especially as compared to
longer-term bond funds.
During the quarter ended July 31, 1997, unemployment in the state of
California was below one million, its lowest level in seven years.
For example, the unemployment rate in May 1997 was 6.3%, down from
7.3% in May 1996. The California economy is stronger and more
balanced then ever, with less dependence on defense and aerospace.
Services and manufacturing were the leading sectors in job creation
during the last four quarters. Services relating to business, motion
pictures, television, engineering, management, amusement and
recreation added 207,000 new jobs and manufacturing relating to high
tech companies added another 43,000 new jobs. In 1997, non-farm
employment is projected to grow 3.7%, compared to 2.5% nationwide.
In 1996, personal income grew by more than $50 billion, or 6.5%. In
1997, California's personal income growth is projected to be 9.9%.
California is the nation's leading exporter, with total volume of
approximately $300 billion. Exports of California-made goods rose
more than 8% in 1997, nearly double the growth of exports
nationwide.
As of July 31, 1997, the state had not passed its budget. Revenues
are projected to be $960 million over budget plans this year.
Governor Wilson is also proposing a $1 billion income tax cut that
would begin in 1999 since the state's tax revenues have grown
considerably.
At the close of the year ended July 31, 1997, Merrill Lynch
California Limited Maturity Municipal Bond Fund's net assets stood
at approximately $14.1 million, a decrease of approximately 5% from
the April quarter. As we discussed in our April shareholder letter,
we expected to maintain a more aggressive investment posture in the
July quarter under the premise that growth in the second quarter
would slow considerably from the rapid first quarter pace. This
posture enhanced performance considerably as second quarter gross
domestic product slowed to 2.2% from 4.9% in the first quarter and
inflation as measured by the core producer price index and core
consumer price index declined. Five-year municipal bond yields
declined almost 65 basis points during this period.
We expect to maintain a less aggressive posture in the months ahead
as continued strong employment and personal income growth and a
reacceleration of consumer spending could raise some inflationary
concerns among investors. We will continue to monitor economic
statistics closely in an effort to seek to enhance return while
limiting any net asset value deterioration.
Merrill Lynch Florida Limited
Maturity Municipal Bond Fund
During the Fund's fiscal year, we used periods of rising interest
rates as buying opportunities to lock in attractive yields.
Conversely, we used periods of falling interest rates to take
advantage of market strength and to book capital gains.
Additionally, quality spreads have narrowed so much, especially in
the last six months, that purchases were concentrated on higher-
rated securities since there was little yield advantage to
purchasing lower-rated issuers. This strategy served to enhance the
Fund's performance by maintaining a yield well above that of similar
tax-exempt money funds, while at the same time keeping the net asset
values of the Fund as stable as possible, especially as compared to
longer-term bond funds.
During the quarter ended July 31, 1997, Governor Lawton Chiles
signed into law the state's $42.2 billion fiscal 1998 budget. During
the signing, the Governor chided state legislators for not making
available additional funds for building new schools. Children
between the ages of 5 and 17 years now account for 2.2 million, or
16%, of the state's population. That figure is expected to rise to
more than 2.5 million by the year 2000. The state's public school
system is growing by about 60,000 new students each year. This
rapidly growing group will require additional debt issuance in order
to have school facilities and programs maintained.
The state of Florida continues to show steady economic development,
transforming itself from a narrow-based economy of agricultural and
seasonal tourism into a service and trade economy with substantial
insurance, banking and export participation in addition to being a
year-round tourist attraction.
Fiscal results for 1996 and 1997 are shaping up as stronger than
expected. Sales tax growth in 1996 reached 7.4% compared to the 4%
growth rate assumed in the fiscal 1997 budget. According to the
state's economic reports, non-agricultural employment growth was
2.8% for the 12-month period ended March 31, 1997.
At the close of the year ended July 31, 1997, Merrill Lynch Florida
Limited Maturity Municipal Bond Fund's net assets stood at
approximately $25.7 million, an increase of approximately 8% from
the April quarter. As we discussed in our April shareholder letter,
we had expected to maintain a more aggressive investment posture in
the July quarter under the premise that growth in the second quarter
would slow considerably from the rapid first quarter pace. This
posture enhanced performance considerably as second quarter gross
domestic product slowed to 2.2% from 4.9% in the first quarter and
inflation as measured by the core producer price index and core
consumer price index declined. Five-year municipal bond yields
declined almost 65 basis points during this period.
We expect to maintain a less aggressive posture in the months ahead
as continued strong employment and personal income growth and a
reacceleration of consumer spending could raise some inflationary
concerns among investors. We will continue to monitor economic
statistics closely in an effort to seek to enhance return while
limiting any net asset value deterioration.
Merrill Lynch Massachusetts Limited
Maturity Municipal Bond Fund
During much of the Fund's fiscal year, we maintained the Fund's
average portfolio maturity in the 4-year--4.5-year range, with cash
reserves fluctuating between 7%--15% of net assets. We used periods
of rising interest rates as buying opportunities to lock in
attractive yields. We decreased the Fund's cash reserve position and
increased its average portfolio maturity during such periods of
rising interest rates. Conversely, we used periods of falling
interest rates to take advantage of market strength and to book
capital gains, increasing the Fund's cash reserve position and
decreasing its average portfolio maturity. Additionally, quality
spreads have narrowed so much, especially in the last six months,
that purchases were concentrated on higher-rated securities since
there was little yield advantage to purchasing lower-rated issuers.
This strategy served to enhance the Fund's performance by
maintaining a yield well above that of tax-exempt money funds, while
at the same time keeping the net asset value of the Fund as stable
as possible, especially as compared to longer-term bond funds.
During the July quarter, the economy of the commonwealth of
Massachusetts continued its trend of positive growth. This economic
growth has been broad-based, encompassing most major industries and
being fueled by three major growth industries. These industries were
the high tech, financial services and business services industries.
In addition, consumer confidence is at its highest level since the
early 1990s, while income growth is once again above the national
average. Strength in the housing sector has led to housing prices
registering new highs, especially around the Boston area. The one
caveat to this economic growth is that the Massachusetts economy is
becoming increasingly supply constrained. With unemployment levels
down to about 4%, labor shortages, which were once limited to highly
skilled occupations, are now being reported for unskilled occupations.
These labor shortages could be an obstacle to continued strong economic
growth in the future.
Governor Weld, who resigned his post as Governor to pursue an
ambassadorship to Mexico, signed his final budget during the July
31, 1997 quarter. The total 1998 fiscal budget amounted to $18.4
billion and represented the commonwealth's eighth consecutive
balanced budget. This 1998 fiscal budget increases spending by 3.8%
over last year's budget and includes increases of $259 million for
education reform, $288 million in aid to cities and towns, and about
$50 million for higher education. In addition, newly appointed
Governor Cellucci, recognizing the commonwealth's positive economic
situation, proposed a bill which would reduce personal income taxes
over four years to 5% from 5.95%.
Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund
During the Fund's fiscal year, we used periods of rising interest
rates as buying opportunities to lock in attractive yields.
Conversely, we used periods of falling interest rates to take
advantage of market strength and to book capital gains.
Additionally, quality spreads have narrowed so much, especially in
the last six months, that purchases were concentrated on higher-
rated securities since there was little yield advantage to
purchasing lower-rated issuers. This strategy served to enhance the
Fund's performance by maintaining a yield well above that of tax-
exempt money funds, while at the same time keeping the net asset
values of the Fund as stable as possible, especially as compared to
longer-term bond funds.
During the quarter ended July 31, 1997, Michigan's unemployment rate
fell to 4% in June and set another record for the lowest seasonally
adjusted unemployment rate since the Michigan Employment Security
Agency began taking estimates in 1970. Job gains were centered in
the service and goods producing sectors. Service employment moved up
by 36,000, mainly in response to seasonal gains in retail trade and
services following the arrival of warmer weather. Goods producing
jobs climbed by 23,000 as a result of seasonal growth in the
construction industry.
According to the August 1997 edition of World Trade, Detroit ranks
first among US cities in exporting. From 1993 to 1995, Detroit
experienced a surge in exporting of nearly 63%. This increase was
driven by the trade flow between Mexico, Canada and the United
States. Michigan was a major beneficiary of the North American Free
Trade Agreement.
During the July quarter, the Michigan Senate tried to pass a bill to
increase the state's gasoline tax by four cents a gallon in order to
raise $400 million for Michigan's aging roads and bridges. The bill
is still up for consideration.
At the close of the year ended July 31, 1997, Merrill Lynch Michigan
Limited Maturity Municipal Bond Fund's net assets stood at
approximately $4.3 million, a decrease of approximately 9% from the
April quarter. As we discussed in our April shareholder letter, we
maintained a maturity stance of approximately 4.3 years at the
outset of the July quarter under the premise that growth in the
second quarter would slow considerably from the rapid first quarter
pace. This positioning, as well as some cash outflows, helped us
move the Fund's maturity to a more aggressive 4.9 years in mid-May.
This posture enhanced performance considerably as second quarter
gross domestic product slowed to 2.2% from 4.9% in the first quarter
and inflation as measured by the core producer price index and core
consumer price index declined. Five-year municipal bond yields
declined almost 65 basis points during this period.
We expect to maintain a less aggressive posture in the upcoming
months as continued strong employment and personal income growth and
a reacceleration of consumer spending could raise some inflationary
concerns again in the marketplace. We will continue to monitor
economic statistics closely in an effort to seek to enhance return
while limiting any net asset value deterioration.
Merrill Lynch New Jersey Limited
Maturity Municipal Bond Fund
During much of the Fund's fiscal year, we maintained the Fund's
average portfolio maturity at close to 5 years, the maximum allowed
by the Fund's prospectus. This longer average portfolio maturity
benefited the Fund's total returns because demand for New Jersey
state-specific securities was strong. In addition, the short-term
nature of the Fund offered an attractive alternative to a long-term
bond fund without the same net asset value fluctuation. During the
same period, cash reserves fluctuated between approximately 15%--20%
of net assets. During much of the fiscal year, which was
characterized by a favorable interest rate environment, we
maintained the Fund's fully invested position, which contributed to
the Fund's positive investment results. Our aggressive posture at
the onset of the year provided the Fund with a core position of
higher-yielding securities which also aided the Fund's performance.
New Jersey Governor Christine Todd Whitman signed a $16.8 billion
budget for the fiscal year which began July 1, 1997, an increase of
5% as compared to last year's budget. Also during the three months
ended July 31, 1997, the state sold $2.75 billion in Federally
taxable pension bonds, the largest sale of long-term municipal debt.
Proceeds from the sale were used to shore up the state's underfunded
pension system. The state continues to see moderate economic growth,
and in June the unemployment rate was 5.5%. This compares to a
national rate of 4.8%. Since May 1992, New Jersey has recaptured 78%
of the jobs lost in the lows of the recession.
For much of the three-month period ended July 31, 1997, we
maintained cash reserves of approximately 23% of net assets and an
average portfolio maturity of about 3.5 years. We maintained a
defensive portfolio maturity strategy for most of the three-month
period in response to the uncertainty surrounding Federal Reserve
Board policy and the direction of short-term interest rates. In this
environment, we believed that the municipal market was most
vulnerable inside of ten years. In addition, demand for New Jersey
municipal securities resulting from coupon payments in tandem with
very little supply made New Jersey state-specific paper trade at
aggressive levels for most of the three months. At July 31, 1997, we
began to selectively extend the Fund's average portfolio maturity
with the purchase of AAA-rated securities which we expect to
outperform lesser-quality securities in turbulent markets.
Merrill Lynch New York Limited
Maturity Municipal Bond Fund
During the Fund's fiscal year, we used periods of rising interest
rates as buying opportunities to lock in attractive yields.
Conversely, we used periods of falling interest rates to take
advantage of market strength and to book capital gains.
Additionally, quality spreads have narrowed so much, especially in
the last six months, that purchases were concentrated on higher-
rated securities since there was little yield advantage to
purchasing lower-rated issuers. This strategy served to enhance the
Fund's performance by maintaining a yield well above that of similar
tax-exempt money funds, while at the same time keeping the net asset
values of the Fund as stable as possible, especially as compared to
longer-term bond funds.
During the quarter ended July 31, 1997, Governor Pataki and the
state legislature finally passed a $68 billion budget, 121 days over
the deadline. The budget included a $750 million increase in school
aid and $2.2 billion in homeowner tax cuts over five years. The
budget deal also seeks voter approval in November for a $2.4 billion
bond act to build and repair schools with large increases in state
budgets for additional construction over the next five years. On a
negative note, the budget plan increases spending, is 5% larger than
last year's budget and is $2 billion more than Governor Pataki
originally proposed. The budget continues to avoid the state's
structural fiscal shortcomings which have been glossed over by
rising personal income, strong tax receipts and the profits
generated by the strong stock market. The state continues to be
fiscally vulnerable to a dip in consumer spending and a slowdown in
economic performance.
According to a mid-year report on New York City's economy by State
Comptroller H. Carl McCall, personal income is on track to grow 6.6%
this year. The securities industry is likely to generate $8 billion
in profits for the city this year. Also, the city's real estate
market continued to recover and inflation grew just 2.1%, the
slowest first half pace since 1986.
At the close of the year ended July 31, 1997, Merrill Lynch New York
Limited Maturity Municipal Bond Fund's net assets stood at
approximately $14.6 million, a decrease of approximately 5% from the
April quarter. As we discussed in our April shareholder letter, we
had expected to maintain a more aggressive investment posture in the
July quarter under the premise that growth in the second quarter
would slow considerably from the rapid first quarter pace. This
posture enhanced performance considerably as second quarter gross
domestic product slowed to 2.2% from 4.9% in the first quarter and
inflation as measured by the core producer price index and core
consumer price index declined. Five-year municipal bond yields
declined almost 65 basis points during this period.
We expect to maintain a less aggressive posture in the months ahead
as continued strong employment and personal income growth and a
reacceleration of consumer spending could raise some inflationary
concerns among investors. We will continue to monitor economic
statistics closely in an effort to seek to enhance return while
limiting any net asset value deterioration.
Merrill Lynch Pennsylvania Limited
Maturity Municipal Bond Fund
During much of the fiscal year ended July 31, 1997, we maintained a
somewhat defensive strategy in response to concerns surrounding
Federal Reserve Board monetary policy. We maintained the Fund's
average portfolio maturity in the 3.5-year--4.0-year range for much
of the fiscal year which, together with a limited cash reserve
position of 13%--15% of net assets, benefited the Fund's total
returns in the favorable interest rate environment which
characterized most of the Fund's fiscal year. Our aggressive stance
in the beginning of the Fund's fiscal year provided us with a core
position of higher-yielding securities which provided our
shareholders with a more attractive yield than a money market fund.
During the three-month period ended July 31, 1997, the commonwealth
of Pennsylvania's legislature approved its $17 billion budget. The
budget included $167 million in tax cuts for businesses and an
increase of 3.7% in commonwealth spending as compared to last year.
Also during the three-month period, the Philadelphia Federal Reserve
Board reported that business activity in the region had risen to its
highest level in a year, signaling that manufacturing activity is
picking up. In addition, job growth in the construction and service
industries was strong.
During the July quarter, we maintained cash reserves of approximately
15% of net assets and an average portfolio maturity of 3.5 years.
We maintained a somewhat defensive average portfolio maturity during
the quarter because it appeared that the economy was continuing to
operate at a very strong pace and that the Federal Reserve Board was
likely to continue to raise short-term interest rates. Despite the
fact that the Federal Reserve Board did not raise interest rates,
the Fund's limited cash position aided its performance during the
period because of the limited availability of Pennsylvania
intermediate-term municipal bonds and because the Fund's aggressive
stance at the onset of the year provided the Fund with a core
position of higher-yielding securities. While the future direction
of interest rates remains uncertain, the composition of the Fund
leaves us positioned to perform well, in our view. We expect to
maintain our current strategy in the coming months.
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
(Helen M. Sheehan)
Helen M. Sheehan
Vice President and Portfolio Manager
September 9, 1997
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Trust 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. Figures shown in the "Average Annual Total
Return" tables assume reinvestment of all dividends and capital
gains distributions at net asset value on the payable date.
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.
<TABLE>
Recent
Performance
Results*
<CAPTION>
Standardized
12 Month 3 Month 30-day Yield
12 Month 3 Month Total Total As of
7/31/97 4/30/97 7/31/96 % Change % Change Return Return 7/31/97
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.17 $ 9.99 $10.08 +0.89% +1.80% +4.62%(1) +2.72%(2) 3.37%
Arizona Limited Maturity Class B Shares 10.17 9.99 10.08 +0.89 +1.80 +4.25(3) +2.63(4) 3.04
Arizona Limited Maturity Class C Shares 10.18 10.00 10.08 +0.99 +1.80 +4.55(5) +2.68(6) 3.22
Arizona Limited Maturity Class D Shares 10.18 10.00 10.08 +0.99 +1.80 +4.62(7) +2.70(8) 3.27
California Limited Maturity Class A Shares 10.22 9.98 10.05 +1.69 +2.40 +5.57(9) +3.42(10) 3.46
California Limited Maturity Class B Shares 10.21 9.98 10.04 +1.69 +2.30 +5.20(11) +3.23(12) 3.14
California Limited Maturity Class C Shares 10.22 9.98 10.05 +1.69 +2.40 +5.39(13) +3.37(14) 3.32
California Limited Maturity Class D Shares 10.22 9.98 10.05 +1.69 +2.40 +5.47(15) +3.39(16) 3.36
Florida Limited Maturity Class A Shares 10.07 9.86 9.96 +1.10 +2.13 +5.20(17) +3.15(10) 3.51
Florida Limited Maturity Class B Shares 10.07 9.86 9.96 +1.10 +2.13 +4.83(18) +3.06(12) 3.19
Florida Limited Maturity Class C Shares 10.00 9.80 9.90 +1.01 +2.04 +4.93(19) +3.02(20) 3.37
Florida Limited Maturity Class D Shares 10.06 9.86 9.95 +1.11 +2.03 +5.10(21) +3.02(22) 3.41
Massachusetts Limited Maturity Class A Shares 10.04 9.86 9.96 +0.80 +1.83 +4.86(23) +2.86(24) 3.59
Massachusetts Limited Maturity Class B Shares 10.04 9.87 9.96 +0.80 +1.72 +4.49(7) +2.66(2) 3.26
Massachusetts Limited Maturity Class C Shares 10.03 9.86 9.95 +0.80 +1.72 +4.70(19) +2.72(22) 3.47
Massachusetts Limited Maturity Class D Shares 10.04 9.86 9.96 +0.80 +1.83 +4.76(25) +2.84(26) 3.49
Michigan Limited Maturity Class A Shares 10.09 9.88 9.94 +1.51 +2.13 +5.61(27) +3.16(24) 3.62
Michigan Limited Maturity Class B Shares 10.09 9.88 9.94 +1.51 +2.13 +5.22(13) +3.06(2) 3.28
Michigan Limited Maturity Class C Shares 10.09 9.88 9.94 +1.51 +2.13 +5.22(28) +3.05(12) 3.12
Michigan Limited Maturity Class D Shares 10.08 9.87 9.94 +1.41 +2.13 +5.40(29) +3.14(22) 3.52
New Jersey Limited Maturity Class A Shares 10.14 10.00 10.11 +0.30 +1.40 +4.19(21) +2.30(12) 3.32
New Jersey Limited Maturity Class B Shares 10.15 10.01 10.11 +0.40 +1.40 +3.92(30) +2.21(31) 2.99
New Jersey Limited Maturity Class C Shares 9.19 9.06 9.16 +0.33 +1.43 +4.06(32) +2.30(33) 3.20
New Jersey Limited Maturity Class D Shares 10.15 10.00 10.11 +0.40 +1.50 +4.18(34) +2.38(35) 3.22
New York Limited Maturity Class A Shares 10.23 9.99 10.06 +1.69 +2.40 +6.09(36) +3.53(37) 3.86
New York Limited Maturity Class B Shares 10.23 9.99 10.06 +1.69 +2.40 +5.71(38) +3.43(39) 3.54
New York Limited Maturity Class C Shares 10.23 9.99 10.06 +1.69 +2.40 +5.91(40) +3.48(41) 3.72
New York Limited Maturity Class D Shares 10.23 9.99 10.06 +1.69 +2.40 +5.98(42) +3.50(43) 3.77
Pennsylvania Limited Maturity Class A Shares 10.23 10.07 10.11 +1.19 +1.59 +5.04(44) +2.56(16) 3.41
Pennsylvania Limited Maturity Class B Shares 10.23 10.07 10.11 +1.19 +1.59 +4.66(45) +2.47(6) 3.08
Pennsylvania Limited Maturity Class C Shares 10.27 10.11 10.15 +1.18 +1.58 +4.68(46) +2.48(8) 3.15
Pennsylvania Limited Maturity Class D Shares 10.24 10.07 10.11 +1.29 +1.69 +5.04(47) +2.64(20) 3.31
<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 $0.367 per share
ordinary income dividends.
(2)Percent change includes reinvestment of $0.091 per share
ordinary income dividends.
(3)Percent change includes reinvestment of $0.331 per share
ordinary income dividends.
(4)Percent change includes reinvestment of $0.082 per share
ordinary income dividends.
(5)Percent change includes reinvestment of $0.350 per share
ordinary income dividends.
(6)Percent change includes reinvestment of $0.087 per share
ordinary income dividends.
(7)Percent change includes reinvestment of $0.357 per share
ordinary income dividends.
(8)Percent change includes reinvestment of $0.089 per share
ordinary income dividends.
(9)Percent change includes reinvestment of $0.376 per share
ordinary income dividends.
(10)Percent change includes reinvestment of $0.099 per share
ordinary income dividends.
(11)Percent change includes reinvestment of $0.340 per share
ordinary income dividends.
(12)Percent change includes reinvestment of $0.090 per share
ordinary income dividends.
(13)Percent change includes reinvestment of $0.358 per share
ordinary income dividends.
(14)Percent change includes reinvestment of $0.095 per share
ordinary income dividends.
(15)Percent change includes reinvestment of $0.366 per share
ordinary income dividends.
(16)Percent change includes reinvestment of $0.096 per share
ordinary income dividends.
(17)Percent change includes reinvestment of $0.396 per share
ordinary income dividends.
(18)Percent change includes reinvestment of $0.360 per share
ordinary income dividends.
(19)Percent change includes reinvestment of $0.377 per share
ordinary income dividends.
(20)Percent change includes reinvestment of $0.094 per share
ordinary income dividends.
(21)Percent change includes reinvestment of $0.385 per share
ordinary income dividends.
(22)Percent change includes reinvestment of $0.097 per share
ordinary income dividends.
(23)Percent change includes reinvestment of $0.393 per share
ordinary income dividends.
(24)Percent change includes reinvestment of $0.100 per share
ordinary income dividends.
(25)Percent change includes reinvestment of $0.383 per share
ordinary income dividends.
(26)Percent change includes reinvestment of $0.098 per share
ordinary income dividends.
(27)Percent change includes reinvestment of $0.394 per share
ordinary income dividends.
(28)Percent change includes reinvestment of $0.359 per share
ordinary income dividends.
(29)Percent change includes reinvestment of $0.384 per share
ordinary income dividends.
(30)Percent change includes reinvestment of $0.349 per share
ordinary income dividends.
(31)Percent change includes reinvestment of $0.081 per share
ordinary income dividends.
(32)Percent change includes reinvestment of $0.335 per share
ordinary income dividends.
(33)Percent change includes reinvestment of $0.078 per share
ordinary income dividends.
(34)Percent change includes reinvestment of $0.375 per share
ordinary income dividends.
(35)Percent change includes reinvestment of $0.088 per share
ordinary income dividends.
(36)Percent change includes reinvestment of $0.427 per share
ordinary income dividends.
(37)Percent change includes reinvestment of $0.110 per share
ordinary income dividends.
(38)Percent change includes reinvestment of $0.391 per share
ordinary income dividends.
(39)Percent change includes reinvestment of $0.101 per share
ordinary income dividends.
(40)Percent change includes reinvestment of $0.410 per share
ordinary income dividends.
(41)Percent change includes reinvestment of $0.106 per share
ordinary income dividends.
(42)Percent change includes reinvestment of $0.417 per share
ordinary income dividends.
(43)Percent change includes reinvestment of $0.108 per share
ordinary income dividends.
(44)Percent change includes reinvestment of $0.379 per share
ordinary income dividends.
(45)Percent change includes reinvestment of $0.342 per share
ordinary income dividends.
(46)Percent change includes reinvestment of $0.346 per share
ordinary income dividends.
(47)Percent change includes reinvestment of $0.369 per share
ordinary income dividends.
</TABLE>
PERFORMANCE DATA (continued)
Arizona Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
Arizona Limited Maturity++--
Class A Shares* $ 9,900 $11,606
Arizona Limited Maturity++--
Class B Shares* $10,000 $11,571
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
Arizona Limited Maturity++--
Class C Shares* $10,000 $11,380
Arizona Limited Maturity++--
Class D Shares* $ 9,900 $11,350
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
Arizona Limited
Maturity
Average Annual
Total Return
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.16% +3.11%
Inception (11/26/93) through 6/30/97 +4.21 +3.92
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +3.78% +2.78%
Inception (11/26/93) through 6/30/97 +3.84 +3.84
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +3.98% +2.98%
Inception (10/21/94) through 6/30/97 +4.51 +4.51
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.05% +3.01%
Inception (10/21/94) through 6/30/97 +4.79 +4.40
[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.
California Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/25/93** 7/97
California Limited Maturity++--
Class A Shares* $ 9,900 $11,682
California Limited Maturity++--
Class B Shares* $10,000 $11,636
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
California Limited Maturity++--
Class C Shares* $10,000 $11,614
California Limited Maturity++--
Class D Shares* $ 9,900 $11,545
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
California Limited
Maturity
Average Annual
Total Return
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +5.13% +4.08%
Inception (11/26/93) through 6/30/97 +4.31 +4.02
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.66% +3.66%
Inception (11/26/93) through 6/30/97 +3.91 +3.91
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.96% +3.96%
Inception (10/21/94) through 6/30/97 +5.17 +5.17
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +5.03% +3.98%
Inception (10/21/94) through 6/30/97 +5.33 +4.94
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (continued)
Florida Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
Florida Limited Maturity++--
Class A Shares* $ 9,900 $11,554
Florida Limited Maturity++--
Class B Shares* $10,000 $11,521
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
Florida Limited Maturity++--
Class C Shares* $10,000 $11,360
Florida Limited Maturity++--
Class D Shares* $ 9,900 $11,406
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
Florida Limited
Maturity
Average Annual
Total Return
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.79% +3.74%
Inception (11/26/93) through 6/30/97 +4.04 +3.75
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.42% +3.42%
Inception (11/26/93) through 6/30/97 +3.67 +3.67
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.62% +3.62%
Inception (10/21/94) through 6/30/97 +4.42 +4.42
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.68% +3.64%
Inception (10/21/94) through 6/30/97 +4.97 +4.58
[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.
Massachusetts Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
Massachusetts Limited Maturity++--
Class A Shares* $ 9,900 $11,550
Massachusetts Limited Maturity++--
Class B Shares* $10,000 $11,514
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
Massachusetts Limited Maturity++--
Class C Shares* $10,000 $11,413
Massachusetts Limited Maturity++--
Class D Shares* $ 9,900 $11,332
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
Massachusetts
Limited Maturity
Average Annual
Total Return
Massachusetts Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.53% +3.48%
Inception (11/26/93) through 6/30/97 +4.08 +3.79
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.15% +3.15%
Inception (11/26/93) through 6/30/97 +3.71 +3.71
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.37% +3.37%
Inception (10/21/94) through 6/30/97 +4.63 +4.63
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.32% +3.28%
Inception (10/21/94) through 6/30/97 +4.71 +4.32
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (continued)
Michigan Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
Michigan Limited Maturity++--
Class A Shares* $ 9,900 $11,592
Michigan Limited Maturity++--
Class B Shares* $10,000 $11,553
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
Michigan Limited Maturity++--
Class C Shares* $10,000 $11,445
Michigan Limited Maturity++--
Class D Shares* $ 9,900 $11,441
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
Michigan Limited
Maturity
Average Annual
Total Return
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.87% +3.82%
Inception (11/26/93) through 6/30/97 +4.10 +3.81
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.49% +3.49%
Inception (11/26/93) through 6/30/97 +3.72 +3.72
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.50% +3.50%
Inception (10/21/94) through 6/30/97 +4.64 +4.64
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.77% +3.72%
Inception (10/21/94) through 6/30/97 +5.00 +4.61
[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.
New Jersey
Limited Maturity
Total Return
Based on a $10,000
Investment
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 U1AO Index. Beginning and ending values are:
11/26/93** 7/97
New Jersey Limited Maturity++--
Class A Shares* $ 9,900 $11,581
New Jersey Limited Maturity++--
Class B Shares* $10,000 $11,556
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
New Jersey Limited Maturity++--
Class C Shares* $10,000 $10,313
New Jersey Limited Maturity++--
Class D Shares* $ 9,900 $11,368
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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 Jersey
Limited Maturity
Average Annual
Total Return
New Jersey Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.12% +3.08%
Inception (11/26/93) through 6/30/97 +4.20 +3.91
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +3.75% +2.75%
Inception (11/26/93) through 6/30/97 +3.83 +3.83
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +3.98% +2.98%
Inception (10/21/94) through 6/30/97 +0.80 +0.80
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.02% +2.98%
Inception (10/21/94) through 6/30/97 +4.89 +4.50
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
PERFORMANCE DATA (concluded)
New York Limited
Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
New York Limited Maturity++--
Class A Shares* $ 9,900 $11,820
New York Limited Maturity++--
Class B Shares* $10,000 $11,784
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
New York Limited Maturity++--
Class C Shares* $10,000 $11,703
New York Limited Maturity++--
Class D Shares* $ 9,900 $11,646
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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.
New York Limited
Maturity
Average Annual
Total Return
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +5.25% +4.20%
Inception (11/26/93) through 6/30/97 +4.61 +4.32
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.87% +3.87%
Inception (11/26/93) through 6/30/97 +4.24 +4.24
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +5.07% +4.07%
Inception (10/21/94) through 6/30/97 +5.42 +5.42
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +5.14% +4.09%
Inception (10/21/94) through 6/30/97 +5.66 +5.27
[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.
Pennsylvania
Limited Maturity
Total Return
Based on a $10,000
Investment
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the ML U1AO Index. Beginning and ending values are:
11/26/93** 7/97
Pennsylvania Limited Maturity++--
Class A Shares* $ 9,900 $11,684
Pennsylvania Limited Maturity++--
Class B Shares* $10,000 $11,648
Merrill Lynch U1AO Index++++ $10,000 $11,721
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 U1AO Index. Beginning and ending values are:
10/21/94** 7/97
Pennsylvania Limited Maturity++--
Class C Shares* $10,000 $11,536
Pennsylvania Limited Maturity++--
Class D Shares* $ 9,900 $11,482
Merrill Lynch U1AO Index++++ $10,000 $11,478
[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 Commonwealth 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.
Pennsylvania
Limited Maturity
Average Annual
Total Return
Pennsylvania Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.63% +3.58%
Inception (11/26/93) through 6/30/97 +4.43 +4.14
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.25% +3.25%
Inception (11/26/93) through 6/30/97 +4.05 +4.05
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 6/30/97 +4.27% +3.27%
Inception (10/21/94) through 6/30/97 +5.07 +5.07
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 6/30/97 +4.42% +3.38%
Inception (10/21/94) through 6/30/97 +5.24 +4.84
[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.
Portfolio
Abbreviations
To simplify the listings of Merrill Lynch Multi-State Limited
Maturity Municipal Series Trust's portfolio holdings in the Schedule
of Investments, we have abbreviated the names of many of the
securities according to the list at right.
ACES SM Adjustable Convertible Extendable
Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue AnticipationNotes
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--87.1% A-1 P1 $ 100 Apache County, Arizona, IDA, IDR (Tucson Electric Power--
Springerville Project), VRDN, Series C, 3.75% due 12/15/2018 (a) $ 100
A1+ VMIG1++ 100 Arizona Health Facilities Authority Revenue Bonds (Arizona
Voluntary Hospital Federation), VRDN, Series B, 3.70% due
10/01/2015 (a)(c) 100
AAA Aaa 200 Arizona State Transportation Board, Excise Tax Revenue Bonds
(Maricopa County Regional Area Roads), Series A, 5.75% due
7/01/2004 (b) 217
NR* Aaa 100 Arizona Water Infrastructure, Finance Authority Revenue Bonds
(Water Quality Financial Assistance), Series A, 4.50% due
7/01/2003 (d) 101
AA- A1 200 Central Arizona Water Conservation District, Contract Revenue
Bonds (Central Arizona Project), Series B, 6.50% due 5/01/2001 (e) 220
NR* VMIG1++ 120 Chandler, Arizona, IDA, IDR, Refunding (SMP II, LP), VRDN, 3.50%
due 12/01/2015 (a) 120
A1+ P1 100 Maricopa County, Arizona, Pollution Control Corporation, PCR,
Refunding (Arizona Public Service Company), VRDN, Series B, 3.55%
due 5/01/2029 (a) 100
AAA Aaa 480 Phoenix, Arizona, Airport Revenue Refunding Bonds, AMT, Series C,
5.70% due 7/01/2003 (d) 512
AA- Aa 200 Phoenix, Arizona, Civic Improvement Corporation, Water System
Revenue Bonds, Junior Lien, 5% due 7/01/2006 208
AA+ Aa1 250 Phoenix, Arizona, Refunding, UT, 5.70% due 7/01/1999 258
A+ Aa 200 Pima County, Arizona, Refunding, Series A, 5.60% due 7/01/1999 206
AAA Aaa 200 Pima County, Arizona, Sewer Revenue Bonds, 6.20% due 7/01/2002
(b)(e) 220
A1+ P1 100 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining
Corporation), VRDN, 3.70% due 12/01/2009 (a) 100
A1+ NR* 100 Tempe, Arizona, IDA, M/F Revenue Bonds (Elliots Crossing), VRDN,
3.754% due 10/01/2008 (a) 100
A+ A1 150 Tucson, Arizona, Street and Highway User Revenue Refunding Bonds,
5.90% due 7/01/2003 163
AAA Aaa 200 Yuma County, Arizona, Jail District Revenue Bonds, 4.30% due
7/01/1999 (b) 201
Puerto Rico-- A1+ VMIG1++ 100 Puerto Rico Commonwealth, Government Development Bank, Refunding,
3.0% VRDN, 3.25% due 12/01/2015 (a) 100
Total Investments (Cost--$2,939)--90.1% 3,026
Other Assets Less Liabilities--9.9% 331
-------
Net Assets--100.0% $ 3,357
=======
<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, 1997.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte &
Touche LLP.
See Notes to Financial Statements.
<CAPTION>
California Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
California--97.0% NR* A1 $ 500 California Educational Facilities Authority, Revenue Refunding
Bonds (Loyola Marymount University), 5.70% due 10/01/2002 $ 537
AAA Aaa 500 California Health Facilities Financing Authority, Revenue
Refunding Bonds (Catholic Healthcare West), Series A, 5.30% due
7/01/2003 (d) 528
A-1 VMIG1++ 200 California Pollution Control Financing Authority, Resource
Recovery Revenue Bonds (Atlantic Richfield Company Project), VRDN,
AMT, Series A, 3.55% due 12/01/2024 (a) 200
AA Aaa 500 California State Department of Water Resources, Water System
Revenue Bonds (Central Valley Project), Series I, 6.95% due
6/01/2000 (e) 547
California State, GO, UT:
A+ A1 750 6.75% due 10/01/2003 855
AAA Aaa 750 6.35% due 11/01/2004 (b) 848
California State Public Works Board, Lease Revenue Bonds,
Series A (e):
AAA Aaa 600 (Department of Corrections--State Prison/Central California
Women's Facility, Madera County), 7% due 9/01/2000 664
AAA Aaa 500 (Various University of California Projects), 6.40% due
12/01/2002 (d) 564
AAA Aaa 500 California Statewide Communities Development Authority, Lease
Revenue Refunding Bonds (Oakland Convention Center Project),
5.70% due 10/01/2002 (d) 537
NR* Aa2 100 California Statewide Communities Development Authority, Solid Waste
Facilities Revenue Bonds (Chevron U.S.A. Inc. Project), VRDN, AMT,
3.50% due 12/15/2024 (a) 100
AAA Aaa 500 Contra Costa, California, Transportation Authority, Sales Tax
Revenue Bonds, Series A, 6% due 3/01/2007 (b) 561
A+ NR* 700 East Bay, California, Municipal Utility District, Water System
Revenue Bonds, Sub-Series, 7.40% due 6/01/2000 (e) 776
AAA Aaa 200 Los Angeles, California, Department of Airports, Airport Revenue
Refunding Bonds, Series A, 6% due 5/15/2005 (b) 222
A+ Aa3 650 Los Angeles, California, Department of Water and Power, Electric
Plant Revenue Bonds, 6% due 4/01/2002 702
Los Angeles, California, Harbor Department Revenue Bonds, AMT,
Series B:
AA Aa3 275 6% due 8/01/2000 289
AA Aa3 295 6% due 8/01/2001 314
AA Aa3 500 6% due 8/01/2004 542
Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Bonds (Proposition C--Second Senior):
A1+ VMIG1++ 200 Refunding, VRDN, Series A, 3.35% due 7/01/2020 (a)(c) 200
AAA Aaa 400 Series B, 8% due 7/01/2003 (d) 478
AA- Aa1 1,000 Los Angeles County, California, Public Works Financing Authority,
Revenue Refunding Bonds (Capital Construction), 4.80% due 3/01/2004 1,025
AA Aa 700 Metropolitan Water District, Southern California, Waterworks Revenue
Bonds, 5.60% due 7/01/2006 747
AAA Aaa 700 San Francisco, California, City and County Sewer Revenue Bonds,
Series A, 5.375% due 10/01/1999 (b) 722
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) 529
SP1+ MIG1++ 600 Santa Clara County, California, TRAN, 4.75% due 10/01/1998 606
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multi-Purpose
Projects), Series C, 10% due 9/01/2001 (d) 610
Puerto Rico-- A1+ VMIG1++ 200 Puerto Rico Commonwealth, Government Development Bank, Refunding,
1.4% VRDN, 3.25% due 12/01/2015 (a) 200
Total Investments (Cost--$13,139)--98.4% 13,903
Other Assets Less Liabilities--1.6% 226
-------
Net Assets--100.0% $14,129
=======
<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, 1997.
(b)FGIC Insured.
(c)MBIA Insured.
(d)AMBAC Insured.
(e)Prerefunded.
*Not Rated.
++Highest short-term ratings by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<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--95.5% AAA Aaa $ 1,000 Broward County, Florida, School District, UT, 7.125% due
2/15/1999 (f) $ 1,066
Dade County, Florida, Aviation Revenue Refunding Bonds,
Series A (b):
AAA Aaa 300 5.60% due 10/01/2004 323
AAA Aaa 1,000 AMT, 5.25% due 10/01/1997 1,002
AA- VMIG1++ 400 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding
Bonds (Florida Power and Light Company), VRDN, 3.60% due
6/01/2021 (a) 400
AAA Aaa 1,000 Dade County, Florida, School District, UT, 5.75% due 8/01/2001 (c) 1,060
AAA Aaa 1,185 Dunedin, Florida, Hospital Revenue Bonds (Mease Health Care),
6.75% due 11/15/2001 (d)(f) 1,327
Florida State Board of Education, Capital Outlay (Public
Education):
AA+ Aa2 850 Refunding, 5.50% due 6/01/2001 893
AAA Aaa 1,000 Refunding, Series A, 7.25% due 6/01/2000 (f) 1,103
AA+ Aa2 1,000 Series B, 5.625% due 6/01/2005 1,082
AAA Aaa 800 Florida State Board of Regents, University System Improvement
Revenue Bonds, 7% due 7/01/2004 (d) 927
AAA Aaa 580 Florida State Department of Transportation Revenue Bonds (Alligator
Alley), 6.25% due 7/01/2007 (c) 660
Florida State Division, Bond Finance Department, General Services
Revenue Bonds (Department of Natural Resources), Series A:
AAA Aaa 1,900 (Preservation 2000), 6.40% due 7/01/2002 (b) 2,084
AAA Aaa 1,730 Refunding (Save Our Coast), 6.30% due 7/01/2004 (d) 1,864
A A3 100 Hillsborough County, Florida, Capital Improvement Revenue Bonds
(County Center Project), Second Series, 6.75% due 7/01/2002 (f) 113
Jacksonville, Florida, Electric Authority, Revenue Refunding Bonds
(Saint John's River), Issue 2:
AA Aa1 1,000 Series 6-C, 6.50% due 10/01/2001 1,086
AA Aa1 1,000 (Special Obligation), Series 6-B, 6.65% due 10/01/2002 1,087
AAA Aaa 1,000 Jacksonville, Florida, Excise Taxes Revenue Bonds, AMT, Series B,
5.20% due 10/01/2004 (c) 1,037
NR* VMIG1++ 900 Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Genesis Rehabilitation Hospital), VRDN,
3.65% due 5/01/2021 (a) 900
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) 1,317
AA- Aaa 1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue
Bonds, Series A, 6.50% due 10/01/2001 (f) 1,109
AAA Aaa 1,000 Palm Bay, Florida, Utility Revenue Bonds (Palm Bay Utility
Corporation Project), Series B, 6.20% due 10/01/2002 (d)(f) 1,109
NR* Baa1 1,360 Pembroke Pines, Florida, Special Assessment No. 94-1, 4.80% due
11/01/1998 1,372
A1+ VMIG1++ 200 Saint Lucie County, Florida, PCR, Refunding (Florida Power and
Light Company Project), VRDN, 3.55% due 1/01/2026 (a) 200
AAA Aaa 1,235 Saint Lucie County, Florida, School Board, COP, Series A, 7.25%
due 7/01/2000 (b)(f) 1,366
Puerto Rico--4.1% A Baa1 1,000 Puerto Rico Commonwealth, Refunding, Improvement Bonds, UT, 5.30%
due 7/01/2004 1,045
Total Investments (Cost--$24,755)--99.6% 25,532
Other Assets Less Liabilities--0.4% 98
-------
Net Assets--100.0% $25,630
=======
<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, 1997.
(b)AMBAC Insured.
(c)FGIC Insured.
(d)MBIA Insured.
(e)FSA Insured.
(f)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte &
Touche LLP.
See Notes to Financial Statements.
<CAPTION>
Massachusetts Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Massachusetts-- NR* A1 $ 285 Boston, Massachusetts, Economic Development and Industrial
95.3% Corporation, Public Parking Facility, Series 1990,
5% due 7/01/2015 $ 290
AAA Aaa 250 Boston, Massachusetts, GO, UT, Series A, 5% due 11/01/2004 (e) 259
AAA Aaa 300 Chelsea, Massachusetts, School Project Loan Act of 1948, UT, 6%
due 6/15/2002 (b) 323
AAA Aaa 215 Fall River, Massachusetts, GO, 6.30% due 6/01/1998 (d) 219
NR* Aa3 225 Framingham, Massachusetts, GO, 4.50% due 7/15/2005 227
AAA Aaa 200 Lynn, Massachusetts, Water and Sewer Commission, Refunding, 4.95%
due 12/01/2002 (e) 206
A+ A1 100 Massachusetts Bay Transportation Authority, Massachusetts General
Transportation System, Series A, 4.90% due 3/01/2004 102
AAA Aaa 250 Massachusetts Education Loan Authority, Education Loan Revenue
Refunding Bonds, AMT, Issue E, Series B, 5.50% due 7/01/2001 (b) 261
A+ A1 750 Massachusetts State, GO, Refunding, Series B, 6.25% due 8/01/2001 806
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
A1+ VMIG1++ 200 (Capital Asset Program), VRDN, Series B, 3.45% due 7/01/2005
(a)(d) 200
A1+ VMIG1++ 100 (Capital Asset Program), VRDN, Series C, 3.50% due 7/01/2005
(a)(d) 100
AAA Aaa 200 Refunding (Baystate Medical Center), Series D, 4.60% due
7/01/2002 (e) 202
NR* MIG1++ 100 Massachusetts State Industrial Finance Agency, Health Care Facility
Revenue Bonds (Beverly Enterprises--DEDHM), VRDN, 3.65% due
4/01/2009 (a) 100
AAA Aaa 200 Massachusetts State Industrial Finance Agency, Revenue Refunding
Bonds (Worcester Polytechnic), Series II, 4.50% due 9/01/2002 (d) 202
AA A1 300 Massachusetts State Special Obligation Revenue Bonds (Highway
Improvement Loan), Series A, 5.90% due 6/01/2001 318
AAA Aaa 250 Massachusetts State Water Resource Authority, Series A, 6.75% due
7/15/2002 (c) 282
NR* Aaa 150 Nantucket, Massachusetts, GO, 5.75% due 7/15/2005 (d) 163
NR* A1 500 New England Education Loan Marketing Corporation, Massachusetts
Student Loan Revenue Bonds, AMT, Sub-Issue F, 6.60% due 9/01/2002 536
AA Aa1 100 Peabody, Massachusetts, GO, Series A, 4.50% due 8/01/2000 101
Puerto Rico--5.4% A Baa1 250 Puerto Rico Public Buildings Authority, Guaranteed Public Education
and Health Facilities, Refunding, Series K, 6.60% due 7/01/2004 276
Total Investments (Cost--$5,006)--100.7% 5,173
Liabilities in Excess of Other Assets--(0.7%) (37)
-------
Net Assets--100.0% $ 5,136
=======
<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, 1997.
(b)AMBAC Insured.
(c)Prerefunded.
(d)MBIA Insured.
(e)FGIC Insured.
*Not Rated.
++Highest short-term ratings by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (In Thousands)
<CAPTION>
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--91.5% AAA Aaa $ 200 Anchor Bay, Michigan, School District, UT, 6.30% due 5/01/2004 (c) $ 222
AA Aa2 110 Ann Arbor, Michigan, School District, Public Schools, Refunding,
UT, 4.75% due 5/01/2000 112
AAA Aaa 105 Chelsea, Michigan, School District, UT, 6.75% due 5/01/2002 (b) 116
AAA Aaa 150 Chippewa Valley, Michigan, Schools, Refunding, UT, 4.90% due
5/01/2004 (b) 154
AAA Aaa 250 Dearborn, Michigan, Economic Development Corporation, Hospital
Revenue Bonds (Oakwood Obligated Group), Series A, 6.95% due
8/15/2001 (c)(d) 280
AAA Aaa 200 Detroit, Michigan, Refunding (Distributable State Aid), UT, 5.70%
due 5/01/2001 (a) 210
AAA Aaa 250 Detroit, Michigan, Water Supply System, Revenue Refunding Bonds,
6.20% due 7/01/2004 (b) 274
AAA Aaa 200 Eastern Michigan University, General Revenue Refunding Bonds,
5.40% due 6/01/1998 (a) 203
AAA Aaa 200 Gull Lake, Michigan, Community School District, GO, UT, 6.80%
due 5/01/2001 (b)(d) 222
Michigan Municipal Bond Authority Revenue Bonds:
AAA Aaa 200 (Local Government Loan Program), Series C, 5.50% due
5/01/2003 (c) 212
AA Aa2 450 Refunding (Local Government--Qualified School), Series A, 6%
due 5/01/2001 478
AA+ Aa1 200 (State Revolving Fund), 7% due 10/01/2004 (e) 231
AA- A1 200 Michigan State Building Authority, Revenue Refunding Bonds,
Series I, 6.40% due 10/01/2004 218
AA- A1 200 Michigan State Comprehensive Transportation, Revenue Refunding
Bonds, Series B, 5.625% due 5/15/2003 213
NR* Aaa 100 Michigan State Hospital Finance Authority Revenue Bonds (McLaren
Obligated Group), Series A, 7.50% due 9/15/2001 (d) 114
AA Aa2 200 Michigan State Recreation Program, GO, 6% due 11/01/2004 219
AAA Aaa 160 Michigan State, Underground Storage Tank Financial Assurance
Authority, Revenue Refunding Bonds, Series I, 6% due 5/01/2004 (a) 175
AAA Aaa 235 Royal Oak, Michigan, Refunding, UT, 4% due 10/01/1997 (a) 235
Puerto Rico--5.3% AAA Aaa 200 Puerto Rico Public Buildings Authority, Guaranteed Public
Education and Health Facilities, Series L, 6.875% due
7/01/2002 (d) 227
Total Investments (Cost--$3,953)--96.8% 4,115
Other Assets Less Liabilities--3.2% 136
-------
Net Assets--100.0% $ 4,251
=======
<FN>
(a)AMBAC Insured.
(b)FGIC Insured.
(c)MBIA Insured.
(d)Prerefunded.
(e)Escrowed to maturity.
*Not Rated.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
<CAPTION>
New Jersey Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New Jersey-- NR* Aaa $ 300 Bergen County, New Jersey, General Improvement Bonds, UT, 5.20%
105.5% due 10/01/1999 $ 308
NR* NR* 400 East Orange, New Jersey, BAN (Water and Sewer), GO, UT, 4.75% due
8/28/1997 400
AAA Aaa 600 Elizabeth, New Jersey, General Improvement and Sewer Utility,
Refunding, GO, UT, 6% due 8/15/2004 (b) 659
SP1+ VMIG1++ 300 Mercer County, New Jersey, Improvement Authority Revenue Bonds,
VRDN, 3.35% due 11/01/1998 (a) 300
AA+ Aaa 400 Monmouth County, New Jersey, General Improvement Bonds, GO, UT,
6.625% due 8/01/2000 419
AAA Aaa 300 Morris County, New Jersey, General Improvement Bonds, GO, 4.625%
due 8/15/2003 307
NR* NR* 195 New Brunswick, New Jersey, Temporary Notes, UT, 4% due 12/09/1997 195
AAA Aaa 1,000 New Jersey EDA, Market Transition Facility Revenue Bonds, Senior
Lien, Series A, 7% due 7/01/2004 (c) 1,148
A1+ VMIG1++ 300 New Jersey EDA, Natural Gas Facilities Revenue Bonds (NUI
Corporation Project), VRDN, AMT, Series A, 3.30% due 6/01/2026
(a)(b) 300
A1+ Aaa 200 New Jersey EDA, Water Facilities Revenue Refunding Bonds (United
Water of New Jersey, Inc. Project), VRDN, AMT, Series A, 3% due
11/01/2026 (a)(b) 200
A1+ VMIG1++ 200 New Jersey Sports and Exposition Authority Revenue Bonds (State
Contract), VRDN, Series C, 3.45% due 9/01/2024 (a)(c) 200
AAA Aaa 300 New Jersey State Educational Facilities Authority Revenue Bonds
(Princeton University), Series E, 4.05% due 7/01/2000 301
NR* Aaa 200 New Jersey State Transportation Trust Fund Authority (Trans-
portation System), Series A, 5.40% due 12/15/2002 (e) 212
AAA VMIG1++ 300 New Jersey State Turnpike Authority, Turnpike Revenue Refunding
Bonds, VRDN, Series D, 3.30% due 1/01/2018 (a)(d) 300
NR* Aa2 400 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue
Bonds, Series A, 6.125% due 1/01/2003 436
A1+ VMIG1++ 300 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN, Series 3,
3.55% due 6/01/2020 (a) 300
AAA Aaa 125 Somerset County, New Jersey, GO, UT, 5.875% due 12/01/2001 134
A1+ P1 200 Union County, New Jersey, Industrial Pollution Control Financing
Authority, Refunding (Exxon Project), 3.10% due 10/01/2024 200
AA+ Aaa 340 Union County, New Jersey, Refunding, GO, UT, 5.875% due 3/01/1999 350
Total Investments (Cost--$6,483)--105.5% 6,669
Liabilities in Excess of Other Assets--(5.5%) (346)
-------
Net Assets--100.0% $ 6,323
=======
<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, 1997.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)FGIC Insured.
(e)Escrowed to maturity.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<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--98.5% AAA Aaa $ 600 Clifton Park, New York, Water Authority, Water System Revenue
Bonds, Series A, 6.375% due 10/01/2002 (b)(c) $ 671
Nassau County, New York, General Improvement Bonds, UT (c):
AAA Aaa 400 Series O, 5.625% due 8/01/2004 430
AAA Aaa 700 Series Q, 5.10% due 8/01/2003 729
AAA Aaa 750 New York City, New York, IDA, Civic Facilities Revenue Bonds
(USTA National Tennis Center Project), 6% due 11/15/2003 (d) 819
AA Aa2 800 New York City, New York, Municipal Assistance Corporation, Series
68, 7.10% due 7/01/2000 860
New York City, New York, Municipal Water Finance Authority, Water
and Sewer System Revenue Bonds, VRDN (a)(c):
A1+ VMIG1++ 600 Series A, 3.60% due 6/15/2025 600
A1+ VMIG1++ 100 Series G, 3.65% due 6/15/2024 100
BBB+ Baa1 610 New York City, New York, Refunding, UT, Series A, 6% due 8/01/2000 641
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 500 (College and University Education Loans), AMT, 6.30% due
7/01/2002 (e) 547
AA Aa 700 Refunding (Cornell University), 5% due 7/01/2005 732
A- Aa 400 New York State Environmental Facilities Corporation, PCR, State
Water Revolving Fund (New York City Municipal Water Finance
Authority Project), Series E, 5.60% due 6/15/1999 412
A- A2 600 New York State Environmental Quality, GO, 6% due 12/01/2004 658
New York State, GO:
A- A2 505 6% due 7/15/2006 559
A- A2 735 Refunding, Series B, 6.25% due 8/15/2004 815
New York State Local Government Assistance Corporation (b):
A A3 625 Series A, 7% due 4/01/2001 698
AAA Aaa 600 Series D, 7% due 4/01/2002 682
New York State Medical Care Facilities Finance Agency, Revenue
Bonds, Series A:
AAA Aaa 725 (Mental Health Services Facilities), 7.75% due 2/15/2001 (b) 825
AA Aa 650 (Secured Mortgage Program, Adult Day Care), 6% due
11/15/2003 (f) 702
AA NR* 675 New York State Tax Exempt Revenue Bonds (Rochester Museum and
Science), 5.60% due 12/01/2015 679
AAA VMIG1++ 100 New York State Thruway Authority, General Revenue Bonds, VRDN,
3.60% due 1/01/2024 (a)(c) 100
BBB Baa1 450 New York State Urban Development Corporation, Revenue Refunding
Bonds (Center for Industrial Innovation Project), 4.60% due
1/01/1998 451
AAA Aaa 760 Port Authority of New York and New Jersey, Refunding, AMT, UT,
Consolidated 97th Series, 7.10% due 7/15/2003 (c) 867
A1+ VMIG1++ 200 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-
Modal Syracuse University Project), VRDN, 3.50% due 3/01/2023 (a) 200
Triborough Bridge and Tunnel Authority, New York, Revenue Bonds:
A+ Aa 340 Series R, 6.90% due 1/01/2000 363
A1+ VMIG1++ 200 Special Obligation, VRDN, 3.60% due 1/01/2024 (a)(c) 200
Total Investments (Cost--$13,801)--98.5% 14,340
Other Assets Less Liabilities--1.5% 225
-------
Net Assets--100.0% $14,565
=======
<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, 1997.
(b)Prerefunded.
(c)FGIC Insured.
(d)FSA Insured.
(e)MBIA Insured.
(f)SONYMA 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.
<CAPTION>
Pennsylvania Limited Maturity Municipal Bond Fund
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
Pennsylvania-- NR* VMIG1++ $ 100 Allegheny County, Pennsylvania, Hospital Development Authority
83.6% Revenue Bonds (Presbyterian University Hospital), ACES, Series B1,
3.60% due 3/01/2018 (a) $ 100
AAA Aaa 400 Beaver County, Pennsylvania, Hospital Authority, Revenue Refunding
Bonds (Medical Center of Beaver County, Inc.), 5.70% due
7/01/1999 (e) 412
AA Aa 1,000 Bucks County, Pennsylvania, UT, Series A, 5.95% due 3/01/2000 1,047
NR* NR* 300 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, Sub-
Series E-9, 3.70% due 3/01/2024 (a) 300
A1+ NR* 300 Harrisburg, Pennsylvania, Authority Revenue Bonds (Pooled
Financing Fund), VRDN, 3.85% due 7/01/2021 (a) 300
A1+ Aaa 150 Lehigh County, Pennsylvania, Authority Water Revenue Bonds, VRDN,
3.60% due 11/01/2004 (a)(d) 150
NR* VMIG1++ 300 Pennsylvania Energy Development Authority, Energy Development
Revenue Bonds (B&W Ebensburg Project), VRDN, AMT, 3.70% due
12/01/2011 (a) 300
Pennsylvania State Higher Educational Facilities Authority,
College and University Revenue Refunding Bonds, Series A:
A+ Aa3 380 (Thomas Jefferson University), 5.75% due 8/15/1998 387
AA Aa2 275 (University of Pennsylvania), 4.70% due 9/01/1997 275
AAA Aaa 255 Pennsylvania State Turnpike Commission, Turnpike Revenue
Refunding Bonds, Series O, 5.35% due 12/01/2002 (d) 269
Philadelphia, Pennsylvania, Hospitals and Higher Education
Facilities Authority, Hospital Revenue Bonds:
NR* Aaa 1,000 (Children's Hospital of Philadelphia Project), Series A, 6.50%
due 2/15/2002 (e) 1,109
A- NR* 650 (Children's Seashore House), Series B, 7% due 8/15/2003 724
SP1+ MIG1++ 300 Philadelphia, Pennsylvania, TRAN, Series A, 4.50% due 6/30/1998 301
AAA Aaa 400 Union County, Pennsylvania, Higher Educational Facilities
Financing Authority, Revenue Refunding Bonds (Bucknell University),
6% due 4/01/2002 (b) 430
AAA Aaa 325 Washington County, Pennsylvania, Lease Authority, Municipal
Facility Pooled Capital Revenue Bonds (Shadyside Hospital Project),
Series C, Sub-Series C1-A, 7.45% due 6/15/2000 (c)(e)(f) 363
Puerto Rico-- A- Baa1 1,000 Puerto Rico Municipal Finance Agency, GO, UT, Series A, 5.80% due
13.8% 7/01/2004 1,067
Total Investments (Cost--$7,317)--97.4% 7,534
Other Assets Less Liabilities--2.6% 205
-------
Net Assets--100.0% $ 7,739
=======
<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, 1997.
(b)MBIA Insured.
(c)AMBAC Insured.
(d)FGIC Insured.
(e)Prerefunded.
(f)Escrowed to maturity.
*Not Rated.
++Highest short-term ratings 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, 1997 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 3,025,568 $ 13,903,394 $ 25,532,248 $ 5,173,140
Cash 323,206 64,339 12,766 59,786
Receivables:
Interest 15,409 217,188 329,785 60,377
Securities sold 101,366 -- -- --
Investment adviser (Note 2) 16,241 -- -- 21,354
Deferred organization expenses
(Note 1e) -- 4,810 15,985 2,615
Prepaid registration fees and other
assets (Note 1e) 11,380 336 10,220 7,698
------------ ------------ ------------ ------------
Total assets 3,493,170 14,190,067 25,901,004 5,324,970
------------ ------------ ------------ ------------
Liabilities: Payables:
Beneficial interest redeemed -- -- 176,001 36,244
Securities purchased 101,467 -- -- 101,326
Dividends to shareholders (Note 1f) 2,974 14,836 26,116 5,338
Investment adviser (Note 2) -- 1,867 7,566 --
Distributor (Note 2) 680 2,558 4,071 942
Accrued expenses and other liabilities 30,654 42,090 57,374 45,369
------------ ------------ ------------ ------------
Total liabilities 135,775 61,351 271,128 189,219
------------ ------------ ------------ ------------
Net Assets: Net assets $ 3,357,395 $ 14,128,716 $ 25,629,876 $ 5,135,751
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited shares
authorized $ 6,974 $ 30,855 $ 63,324 $ 13,507
Class B Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 20,997 67,326 113,852 27,957
Class C Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 355 561 597 2,741
Class D Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 4,684 39,561 76,841 6,956
Paid-in capital in excess of par 3,221,545 13,698,568 25,375,965 5,218,428
Undistributed (accumulated) realized
capital gains (losses) on investments
--net (Note 5) 16,274 (472,718) (777,982) (300,979)
Unrealized appreciation on investments
--net 86,566 764,563 777,279 167,141
------------ ------------ ------------ ------------
Net assets $ 3,357,395 $ 14,128,716 $ 25,629,876 $ 5,135,751
============ ============ ============ ============
Net Asset Value: Class A: Net assets $ 709,319 $ 3,152,191 $ 6,375,611 $ 1,355,818
============ ============ ============ ============
Shares outstanding 69,741 308,546 633,237 135,068
============ ============ ============ ============
Net asset value $ 10.17 $ 10.22 $ 10.07 $ 10.04
============ ============ ============ ============
Class B: Net assets $ 2,135,376 $ 6,876,961 $ 11,461,594 $ 2,806,894
============ ============ ============ ============
Shares outstanding 209,967 673,258 1,138,517 279,567
============ ============ ============ ============
Net asset value $ 10.17 $ 10.21 $ 10.07 $ 10.04
============ ============ ============ ============
Class C: Net assets $ 36,084 $ 57,282 $ 59,716 $ 274,926
============ ============ ============ ============
Shares outstanding 3,545 5,607 5,969 27,406
============ ============ ============ ============
Net asset value $ 10.18 $ 10.22 $ 10.00 $ 10.03
============ ============ ============ ============
Class D: Net assets $ 476,616 $ 4,042,282 $ 7,732,955 $ 698,113
============ ============ ============ ============
Shares outstanding 46,841 395,606 768,414 69,563
============ ============ ============ ============
Net asset value $ 10.18 $ 10.22 $ 10.06 $ 10.04
============ ============ ============ ============
<FN>
*Identified cost $ 2,939,002 $ 13,138,831 $ 24,754,969 $ 5,005,999
============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
As of July 31, 1997 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) $ 4,115,441 $ 6,668,628 $ 14,340,013 $ 7,534,238
Cash 90,032 50,867 63,618 30,350
Receivables:
Interest 58,775 85,004 190,115 117,057
Securities sold -- 52,156 -- 100,010
Beneficial interest sold -- -- 12,515 84,550
Investment adviser (Note 2)
Deferred organization expenses
(Note 1e) 2,302 3,758 4,123 3,516
Prepaid registration fees and other
assets (Note 1e) 243 7,803 7,385 5,267
------------ ------------ ------------ ------------
Total assets 4,289,935 6,870,691 14,622,987 7,884,078
------------ ------------ ------------ ------------
Liabilities: Payables:
Securities purchased -- 441,227 -- 100,000
Beneficial interest redeemed -- 68,809 619 4,035
Dividends to shareholders (Note 1f) 4,454 5,671 15,836 7,338
Distributor (Note 2) 548 1,286 2,764 1,677
Accrued expenses and other liabilities 33,588 31,097 38,433 32,371
------------ ------------ ------------ ------------
Total liabilities 38,590 548,090 57,652 145,421
------------ ------------ ------------ ------------
Net Assets: Net assets $ 4,251,345 $ 6,322,601 $ 14,565,335 $ 7,738,657
============ ============ ============ ============
Net Assets Class A Shares of beneficial interest,
Consist of: $.10 par value, unlimited shares
authorized $ 13,557 $ 17,100 $ 25,477 $ 7,190
Class B Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 13,979 40,478 80,271 50,185
Class C Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 12 2,624 659 77
Class D Shares of beneficial interest,
$.10 par value, unlimited shares
authorized 14,589 2,350 36,009 18,177
Paid-in capital in excess of par 4,198,169 6,241,536 14,108,036 7,509,162
Accumulated realized capital losses
on investments--net (Note 5) (150,077) (167,187) (224,431) (63,042)
Accumulated distributions in excess
of realized gain on investments--net
(Note 1f) (1,779) -- -- --
Unrealized appreciation on investments
--net 162,895 185,700 539,314 216,908
------------ ------------ ------------ ------------
Net assets $ 4,251,345 $ 6,322,601 $ 14,565,335 $ 7,738,657
============ ============ ============ ============
Net Asset Value: Class A: Net assets $ 1,368,162 $ 1,734,544 $ 2,605,219 $ 735,726
============ ============ ============ ============
Shares outstanding 135,574 170,998 254,768 71,902
============ ============ ============ ============
Net asset value $ 10.09 $ 10.14 $ 10.23 $ 10.23
============ ============ ============ ============
Class B: Net assets $ 1,410,732 $ 4,108,454 $ 8,209,327 $ 5,134,207
============ ============ ============ ============
Shares outstanding 139,786 404,782 802,714 501,850
============ ============ ============ ============
Net asset value $ 10.09 $ 10.15 $ 10.23 $ 10.23
============ ============ ============ ============
Class C: Net assets $ 1,231 $ 241,191 $ 67,418 $ 7,869
============ ============ ============ ============
Shares outstanding 122 26,241 6,593 766
============ ============ ============ ============
Net asset value $ 10.09 $ 9.19 $ 10.23 $ 10.27
============ ============ ============ ============
Class D: Net assets $ 1,471,220 $ 238,412 $ 3,683,371 $ 1,860,855
============ ============ ============ ============
Shares outstanding 145,888 23,497 360,094 181,770
============ ============ ============ ============
Net asset value $ 10.08 $ 10.15 $ 10.23 $ 10.24
============ ============ ============ ============
<FN>
*Identified cost $ 3,952,546 $ 6,482,928 $ 13,800,699 $ 7,317,330
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
For the Year Ended July 31, 1997 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Income Interest and amortization of premium
(Note 1d): and discount earned $ 173,856 $ 704,598 $ 1,312,846 $ 312,359
Expenses: Accounting services (Note 2) 33,811 32,283 64,974 48,536
Investment advisory fees (Note 2) 13,268 51,013 90,513 22,132
Professional fees 34,098 35,408 39,407 44,247
Account maintenance and distribution
fees--Class B (Note 2) 8,883 30,557 42,610 13,723
Registration fees (Note 1e) 22,601 12,833 13,791 21,398
Printing and shareholder reports 5,160 18,633 32,385 6,388
Trustees' fees and expenses 2,403 7,290 13,411 3,557
Amortization of organization expenses
(Note 1e) -- 3,643 12,130 1,984
Custodian fees 2,727 3,358 4,381 2,369
Pricing fees 2,247 4,169 3,044 2,512
Transfer agent fees--Class B (Note 2) 1,885 2,947 3,404 2,061
Account maintenance fees--Class D
(Note 2) 373 2,646 6,193 717
Transfer agent fees--Class A (Note 2) 503 868 1,591 606
Transfer agent fees--Class D (Note 2) 239 710 1,334 307
Account maintenance and distribution
fees--Class C (Note 2) 157 84 116 402
Transfer agent fees--Class C (Note 2) 81 28 29 130
Other 2,695 13,781 3,186 2,069
------------ ------------ ------------ ------------
Total expenses before reimbursement 131,131 220,251 332,499 173,138
Reimbursement of expenses (Note 2) (85,705) (29,150) -- (95,062)
------------ ------------ ------------ ------------
Total expenses after reimbursement 45,426 191,101 332,499 78,076
------------ ------------ ------------ ------------
Investment income--net 128,430 513,497 980,347 234,283
------------ ------------ ------------ ------------
Realized & Realized gain on investments--net 87,712 57,005 101,611 51,279
Unrealized Change in unrealized appreciation on
Gain (Loss) on investments--net (58,065) 206,716 180,208 (12,363)
Investments--Net ------------ ------------ ------------ ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting
from Operations $ 158,077 $ 777,218 $ 1,262,166 $ 273,199
============ ============ ============ ============
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Year Ended July 31, 1997 Maturity Maturity Maturity Maturity
<S> <S> <C> <C> <C> <C>
Investment Income Interest and amortization of premium
(Note 1d): and discount earned $ 208,473 $ 347,105 $ 812,885 $ 402,719
Expenses: Professional fees 39,131 35,447 34,696 38,410
Accounting services (Note 2) 41,011 26,609 34,860 42,078
Investment advisory fees (Note 2) 14,977 25,494 57,645 29,758
Registration fees (Note 1e) 22,074 16,112 20,605 16,392
Account maintenance and distribution
fees--Class B (Note 2) 5,934 15,927 32,533 20,568
Printing and shareholder reports 5,905 -- 19,539 4,570
Trustees' fees and expenses 2,071 3,919 8,418 4,231
Pricing fees 3,369 1,913 3,925 2,379
Custodian fees 1,853 3,205 3,614 2,902
Amortization of organization expenses
(Note 1e) 1,743 2,852 3,123 2,668
Transfer agent fees--Class B (Note 2) 952 2,147 3,545 2,641
Account maintenance fees--Class D
(Note 2) 1,085 409 4,216 1,831
Transfer agent fees--Class A (Note 2) 634 805 848 280
Transfer agent fees--Class D (Note 2) 442 164 1,276 651
Account maintenance and distribution
fees--Class C (Note 2) 1 402 234 7
Transfer agent fees--Class C (Note 2) 4 118 75 9
Other 14,366 1,694 -- 2,196
------------ ------------ ------------ ------------
Total expenses before reimbursement 155,552 137,217 229,152 171,571
Reimbursement of expenses (Note 2) (107,880) (51,282) (76,880) (64,142)
------------ ------------ ------------ ------------
Total expenses after reimbursement 47,672 85,935 152,272 107,429
------------ ------------ ------------ ------------
Investment income--net 160,801 261,170 660,613 295,290
------------ ------------ ------------ ------------
Realized & Realized gain on investments--net 21,697 126,030 36,848 37,824
Unrealized Change in unrealized appreciation on
Gain (Loss) on investments--net 38,238 (105,889) 214,688 56,086
Investments--Net ------------ ------------ ------------ ------------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting
from Operations $ 220,736 $ 281,311 $ 912,149 $ 389,200
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
Arizona Limited Maturity California Limited Maturity
For the Year For the Year
Ended July 31, Ended July 31,
Increase (Decrease) in Net Assets: 1997 1996 1997 1996
<S> <S> <C> <C> <C> <C>
Operations: Investment income--net $ 128,430 $ 229,407 $ 513,497 $ 562,881
Realized gain (loss) on investments
--net 87,712 (691) 57,005 (14,506)
Change in unrealized appreciation on
investments--net (58,065) (45,086) 206,716 102,333
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 158,077 183,630 777,218 650,708
------------ ------------ ------------ ------------
Dividends to Investment income--net:
Shareholders Class A (28,232) (37,685) (117,926) (130,650)
(Note 1f): Class B (83,293) (164,444) (295,984) (362,918)
Class C (3,632) (1,762) (1,999) (2,149)
Class D (13,273) (25,516) (97,588) (67,164)
------------ ------------ ------------ ------------
Net decrease in net assets resulting
from dividends to shareholders (128,430) (229,407) (513,497) (562,881)
------------ ------------ ------------ ------------
Beneficial Interest Net decrease in net assets derived
Transactions from beneficial interest transactions (1,124,280) (1,767,011) (1,455,816) (491,496)
(Note 4): ------------ ------------ ------------ ------------
Net Assets: Total decrease in net assets (1,094,633) (1,812,788) (1,192,095) (403,669)
Beginning of year 4,452,028 6,264,816 15,320,811 15,724,480
------------ ------------ ------------ ------------
End of year $ 3,357,395 $ 4,452,028 $ 14,128,716 $ 15,320,811
============ ============ ============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<CAPTION>
Florida Massachusetts Michigan
Limited Maturity Limited Maturity Limited Maturity
For the Year For the Year For the Year
Increase (Decrease) Ended July 31, Ended July 31, Ended July 31,
in Net Assets: 1997 1996 1997 1996 1997 1996
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment
income--net $ 980,347 $ 1,189,088 $ 234,283 $ 335,521 $ 160,801 $ 182,546
Realized gain
(loss) on
investments
--net 101,611 (1,278) 51,279 18,219 21,697 10,083
Change in
unrealized
appreciation
on investments
--net 180,208 (174,866) (12,363) (13,084) 38,238 (23,665)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
in net assets
resulting from
operations 1,262,166 1,012,944 273,199 340,656 220,736 168,964
------------ ------------ ------------ ------------ ------------ ------------
Dividends & Investment
Distributions to income--net:
Shareholders Class A (295,532) (361,872) (56,023) (118,129) (58,806) (85,288)
(Note 1f): Class B (441,468) (557,931) (140,428) (180,877) (60,388) (80,829)
Class C (2,960) (522) (10,189) (14,474) (43) (41)
Class D (240,387) (268,763) (27,643) (22,041) (41,564) (16,388)
In excess of
realized gain
on investments
--net:
Class A -- -- -- -- (568) --
Class B -- -- -- -- (668) --
Class C -- -- -- -- --++ --
Class D -- -- -- -- (543) --
------------ ------------ ------------ ------------ ------------ ------------
Net decrease
in net assets
resulting from
dividends and
distributions
to shareholders (980,347) (1,189,088) (234,283) (335,521) (162,580) (182,546)
------------ ------------ ------------ ------------ ------------ ------------
Beneficial Interest Net increase
Transactions (decrease) in
(Note 4): net assets
derived from
beneficial
interest trans-
actions (2,674,028) (5,075,030) (2,299,335) (2,526,578) 168,118 (1,013,383)
------------ ------------ ------------ ------------ ------------ ------------
Net Assets: Total increase
(decrease) in
net assets (2,392,209) (5,251,174) (2,260,419) (2,521,443) 226,274 (1,026,965)
Beginning of
year 28,022,085 33,273,259 7,396,170 9,917,613 4,025,071 5,052,036
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 25,629,876 $ 28,022,085 $ 5,135,751 $ 7,396,170 $ 4,251,345 $ 4,025,071
============ ============ ============ ============ ============ ============
<CAPTION>
New Jersey New York Pennsylvania
Limited Maturity Limited Maturity Limited Maturity
For the Year For the Year For the Year
Increase (Decrease) Ended July 31, Ended July 31, Ended July 31,
in Net Assets: 1997 1996 1997 1996 1997 1996
<S> <S> <C> <C> <C> <C> <C> <C>
Operations: Investment
income--net $ 261,170 $ 365,818 $ 660,613 $ 671,149 $ 295,290 $ 320,744
Realized gain
(loss) on
investments
--net 126,030 (12,586) 36,848 27,501 37,824 364
Change in
unrealized
appreciation
on investments
--net (105,889) (41,469) 214,688 (22,206) 56,086 12,631
------------ ------------ ------------ ------------ ------------ ------------
Net increase
in net assets
resulting from
operations 281,311 311,763 912,149 676,444 389,200 333,739
------------ ------------ ------------ ------------ ------------ ------------
Dividends to Investment
Shareholders income--net:
(Note 1f): Class A (78,571) (107,284) (118,733) (174,431) (29,558) (37,384)
Class B (157,456) (241,855) (360,967) (381,150) (198,819) (254,375)
Class C (9,799) (4,447) (6,313) (5,588) (181) (1,049)
Class D (15,344) (12,232) (174,600) (109,980) (66,732) (27,936)
------------ ------------ ------------ ------------ ------------ ------------
Net decrease
in net assets
resulting from
dividends to
shareholders (261,170) (365,818) (660,613) (671,149) (295,290) (320,744)
------------ ------------ ------------ ------------ ------------ ------------
Beneficial Interest Net increase
Transactions (decrease) in
(Note 4): net assets
derived from
beneficial
interest
transactions (2,324,627) (1,750,465) (3,606,325) 1,937,339 (1,259,754) 150,949
------------ ------------ ------------ ------------ ------------ ------------
Net Assets: Total increase
(decrease) in
net assets (2,304,486) (1,804,520) (3,354,789) 1,942,634 (1,165,844) 163,944
Beginning of
year 8,627,087 10,431,607 17,920,124 15,977,490 8,904,501 8,740,557
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 6,322,601 $ 8,627,087 $ 14,565,335 $ 17,920,124 $ 7,738,657 $ 8,904,501
============ ============ ============ ============ ============ ============
<FN>
++Amount is less than $1.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
Arizona Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.08 $ 10.17 $ 9.97 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .37 .41 .43 .23
Realized and unrealized gain (loss) on investments--net .09 (.09) .20 (.03)
------- ------- ------- -------
Total from investment operations .46 .32 .63 .20
------- ------- ------- -------
Less dividends from investment income--net (.37) (.41) (.43) (.23)
------- ------- ------- -------
Net asset value, end of period $ 10.17 $ 10.08 $ 10.17 $ 9.97
======= ======= ======= =======
Total Investment Based on net asset value per share 4.62% 3.16% 6.47% 2.02%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .94% .74% .35% .02%*
Net Assets: ======= ======= ======= =======
Expenses 3.21% 2.27% 2.05% 1.82%*
======= ======= ======= =======
Investment income--net 3.64% 4.01% 4.31% 3.37%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 709 $ 813 $ 1,054 $ 2,103
Data: ======= ======= ======= =======
Portfolio turnover 38.21% 43.53% 182.58% 142.37%
======= ======= ======= =======
<CAPTION>
Arizona Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.08 $ 10.16 $ 9.97 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .33 .37 .39 .20
Realized and unrealized gain (loss) on investments--net .09 (.08) .19 (.03)
------- ------- ------- -------
Total from investment operations .42 .29 .58 .17
------- ------- ------- -------
Less dividends from investment income--net (.33) (.37) (.39) (.20)
------- ------- ------- -------
Net asset value, end of period $ 10.17 $ 10.08 $ 10.16 $ 9.97
======= ======= ======= =======
Total Investment Based on net asset value per share 4.25% 2.88% 5.99% 1.78%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.30% 1.09% .72% .38%*
Net Assets: ======= ======= ======= =======
Expenses 3.56% 2.61% 2.44% 2.18%*
======= ======= ======= =======
Investment income--net 3.28% 3.65% 3.95% 3.02%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 2,135 $ 2,885 $ 5,191 $ 5,575
Data: ======= ======= ======= =======
Portfolio turnover 38.21% 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>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Arizona Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.08 $ 10.17 $ 9.89 $ 10.08 $ 10.17 $ 9.89
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .35 .37 .29 .36 .40 .33
Realized and unrealized gain (loss) on
investments--net .10 (.09) .28 .10 (.09) .28
------- ------- ------- ------- ------- -------
Total from investment operations .45 .28 .57 .46 .31 .61
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.35) (.37) (.29) (.36) (.40) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.18 $ 10.08 $ 10.17 $ 10.18 $ 10.08 $ 10.17
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.55% 2.78% 5.90%+++ 4.62% 3.05% 6.34%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.11% 1.03% 1.05%* 1.04% .90% .55%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 3.35% 2.80% 2.79%* 3.29% 2.42% 2.39%*
======= ======= ======= ======= ======= =======
Investment income--net 3.48% 3.86% 3.80%* 3.56% 3.88% 4.31%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 36 $ 135 $ 1 $ 477 $ 619 $ 19
======= ======= ======= ======= ======= =======
Portfolio turnover 38.21% 43.53% 182.58% 38.21% 43.53% 182.58%
======= ======= ======= ======= ======= =======
<CAPTION>
California Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.05 $ 9.99 $ 9.88 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .38 .39 .42 .24
Realized and unrealized gain (loss) on investments--net .17 .06 .11 (.12)
------- ------- ------- -------
Total from investment operations .55 .45 .53 .12
------- ------- ------- -------
Less dividends from investment income--net (.38) (.39) (.42) (.24)
------- ------- ------- -------
Net asset value, end of period $ 10.22 $ 10.05 $ 9.99 $ 9.88
======= ======= ======= =======
Total Investment Based on net asset value per share 5.57% 4.56% 5.60% 1.23%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.08% .94% .40% .02%*
Net Assets: ======= ======= ======= =======
Expenses 1.28% 1.30% 1.44% 1.16%*
======= ======= ======= =======
Investment income--net 3.75% 3.89% 4.36% 3.54%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 3,152 $ 3,162 $ 3,527 $ 3,804
Data: ======= ======= ======= =======
Portfolio turnover 26.86% 11.09% 124.72% 130.10%
======= ======= ======= =======
<CAPTION>
California Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.04 $ 9.99 $ 9.88 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .34 .36 .39 .21
Realized and unrealized gain (loss) on investments--net .17 .05 .11 (.12)
------- ------- ------- -------
Total from investment operations .51 .41 .50 .09
------- ------- ------- -------
Less dividends from investment income--net (.34) (.36) (.39) (.21)
------- ------- ------- -------
Net asset value, end of period $ 10.21 $ 10.04 $ 9.99 $ 9.88
======= ======= ======= =======
Total Investment Based on net asset value per share 5.20% 4.08% 5.23% .99%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.44% 1.30% .76% .38%*
Net Assets: ======= ======= ======= =======
Expenses 1.64% 1.66% 1.80% 1.52%*
======= ======= ======= =======
Investment income--net 3.39% 3.53% 4.00% 3.19%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 6,877 $ 9,919 $10,363 $11,430
Data: ======= ======= ======= =======
Portfolio turnover 26.86% 11.09% 124.72% 130.10%
======= ======= ======= =======
<CAPTION>
California Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.05 $ 9.99 $ 9.76 $ 10.05 $ 9.99 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .36 .37 .31 .37 .38 .33
Realized and unrealized gain on
investments--net .17 .06 .23 .17 .06 .23
------- ------- ------- ------- ------- -------
Total from investment operations .53 .43 .54 .54 .44 .56
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.36) (.37) (.31) (.37) (.38) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.22 $ 10.05 $ 9.99 $ 10.22 $ 10.05 $ 9.99
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 5.39% 4.35% 5.60%+++ 5.47% 4.46% 5.85%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.25% 1.14% .82%* 1.15% 1.06% .66%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.45% 1.50% 1.98%* 1.35% 1.40% 1.81%*
======= ======= ======= ======= ======= =======
Investment income--net 3.58% 3.69% 4.04%* 3.69% 3.77% 4.28%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 57 $ 55 $ 64 $ 4,043 $ 2,185 $ 1,771
======= ======= ======= ======= ======= =======
Portfolio turnover 26.86% 11.09% 124.72% 26.86% 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>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Florida Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 10.02 $ 9.87 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .40 .40 .43 .24
Realized and unrealized gain (loss) on investments--net .11 (.06) .15 (.13)
------- ------- ------- -------
Total from investment operations .51 .34 .58 .11
------- ------- ------- -------
Less dividends from investment income--net (.40) (.40) (.43) (.24)
------- ------- ------- -------
Net asset value, end of period $ 10.07 $ 9.96 $ 10.02 $ 9.87
======= ======= ======= =======
Total Investment Based on net asset value per share 5.20% 3.45% 6.05% 1.12%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.09% .89% .39% .02%*
Net Assets: ======= ======= ======= =======
Expenses 1.09% .97% 1.03% .86%*
======= ======= ======= =======
Investment income--net 3.98% 4.01% 4.39% 3.54%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 6,376 $ 7,874 $ 9,849 $14,868
Data: ======= ======= ======= =======
Portfolio turnover 35.67% 39.90% 138.97% 136.71%
======= ======= ======= =======
<CAPTION>
Florida Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 10.02 $ 9.88 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .36 .37 .40 .21
Realized and unrealized gain (loss) on investments--net .11 (.06) .14 (.12)
------- ------- ------- -------
Total from investment operations .47 .31 .54 .09
------- ------- ------- -------
Less dividends from investment income--net (.36) (.37) (.40) (.21)
------- ------- ------- -------
Net asset value, end of period $ 10.07 $ 9.96 $ 10.02 $ 9.88
======= ======= ======= =======
Total Investment Based on net asset value per share 4.83% 3.08% 5.57% .99%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.45% 1.24% .75% .38%*
Net Assets: ======= ======= ======= =======
Expenses 1.45% 1.32% 1.38% 1.23%*
======= ======= ======= =======
Investment income--net 3.63% 3.66% 4.05% 3.19%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $11,461 $13,690 $16,213 $18,179
Data: ======= ======= ======= =======
Portfolio turnover 35.67% 39.90% 138.97% 136.71%
======= ======= ======= =======
<CAPTION>
Florida Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.90 $ 10.01 $ 9.76 $ 9.95 $ 10.01 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .38 .36 .29 .39 .39 .33
Realized and unrealized gain (loss)
on investments--net .10 (.11) .25 .11 (.06) .25
------- ------- ------- ------- ------- -------
Total from investment operations .48 .25 .54 .50 .33 .58
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.38) (.36) (.29) (.39) (.39) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.00 $ 9.90 $ 10.01 $ 10.06 $ 9.95 $ 10.01
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.93% 2.48% 5.65%+++ 5.10% 3.35% 6.07%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.26% 1.21% 1.09%* 1.19% .99% .67%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.26% 1.23% 1.67%* 1.19% 1.07% 1.19%*
======= ======= ======= ======= ======= =======
Investment income--net 3.83% 3.75% 3.83%* 3.88% 3.91% 4.23%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 60 $ 52 $ 1 $ 7,733 $ 6,406 $ 7,210
======= ======= ======= ======= ======= =======
Portfolio turnover 35.67% 39.90% 138.97% 35.67% 39.90% 138.97%
======= ======= ======= ======= ======= =======
<CAPTION>
Massachusetts Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 9.96 $ 9.95 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .39 .40 .44 .25
Realized and unrealized gain (loss) on investments--net .08 --++++ .02 (.05)
------- ------- ------- -------
Total from investment operations .47 .40 .46 .20
------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.39) (.40) (.44) (.25)
Realized gain on investments--net -- -- (.01) --
------- ------- ------- -------
Total dividends and distributions (.39) (.40) (.45) (.25)
------- ------- ------- -------
Net asset value, end of period $ 10.04 $ 9.96 $ 9.96 $ 9.95
======= ======= ======= =======
Total Investment Based on net asset value per share 4.86% 4.08% 4.79% 2.01%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .99% .77% .37% .03%*
Net Assets: ======= ======= ======= =======
Expenses 2.52% 2.15% 1.71% 1.17%*
======= ======= ======= =======
Investment income--net 3.95% 4.04% 4.45% 3.69%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1,356 $ 1,719 $ 4,453 $ 8,097
Data: ======= ======= ======= =======
Portfolio turnover 22.93% 22.71% 89.96% 57.80%
======= ======= ======= =======
<CAPTION>
Massachusetts Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.96 $ 9.96 $ 9.95 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .36 .37 .40 .22
Realized and unrealized gain (loss) on investments--net .08 --++++ .02 (.05)
------- ------- ------- -------
Total from investment operations .44 .37 .42 .17
------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.36) (.37) (.40) (.22)
Realized gain on investments--net -- -- (.01) --
------- ------- ------- -------
Total dividends and distributions (.36) (.37) (.41) (.22)
------- ------- ------- -------
Net asset value, end of period $ 10.04 $ 9.96 $ 9.96 $ 9.95
======= ======= ======= =======
Total Investment Based on net asset value per share 4.49% 3.70% 4.41% 1.77%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.35% 1.16% .74% .38%*
Net Assets: ======= ======= ======= =======
Expenses 2.84% 2.61% 2.08% 1.54%*
======= ======= ======= =======
Investment income--net 3.58% 3.66% 4.08% 3.28%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 2,807 $ 4,577 $ 4,800 $ 8,046
Data: ======= ======= ======= =======
Portfolio turnover 22.93% 22.71% 89.96% 57.80%
======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
Massachusetts Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.95 $ 9.96 $ 9.82 $ 9.96 $ 9.96 $ 9.82
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .38 .39 .33 .38 .39 .34
Realized and unrealized gain (loss)
on investments--net .08 (.01) .15 .08 --++++ .15
------- ------- ------- ------- ------- -------
Total from investment operations .46 .38 .48 .46 .39 .49
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.38) (.39) (.33) (.38) (.39) (.34)
Realized gain on investments--net -- -- (.01) -- -- (.01)
------- ------- ------- ------- ------- -------
Total dividends and distributions (.38) (.39) (.34) (.38) (.39) (.35)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.03 $ 9.95 $ 9.96 $ 10.04 $ 9.96 $ 9.96
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.70% 3.81% 5.00%+++ 4.76% 3.97% 5.09%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.15% .94% .67%* 1.09% .93% .70%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 2.69% 2.37% 2.23%* 2.62% 2.42% 2.31%*
======= ======= ======= ======= ======= =======
Investment income--net 3.80% 3.88% 4.32%* 3.85% 3.89% 4.21%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 275 $ 210 $ 413 $ 698 $ 890 $ 253
======= ======= ======= ======= ======= =======
Portfolio turnover 22.93% 22.71% 89.96% 22.93% 22.71% 89.96%
======= ======= ======= ======= ======= =======
<CAPTION>
Michigan Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.94 $ 9.98 $ 9.92 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .39 .41 .44 .24
Realized and unrealized gain (loss) on investments--net .15 (.04) .06 (.08)
------- ------- ------- -------
Total from investment operations .54 .37 .50 .16
------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.39) (.41) (.44) (.24)
In excess of realized gain on investments--net --++++ -- -- --
------- ------- ------- -------
Total dividends and distributions (.39) (.41) (.44) (.24)
------- ------- ------- -------
Net asset value, end of period $ 10.09 $ 9.94 $ 9.98 $ 9.92
======= ======= ======= =======
Total Investment Based on net asset value per share 5.61% 3.71% 5.16% 1.66%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .94% .74% .27% .02%*
Net Assets: ======= ======= ======= =======
Expenses 3.50% 2.78% 2.18% 2.01%*
======= ======= ======= =======
Investment income--net 3.93% 4.06% 4.42% 3.59%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1,368 $ 1,641 $ 2,302 $ 3,435
Data: ======= ======= ======= =======
Portfolio turnover 13.24% 32.92% 93.08% 204.15%
======= ======= ======= =======
<CAPTION>
Michigan Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.94 $ 9.98 $ 9.92 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .36 .37 .40 .22
Realized and unrealized gain (loss) on investments--net .15 (.04) .06 (.08)
------- ------- ------- -------
Total from investment operations .51 .33 .46 .14
------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.36) (.37) (.40) (.22)
In excess of realized gain on investments--net --++++ -- -- --
------- ------- ------- -------
Total dividends and distributions (.36) (.37) (.40) (.22)
------- ------- ------- -------
Net asset value, end of period $ 10.09 $ 9.94 $ 9.98 $ 9.92
======= ======= ======= =======
Total Investment Based on net asset value per share 5.22% 3.32% 4.78% 1.42%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.31% 1.10% .65% .38%*
Net Assets: ======= ======= ======= =======
Expenses 3.86% 3.14% 2.56% 2.38%*
======= ======= ======= =======
Investment income--net 3.56% 3.70% 4.09% 3.21%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1,411 $ 1,842 $ 2,494 $ 2,411
Data: ======= ======= ======= =======
Portfolio turnover 13.24% 32.92% 93.08% 204.15%
======= ======= ======= =======
<CAPTION>
Michigan Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.94 $ 9.98 $ 9.76 $ 9.94 $ 9.97 $ 9.76
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .36 .36 .30 .38 .40 .34
Realized and unrealized gain (loss)
on investments--net .15 (.04) .22 .14 (.03) .21
------- ------- ------- ------- ------- -------
Total from investment operations .51 .32 .52 .52 .37 .55
------- ------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net (.36) (.36) (.30) (.38) (.40) (.34)
In excess of realized gain on
investments--net --++++ -- -- --++++ -- --
------- ------- ------- ------- ------- -------
Total dividends and distributions (.36) (.36) (.30) (.38) (.40) (.34)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.09 $ 9.94 $ 9.98 $ 10.08 $ 9.94 $ 9.97
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 5.22% 3.20% 5.40%+++ 5.40% 3.71% 5.72%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.32% 1.24% .96%* 1.04% .87% .44%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 3.81% 3.31% 2.90%* 3.48% 3.06% 2.38%*
======= ======= ======= ======= ======= =======
Investment income--net 3.56% 3.57% 3.80%* 3.83% 3.94% 4.47%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 1 $ 1 $ 1 $ 1,471 $ 541 $ 254
======= ======= ======= ======= ======= =======
Portfolio turnover 13.24% 32.92% 93.08% 13.24% 32.92% 93.08%
======= ======= ======= ======= ======= =======
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
++++Amount is less than $.01 per share.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS (continued)
<CAPTION>
New Jersey Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.11 $ 10.15 $ 9.94 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .38 .41 .42 .23
Realized and unrealized gain (loss) on investments--net .03 (.04) .21 (.06)
------- ------- ------- -------
Total from investment operations .41 .37 .63 .17
------- ------- ------- -------
Less dividends from investment income--net (.38) (.41) (.42) (.23)
------- ------- ------- -------
Net asset value, end of period $ 10.14 $ 10.11 $ 10.15 $ 9.94
======= ======= ======= =======
Total Investment Based on net asset value per share 4.19% 3.68% 6.45% 1.73%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .94% .76% .34% .03%*
Net Assets: ======= ======= ======= =======
Expenses 1.65% 1.78% 1.69% 1.14%*
======= ======= ======= =======
Investment income--net 3.82% 4.02% 4.10% 3.45%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 1,735 $ 2,663 $ 2,401 $ 5,933
Data: ======= ======= ======= =======
Portfolio turnover 32.89% 6.57% 131.56% 205.04%
======= ======= ======= =======
<CAPTION>
New Jersey Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.11 $ 10.16 $ 9.95 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .35 .37 .38 .20
Realized and unrealized gain (loss) on investments--net .04 (.05) .21 (.05)
------- ------- ------- -------
Total from investment operations .39 .32 .59 .15
------- ------- ------- -------
Less dividends from investment income--net (.35) (.37) (.38) (.20)
------- ------- ------- -------
Net asset value, end of period $ 10.15 $ 10.11 $ 10.16 $ 9.95
======= ======= ======= =======
Total Investment Based on net asset value per share 3.92% 3.21% 6.07% 1.59%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.30% 1.10% .73% .38%*
Net Assets: ======= ======= ======= =======
Expenses 2.00% 2.12% 2.15% 1.52%*
======= ======= ======= =======
Investment income--net 3.46% 3.67% 3.80% 3.04%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 4,109 $ 5,152 $ 7,593 $ 7,885
Data: ======= ======= ======= =======
Portfolio turnover 32.89% 6.57% 131.56% 205.04%
======= ======= ======= =======
<CAPTION>
New Jersey Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 9.16 $ 9.20 $ 9.86 $ 10.11 $ 10.16 $ 9.85
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .33 .34 .26 .37 .40 .32
Realized and unrealized gain (loss)
on investments--net .03 (.04) (.66) .04 (.05) .31
------- ------- ------- ------- ------- -------
Total from investment operations .36 .30 (.40) .41 .35 .63
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.33) (.34) (.26) (.37) (.40) (.32)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 9.19 $ 9.16 $ 9.20 $ 10.15 $ 10.11 $ 10.16
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.06% 3.24% (4.01%)+++ 4.18% 3.48% 6.51%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.10% 1.00% .55%* 1.04% .84% .62%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.80% 2.04% 2.22%* 1.78% 1.86% 2.07%*
======= ======= ======= ======= ======= =======
Investment income--net 3.66% 3.82% 4.06%* 3.75% 3.93% 4.17%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 241 $ 272 $ 1 $ 238 $ 540 $ 437
======= ======= ======= ======= ======= =======
Portfolio turnover 32.89% 6.57% 131.56% 32.89% 6.57% 131.56%
======= ======= ======= ======= ======= =======
<CAPTION>
New York Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.06 $ 10.05 $ 9.91 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .43 .43 .44 .25
Realized and unrealized gain (loss) on investments--net .17 .01 .14 (.09)
------- ------- ------- -------
Total from investment operations .60 .44 .58 .16
------- ------- ------- -------
Less dividends from investment income--net (.43) (.43) (.44) (.25)
------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 10.06 $ 10.05 $ 9.91
======= ======= ======= =======
Total Investment Based on net asset value per share 6.09% 4.46% 6.03% 1.61%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .70% .50% .33% .03%*
Net Assets: ======= ======= ======= =======
Expenses 1.16% 1.38% 1.30% 1.24%*
======= ======= ======= =======
Investment income--net 4.24% 4.28% 4.49% 3.68%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 2,605 $ 3,723 $ 4,811 $ 5,290
Data: ======= ======= ======= =======
Portfolio turnover 36.53% 51.47% 139.16% 152.73%
======= ======= ======= =======
<CAPTION>
New York Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.06 $ 10.05 $ 9.91 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .39 .40 .41 .22
Realized and unrealized gain (loss) on investments--net .17 .01 .14 (.09)
------- ------- ------- -------
Total from investment operations .56 .41 .55 .13
------- ------- ------- -------
Less dividends from investment income--net (.39) (.40) (.41) (.22)
------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 10.06 $ 10.05 $ 9.91
======= ======= ======= =======
Total Investment Based on net asset value per share 5.71% 4.08% 5.66% 1.37%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.05% .87% .69% .38%*
Net Assets: ======= ======= ======= =======
Expenses 1.52% 1.75% 1.65% 1.60%*
======= ======= ======= =======
Investment income--net 3.88% 3.91% 4.11% 3.31%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 8,209 $10,071 $ 8,822 $ 9,743
Data: ======= ======= ======= =======
Portfolio turnover 36.53% 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>
<TABLE>
FINANCIAL HIGHLIGHTS (concluded)
<CAPTION>
New York Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.06 $ 10.05 $ 9.78 $ 10.06 $ 10.05 $ 9.78
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .41 .42 .30 .42 .42 .34
Realized and unrealized gain on
investments--net .17 .01 .27 .17 .01 .27
------- ------- ------- ------- ------- -------
Total from investment operations .58 .43 .57 .59 .43 .61
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.41) (.42) (.30) (.42) (.42) (.34)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 10.06 $ 10.05 $ 10.23 $ 10.06 $ 10.05
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 5.91% 4.28% 5.97%+++ 5.98% 4.35% 6.37%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .86% .71% .63%* .80% .62% .48%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 1.32% 1.59% 1.63%* 1.26% 1.49% 1.48%*
======= ======= ======= ======= ======= =======
Investment income--net 4.05% 4.06% 4.21%* 4.14% 4.16% 4.47%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 68 $ 214 $ 38 $ 3,683 $ 3,912 $ 2,306
======= ======= ======= ======= ======= =======
Portfolio turnover 36.53% 51.47% 139.16% 36.53% 51.47% 139.16%
======= ======= ======= ======= ======= =======
<CAPTION>
Pennsylvania Limited Maturity
Class A
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.11 $ 10.10 $ 9.95 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .38 .41 .42 .23
Realized and unrealized gain (loss) on investments--net .12 .01 .15 (.05)
------- ------- ------- -------
Total from investment operations .50 .42 .57 .18
------- ------- ------- -------
Less dividends from investment income--net (.38) (.41) (.42) (.23)
------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 10.11 $ 10.10 $ 9.95
======= ======= ======= =======
Total Investment Based on net asset value per share 5.04% 4.18% 5.89% 1.85%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement .99% .80% .38% .02%*
Net Assets: ======= ======= ======= =======
Expenses 1.75% 1.63% 1.90% 1.48%*
======= ======= ======= =======
Investment income--net 3.74% 4.01% 4.25% 3.46%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 736 $ 833 $ 943 $ 990
Data: ======= ======= ======= =======
Portfolio turnover 20.88% 30.90% 141.52% 237.47%
======= ======= ======= =======
<CAPTION>
Pennsylvania Limited Maturity
Class B
For the
Period
The following per share data and ratios have been derived Nov. 26,
from information provided in the financial statements. For the Year 1993++ to
Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.11 $ 10.10 $ 9.95 $ 10.00
Operating ------- ------- ------- -------
Performance: Investment income--net .34 .37 .39 .21
Realized and unrealized gain (loss) on investments--net .12 .01 .15 (.05)
------- ------- ------- -------
Total from investment operations .46 .38 .54 .16
------- ------- ------- -------
Less dividends from investment income--net (.34) (.37) (.39) (.21)
------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 10.11 $ 10.10 $ 9.95
======= ======= ======= =======
Total Investment Based on net asset value per share 4.66% 3.80% 5.51% 1.61%+++
Return:** ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.35% 1.15% .73% .38%*
Net Assets: ======= ======= ======= =======
Expenses 2.11% 1.99% 2.25% 1.83%*
======= ======= ======= =======
Investment income--net 3.38% 3.65% 3.87% 3.05%*
======= ======= ======= =======
Supplemental Net assets, end of period (in thousands) $ 5,134 $ 6,264 $ 7,414 $ 9,532
Data: ======= ======= ======= =======
Portfolio turnover 20.88% 30.90% 141.52% 237.47%
======= ======= ======= =======
<CAPTION>
Pennsylvania Limited Maturity
Class C Class D
The following per share data For the For the
and ratios have been derived Period Period
from information provided in Oct. 21, Oct. 21,
the financial statements. For the Year 1994++ to For the Year 1994++ to
Ended July 31, July 31, Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1997 1996 1995
<S> <S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.15 $ 10.10 $ 9.84 $ 10.11 $ 10.10 $ 9.84
Operating ------- ------- ------- ------- ------- -------
Performance: Investment income--net .35 .38 .29 .37 .40 .33
Realized and unrealized gain
on investments--net .12 .05 .26 .13 .01 .26
------- ------- ------- ------- ------- -------
Total from investment operations .47 .43 .55 .50 .41 .59
------- ------- ------- ------- ------- -------
Less dividends from investment
income--net (.35) (.38) (.29) (.37) (.40) (.33)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.27 $ 10.15 $ 10.10 $ 10.24 $ 10.11 $ 10.10
======= ======= ======= ======= ======= =======
Total Investment Based on net asset value per share 4.68% 4.28% 5.68%+++ 5.04% 4.07% 6.10%+++
Return:** ======= ======= ======= ======= ======= =======
Ratios to Average Expenses, net of reimbursement 1.28% .97% 1.05%* 1.09% .96% .57%*
Net Assets: ======= ======= ======= ======= ======= =======
Expenses 2.02% 1.83% 2.55%* 1.85% 1.71% 2.08%*
======= ======= ======= ======= ======= =======
Investment income--net 3.46% 3.84% 3.77%* 3.64% 3.84% 4.30%*
======= ======= ======= ======= ======= =======
Supplemental Net assets, end of period
Data: (in thousands) $ 8 $ 1 $ 1 $ 1,861 $ 1,807 $ 382
======= ======= ======= ======= ======= =======
Portfolio turnover 20.88% 30.90% 141.52% 20.88% 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>
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--Each Fund may engage in
various portfolio strategies to seek to increase its return by
hedging its portfolio against adverse movements in the debt markets.
Losses may arise due to changes in the value of the contract or if
the counterparty does not perform under the contract.
* Financial futures contracts--The Funds may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures contracts
are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Upon entering into a
contract, the Funds deposit and maintain as collateral such initial
margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Funds agree 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 Funds as
unrealized gains or losses. When the contract is closed, the Funds
record 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. Distributions in excess
of realized capital gains are due primarily to differing tax
treatments for post-October losses.
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.
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 that Fund's average daily net assets.
For the year ended July 31, 1997, FAM had voluntarily waived
management fees and reimbursed each Fund for additional expenses as
follows:
Arizona California Florida
Limited Limited Limited
Maturity Maturity Maturity
Management fee $13,268 $29,150 --
Additional expenses $72,437 -- --
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
Management fee $22,132 $14,977 $25,494
Additional expenses $72,930 $92,903 $25,788
New York Pennsylvania
Limited Limited
Maturity Maturity
Management fee $57,645 $29,758
Additional expenses $19,235 $34,384
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 Funds pay the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account 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, 1997, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Funds' Class A
and Class D Shares as follows:
Arizona California Florida Massachusetts
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 7 -- $ 68 --
MLPF&S $ 194 -- $563 --
Class D:
MLFD $ 199 $ 224 $ 55 $ 9
MLPF&S $2,172 $2,155 $521 $205
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
Class A:
MLFD $ 8 -- -- --
MLPF&S $ 68 -- $ 5 --
Class D:
MLFD $ 46 $ 2 $ 70 $ 5
MLPF&S $ 350 $ 48 $767 $210
MLPF&S received contingent deferred sales charges relating to
transactions in Class B Shares as follows:
Class B
Shares
Arizona Limited Maturity $ 427
California Limited Maturity 6,833
Florida Limited Maturity 7,396
Massachusetts Limited Maturity 3,151
Michigan Limited Maturity 397
New Jersey Limited Maturity 4,461
New York Limited Maturity 18,743
Pennsylvania Limited Maturity 878
Furthermore, MLPF&S received contingent deferred sales charges of
$2,001 relating to transactions subject to front end sales charge
waivers in Class D Shares.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Trust's transfer agent.
NOTES TO FINANCIAL STATEMENTS (continued)
Accounting services are provided to the Trust by FAM at cost.
Certain officers and/or trustees of the Trust are officers and/or
directors of FAM, PSI, MLFD, MLFDS, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1997 were as follows:
Purchases Sales
Arizona Limited Maturity $ 1,019,574 $ 2,070,874
California Limited Maturity 3,276,869 3,471,729
Florida Limited Maturity 8,642,572 10,107,246
Massachusetts Limited Maturity 1,215,165 2,253,678
Michigan Limited Maturity 1,155,783 479,425
New Jersey Limited Maturity 1,661,522 3,793,860
New York Limited Maturity 5,241,711 6,943,659
Pennsylvania Limited Maturity 1,309,108 1,728,529
Net realized and unrealized gains (losses) as of July 31, 1997 were
as follows:
Realized Unrealized
Arizona Limited Maturity Gains Gains
Long-term investments $ 87,712 $ 86,566
--------- ---------
Total $ 87,712 $ 86,566
========= =========
Realized Unrealized
California Limited Maturity Gains Gains
Long-term investments $ 57,005 $ 764,034
Short-term investments -- 529
--------- ---------
Total $ 57,005 $ 764,563
========= =========
Realized Unrealized
Florida Limited Maturity Gains Gains
Long-term investments $ 101,556 $ 777,279
Short-term investments 55 --
--------- ---------
Total $ 101,611 $ 777,279
========= =========
Realized Unrealized
Massachusetts Limited Maturity Gains Gains
Long-term investments $ 51,279 $ 167,141
--------- ---------
Total $ 51,279 $ 167,141
========= =========
Realized Unrealized
Michigan Limited Maturity Gains Gains
Long-term investments $ 21,697 $ 162,895
--------- ---------
Total $ 21,697 $ 162,895
========= =========
Unrealized
Realized Gains
New Jersey Limited Maturity Gains (Losses)
Long-term investments $ 126,030 $ 186,033
Short-term investments -- (333)
--------- ---------
Total $ 126,030 $ 185,700
========= =========
Realized Unrealized
New York Limited Maturity Gains Gains
Long-term investments $ 36,848 $ 539,314
--------- ---------
Total $ 36,848 $ 539,314
========= =========
Realized Unrealized
Pennsylvania Limited Maturity Gains Gains
Long-term investments $ 37,824 $ 216,756
Short-term investments -- 152
--------- ---------
Total $ 37,824 $ 216,908
========= =========
As of July 31, 1997, 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 $ 86,566 -- $ 86,566 $ 2,939,002
California 741,290 -- 741,290 13,161,474
Florida 815,581 $ (38,302) 777,279 24,754,969
Massachusetts 167,141 -- 167,141 5,005,999
Michigan 162,895 -- 162,895 3,952,546
New Jersey 186,033 (333) 185,700 6,482,928
New York 539,314 -- 539,314 13,800,699
Pennsylvania 216,908 -- 216,908 7,317,330
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial
interest transactions for the years ended July 31, 1997 and July 31,
1996 were as follows:
For the For the
Year Ended Year Ended
July 31, 1997 July 31, 1996
Arizona Limited Maturity $ (1,124,280) $(1,767,011)
California Limited Maturity (1,455,816) (491,496)
Florida Limited Maturity (2,674,028) (5,075,030)
Massachusetts Limited Maturity (2,299,335) (2,526,578)
Michigan Limited Maturity 168,118 (1,013,383)
New Jersey Limited Maturity (2,324,627) (1,750,465)
New York Limited Maturity (3,606,325) 1,937,339
Pennsylvania Limited Maturity (1,259,754) 150,949
Transactions in shares of beneficial interest for each class were as
follows:
Arizona Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 2,059 $ 20,756
Shares issued to shareholders in
reinvestment of dividends 898 9,047
---------- ----------
Total issued 2,957 29,803
Shares redeemed (13,909) (139,681)
---------- ----------
Net decrease (10,952) $ (109,878)
========== ==========
Arizona Limited Maturity
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 B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 20,264 $ 204,323
Shares issued to shareholders in
reinvestment of dividends 4,028 40,606
---------- ----------
Total issued 24,292 244,929
Automatic conversion of shares (1,018) (10,248)
Shares redeemed (99,594) (1,001,882)
---------- ----------
Net decrease (76,320) $ (767,201)
========== ==========
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)
=========== ===========
Arizona Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 100 $ 1,008
Shares issued to shareholders in
reinvestment of dividends 357 3,609
---------- ----------
Total issued 457 4,617
Shares redeemed (10,307) (103,073)
---------- ----------
Net decrease (9,850) $ (98,456)
========== ==========
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
=========== ===========
Arizona Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 27,128 $ 271,439
Automatic conversion of shares 1,018 10,248
Shares issued to shareholders in
reinvestment of dividends 597 6,023
---------- ----------
Total issued 28,743 287,710
Shares redeemed (43,319) (436,455)
---------- ----------
Net decrease (14,576) $ (148,745)
========== ==========
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
=========== ===========
California Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 1,377 $ 13,897
Shares issued to shareholders in
reinvestment of dividends 3,031 30,528
---------- ----------
Total issued 4,408 44,425
Shares redeemed (10,568) (106,294)
---------- ----------
Net decrease (6,160) $ (61,869)
========== ==========
NOTES TO FINANCIAL STATEMENTS (continued)
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)
========== ==========
California Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 204,154 $ 2,058,619
Shares issued to shareholders in
reinvestment of dividends 13,782 138,778
----------- -----------
Total issued 217,936 2,197,397
Automatic conversion of shares (28,044) (284,252)
Shares redeemed (504,135) (5,083,745)
----------- -----------
Net decrease (314,243) $(3,170,600)
=========== ===========
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)
========== ==========
California Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 115 $ 1,152
Shares issued to shareholders in
reinvestment of dividends 6 62
---------- ----------
Net increase 121 $ 1,214
========== ==========
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)
========== ==========
California Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 285,173 $ 2,849,538
Automatic conversion of shares 3,978 284,252
Shares issued to shareholders in
reinvestment of dividends 28,044 40,114
----------- -----------
Total issued 317,195 3,173,904
Shares redeemed (139,121) (1,398,465)
----------- -----------
Net increase 178,074 $ 1,775,439
=========== ===========
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
========== ==========
Florida Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 70,813 $ 705,043
Shares issued to shareholders in
reinvestment of dividends 6,542 65,182
----------- -----------
Total issued 77,355 770,225
Shares redeemed (235,028) (2,340,687)
----------- -----------
Net decrease (157,673) $(1,570,462)
=========== ===========
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)
=========== ===========
Florida Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 344,717 $ 3,439,385
Shares issued to shareholders in
reinvestment of dividends 20,341 202,648
----------- -----------
Total issued 365,058 3,642,033
Automatic conversion of shares (3,635) (36,364)
Shares redeemed (598,033) (5,967,067)
----------- -----------
Net decrease (236,610) $(2,361,398)
=========== ===========
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)
=========== ===========
Florida Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 5,712 $ 56,834
Shares issued to shareholders in
reinvestment of dividends 140 1,387
----------- -----------
Total issued 5,852 58,221
Shares redeemed (5,087) (50,009)
----------- -----------
Net increase 765 $ 8,212
=========== ===========
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
=========== ===========
Florida Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 362,564 $ 3,617,894
Automatic conversion of shares 3,635 36,364
Shares issued to shareholders in
reinvestment of dividends 5,285 52,650
----------- -----------
Total issued 371,484 3,706,908
Shares redeemed (246,834) (2,457,288)
----------- -----------
Net increase 124,650 $ 1,249,620
=========== ===========
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)
========== ==========
Massachusetts Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 544 $ 5,403
Shares issued to shareholders in
reinvestment of dividends 2,690 26,809
---------- ----------
Total issued 3,234 32,212
Shares redeemed (40,800) (406,101)
---------- ----------
Net decrease (37,566) $ (373,889)
========== ==========
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)
=========== ===========
Massachusetts Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 80,283 $ 797,169
Shares issued to shareholders in
reinvestment of dividends 8,004 79,781
----------- -----------
Total issued 88,287 876,950
Shares redeemed (268,214) (2,667,983)
----------- -----------
Net decrease (179,927) $(1,791,033)
=========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
Massachusetts Limited Maturity
Class B Shares for the Year Dollar
Ended 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)
=========== ===========
Massachusetts Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 5,459 $ 54,530
Shares issued to shareholders in
reinvestment of dividends 814 8,108
----------- -----------
Total issued 6,273 62,638
Shares redeemed (1) (4)
----------- -----------
Net increase 6,272 $ 62,634
=========== ===========
Massachusetts Limited Maturity
Class C Shares for the Year Dollar
Ended 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)
========== ==========
Massachusetts Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 2,377 $ 23,756
Shares issued to shareholders in
reinvestment of dividends 1,383 13,787
---------- ----------
Total issued 3,760 37,543
Shares redeemed (23,534) (234,590)
---------- ----------
Net decrease (19,774) $ (197,047)
========== ==========
Massachusetts Limited Maturity
Class D Shares for the Year Dollar
Ended 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
=========== ===========
Michigan Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 5,703 $ 56,930
Shares issued to shareholders in
reinvestment of dividends and
distributions 1,551 15,476
----------- -----------
Total issued 7,254 72,406
Shares redeemed (36,666) (365,673)
----------- -----------
Net decrease (29,412) $ (293,267)
=========== ===========
Michigan Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
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)
=========== ===========
Michigan Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 13,836 $ 138,203
Shares issued to shareholders in
reinvestment of dividends and
distributions 4,077 40,660
----------- -----------
Total issued 17,913 178,863
Automatic conversion of shares (68) (679)
Shares redeemed (63,278) (630,594)
----------- -----------
Net decrease (45,433) $ (452,410)
=========== ===========
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)
=========== ===========
Michigan Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares issued to shareholders in
reinvestment of dividends and
distributions 5 $ 43
---------- ----------
Net increase 5 $ 43
========== ==========
Michigan Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 4 $ 41
---------- ----------
Net increase 4 $ 41
========== ==========
Michigan Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 105,057 $ 1,052,902
Automatic conversion of shares 68 679
Shares issued to shareholders in
reinvestment of dividends and
distributions 2,967 26,287
----------- -----------
Total issued 108,092 1,079,868
Shares redeemed (16,668) (166,116)
----------- -----------
Net increase 91,424 $ 913,752
=========== ===========
Michigan Limited Maturity
Class D Shares for the Year Dollar
Ended 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
=========== ===========
New Jersey Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 29,509 $ 298,665
Shares issued to shareholders in
reinvestment of dividends 6,491 65,586
----------- -----------
Total issued 36,000 364,251
Shares redeemed (128,438) (1,299,753)
----------- -----------
Net decrease (92,438) $ (935,502)
=========== ===========
New Jersey Limited Maturity
Class A Shares for the Year Dollar
Ended 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 decrease 26,996 $ 276,810
=========== ===========
New Jersey Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 109,899 $ 1,202,983
Shares issued to shareholders in
reinvestment of dividends 19,246 104,274
----------- -----------
Total issued 129,145 1,307,257
Automatic conversion of shares (5,707) (57,581)
Shares redeemed (228,080) (2,301,791)
----------- -----------
Net decrease (104,642) $(1,052,115)
=========== ===========
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)
=========== ===========
New Jersey Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares issued to shareholders in
reinvestment of dividends 115 $ 1,052
Shares redeemed (3,570) (32,559)
----------- -----------
Net decrease (3,455) $ (31,507)
=========== ===========
NOTES TO FINANCIAL STATEMENTS (continued)
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
=========== ===========
New Jersey Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 5,980 $ 60,387
Automatic conversion of shares 5,707 57,581
Shares issued to shareholders in
reinvestment of dividends 1,286 13,017
----------- -----------
Total issued 12,973 130,985
Shares redeemed (42,910) (436,488)
----------- -----------
Net decrease (29,937) $ (305,503)
=========== ===========
New Jersey Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
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
=========== ===========
New York Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 44,236 $ 449,232
Shares issued to shareholders in
reinvestment of dividends 6,902 69,615
----------- -----------
Total issued 51,138 518,847
Shares redeemed (166,532) (1,682,059)
----------- -----------
Net decrease (115,394) $(1,163,212)
=========== ===========
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)
=========== ===========
New York Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 112,364 $ 1,134,351
Shares issued to shareholders in
reinvestment of dividends 16,732 168,855
----------- -----------
Total issued 129,096 1,303,206
Automatic conversion of shares (2,526) (25,482)
Shares redeemed (324,970) (3,274,497)
----------- -----------
Net decrease (198,400) $(1,996,773)
=========== ===========
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
=========== ===========
New York Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 231 $ 2,324
Shares issued to shareholders in
reinvestment of dividends 597 6,021
----------- -----------
Total issued 828 8,345
Shares redeemed (15,531) (156,196)
----------- -----------
Net decrease (14,703) $ (147,851)
=========== ===========
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
=========== ===========
New York Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 115,750 $ 1,166,743
Automatic conversion of shares 2,525 25,482
Shares issued to shareholders in
reinvestment of dividends 15,637 157,823
----------- -----------
Total issued 133,912 1,350,048
Shares redeemed (162,655) (1,648,537)
----------- -----------
Net decrease (28,743) $ (298,489)
=========== ===========
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
=========== ===========
Pennsylvania Limited Maturity
Class A Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 43,588 $ 440,757
Shares issued to shareholders in
reinvestment of dividends 1,049 10,642
----------- -----------
Total issued 44,637 451,399
Shares redeemed (55,137) (556,742)
----------- -----------
Net decrease (10,500) $ (105,343)
=========== ===========
Pennsylvania Limited Maturity
Class A Shares for the Year Dollar
Ended 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)
=========== ===========
Pennsylvania Limited Maturity
Class B Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 121,296 $ 1,230,117
Shares issued to shareholders in
reinvestment of dividends 13,043 132,224
----------- -----------
Total issued 134,339 1,362,341
Shares redeemed (252,143) (2,554,888)
----------- -----------
Net decrease (117,804) $(1,192,547)
=========== ===========
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)
=========== ===========
Pennsylvania Limited Maturity
Class C Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 727 $ 7,411
Shares issued to shareholders in
reinvestment of dividends 17 175
----------- -----------
Total issued 744 7,586
Shares redeemed (95) (974)
----------- -----------
Net increase 649 $ 6,612
=========== ===========
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
=========== ===========
Pennsylvania Limited Maturity
Class D Shares for the Year Dollar
Ended July 31, 1997 Shares Amount
Shares sold 2,512 $ 25,556
Shares issued to shareholders in
reinvestment of dividends 5,768 58,513
----------- -----------
Total issued 8,280 84,069
Shares redeemed (5,160) (52,545)
----------- -----------
Net increase 3,120 $ 31,524
=========== ===========
NOTEST TO FINANCIAL STATEMENTS (concluded)
Pennsylvania Limited Maturity
Class D Shares for the Year Dollar
Ended 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
=========== ===========
5. Capital Loss Carryforward:
At July 31, 1997, each Fund of the Trust had an approximate net
capital loss carryforward as follows: $400,000 in the California
Limited Maturity Fund, of which $122,000 expires in 2003 and
$278,000 expires in 2004; $687,000 in the Florida Limited Maturity
Fund, of which $487,000 expires in 2003 and $200,000 expires in
2004; $298,000 in the Massachusetts Limited Maturity Fund, of which
$28,000 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; $167,000 in the New Jersey Limited
Maturity Fund, all of which expires in 2004; $190,000 in the New
York Limited Maturity Fund, of which $105,000 expires in 2002,
$2,000 expires in 2003 and $83,000 expires in 2004; and $60,000 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.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust:
We have audited the accompanying 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, 1997, 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
three-year period then ended and 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,
1997 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Limited Maturity Municipal Bond Funds for Arizona,
California, Florida, Massachusetts, Michigan, New Jersey, New York
and Pennsylvania of the Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust as of July 31, 1997, 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 12, 1997
</AUDIT-REPORT>
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, 1997 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributions made by any
Fund of the Trust during the year.
Please retain this information for your records.
