MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
STRATEGIC
Performance
Semi-Annual Report
January 31, 1998
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Proxy Results
On February 12, 1998, a special meeting of stockholders of Merrill Lynch
Massachusetts Limited Maturity Municipal Bond Fund of Merrill Lynch Multi-State
Limited Maturity Municipal Series Trust voted on the following proposal. The
description of the proposal and number of votes are as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
To consider and act upon a proposal to approve the Agreement and Plan of
Reorganization between Merrill Lynch Multi-State Limited Maturity Series
Trust and Merrill Lynch Municipal Bond Fund, Inc. 216,907 111,199 22,193
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
On February 12, 1998, a special meeting of stockholders of Merrill Lynch New
Jersey Limited Maturity Municipal Bond Fund of Merrill Lynch Multi-State Limited
Maturity Municipal Series Trust voted on the following proposal. The description
of the proposal and number of votes are as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
To consider and act upon a proposal to approve the Agreement and Plan of
Reorganization between Merrill Lynch Multi-State Limited Maturity Series
Trust and Merrill Lynch Municipal Bond Fund, Inc. 308,352 19,751 21,646
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
On January 5, 1998, a special meeting of stockholders of Merrill Lynch
Pennsylvania Limited Maturity Municipal Bond Fund of Merrill Lynch Multi-State
Limited Maturity Municipal Series Trust voted on the following proposal. The
description of the proposal and number of votes are as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Shares Voted Shares Voted Shares Voted
For Against Abstain
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
To consider and act upon a proposal to approve the Agreement and Plan of
Reorganization between Merrill Lynch Multi-State Limited Maturity Series
Trust and Merrill Lynch Municipal Bond Fund, Inc. 441,760 980 19,513
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
TO OUR SHAREHOLDERS
The Municipal Market Environment
During the three months ended January 31, 1998, bond yields have declined to
recent historic lows. While the positive combination of moderate economic growth
and low inflation has continued to support lower interest rates, much of the
recent decline in bond yields was driven more by the continued turmoil in Asian
equity markets than by fundamental concerns. A significant "flight to quality"
has benefited the US Treasury bond market, particularly longer-maturity US
Treasury bonds, as foreign investors have sought safe haven in the relative
stability of US financial markets. Over the three months ended January 31, 1998,
yields on five-year US Treasury notes declined 30 basis points (0.30%) to 5.42%.
Additionally, yields on five-year AAA-rated municipal general obligation bonds
declined 15 basis points to end the January quarter at 4.00%.
Since there is no benefit from the tax advantage inherent in municipal bonds for
foreign investors, they have not participated in the tax-exempt market.
Consequently, municipal bond yields have not declined dramatically as have
taxable US Treasury securities. The increase in new municipal bond issuance
over the past six months has also prevented the tax-exempt bond market from more
closely mirroring the yield declines exhibited by its taxable counterpart.
During the last six months, over $120 billion in new long-term municipal bonds
were underwritten, an increase of over 30% compared to the same six-month period
one year ago. As interest rates have continued to decline in recent months, new
tax-exempt bond issuance has remained strong. Over $60 million in new long-term
municipal securities were issued during the last three months, an increase of
over 20% compared to the same three-month period ended January 31, 1996. During
the past month, over $16 billion in new long-term municipal securities were
underwritten, representing an increase of over 40% compared to the January 1997
level.
In our opinion, the recent correction in world equity markets has enhanced the
near-term prospects for continued low, if not declining, interest rates in the
United States. It is likely that the recent correction will result in slower US
domestic growth in the coming months. This decline should be generated in part
by reduced US export growth. Additionally, some decline in consumer spending can
also be expected because of reduced consumer confidence. Perhaps more
importantly, it is likely that, barring a dramatic and unexpected resurgence in
domestic growth, the Federal Reserve Board will be unwilling to raise interest
rates until the full impact of the equity market's corrections can be
established.
All of these factors suggest that over the near term, interest rates, including
tax-exempt bond yields, are unlikely to rise by any appreciable amount. It is
probable that municipal bond yields will remain under some relative pressure
because of continued strong new-issue supply. However, the recent pace of
municipal bond issuance is likely to be unsustainable. Continued increases in
bond issuance will require lower and lower tax-exempt bond yields to generate
the economic savings necessary for additional municipal bond refinancings.
Preliminary estimates of 1998 total municipal bond issuance are presently in the
$195 billion--$220 billion range. These estimates suggest that recent supply
pressures are likely to abate somewhat next year, or at least exert only minimal
technical pressure during 1998. Additionally, municipal bond investors received
approximately $23 billion in January coupon payments, bond maturities and
proceeds from early redemptions, which should serve to intensify investor demand
in the near future. With tax-exempt bond yields at already attractive yield
ratios relative to US Treasury bonds (approximately 90% at the end of December
1997), any further pressure on the municipal market may well represent an
attractive investment opportunity.
Portfolio Strategy
Merrill Lynch Arizona Limited Maturity Municipal Bond Fund
Employment growth in the state of Arizona continues to outpace that of the
nation. The past five years have been the strongest period of growth in the
state's history, with more than 400,000 private sector jobs created. It is
estimated that an additional 153,000 jobs will be created in 1998. The state
coffers are reaping the benefit of this growth with its rainy day fund surplus
close to $900 million. Despite an inevitable slowdown in its current boom cycle,
the Arizona economy remains well diversified and is likely to weather an
economic slowdown well.
During the three months ended January 31, 1998, we continued to maintain our
conservative portfolio strategy. We kept cash reserves of approximately 25% and
an average portfolio maturity of just under four years. In our last report to
shareholders, we expressed our concerns over a potential Federal Reserve Board
interest rate hike because of continued strength in the US economy. However,
while economic news continued to suggest a resilient economy, inflation remained
benign.
Looking ahead, it appears as if the Asian financial crisis will preclude any
Federal Reserve Board action in the near future. Demand for intermediate-term
municipal bonds continues to keep the availability of Arizona securities at low
levels, but in the upcoming months we anticipate that we will gradually begin to
reduce our cash position. We will concentrate our purchases toward Aa-rated or
insured securities as they provide the Fund with greater liquidity during
periods of market volatility.
Merrill Lynch California Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1998, Governor Pete Wilson proposed a $70.6
billion state budget that would increase spending on public education and asked
voters to approve another $7 billion in bonds for new schools, parks and other
public works projects. The proposal calls for a 5% spending increase over the
current fiscal year. The majority of the proposed budget would benefit the
state's public education system with kindergarten through twelfth grade
receiving $23.3 billion to reduce class size and build new facilities as well as
upgrading the public education system's current facilities. The budget plan also
calls for no new cuts in taxes for individuals or businesses, nor does it
restore a 4.9% cut in welfare grants. The Governor's plan was received with
limited criticism because of the strong economic performance being turned in by
California and the anticipation of continued strong tax receipts bringing the
state's cash surplus to record levels. California added over 400,000 non-farm
jobs in 1997 with growth prospects still good though tempered by the Asian
financial crisis. However, the impact from the recent market volatility on the
state's exporters and economy is still unknown. State unemployment rates have
declined from 9.4% in 1993 to an eight-year low of 5.9% in November 1997.
By January 31, 1998, net assets of the Fund stood at approximately $13.3
million, a decrease of about 2% from the October's quarter-end. As we discussed
in our last report to shareholders, we expected to maintain a more aggressive
investment posture during the January quarter as we watched the unfolding Asian
currency and world equity crisis and what its effect would be on the US economy.
We maintained an average portfolio maturity of 4.7 years with a zero cash
equivalent position for most of the quarter. This strategy enhanced the Fund's
performance during the quarter because inflation continued to decelerate despite
continued evidence of robust economic growth. These statistics, taken with a
flight to quality by foreign investors into US dollar-denominated assets, caused
yields to decline across the yield curve to five-year lows. We will continue to
maintain our maturity stance, since we expect the US economy to be moderated
somewhat by the fallout from Asia and inflationary pressures to continue to
subside. We will closely monitor economic statistics in an effort to seek to
enhance Fund returns while limiting any net asset value deterioration.
Merrill Lynch Florida Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1998, Governor Lawton Chiles unveiled a
$45.1 billion budget filled with programs for children's healthcare and daycare
as well as a tax-generating anti-smoking campaign. The Governor's plan would be
partially funded from dividends of the state's $11.3 billion tobacco settlement
to be paid over 25 years. During 1997, state general revenues increased about
7.2% to $15.7 billion. Sales tax revenues, which make up over 70% of Florida's
general revenues, grew a robust 5.5%, but remains an economically sensitive
revenue source. These increasing revenues will trigger a deposit of
approximately $276 million
2 & 3
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
to the Budget Stabilization Fund, bringing that Fund's total to approximately
$785 million by the end of fiscal 1999. As we discussed in our last report to
shareholders, the state legislature in early November voted to issue a total of
$2.7 billion in bonds to address with the state's school district capital needs.
The state's long-term economic viability and ability to attract new industry is
dependent on an educated labor force. This will become more important as the
educational requirements of basic service sector jobs continue to grow. With
over 35% of the state's total non-farm employment, the service sector is a key
component of Florida's economy. Florida's tourism sector finished 1997 on a
strong note with high hotel and motel occupancy rates and historically high
attendance figures for most tourist attractions. In 1997, Florida topped
California and Hawaii to rank as America's number one spot for summer vacations,
according to the Travel Industry Association and the American Automobile
Association.
By January 31, 1998, the Fund's net assets stood at approximately $24.4 million,
an increase of about 7% from the October's quarter-end. As we discussed in our
last report to shareholders, we expected to maintain a more aggressive
investment posture during the January quarter as we watched the unfolding Asian
financial crisis and what its effect would be on the US economy. We maintained
an average portfolio maturity of 4.7 years with a 6% cash equivalent position
for most of the quarter. This strategy enhanced the Fund's performance during
the quarter because inflation continued to decelerate despite continued evidence
of robust economic growth. These statistics, taken with a flight to quality by
foreign investors into US dollar-denominated assets, caused yields to decline
across the yield curve to five-year lows. We will continue to maintain our
maturity stance, since we expect the US economy to be moderated somewhat by the
fallout from Asia and inflationary pressures to continue to subside. We will
closely monitor economic statistics in an effort to seek to enhance Fund returns
while limiting any net asset value deterioration.
Merrill Lynch Massachusetts Limited Maturity Municipal Bond Fund
Economic growth remained strong in the commonwealth of Massachusetts throughout
the January quarter. As a result of the commonwealth's strong cyclical
expansion, there continued to be a strong demand for labor, which has allowed
the seasonally adjusted unemployment rate to remain below 4%. Additionally, the
strong economic environment continues to translate into positive revenue
streams. For the seven-month period ended January 31, 1998 into fiscal year
1998, total revenue collections amounted to nearly $7.8 billion, or 3.5%, over
the comparable period last year and above budget estimates.
Our investment strategy continued to be aggressive. The average portfolio
maturity was maintained in the 4.5-year range, while cash reserves were in the
0%--2% area. This strategy was maintained as we believed that the Federal
Reserve Board would accommodate a neutral monetary policy because of the Asian
financial crisis and the anticipated effect on the US economy. During the
quarter ended January 31, 1998, this aggressive posture provided shareholders
with attractive total investment returns.
Merrill Lynch Michigan Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1998, Standard & Poor's Corporation (S&P)
raised its rating on Michigan's $655 million outstanding general obligation
bonds from AA to AA+. Additionally, S&P raised its rating on the outstanding
local school bonds issued by various school districts from AA to AA+. The
upgrades were partially based on the significant improvement in the state's
financial reserve levels. The state's Budget Stabilization Fund as of September
30, 1997 was estimated at $1.2 billion. Other areas also assisted in the
upgrade. They included: the state's improved economic performance; continued
strong personal income growth; the continued diversification of the state's
employment base as well as strong employment growth which has absorbed increases
in the state's labor force; strong budget performance; and a continued low debt
burden. Michigan's unemployment rate for November 1997 stood at 4%. Another
positive note was the University of Michigan Sentiment Survey, which continues
to hover in the 106.00 range, indicating a well-balanced regional economy. There
is some concern as to what effect the Asian economic crisis might have on
Michigan's manufacturing sector which does export a portion of the region's
heavy equipment and manufacturing parts.
By January 31, 1998, the Fund's net assets stood at approximately $3.8 million,
an increase of about 6% from the October's quarter-end. As we discussed in our
last report to shareholders, we expected to maintain a more aggressive
investment posture during the January quarter as we watched the unfolding Asian
financial crisis and what its effect would be on the US economy. We maintained
an average portfolio maturity of 4.5 years with a low cash equivalent position
for most of the quarter. This strategy enhanced the Fund's performance during
the quarter because inflation continued to accelerate despite continued evidence
of robust economic growth. These statistics, taken with a flight to quality by
foreign investors into US dollar-denominated assets, caused yields to decline
across the yield curve to five-year lows. We will continue to maintain our
maturity stance, since we expect the US economy to be moderated somewhat by the
fallout from Asia and inflationary pressures to continue to subside. We will
closely monitor economic statistics in an effort to seek to enhance Fund returns
while limiting any net asset value deterioration.
Merrill Lynch New Jersey Limited Maturity Municipal Bond Fund
The state of New Jersey continued to see economic growth in the January quarter
driven by both the service and trade industries. Employment grew 1.7%
year-over-year, outpacing neighboring New York but lagging behind Pennsylvania.
The ongoing decline in the state's manufacturing base and state government
continues to constrain an otherwise healthy economy. In the State of the State
address in January, Governor Christie Todd Whitman focused on auto insurance,
taxes, education and crime. Specifically, she proposed that the state's
Educational Facilities Authority issue as much as $1.8 billion in debt for
reconstruction projects acting as a conduit issuer for various school districts.
Rating for the state's outstanding debt could suffer if the state initiates
another large-scale issuance, particularly since the state financed $2.8 billion
in bonds to finance its pension fund last spring.
Despite economic data in both the state of New Jersey and the nation that
continued to suggest an economy that was still expanding, we maintained a
somewhat aggressive portfolio strategy. We reduced our cash reserves by
approximately 10% to just under 12% and increased our average portfolio maturity
to the maximum allowed by the Fund's prospectus. We indicated in our last report
to shareholders that we believed the Federal Reserve Board was likely to raise
interest rates in an environment that showed continued economic expansion
because of potential inflation growth. However, the Asian financial crisis
appears to have eliminated any near-term Federal Reserve Board move. Demand for
intermediate-term municipal bonds continued to remain strong in the last three
months, and our fully invested posture provided an attractive yield for
shareholders. In addition, the Fund continues to be invested in high-rated
securities, primarily insured or AA-rated or better issues, placing the Fund in
a better position to weather what may be a volatile market until the Asian
crisis is resolved.
Merrill Lynch New York Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1998, Governor George Pataki proposed a
$71.9 billion state budget for the fiscal year beginning April 1, 1998. This
budget increases spending 7.6% from the current fiscal year's budget. This
election year budget includes increases for education and healthcare, which
Governor Pataki fought to cut in previous years. While the Governor called for
increasing tax cuts for the coming year from $500 million to $1.2 billion, the
state's own projections show that in three years it will have a deficit of more
than $3.5 billion. This deficit will have to be closed with spending cuts, the
postponement of scheduled tax cuts or even tax increases. Governor Pataki's
budget proposal includes a projected surplus from the current fiscal year of
$1.8 billion, the largest in the state's history. In 1997, New York posted its
strongest economic performance since the late 1980s. In 1998, employment growth
is expected to increase 1.0%. Strong consumer confidence and continued
manufacturing growth bode well for 1998 economic
4 & 5
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
performance. According to the Federal Reserve Board's latest Beige Book Report,
the region's purchasing managers are seeing steady growth in new orders. Housing
markets are firm, and commercial real estate markets throughout the state are
active. Vacant, quality office space is sparse, and rental rates are rising in
New York City as financial firms are continuing to drive the market. Per capita
income growth still exceeds the national average by six-tenths of a percentage
point.
By January 31, 1998, the Fund's net assets stood at approximately $14.2 million,
a decrease of about 11% from the October's quarter-end. As we discussed in our
last report to shareholders, we expected to maintain a more aggressive
investment strategy during the January quarter as we watched the unfolding Asian
financial crisis and what its effect would be on the US economy. We maintained
an average portfolio maturity of 4.1 years with a low cash equivalent position
for most of the quarter. This strategy enhanced the Fund's performance during
the quarter because inflation continued to decelerate despite continued evidence
of robust economic growth. These statistics, taken with a flight to quality by
foreign investors into US dollar-denominated assets, caused yields to decline
across the yield curve to five-year lows. We will continue to maintain our
maturity stance in the coming months as we expect the US economy to be moderated
somewhat by the fallout from Asia and inflationary pressures to continue to
subside. We will closely monitor economic statistics in an effort to seek to
enhance Fund returns while limiting any net asset value deterioration.
Merrill Lynch Pennsylvania Limited Maturity Municipal Bond Fund
During the quarter ended January 31, 1998, the commonwealth of Pennsylvania
continued to experience economic growth, adding jobs at a 2.1% year-over-year
pace. The commonwealth continues to see growth in most industries with the
exception of the finance industry, which has been hampered by bank
consolidations. Pennsylvania Governor Tom Ridge presented his fiscal year 1999
budget in January. Included in his $17.8 billion budget are proposed tax cuts
for lower income families, a proposed extension of the net operating loss
carryforward provision of the corporate net income tax to ten years from three
years, and a $46.2 million cut in the state's capital and franchise tax. Despite
a $181 million budget surplus in fiscal year 1998 and $465 million in its rainy
day fund, Ridge's budget remained conservatively focused financially with only
minor increases in spending. The commonwealth's conservative financial outlook
was consistent with the trends mentioned by Moody's Investors Services, Inc. in
its ratings upgrade of the commonwealth in October. Commonwealth general fund
collections for the current fiscal year outpaced expectations by 1.6% propelled
by strong personal income tax collections that surpassed estimates by close to
7%.
Despite economic data in both the commonwealth of Pennsylvania and the nation
that continued to suggest an economy that was still expanding, we maintained a
somewhat aggressive portfolio maturity during the quarter ended January 31,
1998. We kept cash reserves of under 10% and an average portfolio maturity close
to the maximum allowed as detailed in the Fund's prospectus of just under 5
years. Although we indicated in our last report to shareholders that the Federal
Reserve Board was likely to raise interest rates in an environment that showed
continued economic expansion because of potential inflation growth, the Asian
financial crisis appears to have eliminated any near-term Federal Reserve Board
move. Demand for intermediate-term municipal bonds continued to remain strong in
the January quarter and our fully invested posture provided attractive yields
for our shareholders. In addition, the Fund continues to be invested in highly
rated securities, mostly insured or AA-rated or better issues, leaving the Fund
in a better position to weather what promises to be a volatile market until the
Asian financial crisis is resolved.
In Conclusion
We appreciate your investment in Merrill Lynch Multi-State Limited Maturity
Municipal Series Trust.
Sincerely,
/s/ Arthur Zeikel
Arthur Zeikel
President
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Edward J. Andrews
Edward J. Andrews
Vice President and Portfolio Manager
/s/ Peter J. Hayes
Peter J. Hayes
Vice President and Portfolio Manager
/s/ Helen M. Sheehan
Helen M. Sheehan
Vice President and Portfolio Manager
March 6, 1998
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the Merrill
Lynch Select Pricing(SM) System, which offers four pricing alternatives:
o 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.
o 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.)
o 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.
o 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.
6 & 7
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
PERFORMANCE DATA (continued)
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.34% +3.29%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.34 +4.08
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +3.96% +2.96%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +3.97 +3.97
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.15% +3.15%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.60 +4.60
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.23% +3.19%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.85 +4.52
================================================================================
================================================================================
California Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.93% +3.88%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.46 +4.21
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.56% +3.56%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.09 +4.09
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.75% +3.75%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.21 +5.21
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.83% +3.78%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.36 +5.02
================================================================================
================================================================================
Florida Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.56% +3.51%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.22 +3.96
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.19% +3.19%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +3.85 +3.85
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.27% +3.27%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.49 +4.49
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.56% +3.51%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.03 +4.70
================================================================================
================================================================================
Massachusetts Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.47% +3.42%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.26 +4.00
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.09% +3.09%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +3.88 +3.88
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.40% +3.40%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.78 +4.78
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.36% +3.32%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.85 +4.52
================================================================================
================================================================================
Michigan Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.86% +3.81%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.35 +4.09
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.48% +3.48%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +3.97 +3.97
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.45% +3.45%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.81 +4.81
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.75% +3.70%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.16 +4.83
================================================================================
================================================================================
New Jersey Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +3.73% +2.69%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.31 +4.05
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +3.36% +2.36%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +3.96 +3.96
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +10.00% +9.00%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 + 3.39 +3.39
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +3.62% +2.59%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +4.93 +4.60
================================================================================
================================================================================
New York Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +5.34% +4.29%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.84 +4.59
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.96% +3.96%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.47 +4.47
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +5.15% +4.15%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.56 +5.56
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +5.23% +4.18%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.78 +5.45
================================================================================
* 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.
8 & 9
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
PERFORMANCE DATA (concluded)
Average Annual
Total Returns
(concluded)
Pennsylvania Limited Maturity
================================================================================
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.44% +3.39%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.53 +4.28
================================================================================
% Return % Return
Class B Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.06% +3.06%
- --------------------------------------------------------------------------------
Inception (11/26/93) through 12/31/97 +4.16 +4.16
================================================================================
% Return % Return
Class C Shares+ Without CDSC With CDSC++
================================================================================
Year Ended 12/31/97 +4.21% +3.21%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.08 +5.08
================================================================================
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
================================================================================
Year Ended 12/31/97 +4.33% +3.29%
- --------------------------------------------------------------------------------
Inception (10/21/94) through 12/31/97 +5.23 +4.90
================================================================================
* 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.
Recent
Performance
Results*
<TABLE>
<CAPTION>
Standardized
12 Month 3 Month 30-day Yield
12 Month 3 Month Total Total As of
1/31/98 10/31/97 1/31/97 % Change % Change Return Return 1/31/98
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares $10.15 $10.14 $10.08 +1.24%(1) +0.64%(1) +4.84%(2) +1.51%(3) 3.04%
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona Limited Maturity Class B Shares 10.15 10.14 10.08 +1.24(1) +0.64(1) +4.46(4) +1.42(5) 2.71
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona Limited Maturity Class C Shares 10.17 10.15 10.09 +1.34(1) +0.74(1) +4.71(6) +1.52(7) 2.82
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona Limited Maturity Class D Shares 10.15 10.15 10.09 +1.14(1) +0.54(1) +4.63(8) +1.38(9) 2.94
- ------------------------------------------------------------------------------------------------------------------------------------
California Limited Maturity Class A Shares 10.22 10.15 10.06 +1.59 +0.69 +5.55(10) +1.67(11) 3.02
- ------------------------------------------------------------------------------------------------------------------------------------
California Limited Maturity Class B Shares 10.22 10.15 10.06 +1.59 +0.69 +5.18(12) +1.58(13) 2.70
- ------------------------------------------------------------------------------------------------------------------------------------
California Limited Maturity Class C Shares 10.22 10.15 10.06 +1.59 +0.69 +5.37(14) +1.62(15) 2.88
- ------------------------------------------------------------------------------------------------------------------------------------
California Limited Maturity Class D Shares 10.22 10.15 10.06 +1.59 +0.69 +5.44(16) +1.64(17) 2.92
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Limited Maturity Class A Shares 10.07 10.02 9.98 +0.90 +0.50 +4.94(18) +1.46(17) 3.31
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Limited Maturity Class B Shares 10.07 10.02 9.98 +0.90 +0.50 +4.57(19) +1.37(20) 2.99
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Limited Maturity Class C Shares 10.00 9.95 9.91 +0.91 +0.50 +4.63(21) +1.29(22) 2.83
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Limited Maturity Class D Shares 10.07 10.02 9.97 +1.00 +0.50 +4.95(23) +1.44(15) 3.21
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Limited Maturity Class A Shares 10.07 10.00 9.98 +0.90 +0.70 +4.98(24) +1.68(25) 3.16
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Limited Maturity Class B Shares 10.07 10.00 9.99 +0.80 +0.70 +4.50(26) +1.59(27) 2.83
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Limited Maturity Class C Shares 10.07 10.00 9.98 +0.90 +0.70 +4.81(28) +1.63(29) 3.02
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Limited Maturity Class D Shares 10.07 10.00 9.98 +0.90 +0.70 +4.88(30) +1.65(31) 3.06
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Limited Maturity Class A Shares 10.11 10.06 9.99 +1.20 +0.50 +5.28(24) +1.50(32) 3.35
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Limited Maturity Class B Shares 10.11 10.06 9.99 +1.20 +0.50 +4.90(33) +1.41(34) 3.01
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Limited Maturity Class C Shares 10.12 10.06 9.99 +1.30 +0.60 +4.98(35) +1.54(15) 3.13
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan Limited Maturity Class D Shares 10.11 10.05 9.98 +1.30 +0.60 +5.28(30) +1.58(25) 3.23
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Limited Maturity Class A Shares 10.18 10.11 10.13 +0.49 +0.69 +4.20(36) +1.61(37) 3.05
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Limited Maturity Class B Shares 10.18 10.12 10.14 +0.39 +0.59 +3.72(38) +1.42(39) 2.73
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Limited Maturity Class C Shares 9.80 9.17 9.18 +6.75 +6.87 +10.40(40) +7.69(41) 2.64
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey Limited Maturity Class D Shares 10.18 10.12 10.13 +0.49 +0.59 +4.09(35) +1.49(13) 2.96
- ------------------------------------------------------------------------------------------------------------------------------------
New York Limited Maturity Class A Shares 10.26 10.17 10.10 +1.58 +0.88 +5.94(42) +1.93(43) 3.49
- ------------------------------------------------------------------------------------------------------------------------------------
New York Limited Maturity Class B Shares 10.26 10.17 10.10 +1.58 +0.88 +5.57(44) +1.84(17) 3.19
- ------------------------------------------------------------------------------------------------------------------------------------
New York Limited Maturity Class C Shares 10.26 10.17 10.10 +1.58 +0.88 +5.76(45) +1.88(46) 3.37
- ------------------------------------------------------------------------------------------------------------------------------------
New York Limited Maturity Class D Shares 10.26 10.18 10.10 +1.58 +0.79 +5.84(47) +1.80(48) 3.40
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Limited Maturity Class A Shares 10.25 10.21 10.15 +0.99 +0.39 +4.86(49) +1.36(50) 3.13
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Limited Maturity Class B Shares 10.24 10.21 10.15 +0.89 +0.29 +4.39(51) +1.17(52) 2.80
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Limited Maturity Class C Shares 10.29 10.25 10.19 +0.98 +0.39 +4.47(53) +1.20(39) 2.28
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Limited Maturity Class D Shares 10.25 10.22 10.16 +0.89 +0.29 +4.65(54) +1.24(17) 3.02
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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 $0.055 per share capital gains
distributions.
(2) Percent change includes reinvestment of $0.354 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(3) Percent change includes reinvestment of $0.087 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(4) Percent change includes reinvestment of $0.317 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(5) Percent change includes reinvestment of $0.078 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(6) Percent change includes reinvestment of $0.333 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(7) Percent change includes reinvestment of $0.080 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(8) Percent change includes reinvestment of $0.344 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(9) Percent change includes reinvestment of $0.085 per share ordinary income
dividends and $0.055 per share capital gains distributions.
(10) Percent change includes reinvestment of $0.388 per share ordinary income
dividends.
(11) Percent change includes reinvestment of $0.099 per share ordinary income
dividends.
(12) Percent change includes reinvestment of $0.352 per share ordinary income
dividends.
(13) Percent change includes reinvestment of $0.090 per share ordinary income
dividends.
(14) Percent change includes reinvestment of $0.370 per share ordinary income
dividends.
(15) Percent change includes reinvestment of $0.094 per share ordinary income
dividends.
(16) Percent change includes reinvestment of $0.378 per share ordinary income
dividends.
(17) Percent change includes reinvestment of $0.096 per share ordinary income
dividends.
(18) Percent change includes reinvestment of $0.394 per share ordinary income
dividends.
(19) Percent change includes reinvestment of $0.358 per share ordinary income
dividends.
(20) Percent change includes reinvestment of $0.087 per share ordinary income
dividends.
(21) Percent change includes reinvestment of $0.361 per share ordinary income
dividends.
(22) Percent change includes reinvestment of $0.078 per share ordinary income
dividends.
(23) Percent change includes reinvestment of $0.383 per share ordinary income
dividends.
(24) Percent change includes reinvestment of $0.396 per share ordinary income
dividends.
(25) Percent change includes reinvestment of $0.097 per share ordinary income
dividends.
(26) Percent change includes reinvestment of $0.360 per share ordinary income
dividends.
(27) Percent change includes reinvestment of $0.088 per share ordinary income
dividends.
(28) Percent change includes reinvestment of $0.380 per share ordinary income
dividends.
(29) Percent change includes reinvestment of $0.093 per share ordinary income
dividends.
(30) Percent change includes reinvestment of $0.386 per share ordinary income
dividends.
(31) Percent change includes reinvestment of $0.095 per share ordinary income
dividends.
(32) Percent change includes reinvestment of $0.100 per share ordinary income
dividends.
(33) Percent change includes reinvestment of $0.359 per share ordinary income
dividends.
(34) Percent change includes reinvestment of $0.091 per share ordinary income
dividends.
(35) Percent change includes reinvestment of $0.357 per share ordinary income
dividends.
(36) Percent change includes reinvestment of $0.367 per share ordinary income
dividends.
(37) Percent change includes reinvestment of $0.092 per share ordinary income
dividends.
(38) Percent change includes reinvestment of $0.331 per share ordinary income
dividends.
(39) Percent change includes reinvestment of $0.083 per share ordinary income
dividends.
(40) Percent change includes reinvestment of $0.313 per share ordinary income
dividends.
(41) Percent change includes reinvestment of $0.075 per share ordinary income
dividends.
(42) Percent change includes reinvestment of $0.427 per share ordinary income
dividends.
(43) Percent change includes reinvestment of $0.105 per share ordinary income
dividends.
(44) Percent change includes reinvestment of $0.391 per share ordinary income
dividends.
(45) Percent change includes reinvestment of $0.409 per share ordinary income
dividends.
(46) Percent change includes reinvestment of $0.101 per share ordinary income
dividends.
(47) Percent change includes reinvestment of $0.417 per share ordinary income
dividends.
(48) Percent change includes reinvestment of $0.103 per share ordinary income
dividends.
(49) Percent change includes reinvestment of $0.384 per share ordinary income
dividends.
(50) Percent change includes reinvestment of $0.098 per share ordinary income
dividends.
(51) Percent change includes reinvestment of $0.347 per share ordinary income
dividends.
(52) Percent change includes reinvestment of $0.089 per share ordinary income
dividends.
(53) Percent change includes reinvestment of $0.348 per share ordinary income
dividends.
(54) Percent change includes reinvestment of $0.374 per share ordinary income
dividends.
10 & 11
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
Arizona Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
Arizona--96.7%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
A1+ VMIG1+ $ 100 Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary Hospital Federation),
VRDN, Series B, 3.55% due 10/01/2015 (a)(b) $ 100
AAA Aaa 200 Arizona State Transportation Board, Excise Tax Revenue Bonds (Maricopa County Regional
Area Road), Series A, 5.75% due 7/01/2004 (b) 218
AAA Aaa 100 Arizona Water Infrastructure, Finance Authority Revenue Bonds (Water Quality Financial
Assistance), Series A, 4.50% due 7/01/2003 (d) 102
AA- A1 200 Central Arizona Water Conservation District, Contract Revenue Bonds (Central Arizona Project),
Series B, 6.50% due 5/01/2001 (e) 219
NR* VMIG1+ 120 Chandler, Arizona, IDA, IDR, Refunding (SMP II, LP), VRDN, 3.55% due 12/01/2015 (a) 120
SP1+ NR* 150 Coconino County, Arizona, Unified School District No. 001--Flagstaff, TAN, Series A, 4.40% due
6/30/1998 151
NR* P1 100 Maricopa County, Arizona, Pollution Control Corporation, PCR (El Paso Electric Company Project),
VRDN, Series A, 3.55% due 7/01/2014 (a) 100
A1+ P1 100 Maricopa County, Arizona, Pollution Control Corporation, PCR, Refunding (Arizona Public Service
Company), VRDN, Series B, 3.65% 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) 515
AA- Aa 200 Phoenix, Arizona, Civic Improvement Corporation, Water System Revenue Bonds, Junior Lien, 5%
due 7/01/2006 210
AA+ Aa1 250 Phoenix, Arizona, Refunding, UT, 5.70% due 7/01/1999 257
A1+ NR* 100 Pima County, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Eastside Place Apartments),
VRDN, 3.55% due 5/01/2027 (a) 100
A+ Aa 200 Pima County, Arizona, Refunding, Series A, 5.60% due 7/01/1999 205
AAA Aaa 200 Pima County, Arizona, Sewer Revenue Bonds, 6.20% due 7/01/2002 (b)(e) 219
A1+ VMIG1+ 100 Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Memorial Health System), VRDN,
Series B, 3.50% due 9/01/2022 (a)(b) 100
A+ A1 150 Tucson, Arizona, Street and Highway User Revenue Refunding Bonds, 5.90% due 7/01/2003 164
A1+ NR* 100 Yavapai County, Arizona, IDA, IDR (Citizens Utilities), AMT, 3.40% due 2/02/1998 100
A1+ NR* 100 Yuma, Arizona, IDA, M/F Housing Revenue Bonds (El Encanto Apartments), VRDN, Series A, 3.45%
due 11/01/2008 (a) 100
AAA Aaa 200 Yuma County, Arizona, Jail District Revenue Bonds, 4.30% due 7/01/1999 (b) 202
====================================================================================================================================
Total Investments (Cost--$3,185)--96.7% 3,282
Other Assets Less Liabilities--3.3% 113
-------
Net Assets--100.0% $ 3,395
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
(e) Prerefunded.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
California Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
California--97.8%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
NR* A1 $ 500 California Educational Facilities Authority, Revenue Refunding Bonds (Loyola Marymount
University), 5.70% due 10/01/2002 $ 536
AAA Aaa 500 California Health Facilities Financing Authority, Revenue Refunding Bonds (Catholic Healthcare
West), Series A, 5.30% due 7/01/2003 (c) 530
A1+ NR* 600 California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas and Electric
Company), VRDN, Series C, 3.60% due 11/01/2026 (a) 600
California State, GO, UT:
A+ A1 750 6.75% due 10/01/2003 852
AAA Aaa 750 6.35% due 11/01/2004 (b) 849
AA Aaa 500 California State Department of Water Resources, Water System Revenue Bonds (Central Valley
Project), Series I, 6.95% due 6/01/2000 (d) 542
California State Public Works Board, Lease Revenue Bonds, Series A (d):
AAA Aaa 600 (Department of Corrections--State Prison/Central California Women's Facility, Madera County),
7% due 9/01/2000 (d) 658
AAA Aaa 500 (Various University of California Projects), 6.40% due 12/01/2002 (c) 562
AAA Aaa 500 California Statewide Communities Development Authority, Lease Revenue Refunding Bonds
(Oakland Convention Centers Project), 5.70% due 10/01/2002 (c) 536
A+ NR* 700 East Bay, California, Municipal Utility District, Water System Revenue Bonds, Sub-Series, 7.40%
due 6/01/2000 (d) 768
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 699
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 544
AAA Aaa 400 Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Bonds
(Proposition C--Second Senior), Series B, 8% due 7/01/2003 (c) 476
AA- Aa1 1,000 Los Angeles County, California, Public Works Financing Authority, Revenue Refunding Bonds
(Capital Construction), 4.80% due 3/01/2004 1,031
AAA Aaa 450 Riverside, California, Sewer Revenue Refunding Bonds, 7% due 8/01/2006 (b) 536
AAA Aaa 700 San Francisco, California, City and County Sewer Revenue Bonds, Series A, 5.375%
due 10/01/1999 (b) 720
AAA Aaa 500 Santa Clara County, California, Financing Authority, Lease Revenue Bonds (VMC Facility
Replacement Project), Series A, 5.80% due 11/15/2000 (c) 526
SP1+ MIG1+ 600 Santa Clara County, California, TRAN, 4.75% due 10/01/1998 604
AAA Aaa 500 University of California, Revenue Refunding Bonds (Multi-Purpose Projects), Series C, 10%
due 9/01/2001 (c) 599
====================================================================================================================================
Total Investments (Cost--$12,274)--97.8% 12,993
Other Assets Less Liabilities--2.2% 293
-------
Net Assets--100.0% $13,286
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(b) FGIC Insured.
(c) AMBAC Insured.
(d) Prerefunded.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
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.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
12 & 13
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
Florida Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
Florida--92.7%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
NR* Aaa $1,000 Bay County, Florida, Hospital System, Revenue Refunding Bonds (Bay Medical Center Project), 8%
due 10/01/2004 (f) $ 1,233
AAA Aaa 1,000 Broward County, Florida, School District, UT, 7.125% due 2/15/1999 (f) 1,055
AAA Aaa 300 Dade County, Florida, Aviation Revenue Refunding Bonds, Series A, 5.60% due 10/01/2004 (b) 325
A1+ VMIG1+ 100 Dade County, Florida, IDA, IDR (Dolphins Stadium Project), VRDN, Series D, 3.60% due
1/01/2016 (a) 100
AAA Aaa 1,000 Dade County, Florida, UT, Series I, 6.90% due 7/01/2003 (b) 1,134
AAA Aaa 985 Dunedin, Florida, Hospital Revenue Bonds (Mease Health Care), 6.75% due 11/15/2001 (d)(f) 1,097
A-1 NR* 400 Escambia County, Florida, PCR, Refunding, VRDN (Gulf Power Company Project), 3.70% due
7/01/2022 (a) 400
Florida State Board of Education, Capital Outlay (Public Education):
AAA Aaa 1,000 Refunding, Series A, 7.25% due 6/01/2000 (f) 1,093
AA+ Aa2 850 Refunding, Series A, 5.50% due 6/01/2001 890
AA+ Aa2 1,000 Series B, 5.625% due 6/01/2005 1,088
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) 2,076
AAA Aaa 1,730 Refunding (Save Our Coast), Series A, 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) 112
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 1,076
AA Aa1 1,000 (Special Obligation), Series 6-B, 6.65% due 10/01/2002 1,079
AAA Aaa 1,000 Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Charity Obligation
Group), Series A, 5.50% due 8/15/2006 (d) 1,085
AAA Aaa 1,000 North Miami, Florida, Health Facilities Authority, Health Facility Revenue Bonds (Bon Secours
Health System Project), 6% due 8/15/2002 (e)(f) 1,097
AAA Aaa 1,000 Orange County, Florida, Tourist Development Tax Revenue Refunding Bonds, 6% due 10/01/2005 (d) 1,115
AA- Aaa 1,000 Orlando, Florida, Utilities Commission, Water and Electric Revenue Bonds, Series A, 6.50%
due 10/01/2001 (f) 1,103
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
A1+ VMIG1+ 400 Saint Lucie County, Florida, PCR, Refunding (Florida Power and Light Company Project), VRDN,
3.65% due 1/01/2026 (a) 400
AAA Aaa 935 Saint Lucie County, Florida, School Board, COP, Series A, 7.25% due 7/01/2000 (b)(f) 1,025
AAA Aaa 1,000 Tampa, Florida, Water and Sewer Revenue Bonds, Series A, 6% due 10/01/2002 (c)(f) 1,092
====================================================================================================================================
Puerto Rico--4.3%
A Baa1 1,000 Puerto Rico Commonwealth, Refunding, Improvement Bonds, UT, 5.30% due 7/01/2004 1,056
====================================================================================================================================
Total Investments (Cost--$22,997)--97.0% 23,704
Other Assets Less Liabilities--3.0% 736
-------
Net Assets--100.0% $24,440
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(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.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
Massachusetts Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
Massachusetts--90.9%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
NR* A1 $ 285 Boston, Massachusetts, Economic Development and Industrial Corporation, Public Parking Facility,
Series 1990, 5% due 7/01/2000 $ 290
AAA Aaa 200 Chelsea, Massachusetts, School Project Loan Act of 1948, UT, 6% due 6/15/2002 (a) 215
AAA Aaa 215 Fall River, Massachusetts, GO, 6.30% due 6/01/1998 (c) 217
NR* Aa3 225 Framingham, Massachusetts, GO, 4.50% due 7/15/2005 (e) 230
AAA Aaa 200 Lynn, Massachusetts, Water and Sewer Commission, Refunding, 4.95% due 12/01/2002 (d) 208
AA- A1 100 Massachusetts Bay Transportation Authority, Massachusetts General Transportation System,
Series A, 4.90% due 3/01/2004 104
AAA Aaa 215 Massachusetts Education Loan Authority, Education Loan Revenue Refunding Bonds, AMT, Issue E,
Series B, 5.50% due 7/01/2001 (a) 225
AA- A1 750 Massachusetts State, GO, Refunding, Series B, 6.25% due 8/01/2001 805
AAA Aaa 200 Massachusetts State Health and Educational Facilities Authority, Revenue, Refunding Bonds (Baystate
Medical Center), Series D, 4.60% due 7/01/2002 (d) 204
AAA Aaa 200 Massachusetts State Individual Finance Agency, Revenue Refunding Bonds (Worcester Polytechnic),
Series II, 4.50% due 9/01/2002 (c) 204
AA Aa3 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 (b) 282
NR* Aaa 150 Nantucket, Massachusetts, GO, Refunding, 5.75% due 7/15/2005 (c) 164
NR* A1 200 New England Education Loan Marketing Corporation, Massachusetts, Student Loan Revenue Bonds, AMT,
Sub-Issue F, 6.60% due 9/01/2002 216
AA Aa1 100 Peabody, Massachusetts, GO, Series A, 4.50% due 8/01/2000 102
====================================================================================================================================
Puerto Rico--6.6%
A Baa1 250 Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health Facilities,
Refunding, Series K, 6.60% due 7/01/2004 275
====================================================================================================================================
Total Investments (Cost--$3,902)--97.5% 4,059
Other Assets Less Liabilities--2.5% 103
-------
Net Assets--100.0% $ 4,162
=======
====================================================================================================================================
</TABLE>
(a) AMBAC Insured.
(b) Prerefunded.
(c) MBIA Insured.
(d) FGIC Insured.
(e) Bank Qualified.
* Not Rated.
See Notes to Financial Statements.
14 & 15
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
Michigan Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
Michigan--91.6%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
AAA Aaa $ 200 Anchor Bay, Michigan, School District, UT, 6.30% due 5/01/2004 (c) $ 223
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 250 Dearborn, Michigan, Economic Development Corporation, Hospital Revenue Bonds (Oakwood Obligated
Group), Series A, 6.95% due 8/15/2001 (c)(d) 278
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 7/01/2002 (b)(d) 276
AAA Aaa 200 Eastern Michigan University, General Revenue Refunding Bonds, 5.40% due 6/01/1998 (a) 201
Michigan Municipal Bond Authority Revenue Bonds:
AAA Aaa 200 (Local Government Loan Program), Series C, 5.50% due 5/01/2003 (c) 213
AA+ Aa2 450 Refunding (Local Government--Qualified School), Series A, 6% due 5/01/2001 477
AA+ Aa1 200 (State Revolving Fund), 7% due 10/01/2004 (e) 232
AA A1 200 Michigan State Building Authority, Revenue Refunding Bonds, Series I, 6.40% due 10/01/2004 219
AA- A1 200 Michigan State Comprehensive Transportation, Revenue Refunding Bonds, Series B, 5.625% due
5/15/2003 214
NR* Aaa 100 Michigan State Hospital Finance Authority Revenue Bonds (McLaren Obligated Group), Series A, 7.50%
due 9/15/2001 (d) 113
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) 176
AAA Aaa 175 Saint John's Michigan Public Schools, UT, 6.50% due 5/01/2006 (b) 201
====================================================================================================================================
Puerto Rico--5.9%
AAA Aaa 200 Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health Facilities,
Series L, 6.875% due 7/01/2002 (d) 226
====================================================================================================================================
Total Investments (Cost--$3,537)--97.5% 3,706
Other Assets Less Liabilities--2.5% 96
-------
Net Assets--100.0% $ 3,802
=======
====================================================================================================================================
</TABLE>
(a) AMBAC Insured.
(b) FGIC Insured.
(c) MBIA Insured.
(d) Prerefunded.
(e) Escrowed to maturity.
* Not rated.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
New Jersey Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
New Jersey--96.9%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
NR* Aaa $ 300 Bergen County, New Jersey, General Improvement Bonds, UT, 5.20% due 10/01/1999 $ 307
AAA Aaa 600 Elizabeth, New Jersey, General Improvement and Sewer Utility, Refunding, GO, UT, 6% due
8/15/2004 (b) 661
SP1+ VMIG1+ 300 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN, 3.25% due 11/01/1998 (a) 300
AA+ Aaa 400 Monmouth County, New Jersey, General Improvement Bonds, GO, UT, 6.625% due 8/01/2000 414
AAA Aaa 300 Morris County, New Jersey, General Improvement Bonds, GO, UT, 4.625% due 8/15/2003 309
AAA Aaa 1,000 New Jersey EDA, Market Transition Facility Revenue Bonds, Senior Lien, Series A, 7% due
7/01/2004 (c) 1,151
A1+ VMIG1+ 300 New Jersey Sports and Exposition Authority Revenue Bonds (State Contract), VRDN, Series C, 3.35%
due 9/01/2024 (a)(c) 300
AAA Aaa 300 New Jersey State Educational Facilities Authority Revenue Bonds (Princeton University), Series E,
4.05% due 7/01/2000 302
NR* Aaa 200 New Jersey State Transportation Trust Fund Authority (Transportation System), Series A, 5.40%
due 12/15/2002 (d) 212
NR* Aa2 400 Ocean County, New Jersey, Utilities Authority, Wastewater Revenue Bonds, Series A, 6.125% due
1/01/2003 436
AAA Aaa 125 Somerset County, New Jersey, GO, UT, 5.875% due 12/01/2001 134
AA+ Aaa 340 Union County, New Jersey, Refunding, GO, UT, 5.875% due 3/01/1999 348
====================================================================================================================================
Total Investments (Cost--$4,675)--96.9% 4,874
Other Assets Less Liabilities--3.1% 154
-------
Net Assets--100.0% $ 5,028
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) Escrowed to maturity.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
16 & 17
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
New York Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
New York--99.0%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
AAA Aaa $ 750 Erie County, New York, Public Improvement Bonds, UT, Series A, 5.50% due 8/15/2007 (c) $ 816
AAA Aaa 600 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series A,
6.50% due 7/01/2004 (b)(e) 686
Nassau County, New York, General Improvement Bonds, UT (c):
AAA Aaa 400 Series O, 5.625% due 8/01/2004 433
AAA Aaa 700 Series Q, 5.10% due 8/01/2003 735
AAA Aaa 750 New York City, New York, IDA, Civic Facilities Revenue Bonds (USTA National Tennis Center
Project), 6% due 11/15/2003 (d) 824
NR* Aa2 800 New York City, New York, Municipal Assistance Corporation, Series 68, 7.10% due 7/01/1999 (b) 852
New York City, New York, UT, Series A:
BBB+ Baa1 550 6% due 8/01/2000 574
BBB+ Baa1 60 6% due 8/01/2000 (g) 63
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 500 (College and University Education Loans), AMT, 6.30% due 7/01/2002 (e) 546
AA Aa 700 Refunding (Cornell University), 5% due 7/01/2005 737
A- Aa2 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 410
A A2 600 New York State Environmental Quality, GO, 6% due 12/01/2004 663
A A2 505 New York State, GO, 6% due 7/15/2006 563
AAA Aaa 605 New York State, HFA, Special Obligation Health Facilities, Series A, 6.90% due 5/01/2004 (g) 694
New York State Local Government Assistance Corporation (b):
A+ Aaa 625 Series A, 7% due 4/01/2001 692
AAA Aaa 600 Series D, 7% due 4/01/2002 678
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) 815
AA Aa 645 (Security Mortgage Program, Adult Day Care), 6% due 11/15/2003 (f) 703
AAA Aaa 500 New York State Urban Development Corporation Revenue Bonds (Correctional Capital Facilities),
Series 5, 6% due 1/01/2004 (h) 547
AAA Aaa 760 Port Authority of New York and New Jersey, Refunding, AMT, UT, Consolidated 97th Series, 7.10%
due 7/15/2003 (c) 866
A1+ VMIG1+ 600 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal Syracuse University Project),
VRDN, 3.50% due 3/01/2023 (a) 600
Triborough Bridge and Tunnel Authority, New York, Revenue Bonds:
A+ Aa3 340 Series R, 6.90% due 1/01/2000 359
A1+ VMIG1+ 200 Special Obligation, VRDN, 3.45% due 1/01/2024 (a)(c) 200
====================================================================================================================================
Total Investments (Cost--$13,496)--99.0% 14,056
Other Assets Less Liabilities--1.0% 143
-------
Net Assets--100.0% $14,199
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(b) Prerefunded.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) SONYMA Insured.
(g) Escrowed to maturity.
(h) AMBAC Insured.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
See Notes to Financial Statements.
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity Municipal Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
STATE
====================================================================================================================================
Pennsylvania--70.2%
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
====================================================================================================================================
<C> <C> <C> <S> <C>
AAA Aaa $ 300 Beaver County, Pennsylvania, Hospital Authority, Revenue Refunding Bonds (Medical Center of
Beaver County, Inc.), 5.70% due 7/01/1999 (c) $ 308
AA Aa2 1,000 Bucks County, Pennsylvania, UT, Series A, 5.95% due 3/01/2000 1,042
NR* Aa3 155 Central Bucks, Pennsylvania, School District, UT, 4.50% due 5/15/1999 157
A- NR* 650 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities Authority, Hospital Revenue
Bonds (Children's Seashore House), Series B, 7% due 8/15/2003 726
A1+ NR* 100 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding Bonds (Northeastern
Power), AMT, Series B, 3.75% due 12/01/2022 (a) 100
AAA Aaa 300 Union County, Pennsylvania, Higher Educational Facilities Financing Authority, Revenue Refunding
Bonds (Bucknell University), 6% due 4/01/2002 (b) 322
A 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)(d)(e) 360
====================================================================================================================================
Puerto Rico--25.0%
A- Baa1 1,000 Puerto Rico Municipal Finance Agency, GO, UT, Series A, 5.80% due 7/01/2004 1,074
====================================================================================================================================
Total Investments (Cost--$3,923)--95.2% 4,089
Other Assets Less Liabilities--4.8% 204
-------
Net Assets--100.0% $ 4,293
=======
====================================================================================================================================
</TABLE>
(a) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at January 31,
1998.
(b) MBIA Insured.
(c) AMBAC Insured.
(d) Escrowed to maturity.
(e) Prerefunded.
* Not Rated.
See Notes to Financial Statements.
18 & 19
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
As of January 31, 1998 Maturity Maturity Maturity Maturity
==================================================================================================================================
<S> <C> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) ...................... $ 3,281,845 $ 12,992,596 $ 23,703,806 $ 4,058,558
Cash .................................................. 92,285 84,683 490,648 61,130
Receivables:
Interest ............................................ 19,314 235,767 343,957 51,816
Investment adviser (Note 2) ......................... 16,784 -- -- 23,307
Beneficial interest sold ............................ -- 10,680 -- --
Deferred organization expenses (Note 1e) .............. -- 4,810 15,985 2,615
Prepaid registration fees and other assets (Note 1e) .. 11,380 336 10,720 7,698
------------ ------------ ------------ ------------
Total assets .......................................... 3,421,608 13,328,872 24,565,116 4,205,124
------------ ------------ ------------ ------------
=================================================================================================================================
Liabilities: Payables:
Beneficial interest redeemed ........................ -- -- 53,320 --
Dividends to shareholders (Note 1f) ................. 1,779 7,941 14,747 2,516
Distributor (Note 2) ................................ 724 2,248 3,852 796
Investment adviser (Note 2) ......................... -- 1,687 7,474 --
Accrued expenses and other liabilities ................ 24,287 30,855 45,741 39,637
------------ ------------ ------------ ------------
Total liabilities ..................................... 26,790 42,731 125,134 42,949
------------ ------------ ------------ ------------
=================================================================================================================================
Net Assets: Net assets ............................................ $ 3,394,818 $ 13,286,141 $ 24,439,982 $ 4,162,175
============ ============ ============ ============
=================================================================================================================================
Net Assets Class A Shares of beneficial interest, $.10 par value,
Consist of: unlimited shares authorized ......................... $ 6,292 $ 30,242 $ 65,451 $ 11,608
Class B Shares of beneficial interest, $.10 par value,
unlimited shares authorized ......................... 22,550 63,955 100,090 25,063
Class C Shares of beneficial interest, $.10 par value,
unlimited shares authorized ......................... 12 695 13 727
Class D Shares of beneficial interest, $.10 par value,
unlimited shares authorized ......................... 4,599 35,125 77,188 3,932
Paid-in capital in excess of par ...................... 3,266,413 12,867,110 24,200,168 4,244,464
Accumulated realized capital losses on investments--net
(Note 5) ............................................. (2,244) (429,949) (709,355) (280,054)
Unrealized appreciation on investments--net ........... 97,196 718,963 706,427 156,435
------------ ------------ ------------ ------------
Net assets ............................................ $ 3,394,818 $ 13,286,141 $ 24,439,982 $ 4,162,175
============ ============ ============ ============
=================================================================================================================================
Net Asset
Value: Class A: Net assets ................................... $ 638,486 $ 3,090,547 $ 6,591,112 $ 1,168,877
============ ============ ============ ============
Shares outstanding ........................... 62,916 302,424 654,510 116,080
============ ============ ============ ============
Net asset value .............................. $ 10.15 $ 10.22 $ 10.07 $ 10.07
============ ============ ============ ============
Class B: Net assets ................................... $ 2,288,198 $ 6,534,291 $ 10,078,264 $ 2,524,231
============ ============ ============ ============
Shares outstanding ........................... 225,499 639,547 1,000,897 250,631
============ ============ ============ ============
Net asset value .............................. $ 10.15 $ 10.22 $ 10.07 $ 10.07
============ ============ ============ ============
Class C: Net assets ................................... $ 1,261 $ 71,065 $ 1,240 $ 73,185
============ ============ ============ ============
Shares outstanding ........................... 124 6,955 124 7,271
============ ============ ============ ============
Net asset value .............................. $ 10.17 $ 10.22 $ 10.00 $ 10.07
============ ============ ============ ============
Class D: Net assets ................................... $ 466,873 $ 3,590,238 $ 7,769,366 $ 395,882
============ ============ ============ ============
Shares outstanding ........................... 45,986 351,256 771,882 39,320
============ ============ ============ ============
Net asset value .............................. $ 10.15 $ 10.22 $ 10.07 $ 10.07
============ ============ ============ ============
=================================================================================================================================
* Identified cost ..................................... $ 3,184,649 $ 12,273,633 $ 22,997,379 $ 3,902,123
============ ============ ============ ============
<CAPTION>
================================================================================================================================
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
As of January 31, 1998 Maturity Maturity Maturity Maturity
================================================================================================================================
<S> <C> <C> <C> <C> <C>
Assets: Investments, at value* (Note 1a) ...................... $ 3,705,710 $ 4,874,285 $ 14,055,993 $ 4,089,493
Cash .................................................. 56,634 82,982 33,535 143,463
Receivables:
Investment adviser (Note 2) ......................... 17,781 14,915 11,057 21,444
Interest ............................................ 54,579 68,268 180,726 64,299
Deferred organization expenses (Note 1e) .............. 2,302 3,758 4,123 3,516
Prepaid registration fees and other assets (Note 1e) .. 243 7,803 7,384 5,266
------------ ------------ ------------ ------------
Total assets .......................................... 3,837,249 5,052,011 14,292,818 4,327,481
------------ ------------ ------------ ------------
================================================================================================================================
Liabilities: Payables:
Beneficial interest redeemed ........................ -- 1,525 51,203 --
Distributor (Note 2) ................................ 542 1,102 2,962 1,108
Dividends to shareholders (Note 1f) ................. 2,445 2,812 9,210 2,563
Accrued expenses and other liabilities ................ 31,825 18,528 30,314 30,843
------------ ------------ ------------ ------------
Total liabilities ..................................... 34,812 23,967 93,689 34,514
------------ ------------ ------------ ------------
================================================================================================================================
Net Assets: Net assets ............................................ $ 3,802,437 $ 5,028,044 $ 14,199,129 $ 4,292,967
============ ============ ============ ============
================================================================================================================================
Net Assets Class A Shares of beneficial interest, $.10 par value,
Consist of: unlimited shares authorized .......................... $ 11,491 $ 11,386 $ 18,538 $ 5,214
Class B Shares of beneficial interest, $.10 par value,
unlimited shares authorized .......................... 14,016 35,304 84,117 34,811
Class C Shares of beneficial interest, $.10 par value,
unlimited shares authorized .......................... 116 12 578 13
Class D Shares of beneficial interest, $.10 par value,
unlimited shares authorized .......................... 11,981 2,680 35,184 1,869
Paid-in capital in excess of par ...................... 3,744,247 4,944,869 13,683,035 4,093,474
Accumulated realized capital losses on investments--net
(Note 5) ............................................. (146,529) (165,451) (182,028) (8,443)
Accumulated distributions in excess of realized gain on
investments--net (Note 1f) ........................... (1,779) -- -- --
Unrealized appreciation on investments--net ........... 168,894 199,244 559,705 166,029
------------ ------------ ------------ ------------
Net assets ............................................ $ 3,802,437 $ 5,028,044 $ 14,199,129 $ 4,292,967
============ ============ ============ ============
================================================================================================================================
Net Asset
Value: Class A: Net assets ................................... $ 1,162,136 $ 1,158,640 $ 1,901,393 $ 534,241
============ ============ ============ ============
Shares outstanding ........................... 114,905 113,854 185,378 52,143
============ ============ ============ ============
Net asset value .............................. $ 10.11 $ 10.18 $ 10.26 $ 10.25
============ ============ ============ ============
Class B: Net assets ................................... $ 1,417,631 $ 3,595,378 $ 8,628,299 $ 3,565,981
============ ============ ============ ============
Shares outstanding ........................... 140,161 353,043 841,171 348,106
============ ============ ============ ============
Net asset value .............................. $ 10.11 $ 10.18 $ 10.26 $ 10.24
============ ============ ============ ============
Class C: Net assets ................................... $ 11,693 $ 1,215 $ 59,310 $ 1,276
============ ============ ============ ============
Shares outstanding ........................... 1,156 124 5,783 124
============ ============ ============ ============
Net asset value .............................. $ 10.12 $ 9.80 $ 10.26 $ 10.29
============ ============ ============ ============
Class D: Net assets ................................... $ 1,210,977 $ 272,811 $ 3,610,127 $ 191,469
============ ============ ============ ============
Shares outstanding ........................... 119,812 26,797 351,833 18,686
============ ============ ============ ============
Net asset value .............................. $ 10.11 $ 10.18 $ 10.26 $ 10.25
============ ============ ============ ============
================================================================================================================================
* Identified cost ..................................... $ 3,536,816 $ 4,675,041 $ 13,496,288 $ 3,923,464
============ ============ ============ ============
================================================================================================================================
</TABLE>
See Notes to Financial Statements.
20 & 21
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Arizona California Florida Massachusetts
Limited Limited Limited Limited
For the Six Months Ended January 31, 1998 Maturity Maturity Maturity Maturity
==================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Interest and amortization of premium and
Income discount earned ...................................... $ 76,155 $ 337,669 $ 609,297 $ 111,390
(Note 1d): ------------ ------------ ------------ ------------
==================================================================================================================================
Expenses: Accounting services (Note 2) .......................... 15,578 16,931 32,146 26,376
Investment advisory fees (Note 2) ..................... 6,054 24,216 42,661 7,914
Professional fees ..................................... 17,081 17,064 13,003 15,639
Registration fees (Note 1e) ........................... 11,307 6,343 7,606 15,035
Account maintenance and distribution fees--
Class B (Note 2) ..................................... 3,966 11,811 19,685 4,685
Printing and shareholder reports ...................... 2,026 9,790 16,621 3,884
Trustees' fees and expenses ........................... 968 4,109 6,676 1,360
Amortization of organization expenses (Note 1e) ....... -- 1,819 6,009 978
Custodian fees ........................................ 1,452 1,674 2,238 1,139
Account maintenance fees--Class D (Note 2) ............ 235 1,941 3,356 248
Transfer agent fees--Class B (Note 2) ................. 625 1,045 1,486 851
Pricing fees .......................................... 903 549 1,362 1,162
Transfer agent fees--Class A (Note 2) ................. 162 388 651 326
Transfer agent fees--Class D (Note 2) ................. 110 479 681 126
Account maintenance and distribution fees--
Class C (Note 2) ..................................... 25 53 24 60
Transfer agent fees--Class C (Note 2) ................. 13 16 8 28
Other ................................................. 902 -- 1,784 1,405
------------ ------------ ------------ ------------
Total expenses before reimbursement ................... 61,407 98,228 155,997 81,216
Reimbursement of expenses (Note 2) .................... (40,749) (13,838) -- (53,611)
------------ ------------ ------------ ------------
Total expenses after reimbursement .................... 20,658 84,390 155,997 27,605
------------ ------------ ------------ ------------
Investment income--net ................................ 55,497 253,279 453,300 83,785
------------ ------------ ------------ ------------
==================================================================================================================================
Realized & Realized gain on investments--net ..................... -- 42,769 68,628 20,924
Unrealized on Change in unrealized appreciation on
Gain (Loss) investments--net ..................................... 10,630 (45,600) (70,852) (10,706)
Investments ------------ ------------ ------------ ------------
- --Net Net Increase in Net Assets Resulting
(Notes 1b, from Operations ...................................... $ 66,127 $ 250,448 $ 451,076 $ 94,003
1d & 3): ============ ============ ============ ============
==================================================================================================================================
<CAPTION>
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
For the Six Months Ended January 31, 1998 Maturity Maturity Maturity Maturity
==================================================================================================================================
<S> <C> <C> <C> <C> <C>
Investment Interest and amortization of premium and
Income discount earned ...................................... $ 101,971 $ 134,760 $ 374,673 $ 160,825
(Note 1d): ------------ ------------ ------------ ------------
==================================================================================================================================
Expenses: Professional fees ..................................... 15,826 16,823 17,081 27,808
Accounting services (Note 2) .......................... 18,787 20,277 21,822 15,945
Investment advisory fees (Note 2) ..................... 7,254 10,471 27,076 11,772
Registration fees (Note 1e) ........................... 11,005 6,997 12,603 7,462
Account maintenance and distribution
fees--Class B (Note 2) ............................... 2,477 6,923 15,644 8,292
Printing and shareholder reports ...................... 3,074 4,258 10,459 8,607
Trustees' fees and expenses ........................... 1,241 1,810 4,101 2,954
Custodian fees ........................................ 1,037 1,638 2,021 1,158
Pricing fees .......................................... 1,502 1,146 2,003 742
Amortization of organization expenses (Note 1e) ....... 872 1,414 1,521 1,223
Transfer agent fees--Class B (Note 2) ................. 408 1,055 1,760 1,520
Account maintenance fees--Class D (Note 2) ............ 753 135 1,984 693
Transfer agent fees--Class D (Note 2) ................. 327 61 633 323
Transfer agent fees--Class A (Note 2) ................. 264 359 398 164
Account maintenance and distribution
fees--Class C (Note 2) ............................... 6 109 48 5
Transfer agent fees--Class C (Note 2) ................. 6 35 19 7
Other ................................................. 1,385 453 1,309 262
------------ ------------ ------------ ------------
Total expenses before reimbursement ................... 66,224 73,964 120,482 88,937
Reimbursement of expenses (Note 2) .................... (43,298) (38,373) (48,654) (46,313)
------------ ------------ ------------ ------------
Total expenses after reimbursement .................... 22,926 35,591 71,828 42,624
------------ ------------ ------------ ------------
Investment income--net ................................ 79,045 99,169 302,845 118,201
------------ ------------ ------------ ------------
==================================================================================================================================
Realized &
Unrealized Realized gain on investments--net ..................... 3,548 1,736 42,403 54,599
Gain (Loss) on Change in unrealized appreciation on
Investments investments--net ..................................... 5,999 13,544 20,391 (50,879)
- --Net ------------ ------------ ------------ ------------
(Notes 1b, Net Increase in Net Assets Resulting from Operations .. $ 88,592 $ 114,449 $ 365,639 $ 121,921
1d & 3): ============ ============ ============ ============
==================================================================================================================================
</TABLE>
See Notes to Financial Statements.
22 & 23
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Arizona Limited Maturity California Limited Maturity
-------------------------- ---------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
January 31, July 31, January 31, July 31,
Increase (Decrease) in Net Assets: 1998 1997 1998 1997
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Operations: Investment income--net ........................ $ 55,497 $ 128,430 $ 253,279 $ 513,497
Realized gain on investments--net ............. -- 87,712 42,769 57,005
Change in unrealized appreciation on
investments--net ............................. 10,630 (58,065) (45,600) 206,716
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations .............................. 66,127 158,077 250,448 777,218
------------ ------------ ------------ ------------
===================================================================================================================================
Dividends & Investment income--net:
Distributions
to Class A ..................................... (11,937) (28,232) (60,586) (117,926)
Shareholders Class B ..................................... (35,128) (83,293) (118,352) (295,984)
(Note 1f): Class C ..................................... (545) (3,632) (1,308) (1,999)
Class D ..................................... (7,887) (13,273) (73,033) (97,588)
Realized gain on investments--net:
Class A ..................................... (3,427) -- -- --
Class B ..................................... (12,400) -- -- --
Class C ..................................... (196) -- -- --
Class D ..................................... (2,495) -- -- --
------------ ------------ ------------ ------------
Net decrease in net assets resulting from
dividends and distributions to shareholders .. (74,015) (128,430) (253,279) (513,497)
------------ ------------ ------------ ------------
===================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets derived
Transactions (Note 4): from beneficial interest transactions ........ 45,311 (1,124,280) (839,744) (1,455,816)
------------ ------------ ------------ ------------
===================================================================================================================================
Net Assets: Total increase (decrease) in net assets ....... 37,423 (1,094,633) (842,575) (1,192,095)
Beginning of period ........................... 3,357,395 4,452,028 14,128,716 15,320,811
------------ ------------ ------------ ------------
End of period ................................. $ 3,394,818 $ 3,357,395 $ 13,286,141 $ 14,128,716
============ ============ ============ ============
===================================================================================================================================
<CAPTION>
Florida Limited Maturity Massachusetts Limited Maturity
-------------------------- ------------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
January 31, July 31, January 31, July 31,
Increase (Decrease) in Net Assets: 1998 1997 1998 1997
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Operations: Investment income--net ........................ $ 453,300 $ 980,347 $ 83,785 $ 234,283
Realized gain on investments--net ............. 68,628 101,611 20,924 51,279
Change in unrealized appreciation on
investments--net ............................. (70,852) 180,208 (10,706) (12,363)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations .............................. 451,076 1,262,166 94,003 273,199
------------ ------------ ------------ ------------
===================================================================================================================================
Dividends to Investment income--net:
Shareholders Class A ..................................... (124,896) (295,532) (24,939) (56,023)
(Note 1f): Class B ..................................... (200,061) (441,468) (47,802) (140,428)
Class C ..................................... (596) (2,960) (1,506) (10,189)
Class D ..................................... (127,747) (240,387) (9,538) (27,643)
------------ ------------ ------------ ------------
Net decrease in net assets resulting
from dividends to shareholders ............... (453,300) (980,347) (83,785) (234,283)
------------ ------------ ------------ ------------
===================================================================================================================================
Beneficial Interest Net decrease in net assets derived
Transactions (Note 4): from beneficial interest transactions ........ (1,187,670) (2,674,028) (983,794) (2,299,335)
------------ ------------ ------------ ------------
===================================================================================================================================
Net Assets: Total decrease in net assets .................. (1,189,894) (2,392,209) (973,576) (2,260,419)
Beginning of period ........................... 25,629,876 28,022,085 5,135,751 7,396,170
------------ ------------ ------------ ------------
End of period ................................. $ 24,439,982 $ 25,629,876 $ 4,162,175 $ 5,135,751
============ ============ ============ ============
===================================================================================================================================
<CAPTION>
Michigan Limited Maturity New Jersey Limited Maturity
-------------------------- ------------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
January 31, July 31, January 31, July 31,
Increase (Decrease) in Net Assets: 1998 1997 1998 1997
===================================================================================================================================
<S> <C> <C> <C> <C> <C>
Operations: Investment income--net ......................... $ 79,045 $ 160,801 $ 99,169 $ 261,170
Realized gain on investments--net .............. 3,548 21,697 1,736 126,030
Change in unrealized appreciation on
investments--net .............................. 5,999 38,238 13,544 (105,889)
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations ............................... 88,592 220,736 114,449 281,311
------------ ------------ ------------ ------------
===================================================================================================================================
Dividends & Investment income--net:
Distributions to Class A ...................................... (24,154) (58,806) (28,685) (78,571)
Shareholders Class B ...................................... (25,564) (60,388) (63,388) (157,456)
(Note 1f): Class C ...................................... (150) (43) (2,428) (9,799)
Class D ...................................... (29,177) (41,564) (4,668) (15,344)
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 ... (79,045) (162,580) (99,169) (261,170)
------------ ------------ ------------ ------------
===================================================================================================================================
Beneficial Interest Net increase (decrease) in net assets derived
Transactions (Note 4): from beneficial interest transactions ......... (458,455) 168,118 (1,309,837) (2,324,627)
------------ ------------ ------------ ------------
===================================================================================================================================
Net Assets: Total increase (decrease) in net assets ........ (448,908) 226,274 (1,294,557) (2,304,486)
Beginning of period ............................ 4,251,345 4,025,071 6,322,601 8,627,087
------------ ------------ ------------ ------------
End of period .................................. $ 3,802,437 $ 4,251,345 $ 5,028,044 $ 6,322,601
============ ============ ============ ============
===================================================================================================================================
</TABLE>
+ Amount is less than $1.
See Notes to Financial Statements.
24 & 25
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
STATEMENTS OF CHANGES IN NET ASSETS (concluded)
<TABLE>
<CAPTION>
New York Limited Maturity Pennsylvania Limited Maturity
------------------------- -----------------------------
For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended
January 31, July 31, January 31, July 31,
Increase (Decrease) in Net Assets: 1998 1997 1998 1997
<S> <C> <C> <C> <C> <C>
====================================================================================================================================
Operations: Investment income--net ............................... $ 302,845 $ 660,613 $ 118,201 $ 295,290
Realized gain on investments--net .................... 42,403 36,848 54,599 37,824
Change in unrealized appreciation on investments--net 20,391 214,688 (50,879) 56,086
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations . 365,639 912,149 121,921 389,200
----------- ----------- ----------- -----------
====================================================================================================================================
Dividends to Investment income--net:
Shareholders Class A ............................................ (51,843) (118,733) (11,342) (29,558)
(Note 1f): Class B ............................................ (169,416) (360,967) (81,366) (198,819)
Class C ............................................ (1,270) (6,313) (109) (181)
Class D ............................................ (80,316) (174,600) (25,384) (66,732)
----------- ----------- ----------- -----------
Net decrease in net assets resulting from dividends to
shareholders ......................................... (302,845) (660,613) (118,201) (295,290)
----------- ----------- ----------- -----------
====================================================================================================================================
Beneficial Interest Net decrease in net assets derived from beneficial
Transactions (Note 4): interest transactions ................................ (429,000) (3,606,325) (3,449,410) (1,259,754)
----------- ----------- ----------- -----------
====================================================================================================================================
Net Assets: Total decrease in net assets ......................... (366,206) (3,354,789) (3,445,690) (1,165,844)
Beginning of period .................................. 14,565,335 17,920,124 7,738,657 8,904,501
----------- ----------- ----------- -----------
End of period ........................................ $14,199,129 $14,565,335 $ 4,292,967 $ 7,738,657
=========== =========== =========== ===========
====================================================================================================================================
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Arizona Limited Maturity
--------------------------------------------------------
Class A
--------------------------------------------------------
For the For the
Six Period
The following per share data and ratios have been derived Months For the Year Nov. 26,
from information provided in the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ----------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
Per Share Net asset value, beginning of period .................. $ 10.17 $ 10.08 $ 10.17 $ 9.97 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ................................ .18 .37 .41 .43 .23
Realized and unrealized gain (loss) on investments--net .03 .09 (.09) .20 (.03)
------- ------- ------- ------- -------
Total from investment operations ...................... .21 .46 .32 .63 .20
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ............................. (.18) (.37) (.41) (.43) (.23)
Realized gain on investments--net .................. (.05) -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ..................... (.23) (.37) (.41) (.43) (.23)
------- ------- ------- ------- -------
Net asset value, end of period ........................ $ 10.15 $ 10.17 $ 10.08 $ 10.17 $ 9.97
======= ======= ======= ======= =======
====================================================================================================================================
Total Investment Based on net asset value per share .................... 2.11%++ 4.62% 3.16% 6.47% 2.02%++
Return:** ======= ======= ======= ======= =======
====================================================================================================================================
Ratios to Average Expenses, net of reimbursement ........................ .94%* .94% .74% .35% .02%*
Net Assets: ======= ======= ======= ======= =======
Expenses .............................................. 3.30%* 3.21% 2.27% 2.05% 1.82%*
======= ======= ======= ======= =======
Investment income--net ................................ 3.46%* 3.64% 4.01% 4.31% 3.37%*
======= ======= ======= ======= =======
====================================================================================================================================
Supplemental Net assets, end of period (in thousands) .............. $ 639 $ 709 $ 813 $ 1,054 $ 2,103
Data: ======= ======= ======= ======= =======
Portfolio turnover .................................... .00% 38.21% 43.53% 182.58% 142.37%
======= ======= ======= ======= =======
====================================================================================================================================
<CAPTION>
Arizona Limited Maturity
--------------------------------------------------------
Class B
--------------------------------------------------------
For the For the
Six Period
The following per share data and ratios have been derived Months For the Year Nov. 26,
from information provided in the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ----------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
Per Share Net asset value, beginning of period .................. $ 10.17 $ 10.08 $ 10.16 $ 9.97 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ................................ .16 .33 .37 .39 .20
Realized and unrealized gain (loss) on investments--net .03 .09 (.08) .19 (.03)
------- ------- ------- ------- -------
Total from investment operations ...................... .19 .42 .29 .58 .17
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ............................. (.16) (.33) (.37) (.39) (.20)
Realized gain on investments--net .................. (.05) -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ..................... (.21) (.33) (.37) (.39) (.20)
------- ------- ------- ------- -------
Net asset value, end of period ........................ $ 10.15 $ 10.17 $ 10.08 $ 10.16 $ 9.97
======= ======= ======= ======= =======
====================================================================================================================================
Total Investment Based on net asset value per share .................... 1.93%++ 4.25% 2.88% 5.99% 1.78%++
Return:** ======= ======= ======= ======= =======
====================================================================================================================================
Ratios to Average Expenses, net of reimbursement ........................ 1.30%* 1.30% 1.09% .72% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses .............................................. 3.66%* 3.56% 2.61% 2.44% 2.18%*
======= ======= ======= ======= =======
Investment income--net ................................ 3.10%* 3.28% 3.65% 3.95% 3.02%*
======= ======= ======= ======= =======
====================================================================================================================================
Supplemental Net assets, end of period (in thousands) .............. $ 2,288 $ 2,135 $ 2,885 $ 5,191 $ 5,575
Data: ======= ======= ======= ======= =======
Portfolio turnover .................................... .00% 38.21% 43.53% 182.58% 142.37%
======= ======= ======= ======= =======
====================================================================================================================================
</TABLE>
* Annualized.
* Total investment returns exclude the effects of sales
loads.
+ Commencement of operations.
++ Aggregate total investment return.
See Notes to Financial Statements.
26 & 27
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Arizona Limited Maturity
----------------------------------------
Class C
----------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ----------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
===================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $10.18 $10.08 $ 10.17 $ 9.89
Operating ------ ------ -------- --------
Performance: Investment income--net ................. .16 .35 .37 .29
Realized and unrealized gain (loss) on
investments--net ....................... .04 .10 (.09) .28
------ ------ -------- --------
Total from investment operations ....... .20 .45 .28 .57
------ ------ -------- --------
Less dividends and distributions:
Investment income--net .............. (.16) (.35) (.37) (.29)
Realized gain on investments--net ... (.05) -- -- --
------ ------ -------- --------
Total dividends and distributions ...... (.21) (.35) (.37) (.29)
------ ------ -------- --------
Net asset value, end of period ......... $10.17 $10.18 $ 10.08 $ 10.17
====== ====== ======== ========
==================================================================================================
Total Investment Based on net asset value per share ..... 2.08%++ 4.55% 2.78% 5.90%++
Return:** ====== ====== ======== ========
==================================================================================================
Ratios to Average Expenses, net of reimbursement ......... 1.13%* 1.11% 1.03% 1.05%*
Net Assets: ====== ====== ======== ========
Expenses ............................... 3.50%* 3.35% 2.80% 2.79%*
====== ====== ======== ========
Investment income--net ................. 3.27%* 3.48% 3.86% 3.80%*
====== ====== ======== ========
==================================================================================================
Supplemental Net assets, end of period (in thousands) $ 1 $ 36 $ 135 $ 1
Data: ====== ====== ======== ========
Portfolio turnover ..................... .00% 38.21% 43.53% 182.58%
====== ====== ======== ========
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Arizona Limited Maturity
------------------------------------------
Class D
------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
======================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 10.18 $ 10.08 $ 10.17 $ 9.89
Operating -------- -------- -------- --------
Performance: Investment income--net ................. .17 .36 .40 .33
Realized and unrealized gain (loss) on
investments--net ....................... .02 .10 (.09) .28
-------- -------- -------- --------
Total from investment operations ....... .19 .46 .31 .61
-------- -------- -------- --------
Less dividends and distributions:
Investment income--net .............. (.17) (.36) (.40) (.33)
Realized gain on investments--net ... (.05) -- -- --
-------- -------- -------- --------
Total dividends and distributions ...... (.22) (.36) (.40) (.33)
-------- -------- -------- --------
Net asset value, end of period ......... $ 10.15 $ 10.18 $ 10.08 $ 10.17
======== ======== ======== ========
======================================================================================================
Total Investment Based on net asset value per share ..... 1.96%++ 4.62% 3.05% 6.34%++
Return:** ======== ======== ======== ========
======================================================================================================
Ratios to Average Expenses, net of reimbursement ......... 1.04%* 1.04% .90% .55%*
Net Assets: ======== ======== ======== ========
Expenses ............................... 3.40%* 3.29% 2.42% 2.39%*
======== ======== ======== ========
Investment income--net ................. 3.36%* 3.56% 3.88% 4.31%*
======== ======== ======== ========
======================================================================================================
Supplemental Net assets, end of period (in thousands) $ 467 $ 477 $ 619 $ 19
Data: ======== ======== ======== ========
Portfolio turnover ..................... .00% 38.21% 43.53% 182.58%
======== ======== ======== ========
======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
California Limited Maturity
---------------------------------------------------
Class A
---------------------------------------------------
For the For the
Six Period
The following per share data and ratios have been derived Months For the Year Nov. 26,
from information provided in the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ---------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period .................. $ 10.22 $ 10.05 $ 9.99 $ 9.88 $ 10.00
Operating ------- -------- ------- ------- -------
Performance: Investment income--net ................................ .20 .38 .39 .42 .24
Realized and unrealized gain (loss) on investments--net --++ .17 .06 .11 (.12)
------- -------- ------- ------- -------
Total from investment operations ...................... .20 .55 .45 .53 .12
------- -------- ------- ------- -------
Less dividends from investment income--net ............ (.20) (.38) (.39) (.42) (.24)
------- -------- ------- ------- -------
Net asset value, end of period ........................ $ 10.22 $ 10.22 $ 10.05 $ 9.99 $ 9.88
======= ======== ======= ======= =======
==============================================================================================================================
Total Investment Based on net asset value per share .................... 1.98%++ 5.57% 4.56% 5.60% 1.23%++
Return:** ======= ======== ======= ======= =======
==============================================================================================================================
Ratios to Average Expenses, net of reimbursement ........................ 1.02%* 1.08% .94% .40% .02%*
Net Assets: ======= ======== ======= ======= =======
Expenses .............................................. 1.22%* 1.28% 1.30% 1.44% 1.16%*
======= ======== ======= ======= =======
Investment income--net ................................ 3.86%* 3.75% 3.89% 4.36% 3.54%*
======= ======== ======= ======= =======
==============================================================================================================================
Supplemental Net assets, end of period (in thousands) .............. $ 3,091 $ 3,152 $ 3,162 $ 3,527 $ 3,804
Data: ======= ======== ======= ======= =======
Portfolio turnover .................................... 9.11% 26.86% 11.09% 124.72% 130.10%
======= ======== ======= ======= =======
==============================================================================================================================
<CAPTION>
California Limited Maturity
---------------------------------------------------
Class B
---------------------------------------------------
For the For the
Six Period
The following per share data and ratios have been derived Months Nov. 26,
from information provided in the financial statements. Ended For the Year 1993+ to
Jan. 31, Ended July 31, July 31,
----------------------------
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period .................. $ 10.21 $ 10.04 $ 9.99 $ 9.88 $ 10.00
Operating ------- -------- ------- ------- -------
Performance: Investment income--net ................................ .18 .34 .36 .39 .21
Realized and unrealized gain (loss) on investments--net .01 .17 .05 .11 (.12)
------- -------- ------- ------- -------
Total from investment operations ...................... .19 .51 .41 .50 .09
------- -------- ------- ------- -------
Less dividends from investment income--net ............ (.18) (.34) (.36) (.39) (.21)
------- -------- ------- ------- -------
Net asset value, end of period ........................ $ 10.22 $ 10.21 $ 10.04 $ 9.99 $ 9.88
======= ======== ======= ======= =======
==============================================================================================================================
Total Investment Based on net asset value per share .................... 1.89%++ 5.20% 4.08% 5.23% .99%++
Return:** ======= ======== ======= ======= =======
==============================================================================================================================
Ratios to Average Expenses, net of reimbursement ........................ 1.37%* 1.44% 1.30% .76% .38%*
Net Assets: ======= ======== ======= ======= =======
Expenses .............................................. 1.57%* 1.64% 1.66% 1.80% 1.52%*
======= ======== ======= ======= =======
Investment income--net ................................ 3.51%* 3.39% 3.53% 4.00% 3.19%*
======= ======== ======= ======= =======
==============================================================================================================================
Supplemental Net assets, end of period (in thousands) .............. $ 6,534 $ 6,877 $ 9,919 $10,363 $11,430
Data: ======= ======== ======= ======= =======
Portfolio turnover .................................... 9.11% 26.86% 11.09% 124.72% 130.10%
======= ======== ======= ======= =======
==============================================================================================================================
</TABLE>
* 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.
28 & 29
<PAGE>
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
California Limited Maturity
-----------------------------------------------
Class C
-----------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ----------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
=========================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 10.22 $ 10.05 $ 9.99 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ................. .19 .36 .37 .31
Realized and unrealized gain on
investments--net ....................... --++ .17 .06 .23
------- ------- ------- -------
Total from investment operations ....... .19 .53 .43 .54
------- ------- ------- -------
Less dividends from investment
income--net ............................ (.19) (.36) (.37) (.31)
------- ------- ------- -------
Net asset value, end of period ......... $ 10.22 $ 10.22 $ 10.05 $ 9.99
======= ======= ======= =======
=========================================================================================================
Total Investment Based on net asset value per share ..... 1.89%+++ 5.39% 4.35% 5.60%+++
Return:** ======= ======= ======= =======
=========================================================================================================
Ratios to Average Expenses, net of reimbursement ......... 1.19%* 1.25% 1.14% .82%*
Net Assets: ======= ======= ======= =======
Expenses ............................... 1.39%* 1.45% 1.50% 1.98%*
======= ======= ======= =======
Investment income--net ................. 3.69%* 3.58% 3.69% 4.04%*
======= ======= ======= =======
=========================================================================================================
Supplemental Net assets, end of period (in thousands) $ 71 $ 57 $ 55 $ 64
Data: ======= ======= ======= =======
Portfolio turnover ..................... 9.11% 26.86% 11.09% 124.72%
======= ======= ======= =======
=========================================================================================================
<CAPTION>
California Limited Maturity
----------------------------------------
Class D
----------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ----------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
=========================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ... $ 10.22 10.05 $ 9.99 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ................. .19 .37 .38 .33
Realized and unrealized gain on
investments--net ....................... --++ .17 .06 .23
------- ------- ------- -------
Total from investment operations ....... .19 .54 .44 .56
------- ------- ------- -------
Less dividends from investment
income--net ............................ (.19) (.37) (.38) (.33)
------- ------- ------- -------
Net asset value, end of period ......... $ 10.22 10.22 $ 10.05 $ 9.99
======= ======= ======= =======
=========================================================================================================
Total Investment Based on net asset value per share ..... 1.92%+++ 5.47% 4.46% 5.85%+++
Return:** ======= ======= ======= =======
=========================================================================================================
Ratios to Average Expenses, net of reimbursement ......... 1.12%* 1.15% 1.06% .66%*
Net Assets: ======= ======= ======= =======
Expenses ............................... 1.32%* 1.35% 1.40% 1.81%*
======= ======= ======= =======
Investment income--net ................. 3.76%* 3.69% 3.77% 4.28%*
======= ======= ======= =======
=========================================================================================================
Supplemental Net assets, end of period (in thousands) $ 3,590 4,043 $ 2,185 $ 1,771
Data: ======= ======= ======= =======
Portfolio turnover ..................... 9.11% 26.86% 11.09% 124.72%
======= ======= ======= =======
=========================================================================================================
<CAPTION>
Florida Limited Maturity
-------------------------------------------------------------
Class A
-------------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.07 $ 9.96 $ 10.02 $ 9.87 $ 10.00
------- ------- ------- ------- -------
Operating Investment income--net ........................... .20 .40 .40 .43 .24
Performance: Realized and unrealized gain (loss)
on investments--net .............................. -- .11 (.06) .15 (.13)
------- ------- ------- ------- -------
Total from investment operations ................. .20 .51 .34 .58 .11
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.20) (.40) (.40) (.43) (.24)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.07 $ 10.07 $ 9.96 $ 10.02 $ 9.87
======= ======= ======= ======= =======
====================================================================================================================================
Total Investment Based on net asset value per share ............... 2.00%+++ 5.20% 3.45% 6.05% 1.12%+++
Return:** ======= ======= ======= ======= =======
====================================================================================================================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Ratios to Average Expenses, net of reimbursement ................... 1.09%* 1.09% .89% .39% .02%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 1.09%* 1.09% .97% 1.03% .86%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.91%* 3.98% 4.01% 4.39% 3.54%*
======= ======= ======= ======= =======
====================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 6,591 $ 6,376 $ 7,874 $ 9,849 $14,868
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 29.95% 35.67% 39.90% 138.97% 136.71%
======= ======= ======= ======= =======
====================================================================================================================================
<CAPTION>
Florida Limited Maturity
-------------------------------------------------------------
Class B
-------------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.07 $ 9.96 $ 10.02 $ 9.88 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .36 .37 .40 .21
Realized and unrealized gain (loss) on
investments--net ................................. -- .11 (.06) .14 (.12)
------- ------- ------- ------- -------
Total from investment operations ................. .18 .47 .31 .54 .09
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.18) (.36) (.37) (.40) (.21)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.07 $ 10.07 $ 9.96 $ 10.02 $ 9.88
======= ======= ======= ======= =======
====================================================================================================================================
Total Investment Based on net asset value per share ............... 1.82%+++ 4.83% 3.08% 5.57% .99%+++
Return:** ======= ======= ======= ======= =======
====================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.44%* 1.45% 1.24% .75% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 1.44%* 1.45% 1.32% 1.38% 1.23%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.56%* 3.63% 3.66% 4.05% 3.19%*
======= ======= ======= ======= =======
====================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $10,078 $11,461 $13,690 $16,213 $18,179
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 29.95% 35.67% 39.90% 138.97% 136.71%
======= ======= ======= ======= =======
====================================================================================================================================
</TABLE>
* 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.
30 & 31
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Florida Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.00 $ 9.90 $ 10.01 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .16 .38 .36 .29
Realized and unrealized gain (loss) on
investments--net ................................. -- .10 (.11) .25
------- ------- ------- -------
Total from investment operations ................. .16 .48 .25 .54
------- ------- ------- -------
Less dividends from investment income--net ....... (.16) (.38) (.36) (.29)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.00 $ 10.00 $ 9.90 $ 10.01
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 1.77%+++ 4.93% 2.48% 5.65%+++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.27%* 1.26% 1.21% 1.09%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 1.27%* 1.26% 1.23% 1.67%*
======= ======= ======= =======
Investment income--net ........................... 3.80%* 3.83% 3.75% 3.83%
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1 $ 60 $ 52 $ 1
Data: ======= ======= ======= =======
Portfolio turnover ............................... 29.95% 35.67% 39.90% 138.97%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Florida Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.06 $ 9.95 $ 10.01 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .19 .39 .39 .33
Realized and unrealized gain (loss) on
investments--net ................................. .01 .11 (.06) .25
------- ------- ------- -------
Total from investment operations ................. .20 .50 .33 .58
------- ------- ------- -------
Less dividends from investment income--net ....... (.19) (.39) (.39) (.33)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.07 $ 10.06 $ 9.95 $ 10.01
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.05%+++ 5.10% 3.35% 6.07%+++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.18%* 1.19% .99% .67%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 1.18%* 1.19% 1.07% 1.19%*
======= ======= ======= =======
Investment income--net ........................... 3.81%* 3.88% 3.91% 4.23%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 7,770 $ 7,733 $ 6,406 $ 7,210
Data: ======= ======= ======= =======
Portfolio turnover ............................... 29.95% 35.67% 39.90% 138.97%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Massachusetts Limited Maturity
---------------------------------------------------------
Class A
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.04 $ 9.96 $ 9.96 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .20 .39 .40 .44 .25
Realized and unrealized gain (loss) on
investments--net ................................. .03 .08 --++ .02 (.05)
------- ------- ------- ------- -------
Total from investment operations ................. .23 .47 .40 .46 .20
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.20) (.39) (.40) (.44) (.25)
Realized gain on investments--net ............. -- -- -- (.01) --
------- ------- ------- ------- -------
Total dividends and distributions ................ (.20) (.39) (.40) (.45) (.25)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.07 $ 10.04 $ 9.96 $ 9.96 $ 9.95
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Total Investment Based on net asset value per share ............... 2.31%+++ 4.86% 4.08% 4.79% 2.01%+++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... .99%* .99% .77% .37% .03%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 3.37%* 2.52% 2.15% 1.71% 1.17%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.93%* 3.95% 4.04% 4.45% 3.69%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,169 $ 1,356 $ 1,719 $ 4,453 $ 8,097
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... .00% 22.93% 22.71% 89.96% 57.80%
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
Massachusetts Limited Maturity
---------------------------------------------------------
Class B
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.04 $ 9.96 $ 9.96 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .36 .37 .40 .22
Realized and unrealized gain (loss) on
investments--net ................................. .03 .08 --++ .02 (.05)
------- ------- ------- ------- -------
Total from investment operations ................. .21 .44 .37 .42 .17
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.18) (.36) (.37) (.40) (.22)
Realized gain on investments--net ............. -- -- -- (.01) --
------- ------- ------- ------- -------
Total dividends and distributions ................ (.18) (.36) (.37) (.41) (.22)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.07 $ 10.04 $ 9.96 $ 9.96 $ 9.95
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.13%+++ 4.49% 3.70% 4.41% 1.77%+++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.35%* 1.35% 1.16% .74% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 3.73%* 2.84% 2.61% 2.08% 1.54%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.57%* 3.58% 3.66% 4.08% 3.28%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 2,524 $ 2,807 $ 4,577 $ 4,800 $ 8,046
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... .00% 22.93% 22.71% 89.96% 57.80%
======= ======= ======= ======= =======
================================================================================================================================
</TABLE>
* 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.
32 & 33
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Massachusetts Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.03 $ 9.95 $ 9.96 $ 9.82
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .19 .38 .39 .33
Realized and unrealized gain (loss) on
investments--net ................................. .04 .08 (.01) .15
------- ------- ------- -------
Total from investment operations ................. .23 .46 .38 .48
------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.19) (.38) (.39) (.33)
Realized gain on investments--net ............. -- -- -- (.01)
------- ------- ------- -------
Total dividends and distributions .............. (.19) (.38) (.39) (.34)
======= ======= ======= =======
Net asset value, end of period ................... $ 10.07 $ 10.03 $ 9.95 $ 9.96
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.33%+++ 4.70% 3.81% 5.00%+++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average
Net Assets: Expenses, net of reimbursement ................... 1.16%* 1.15% .94% .67%*
======= ======= ======= =======
Expenses ......................................... 3.51%* 2.69% 2.37% 2.23%*
======= ======= ======= =======
Investment income--net ........................... 3.76%* 3.80% 3.88% 4.32%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 73 $ 275 $ 210 $ 413
Data: ======= ======= ======= =======
Portfolio turnover ............................... .00% 22.93% 22.71% 89.96%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Massachusetts Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.04 $ 9.96 $ 9.96 $ 9.82
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .19 .38 .39 .34
Realized and unrealized gain (loss) on
investments--net ................................. .03 .08 --++ .15
------- ------- ------- -------
Total from investment operations ................. .22 .46 .39 .49
------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.19) (.38) (.39) (.34)
Realized gain on investments--net ............. -- -- -- (.01)
------- ------- ------- -------
Total dividends and distributions .............. (.19) (.38) (.39) (.35)
======= ======= ======= =======
Net asset value, end of period ................... $ 10.07 $ 10.04 $ 9.96 $ 9.96
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.26%+++ 4.76% 3.97% 5.09%+++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average
Net Assets: Expenses, net of reimbursement ................... 1.09%* 1.09% .93% .70%*
======= ======= ======= =======
Expenses ......................................... 3.43%* 2.62% 2.42% 2.31%*
======= ======= ======= =======
Investment income--net ........................... 3.84%* 3.85% 3.89% 4.21%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 396 $ 698 $ 890 $ 253
Data: ======= ======= ======= =======
Portfolio turnover ............................... .00% 22.93% 22.71% 89.96%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Michigan Limited Maturity
---------------------------------------------------------
Class A
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.09 $ 9.94 $ 9.98 $ 9.92 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .20 .39 .41 .44 .24
Realized and unrealized gain (loss) on
investments--net ................................. .02 .15 (.04) .06 (.08)
------- ------- ------- ------- -------
Total from investment operations ................. .22 .54 .37 .50 .16
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.20) (.39) (.41) (.44) (.24)
In excess of realized gain on investments--net -- --++ -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ................ (.20) (.39) (.41) (.44) (.24)
------- ------- ------- ------- -------
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Net asset value, end of period ................... $ 10.11 $ 10.09 $ 9.94 $ 9.98 $ 9.92
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.23%+++ 5.61% 3.71% 5.16% 1.66%+++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... .95%* .94% .74% .27% .02%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 3.04%* 3.50% 2.78% 2.18% 2.01%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.98%* 3.93% 4.06% 4.42% 3.59%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,162 $ 1,368 $ 1,641 $ 2,302 $ 3,435
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 5.28% 13.24% 32.92% 93.08% 204.15%
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
Michigan Limited Maturity
---------------------------------------------------------
Class B
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.09 $ 9.94 $ 9.98 $ 9.92 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .36 .37 .40 .22
Realized and unrealized gain (loss) on
investments--net ................................. .02 .15 (.04) .06 (.08)
------- ------- ------- ------- -------
Total from investment operations ................. .20 .51 .33 .46 .14
------- ------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.18) (.36) (.37) (.40) (.22)
In excess of realized gain on investments--net -- --++ -- -- --
------- ------- ------- ------- -------
Total dividends and distributions ................ (.18) (.36) (.37) (.40) (.22)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.11 $ 10.09 $ 9.94 $ 9.98 9.92
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.05%++ 5.22% 3.32% 4.78% 1.42%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.31%* 1.31% 1.10% .65% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 3.40%* 3.86% 3.14% 2.56% 2.38%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.61%* 3.56% 3.70% 4.09% 3.21%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,417 $ 1,411 $ 1,842 $ 2,494 $ 2,411
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 5.28% 13.24% 32.92% 93.08% 204.15%
======= ======= ======= ======= =======
================================================================================================================================
</TABLE>
* 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.
34 & 35
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Michigan Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.09 $ 9.94 $ 9.98 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .36 .36 .30
Realized and unrealized gain (loss) on
investments--net ................................. .03 .15 (.04) .22
------- ------- ------- -------
Total from investment operations ................. .21 .51 .32 .52
------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.18) (.36) (.36) (.30)
In excess of realized gain on investments--net -- --++ -- --
------- ------- ------- -------
Total dividends and distributions ................ (.18) (.36) (.36) (.30)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.12 $ 10.09 $ 9.94 $ 9.98
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.14%+++ 5.22% 3.20% 5.40%+++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.19%* 1.32% 1.24% .96%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 3.26%* 3.81% 3.31% 2.90%*
======= ======= ======= =======
Investment income--net ........................... 3.73%* 3.56% 3.57% 3.80%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 12 $ 1 $ 1 $ 1
Data: ======= ======= ======= =======
Portfolio turnover ............................... 5.28% 13.24% 32.92% 93.08%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Michigan Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.08 $ 9.94 $ 9.97 $ 9.76
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .20 .38 .40 .34
Realized and unrealized gain (loss) on
investments--net ................................. .03 .14 (.03) .21
------- ------- ------- -------
Total from investment operations ................. .23 .52 .37 .55
------- ------- ------- -------
Less dividends and distributions:
Investment income--net ........................ (.20) (.38) (.40) (.34)
In excess of realized gain on investments--net -- --++ -- --
------- ------- ------- -------
Total dividends and distributions ................ (.20) (.38) (.40) (.34)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.11 $ 10.08 $ 9.94 $ 9.97
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.28%++ 5.40% 3.71% 5.72%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.05%* 1.04% .87% .44%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 3.13%* 3.48% 3.06% 2.38%*
======= ======= ======= =======
Investment income--net ........................... 3.87%* 3.83% 3.94% 4.47%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,211 $ 1,471 $ 541 $ 254
Data: ======= ======= ======= =======
Portfolio turnover ............................... 5.28% 13.24% 32.92% 93.08%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
New Jersey Limited Maturity
---------------------------------------------------------
Class A
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.14 $ 10.11 $ 10.15 $ 9.94 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .38 .41 .42 .23
Realized and unrealized gain (loss) on
investments--net ................................. .04 .03 (.04) .21 (.06)
------- ------- ------- ------- -------
Total from investment operations ................. .22 .41 .37 .63 .17
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.18) (.38) (.41) (.42) (.23)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.18 $ 10.14 $ 10.11 $ 10.15 $ 9.94
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Total Investment Based on net asset value per share ............... 2.22%+++ 4.19% 3.68% 6.45% 1.73%+++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... .94%* .94% .76% .34% .03%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 2.22%* 1.65% 1.78% 1.69% 1.14%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.56%* 3.82% 4.02% 4.10% 3.45%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,159 $ 1,735 $ 2,663 $ 2,401 $ 5,933
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 5.47% 32.89% 6.57% 131.56% 205.04%
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
New Jersey Limited Maturity
---------------------------------------------------------
Class B
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.15 $ 10.11 $ 10.16 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .16 .35 .37 .38 .20
Realized and unrealized gain (loss) on
investments--net ................................. .03 .04 (.05) .21 (.05)
------- ------- ------- ------- -------
Total from investment operations ................. .19 .39 .32 .59 .15
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.16) (.35) (.37) (.38) (.20)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.18 $ 10.15 $ 10.11 $ 10.16 $ 9.95
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 1.94%++ 3.92% 3.21% 6.07% 1.59%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.30%* 1.30% 1.10% .73% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 2.59%* 2.00% 2.12% 2.15% 1.52%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.20%* 3.46% 3.67% 3.80% 3.04%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 3,595 $ 4,109 $ 5,152 $ 7,593 $ 7,885
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 5.47% 32.89% 6.57% 131.56% 205.04%
======= ======= ======= ======= =======
================================================================================================================================
</TABLE>
* 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.
36 & 37
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
New Jersey Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 9.19 $ 9.16 $ 9.20 $ 9.86
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .15 .33 .34 .26
Realized and unrealized gain (loss) on
investments--net ................................. .61 .03 (.04) (.66)
------- ------- ------- -------
Total from investment operations ................. .76 .36 .30 (.40)
------- ------- ------- -------
Less dividends from investment income--net ....... (.15) (.33) (.34) (.26)
------- ------- ------- -------
Net asset value, end of period ................... $ 9.80 $ 9.19 $ 9.16 $ 9.20
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 8.38%++ 4.06% 3.24% (4.01%)++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.10%* 1.10% 1.00% .55%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 2.26%* 1.80% 2.04% 2.22%*
======= ======= ======= =======
Investment income--net ........................... 3.34%* 3.66% 3.82% 4.06%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1 $ 241 $ 272 $ 1
Data: ======= ======= ======= =======
Portfolio turnover ............................... 5.47% 32.89% 6.57% 131.56%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
New Jersey Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.15 $ 10.11 $ 10.16 $ 9.85
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .37 .40 .32
Realized and unrealized gain (loss) on
investments--net ................................. .03 .04 (.05) .31
------- ------- ------- -------
Total from investment operations ................. .21 .41 .35 .63
------- ------- ------- -------
Less dividends from investment income--net ....... (.18) (.37) (.40) (.32)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.18 $ 10.15 $ 10.11 $ 10.16
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.07%++ 4.18% 3.48% 6.51%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.04%* 1.04% .84% .62%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 2.35%* 1.78% 1.86% 2.07%*
======= ======= ======= =======
Investment income--net ........................... 3.47%* 3.75% 3.93% 4.17%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 273 $ 238 $ 540 $ 437
Data: ======= ======= ======= =======
Portfolio turnover ............................... 5.47% 32.89% 6.57% 131.56%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
New York Limited Maturity
---------------------------------------------------------
Class A
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.06 $ 10.05 $ 9.91 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .21 .43 .43 .44 .25
Realized and unrealized gain (loss) on
investments--net ................................. .03 .17 .01 .14 (.09)
------- ------- ------- ------- -------
Total from investment operations ................. .24 .60 .44 .58 .16
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.21) (.43) (.43) (.44) (.25)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.26 $ 10.23 $ 10.06 $ 10.05 $ 9.91
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.42%++ 6.09% 4.46% 6.03% 1.61%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Ratios to Average Expenses, net of reimbursement ................... .70%* .70% .50% .33% .03%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 1.32%* 1.16% 1.38% 1.30% 1.24%*
======= ======= ======= ======= =======
Investment income--net ........................... 4.15%* 4.24% 4.28% 4.49% 3.68%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1,902 $ 2,605 $ 3,723 $ 4,811 $ 5,290
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 29.19% 36.53% 51.47% 139.16% 152.73%
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
New York Limited Maturity
---------------------------------------------------------
Class B
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.06 $ 10.05 $ 9.91 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .20 .39 .40 .41 .22
Realized and unrealized gain (loss) on
investments--net ................................. .03 .17 .01 .14 (.09)
------- ------- ------- ------- -------
Total from investment operations ................. .23 .56 .41 .55 .13
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.20) (.39) (.40) (.41) (.22)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.26 $ 10.23 $ 10.06 $ 10.05 $ 9.91
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.24%++ 5.71% 4.08% 5.66% 1.37%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.05%* 1.05% .87% .69% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 1.68%* 1.52% 1.75% 1.65% 1.60%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.79%* 3.88% 3.91% 4.11% 3.31%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 8,628 $ 8,209 $10,071 $ 8,822 $ 9,743
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 29.19% 36.53% 51.47% 139.16% 152.73%
======= ======= ======= ======= =======
================================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales loads.
+ Commencement of operations.
++ Aggregate total investment return.
See Notes to Financial Statements.
38 & 39
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
New York Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.06 $ 10.05 $ 9.78
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .21 .41 .42 .30
Realized and unrealized gain on
investments--net ................................. .03 .17 .01 .27
------- ------- ------- -------
Total from investment operations ................. .24 .58 .43 .57
------- ------- ------- -------
Less dividends from investment income--net ....... (.21) (.41) (.42) (.30)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.26 $ 10.23 $ 10.06 $ 10.05
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.33%++ 5.91% 4.28% 5.97%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... .87%* .86% .71% .63%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 1.50%* 1.32% 1.59% 1.63%*
======= ======= ======= =======
Investment income--net ........................... 3.97%* 4.05% 4.06% 4.21%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 59 $ 68 $ 214 $ 38
Data: ======= ======= ======= =======
Portfolio turnover ............................... 29.19% 36.53% 51.47% 139.16%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
New York Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.06 $ 10.05 $ 9.78
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .21 .42 .42 .34
Realized and unrealized gain on
investments--net ................................. .03 .17 .01 .27
------- ------- ------- -------
Total from investment operations ................. .24 .59 .43 .61
------- ------- ------- -------
Less dividends from investment income--net ....... (.21) (.42) (.42) (.34)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.26 $ 10.23 $ 10.06 $ 10.05
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 2.37%++ 5.98% 4.35% 6.37%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... .80%* .80% .62% .48%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 1.42%* 1.26% 1.49% 1.48%*
======= ======= ======= =======
Investment income--net ........................... 4.05%* 4.14% 4.16% 4.47%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 3,610 $ 3,683 $ 3,912 $ 2,306
Data: ======= ======= ======= =======
Portfolio turnover ............................... 29.19% 36.53% 51.47% 139.16%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Pennsylvania Limited Maturity
---------------------------------------------------------
Class A
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.11 $ 10.10 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .20 .38 .41 .42 .23
Realized and unrealized gain (loss) on
investments--net ................................. .02 .12 .01 .15 (.05)
------- ------- ------- ------- -------
Total from investment operations ................. .22 .50 .42 .57 .18
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.20) (.38) (.41) (.42) (.23)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.25 $ 10.23 $ 10.11 $ 10.10 $ 9.95
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 2.14%++ 5.04% 4.18% 5.89% 1.85%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Ratios to Average Expenses, net of reimbursement ................... .99%* .99% .80% .38% .02%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 2.48%* 1.75% 1.63% 1.90% 1.48%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.80%* 3.74% 4.01% 4.25% 3.46%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 534 $ 736 $ 833 $ 943 $ 990
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 2.89% 20.88% 30.90% 141.52% 237.47%
======= ======= ======= ======= =======
================================================================================================================================
<CAPTION>
Pennsylvania Limited Maturity
---------------------------------------------------------
Class B
---------------------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Nov. 26,
the financial statements. Ended Ended July 31, 1993+ to
Jan. 31, ------------------------------- July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995 1994
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.23 $ 10.11 $ 10.10 $ 9.95 $ 10.00
Operating ------- ------- ------- ------- -------
Performance: Investment income--net ........................... .18 .34 .37 .39 .21
Realized and unrealized gain (loss) on
investments--net ................................. .01 .12 .01 .15 (.05)
------- ------- ------- ------- -------
Total from investment operations ................. .19 .46 .38 .54 .16
------- ------- ------- ------- -------
Less dividends from investment income--net ....... (.18) (.34) (.37) (.39) (.21)
------- ------- ------- ------- -------
Net asset value, end of period ................... $ 10.24 $ 10.23 $ 10.11 $ 10.10 $ 9.95
======= ======= ======= ======= =======
================================================================================================================================
Total Investment Based on net asset value per share ............... 1.86%++ 4.66% 3.80% 5.51% 1.61%++
Return:** ======= ======= ======= ======= =======
================================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.35%* 1.35% 1.15% .73% .38%*
Net Assets: ======= ======= ======= ======= =======
Expenses ......................................... 2.78%* 2.11% 1.99% 2.25% 1.83%*
======= ======= ======= ======= =======
Investment income--net ........................... 3.43%* 3.38% 3.65% 3.87% 3.05%*
======= ======= ======= ======= =======
================================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 3,566 $ 5,134 $ 6,264 $ 7,414 $ 9,532
Data: ======= ======= ======= ======= =======
Portfolio turnover ............................... 2.89% 20.88% 30.90% 141.52% 237.47%
======= ======= ======= ======= =======
================================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales loads.
+ Commencement of operations.
++ Aggregate total investment return.
See Notes to Financial Statements.
40 & 41
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity
---------------------------------------------
Class C
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.27 $ 10.15 $ 10.10 $ 9.84
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .17 .35 .38 .29
Realized and unrealized gain on
investments--net ................................. .02 .12 .05 .26
------- ------- ------- -------
Total from investment operations ................. .19 .47 .43 .55
------- ------- ------- -------
Less dividends from investment income--net ....... (.17) (.35) (.38) (.29)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.29 $ 10.27 $ 10.15 $ 10.10
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 1.91%++ 4.68% 4.28% 5.68%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.31%* 1.28% .97% 1.05%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 2.49%* 2.02% 1.83% 2.55%*
======= ======= ======= =======
Investment income--net ........................... 3.45%* 3.46% 3.84% 3.77%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 1 $ 8 $ 1 $ 1
Data: ======= ======= ======= =======
Portfolio turnover ............................... 2.89% 20.88% 30.90% 141.52%
======= ======= ======= =======
====================================================================================================================
<CAPTION>
Pennsylvania Limited Maturity
---------------------------------------------
Class D
---------------------------------------------
The following per share data For the For the
and ratios have been derived Six Period
from information provided in Months For the Year Oct. 21,
the financial statements. Ended Ended July 31, 1994+ to
Jan. 31, ------------------ July 31,
Increase (Decrease) in Net Asset Value: 1998 1997 1996 1995
====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period ............. $ 10.24 $ 10.11 $ 10.10 $ 9.84
Operating ------- ------- ------- -------
Performance: Investment income--net ........................... .19 .37 .40 .33
Realized and unrealized gain on
investments--net ................................. .01 .13 .01 .26
------- ------- ------- -------
Total from investment operations ................. .20 .50 .41 .59
------- ------- ------- -------
Less dividends from investment income--net ....... (.19) (.37) (.40) (.33)
------- ------- ------- -------
Net asset value, end of period ................... $ 10.25 $ 10.24 $ 10.11 $ 10.10
======= ======= ======= =======
====================================================================================================================
Total Investment Based on net asset value per share ............... 1.99%++ 5.04% 4.07% 6.10%++
Return:** ======= ======= ======= =======
====================================================================================================================
Ratios to Average Expenses, net of reimbursement ................... 1.09%* 1.09% .96% .57%*
Net Assets: ======= ======= ======= =======
Expenses ......................................... 2.25%* 1.85% 1.71% 2.08%*
======= ======= ======= =======
Investment income--net ........................... 3.67%* 3.64% 3.84% 4.30%*
======= ======= ======= =======
====================================================================================================================
Supplemental Net assets, end of period (in thousands) ......... $ 192 $ 1,861 $ 1,807 $ 382
Data: ======= ======= ======= =======
Portfolio turnover ............................... 2.89% 20.88% 30.90% 141.52%
======= ======= ======= =======
====================================================================================================================
</TABLE>
* Annualized.
** Total investment returns exclude the effects of sales loads.
+ Commencement of operations.
++ Aggregate total investment return.
See Notes to Financial Statements.
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. These unaudited financial
statements reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period presented.
All such adjustments are of a normal recurring nature. Each series of the Trust
is referred to herein as a "Fund." The Trust offers four classes of shares under
the Merrill Lynch Select PricingSM 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.
o 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
42 & 43
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
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 six months ended January 31, 1998, 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 ............... $ 6,054 $13,838 --
Additional expenses .......... $34,695 -- --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Massachusetts Michigan New Jersey
Limited Limited Limited
Maturity Maturity Maturity
- --------------------------------------------------------------------------------
Management fee ............... $ 7,914 $ 7,254 $10,471
Additional expenses .......... $45,697 $36,044 $27,902
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
New York Pennsylvania
Limited Maturity Limited Maturity
- --------------------------------------------------------------------------------
Management fee ............... $27,076 $11,772
Additional expenses .......... $21,578 $34,541
- --------------------------------------------------------------------------------
Pursuant to 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 Distributor voluntarily
did not collect any Class C distribution fees for the six months ended January
31, 1998. 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 six months ended January 31, 1998, 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 -- -- $ 82 --
MLPF&S -- -- $810 --
- --------------------------------------------------------------------------------
Class D:
- --------------------------------------------------------------------------------
MLFD $ 1 -- $ 12 $ 1
MLPF&S $15 -- $301 $11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Michigan New Jersey New York Pennsylvania
Limited Limited Limited Limited
Maturity Maturity Maturity Maturity
- --------------------------------------------------------------------------------
Class D:
- --------------------------------------------------------------------------------
MLFD -- $ 15 $ 151 --
MLPF&S -- $157 $2,015 --
- --------------------------------------------------------------------------------
MLPF&S received contingent deferred sales charges relating to transactions in
Class B Shares as follows:
- --------------------------------------------------------------------------------
Class B
Shares
- --------------------------------------------------------------------------------
Arizona Limited Maturity .................................. --
California Limited Maturity ............................... $2,581
Florida Limited Maturity .................................. 3,046
Massachusetts Limited Maturity ............................ 1,012
Michigan Limited Maturity ................................. --
New Jersey Limited Maturity ............................... 231
New York Limited Maturity ................................. 2,157
Pennsylvania Limited Maturity ............................. 119
- --------------------------------------------------------------------------------
Furthermore, MLPF&S received contingent deferred sales charges of $3,996
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.
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 six
months ended January 31, 1998 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
Arizona Limited Maturity -- --
California Limited Maturity ............ $1,096,798 $1,856,805
Florida Limited Maturity ............... 6,677,190 7,831,202
Massachusetts Limited Maturity ......... -- 716,620
Michigan Limited Maturity .............. 197,153 606,714
New Jersey Limited Maturity ............ 248,680 250,498
New York Limited Maturity .............. 3,980,787 3,882,324
Pennsylvania Limited Maturity .......... 155,998 2,234,880
- --------------------------------------------------------------------------------
Net realized and unrealized gains as of January 31, 1998 were as follows:
- --------------------------------------------------------------------------------
Realized Unrealized
Arizona Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. -- $ 97,071
Short-term investments ................. -- 125
-------- --------
Total .................................. -- $ 97,196
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
California Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. $ 42,769 $717,898
Short-term investments ................. -- 1,065
-------- --------
Total .................................. $ 42,769 $718,963
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
Florida Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. $ 68,628 $706,427
-------- --------
Total .................................. $ 68,628 $706,427
======== ========
- --------------------------------------------------------------------------------
44 & 45
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Realized Unrealized
Massachusetts Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. $ 20,924 $156,435
-------- --------
Total .................................. $ 20,924 $156,435
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
Michigan Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. $ 3,548 $168,894
-------- --------
Total .................................. $ 3,548 $168,894
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
New Jersey Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments .................. $ 1,736 $199,244
-------- --------
Total .................................. $ 1,736 $199,244
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
New York Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments ................. $ 42,403 $559,705
-------- --------
Total ................................. $ 42,403 $559,705
======== ========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Realized Unrealized
Pennsylvania Limited Maturity Gains Gains
- --------------------------------------------------------------------------------
Long-term investments ................. $ 54,555 $166,029
Short-term investments ................ 44 --
-------- --------
Total ................................. $ 54,599 $166,029
======== ========
- --------------------------------------------------------------------------------
As of January 31, 1998, net unrealized appreciation and the aggregate cost of
investments for Federal income tax purposes were as follows:
- --------------------------------------------------------------------------------
Limited Gross Gross Net Aggregate
Maturity Unrealized Unrealized Unrealized Cost of
Portfolio Appreciation Depreciation Appreciation Investments
- --------------------------------------------------------------------------------
Arizona $ 97,196 -- $ 97,196 $ 3,184,649
California 718,963 -- 718,963 12,273,633
Florida 762,014 $(55,587) 706,427 22,997,379
Massachusetts 156,435 -- 156,435 3,902,123
Michigan 168,894 -- 168,894 3,536,816
New Jersey 199,244 -- 199,244 4,675,041
New York 560,065 (360) 559,705 13,496,288
Pennsylvania 166,029 -- 166,029 3,923,464
- --------------------------------------------------------------------------------
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions for the six months ended January 31, 1998 and the year ended July
31, 1997, respectively, were as follows:
- --------------------------------------------------------------------------------
For the Six For the Year
Months Ended Ended
January 31, July 31,
1998 1997
- --------------------------------------------------------------------------------
Arizona Limited Maturity .............. $ 45,311 $(1,124,280)
California Limited Maturity ........... (839,744) (1,455,816)
Florida Limited Maturity .............. (1,187,670) (2,674,028)
Massachusetts Limited Maturity ........ (983,794) (2,299,335)
Michigan Limited Maturity ............. (458,455) 168,118
New Jersey Limited Maturity ........... (1,309,837) (2,324,627)
New York Limited Maturity ............. (429,000) (3,606,325)
Pennsylvania Limited Maturity ......... (3,449,410) (1,259,754)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest for each class were as follows:
- --------------------------------------------------------------------------------
Arizona Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends and
distributions ........................ 422 $ 4,279
Shares redeemed ...................... (7,247) (73,487)
--------- -----------
Net decrease ......................... (6,825) $ (69,208)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 31,760 $ 322,341
Shares issued to shareholders in
reinvestment of dividends and
distributions ........................ 2,607 26,398
--------- -----------
Total issued ......................... 34,367 348,739
Shares redeemed ...................... (18,836) (190,692)
--------- -----------
Net increase ......................... 15,531 $ 158,047
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends and
distributions ........................ 72 $ 731
Shares redeemed ...................... (3,493) (35,565)
--------- -----------
Net decrease ......................... (3,421) $ (34,834)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 7,588 $ 77,017
Shares issued to shareholders in
reinvestment of dividends and
distributions ........................ 670 6,790
--------- -----------
Total issued ......................... 8,258 83,807
Shares redeemed ...................... (9,113) (92,501)
--------- -----------
Net decrease ......................... (855) $ (8,694)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
California Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 4,193 $ 42,994
Shares issued to shareholders in
reinvestment of dividends ............ 1,580 16,055
--------- -----------
Total issued ......................... 5,773 59,049
Shares redeemed ...................... (11,895) (120,716)
--------- -----------
Net decrease ......................... (6,122) $ (61,667)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
46 & 47
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
California Limited Maturity
- --------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 83,084 $ 843,339
Shares issued to shareholders in
reinvestment of dividends ............ 6,822 69,343
--------- -----------
Total issued ......................... 89,906 912,682
Shares redeemed ...................... (123,617) (1,254,645)
--------- -----------
Net decrease ......................... (33,711) $ (341,963)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 1,343 $ 13,620
Shares issued to shareholders in
reinvestment of dividends ............ 5 46
--------- -----------
Net increase ......................... 1,348 $ 13,666
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 4,915 $ 49,789
Shares issued to shareholders in
reinvestment of dividends ............ 4,478 45,520
--------- -----------
Total issued ......................... 9,393 95,309
Shares redeemed ...................... (53,743) (545,089)
--------- -----------
Net decrease ......................... (44,350) $ (449,780)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Florida Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 39,681 $ 399,092
Shares issued to shareholders in
reinvestment of dividends ............ 2,955 29,629
--------- -----------
Total issued ......................... 42,636 428,721
Shares redeemed ...................... (21,363) (213,838)
--------- -----------
Net increase ......................... 21,273 $ 214,883
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 54,436 $ 545,826
Shares issued to shareholders in
reinvestment of dividends ............ 10,516 105,393
--------- -----------
Total issued ......................... 64,952 651,219
Shares redeemed ...................... (202,572) (2,038,227)
--------- -----------
Net decrease ......................... (137,620) $(1,387,008)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 62 $ 620
Shares redeemed ...................... (5,907) (58,841)
--------- -----------
Net decrease ......................... (5,845) $ (58,221)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 221,373 $ 2,216,499
Shares issued to shareholders in
reinvestment of dividends ............ 2,344 23,499
--------- -----------
Total issued ......................... 223,717 2,239,998
Shares redeemed ...................... (220,249) (2,197,322)
--------- -----------
Net increase ......................... 3,468 $ 42,676
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Massachusetts Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 2,417 $ 24,172
Shares issued to shareholders in
reinvestment of dividends ............ 1,142 11,430
--------- -----------
Total issued ......................... 3,559 35,602
Shares redeemed ...................... (22,547) (225,377)
--------- -----------
Net decrease ......................... (18,988) $ (189,775)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
48 & 49
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Massachusetts Limited Maturity
- --------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 4,311 $ 43,019
Shares issued to shareholders in
reinvestment of dividends ............ 3,177 31,798
--------- -----------
Total issued ......................... 7,488 74,817
Shares redeemed ...................... (36,424) (364,588)
--------- -----------
Net decrease ......................... (28,936) $ (289,771)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Massachusetts Limited Maturity
- --------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 35 $ 350
Shares redeemed ...................... (20,170) (201,703)
--------- -----------
Net decrease ......................... (20,135) $ (201,353)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 115 $ 1,149
Shares issued to shareholders in
reinvestment of dividends ............ 695 6,959
--------- -----------
Total issued ......................... 810 8,108
Shares redeemed ...................... (31,053) (311,003)
--------- -----------
Net decrease ......................... (30,243) $ (302,895)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Michigan Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 180 $ 1,804
Shares issued to shareholders in
reinvestment of dividends ............ 673 6,768
--------- -----------
Total issued ......................... 853 8,572
Shares redeemed ...................... (21,522) (215,835)
--------- -----------
Net decrease ......................... (20,669) $ (207,263)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 8,481 $ 85,343
Shares issued to shareholders in
reinvestment of dividends ............ 1,714 17,233
--------- -----------
Total issued ......................... 10,195 102,576
Automatic conversion of shares ....... (499) (5,003)
Shares redeemed ...................... (9,321) (93,618)
--------- -----------
Net increase ......................... 375 $ 3,955
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 1,032 $ 10,390
Shares issued to shareholders in
reinvestment of dividends ............ 2 23
--------- -----------
Net increase ......................... 1,034 $ 10,413
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 12,565 $ 126,072
Automatic conversion of shares ....... 499 5,003
Shares issued to shareholders in
reinvestment of dividends ............ 2,375 23,872
--------- -----------
Total issued ......................... 15,439 154,947
Shares redeemed ...................... (41,515) (420,507)
--------- -----------
Net decrease ......................... (26,076) $ (265,560)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
New Jersey Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 3,367 $ 33,989
Shares issued to shareholders in
reinvestment of dividends ............ 2,337 23,644
--------- -----------
Total issued ......................... 5,704 57,633
Shares redeemed ...................... (62,848) (637,614)
--------- -----------
Net decrease ......................... (57,144) $ (579,981)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
50 & 51
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
New Jersey Limited Maturity
- --------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 20,764 $ 209,931
Shares issued to shareholders in
reinvestment of dividends ............ 4,319 43,736
--------- -----------
Total issued ......................... 25,083 253,667
Shares redeemed ...................... (76,822) (777,828)
--------- -----------
Net decrease ......................... (51,739) $ (524,161)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 2 $ 19
Shares redeemed ...................... (26,119) (238,989)
--------- -----------
Net decrease ......................... (26,117) $ (238,970)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
New Jersey Limited Maturity
- --------------------------------------------------------------------------------
Class D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 3,454 $ 34,822
Shares issued to shareholders in
reinvestment of dividends ............ 354 3,583
--------- -----------
Total issued ......................... 3,808 38,405
Shares redeemed ...................... (508) (5,130)
--------- -----------
Net increase ......................... 3,300 $ 33,275
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 York Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 12 $ 125
Shares issued to shareholders in
reinvestment of dividends ............ 2,581 26,278
--------- -----------
Total issued ......................... 2,593 26,403
Shares redeemed ...................... (71,983) (739,597)
--------- -----------
Net decrease ......................... (69,390) $ (713,194)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 159,740 $ 1,619,382
Shares issued to shareholders in
reinvestment of dividends ............ 9,186 93,581
--------- -----------
Total issued ......................... 168,926 1,712,963
Shares redeemed ...................... (130,469) (1,329,476)
--------- -----------
Net increase ......................... 38,457 $ 383,487
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 128 $ 1,300
--------- -----------
Shares redeemed ...................... (938) (9,539)
--------- -----------
Net decrease ......................... (810) $ (8,239)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 63,415 $ 646,063
Shares issued to shareholders in
reinvestment of dividends ............ 7,485 76,294
--------- -----------
Total issued ......................... 70,900 722,357
Shares redeemed ...................... (79,161) (813,411)
--------- -----------
Net decrease ......................... (8,261) $ (91,054)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pennsylvania Limited Maturity
- --------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 4,685 $ 47,762
Shares issued to shareholders in
reinvestment of dividends ............ 453 4,628
--------- -----------
Total issued ......................... 5,138 52,390
Shares redeemed ...................... (24,896) (253,985)
--------- -----------
Net decrease ......................... (19,758) $ (201,595)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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)
========= ===========
- --------------------------------------------------------------------------------
52 & 53
<PAGE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
January 31, 1998
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
Pennsylvania Limited Maturity
- --------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .......................... 6,069 $ 61,830
Shares issued to shareholders in
reinvestment of dividends ............ 5,625 57,421
--------- -----------
Total issued ......................... 11,694 119,251
Shares redeemed ...................... (165,438) (1,691,691)
--------- -----------
Net decrease ......................... (153,744) $(1,572,440)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 C Shares for the Year Dollar
Ended July 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 10 $ 101
Shares redeemed ...................... (652) (6,705)
--------- -----------
Net decrease ......................... (642) $ (6,604)
========= ===========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 D Shares for the Six Months Dollar
Ended January 31, 1998 Shares Amount
- --------------------------------------------------------------------------------
Shares issued to shareholders in
reinvestment of dividends ............ 2,099 $ 21,422
Shares redeemed ...................... (165,183) (1,690,193)
--------- -----------
Net decrease ......................... (163,084) $(1,668,771)
========= ===========
- --------------------------------------------------------------------------------
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
========= ===========
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.
6. Reorganization Plan:
On January 5, 1998, shareholders of the Pennsylvania Limited Maturity Fund
approved a plan of reorganization. On February 12, 1998, shareholders of the
Massachusetts Limited Maturity Fund and New Jersey Limited Maturity Fund
approved a plan of reorganization. On November 6, 1997, the Trust's Board of
Trustees approved a plan of reorganization, subject to shareholder approval and
certain other conditions, for the Arizona Limited Maturity Fund, Michigan
Limited Maturity Fund and New York Limited Maturity Fund. Under these plans of
reorganization, the Limited Maturity Portfolio of the Merrill Lynch Municipal
Bond Fund, Inc. (the "Limited Maturity Portfolio") would acquire substantially
all the assets and liabilities of the Funds mentioned above (the "Funds") in
exchange for newly issued shares of the Limited Maturity Portfolio. The Merrill
Lynch Municipal Bond Fund, Inc., of which the Limited Maturity Portfolio is a
part of, is a registered, diversified, open-end management investment company
and the Trust, of which the Funds are a part of, is a registered,
non-diversified, open-end management investment company. The Funds and Limited
Maturity Portfolio have similar investment objectives and are managed by FAM.
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
Edward J. Andrews, Vice President
Donald C. Burke, 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
54 & 55
<PAGE>
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 #16939-1/98
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