MERRILL LYNCH
MULTI-STATE
LIMITED MATURITY
MUNICIPAL
SERIES TRUST
FUND LOGO
Quarterly Report
April 30, 1998
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Trust unless
accompanied or preceded by the Trust's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject
to change.
Merrill Lynch Multi-State
Limited Maturity
Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
Printed on post-consumer recycled paper
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust
Officers and
Trustees
Arthur Zeikel, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
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
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
TO OUR SHAREHOLDERS
The Municipal Market
Environment
During the three months ended April 30, 1998, bond yields generally
moved higher. While low inflation has supported lower interest
rates, much of the decline in bond yields in late 1997 and early
1998 was driven more by the turmoil in Asian financial markets than
by domestic economic fundamentals. Weak economic conditions in Asia
were expected to negatively impact US growth through reduced export
demand. Additionally, inflation in the United States was also
expected to decline in response to lower prices on goods imported
from Asian manufacturers.
However, in recent months, many investors have become increasingly
concerned that most of the downturn in Asia, especially in Japan,
has already occurred and any future deterioration will not be severe
enough to constrain US economic growth. Some investors have feared
that continued domestic economic growth, particularly in such
interest rate-sensitive sectors as housing and consumer spending,
eventually would trigger significant inflationary pressures. These
concerns served to push interest rates higher during the April
quarter. At April 30, 1998, the 30-year US Treasury bond yield was
5.95%, rising 14 basis points (0.14%) during the last three months.
Thus far in 1998, the municipal bond market has experienced
unexpectedly strong supply pressures. These supply pressures have
prevented tax-exempt bond yields from declining as much as US
Treasury bonds. Over the last six months, more than $135 billion in
new tax-exempt bonds were underwritten, an increase of over 40%
compared to the same period a year ago. During the last three
months, municipalities issued over $72 billion in new securities, an
increase of more than 60% compared to the same three-month period in
1997. Additionally, corporate issuers have also viewed current
interest rate levels as an opportunity to issue significant amounts
of taxable securities. Thus far in 1998, over $100 billion in
investment-grade corporate bonds have been underwritten, an increase
of more than 60% relative to the comparable period a year ago. This
sizeable corporate bond issuance has tended to support generally
higher fixed-income yields and reduce the demand for tax-exempt
bonds.
However, the recent pace of new municipal bond issuance is unlikely
to be maintained. 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 for 1998 total municipal bond issuance are
presently in the $200 billion--$225 billion range. These estimates
suggest that recent supply pressures are likely to abate later in
the year. Municipal bond investors received approximately $30
billion earlier this year in coupon payments, bond maturities and
proceeds from early redemptions. The demand generated by these
assets has helped offset the increase in supply seen thus far this
year. Furthermore, looking ahead, June and July have also tended to
be periods of strong investor demand as seasonal factors are likely
to generate strong income flows similar to those seen earlier this
year.
It is also possible that at least some of the recent economic
strength seen in the United States will be reversed in the coming
months. A particularly mild winter has been partially responsible
for a strong housing sector, as well as other construction
industries. This recent strong trend may not be sustained and may
lead to weaker construction growth later this year. Additionally,
strong economic growth in 1997 and the increased use of electronic
tax filing have resulted in larger and earlier Federal and state
income tax refunds to many individuals. These refunds appear to have
supported strong consumer spending in recent months, but may be
borrowing against weaker spending later this year. In addition, the
continued impact of the Asian financial crisis on the US domestic
economy's future growth remains unclear. Current Asian economic
conditions continue to reflect ongoing weakness. Recent trade data
indicated that reduced US exports to these countries might have
reduced US economic growth during the first quarter of 1998 by as
much as 2%. Since we expect further trade deterioration in the
coming months, barring a dramatic and unexpected resurgence of
domestic inflation, we do not believe that the Federal Reserve Board
will be willing to raise interest rates until the full impact of the
Asian situation can be established.
Portfolio Strategy
Merrill Lynch Arizona Limited
Maturity Municipal Bond Fund
Despite some uncertainty as to the effect of the Asian currency
crisis on the US economy, the state of Arizona, with its heavily
weighted exposure to the high technology and computer industries,
did not suffer during the three-month period ended April 30, 1998.
The state continues to experience strong employment growth and enjoy
the benefits of an expanding economy.
Issuance by the state of Arizona and its municipalities totaled just
under $1.0 billion for the April quarter. This represents an
increase of almost 50% from the same period of the previous year. As
we discussed in our January 31, 1998 letter to shareholders, it
appeared as if the Asian currency crisis would preclude the Federal
Reserve Board from raising short-term interest rates. Although this
proved to be accurate, an environment of continued uncertainty
regarding the direction of short-term interest rates in tandem with
increased municipal supply caused a rise in intermediate tax-exempt
bond rates of more than 25 basis points during the April quarter.
For example, the yield on a five-year municipal bond rated AAA was
4.00% at the onset of the April quarter, rose to 4.35% during the
period, and closed the quarter at approximately 4.25%. Consequently,
we continued to maintain our conservative portfolio strategy,
reducing cash reserves only to meet shareholder redemptions. We will
continue to monitor economic data in the upcoming months and its
potential impact on our portfolio.
Merrill Lynch California Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1998, the California economy
continued to turn in a strong performance led by a surging retail
and service sector. Gains in export, entertainment, tourism and
computer services continued to drive the state's recovery from the
recessionary levels of the early 1990s. Employment, now growing
faster than the national average, has surpassed pre-recessionary
levels. A long-term decline in income levels relative to the rest of
the nation also appears to have stabilized at about 104% of the
national average over the past three years. Despite strong job
growth, the seasonally adjusted unemployment rate was 6.0% in March
1998. The state's strong growth prospects have been tempered by
concerns over the Asian economic crisis.
Despite the state's improving economic environment, structural
pressures continued to hamper state finances. Chronic budgetary
problems have been exacerbated by a legislative requirement
mandating a two-thirds majority for passage as well as Proposition
98's school loan funding requirements. As of January, revenues and
tax collections were revised upward and could be $300 million above
forecasts. An operating deficit of $132 million is projected for
June 30, 1998, but spending includes $1.2 billion paid to the
state's retirement system in settlement of litigation.
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
At the close of the April quarter, net assets of Merrill Lynch
California Limited Maturity Municipal Bond Fund stood at
approximately $9.1 million, a decrease of approximately 40% from
January quarter-end. As we discussed in our January 31, 1998 letter
to shareholders, we expected to maintain an aggressive investment
strategy during the April quarter because we anticipated the US
economy to be moderated somewhat by the fallout from Asia and for
inflationary pressures to continue to subside. This strategy
enhanced the Fund's performance in February and March 1998 as
inflation continued to decline. In April, continued tight labor
markets, lower interest rates and unseasonably warm winter weather
reignited the housing and stock markets. This caused investors to
become concerned that the situation in Asia would not slow domestic
growth as much as expected and that the Federal Reserve Board might
be forced to raise interest rates. These concerns caused us to
reduce our maximum maturity position in late April to a more neutral
stance until the economy's strength, inflation's path and the
direction of interest rates could be more clearly ascertained. We
will continue to monitor economic statistics in an effort to enhance
the Fund's returns while seeking to limit any net asset value
deterioration.
Merrill Lynch Florida Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1998, Florida Governor Lawton
Chiles and the state legislature continued to work on the $45.3
billion budget for fiscal year 1999. The almost completed task
includes bond issuance for the Public Education System (PECO). These
bonds are backed by the state gross receipt tax and carry a general
obligation backup pledge. Republican lawmakers approved $447.9
million in PECO bonds for schools, surpassing the Governor's request
for $419.5 million. The budget includes a $734 million increase in
education spending. The Florida economy continues to perform well.
The state's diversifying, service-based economy continues to
experience strong growth relative to the region and the nation.
Nationwide personal income gains and consumer confidence have
especially benefited the state's tourism sector, although the area
is becoming more expensive, according to the Orlando--Orange County
Convention and Visitor Bureau. The state ended 1997 with a combined
reserve of more than $1 billion as a result of strong general fund
performance which represented $689 million of the surplus. The state
expects to end fiscal 1998 with a budget stabilization reserve of
$686 million and a working capital fund of $348.4 million.
At the close of the April quarter, net assets of Merrill Lynch
Florida Limited Maturity Municipal Bond Fund stood at $21.3 million,
a decrease of approximately 17% from January quarter-end. As we
discussed in our January 31, 1998 letter to shareholders, we
expected to maintain an aggressive investment posture during the
April quarter because we anticipated the US economy to be moderated
somewhat by the fallout from Asia and for inflationary pressures to
continue to subside. This strategy enhanced the Fund's performance
in February and March 1998 as inflation continued to decline. In
April, continued tight labor markets, lower interest rates and
unseasonably warm winter weather reignited the housing and stock
market. This caused investors to become concerned that Asia would
not slow domestic growth as much as expected and that the Federal
Reserve Board might be forced to raise interest rates. These
concerns caused us to reduce our maximum maturity posture in late
April to a more neutral stance until the economy's strength,
inflation's path and the direction of interest rates could be more
clearly ascertained. We will continue to monitor economic statistics
in an effort to enhance the Fund's returns while seeking to limit
any net asset value deterioration.
Merrill Lynch Michigan Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1998, Moody's Investors Service,
Inc. upgraded Michigan's outstanding general obligation debt to Aa1.
The high-grade bond rating is based on Michigan's traditionally low
debt levels, the expectation of continued structural budget balance
through conservative budgeting practices, the continued maintenance
of high levels of reserves as well as a strong but cyclical economy
that continues to diversify. In recent years, the state has
successfully reduced state spending and managed the budget within
adopted appropriations through measures to control spending for
Medicaid and through the maintenance of general spending below the
rate of revenue growth. These measures enabled the state to restore
budget balance and eliminate the use of non-recurring revenues.
Medicaid, which grew as much as 15% in fiscal 1991, will not grow at
all in fiscal 1998. Through February 1998, Michigan's unemployment
rate of 4.0% remained below the national average of 4.6%. Personal
income has continued to grow at robust levels of 4.3% in 1996 and
4.6% in 1997. The state expects personal income and employment
growth to stabilize in fiscal 1998 and 1999 at 4.5% and 4.2%,
respectively. The state's economy continues to be strong despite a
slowing of auto-related job growth resulting from the weakening of
auto sales.
At the close of the April quarter, net assets of Merrill Lynch
Michigan Limited Maturity Municipal Bond Fund stood at approximately
$3.7 million, a decrease of approximately 2.7% from January quarter-
end. As we discussed in our January letter to shareholders, we
expected to maintain an aggressive investment strategy during the
April quarter because we anticipated the US economy to be moderated
somewhat by the fallout from Asia and for inflationary pressures to
continue to subside. This posture enhanced the Fund's performance in
February and March 1998 as inflation continued to decline. In April,
continued tight labor markets, lower interest rates and unseasonably
warm winter weather reignited the housing and stock markets. This
caused investors to become concerned that the situation in Asia
would not slow domestic growth as much as expected and that the
Federal Reserve Board might be forced to raise interest rates. These
concerns caused us to reduce the portfolio's average maturity in
late April to a more neutral stance until the economy's strength,
inflation path and the direction of interest rates could be more
clearly ascertained. We will continue to monitor economic statistics
in an effort to enhance the Fund's returns while seeking to limit
any net asset value deterioration.
Merrill Lynch New York Limited
Maturity Municipal Bond Fund
During the quarter ended April 30, 1998, the New York state
legislature passed the fiscal year 1999 budget only two weeks after
the deadline of March 31, 1998. Governor George Pataki used the line
item veto power for the first time to cut $760 million in spending
this year and $800 million in borrowing for future programs. Despite
the speed at which the budget process was concluded, the plan calls
for an increase in tax cuts and additional spending above the
Governor's already generous election-year proposals. The spending
plan is drawing fire from the Citizens Budget Commission as well as
other watchdog groups who continue to be concerned about the state's
inability to allocate this year's $2.1 billion surplus toward future
expected deficits and cash shortfalls. On a positive note, New York
City Mayor Rudolph Giuliani outlined a $34 billion spending plan for
the coming fiscal year that reserves most of a record $2 billion
surplus for paying budget gaps looming in coming years. The New York
State economy continued to grow modestly during the April quarter
led by a strong services sector as well as a rising New York City
housing market. Continued personal income gains as well as surging
consumer confidence have bolstered these sectors and are likely to
continue to do so in the near future. New York State issuance will
climb in the second quarter to approximately $7.7 billion, led by
about $4.5 billion in new issuance from the Long Island Power
Authority in May.
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
At the close of the April quarter, net assets of Merrill Lynch New
York Limited Maturity Municipal Bond Fund stood at approximately
$12.5 million, a decrease of approximately 20.0% from January
quarter-end. As we discussed in our January 31, 1998 letter to
shareholders, we expected to maintain an aggressive investment
strategy during the April quarter because we expected the US economy
to be moderated somewhat by the fallout from Asia and for
inflationary pressures to continue to subside. This posture enhanced
the Fund's performance in February and March 1998 as inflation
continued to decline. In April, continued tight labor markets, lower
interest rates and unseasonably warm winter weather reignited the
housing and stock markets. This caused investors to become concerned
that the situation in Asia would not slow domestic growth as much as
expected and that the Federal Reserve Board might be forced to raise
interest rates. These concerns caused us to reduce the portfolio's
average maturity in late April to a more neutral stance until the
economy's strength, inflation's path and the direction of interest
rates could be more clearly ascertained. We will continue to monitor
economic statistics in an effort to enhance the Fund's returns while
seeking to limit any net asset value deterioration.
In Conclusion
We appreciate your interest in Merrill Lynch Multi-State Limited
Maturity Municipal Series Trust, and we look forward to assisting
you with your financial needs in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Edward J. Andrews)
Edward J. Andrews
Vice President and
Portfolio Manager
(Peter J. Hayes)
Peter J. Hayes
Vice President and
Portfolio Manager
(Helen M. Sheehan)
Helen M. Sheehan
Vice President and
Portfolio Manager
May 26, 1998
<TABLE>
<CAPTION>
Proxy Results
On April 22, 1998, a special meeting of stockholders of Merrill
Lynch Arizona 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:
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
Municipal Series Trust and Merrill Lynch Municipal
Bond Fund, Inc. 172,135 108,518 5,030
On April 22, 1998, a special meeting of stockholders of Merrill
Lynch Michigan 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:
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
Municipal Series Trust and Merrill Lynch Municipal
Bond Fund, Inc. 202,915 143,860 8,748
On April 30, 1998, a special meeting of stockholders of Merrill
Lynch New York 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:
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
Municipal Series Trust and Merrill Lynch Municipal
Bond Fund, Inc. 839,421 301,506 41,044
</TABLE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
PERFORMANCE DATA
About Fund
Performance
Investors are able to purchase shares of the Trust through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end
load) of 1% and bear no ongoing distribution or account maintenance
fees. Class A Shares are available only to eligible investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 1% if redeemed during the first year, decreasing 1% the
next year to 0%. In addition, Class B Shares are subject to a
distribution fee of 0.20% and an account maintenance fee of 0.15%.
These shares automatically convert to Class D Shares after
approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.20% and an
account maintenance fee of 0.15%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 1% and an
account maintenance fee of 0.10% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Figures shown in the "Average Annual Total
Return" tables assume reinvestment of all dividends and capital
gains distributions at net asset value on the payable date.
Investment return and principal value of shares will fluctuate so
that shares, when redeemed, may be worth more or less than their
original cost. Dividends paid to each class of shares will vary
because of the different levels of account maintenance, distribution
and transfer agency fees applicable to each class, which are
deducted from the income available to be paid to shareholders.
Average Annual
Total Returns
Arizona Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.18% +4.13%
Inception (11/26/93) through 3/31/98 +4.25 +4.01
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +4.91% +3.91%
Inception (11/26/93) through 3/31/98 +3.88 +3.88
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.08% +4.08%
Inception (10/21/94) through 3/31/98 +4.44 +4.44
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.18% +4.13%
Inception (10/21/94) through 3/31/98 +4.69 +4.38
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
California Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.71% +4.65%
Inception (11/26/93) through 3/31/98 +4.38 +4.14
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.33% +4.33%
Inception (11/26/93) through 3/31/98 +4.02 +4.02
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.52% +4.52%
Inception (10/21/94) through 3/31/98 +5.04 +5.04
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.70% +4.65%
Inception (10/21/94) through 3/31/98 +5.21 +4.91
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
Florida Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.45% +4.40%
Inception (11/26/93) through 3/31/98 +4.12 +3.88
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.08% +4.08%
Inception (11/26/93) through 3/31/98 +3.75 +3.75
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.08% +4.08%
Inception (10/21/94) through 3/31/98 +4.31 +4.31
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.46% +4.40%
Inception (10/21/94) through 3/31/98 +4.84 +4.54
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30,1998
PERFORMANCE DATA (concluded)
Average Annual
Total Returns
(concluded)
Michigan Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.87% +4.81%
Inception (11/26/93) through 3/31/98 +4.26 +4.02
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.38% +4.38%
Inception (11/26/93) through 3/31/98 +3.89 +3.89
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +5.47% +4.47%
Inception (10/21/94) through 3/31/98 +4.65 +4.65
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +5.66% +4.60%
Inception (10/21/94) through 3/31/98 +4.99 +4.68
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
New York Limited Maturity
% Return Without % Return With
Class A Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +6.39% +5.33%
Inception (11/26/93) through 3/31/98 +4.76 +4.52
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
% Return % Return
Class B Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +6.01% +5.01%
Inception (11/26/93) through 3/31/98 +4.39 +4.39
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Class C Shares++ Without CDSC With CDSC++++
Year Ended 3/31/98 +6.21% +5.21%
Inception (10/21/94) through 3/31/98 +5.40 +5.40
[FN]
++Maximum contingent deferred sales charge is 1% and reduced to 0%
after 1 year.
++++Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Class D Shares* Sales Charge Sales Charge**
Year Ended 3/31/98 +6.29% +5.22%
Inception (10/21/94) through 3/31/98 +5.57 +5.26
[FN]
*Maximum sales charge is 1%.
**Assuming maximum sales charge.
<TABLE>
Recent
Performance
Results*
<CAPTION>
Since Standardized
12 Month 3 Month Inception 30-day Yield
Total Total Total As of
Return Return Return 4/30/98
<S> <C> <C> <C> <C>
Arizona Limited Maturity Class A Shares +4.67% -0.22% +19.45% 3.13%
Arizona Limited Maturity Class B Shares +4.29 -0.30 +17.58 2.79
Arizona Limited Maturity Class C Shares +4.43 -0.36 +15.74 2.62
Arizona Limited Maturity Class D Shares +4.46 -0.24 +16.62 3.03
California Limited Maturity Class A Shares +4.89 -0.55 +19.68 2.86
California Limited Maturity Class B Shares +4.51 -0.63 +17.82 2.61
California Limited Maturity Class C Shares +4.71 -0.59 +17.64 2.83
California Limited Maturity Class D Shares +4.88 -0.47 +18.30 2.87
Florida Limited Maturity Class A Shares +4.92 -0.28 +18.72 3.25
Florida Limited Maturity Class B Shares +4.55 -0.37 +16.87 2.92
Florida Limited Maturity Class C Shares +4.40 -0.43 +15.13 2.74
Florida Limited Maturity Class D Shares +4.71 -0.41 +17.09 3.15
Michigan Limited Maturity Class A Shares +5.25 -0.20 +19.45 3.42
Michigan Limited Maturity Class B Shares +4.87 -0.29 +17.55 3.09
Michigan Limited Maturity Class C Shares +4.87 -0.36 +16.48 3.21
Michigan Limited Maturity Class D Shares +5.15 -0.33 +17.80 3.33
New York Limited Maturity Class A Shares +5.46 -0.54 +21.63 3.51
New York Limited Maturity Class B Shares +5.19 -0.53 +19.84 3.19
New York Limited Maturity Class C Shares +5.38 -0.48 +19.18 3.37
New York Limited Maturity Class D Shares +5.46 -0.46 +19.87 3.41
<FN>
*Investment results shown do not reflect sales charges; results
would be lower if a sales charge was included. Total investment
returns are based on changes in net asset values for the periods
shown, and assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date. The inception
dates for each of the Funds within Merrill Lynch Multi-State Limited
Maturity Municipal Series Trust are: Class A and Class B Shares,
11/26/93; and Class C and Class D Shares, 10/21/94.
</TABLE>
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
PORTFOLIO COMPOSITION
Arizona
Limited Maturity
Municipal
Bond Fund
For the Quarter Ended April 30, 1998
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 23.0%
Prerefunded Bonds** 15.0
Other Revenue Bonds 62.0
------
Total 100.0%
======
Net assets as of April 30, 1998 were $2,617,094.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa--49%
AA/Aa--35%
A/A--6%
Other++--10%
[FN]
*Based on total market value of the portfolio as of April 30, 1998.
**Backed by a fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
California
Limited Maturity
Municipal
Bond Fund
For the Quarter Ended April 30, 1998
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 20.1%
Prerefunded Bonds** 16.9
Other Revenue Bonds 63.0
------
Total 100.0%
======
Net assets as of April 30, 1998 were $9,091,736.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa--39%
AA/Aa--34%
A/A--25%
Other++--2%
[FN]
*Based on total market value of the portfolio as of April 30, 1998.
**Backed by a fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
Florida
Limited Maturity
Municipal
Bond Fund
For the Quarter Ended April 30, 1998
Distribution by Market Sector*
Prerefunded Bonds** 42.3%
General Obligations & Tax Revenue Bonds 22.2
Utility Revenue Bonds 10.7
Other Revenue Bonds 24.8
------
Total 100.0%
======
Net assets as of April 30, 1998 were $21,335,385.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa--70%
AA/Aa--19%
A/A--6%
Other++--5%
[FN]
*Based on total market value of the portfolio as of April 30, 1998.
**Backed by a fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
Michigan
Limited Maturity
Municipal
Bond Fund
For the Quarter Ended April 30, 1998
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 23.5%
Prerefunded Bonds** 19.4
Other Revenue Bonds 57.1
------
Total 100.0%
======
Net assets as of April 30, 1998 were $3,701,442.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa--50%
AA/Aa--33%
A/A--7%
Other++--10%
[FN]
*Based on total market value of the portfolio as of April 30, 1998.
**Backed by a fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
Merrill Lynch Multi-State Limited Maturity Municipal Series Trust,
April 30, 1998
PORTFOLIO COMPOSITION (concluded)
New York
Limited Maturity
Municipal
Bond Fund
For the Quarter Ended April 30, 1998
Distribution by Market Sector*
General Obligations & Tax Revenue Bonds 22.7%
Prerefunded Bonds** 21.5
Other Revenue Bonds 55.8
------
Total 100.0%
======
Net assets as of April 30, 1998 were $12,529,847.
Quality Ratings*
(Based on Nationally Recognized Rating Services)
AAA/Aaa--49%
AA/Aa--25%
A/A--10%
Other++--16%
[FN]
*Based on total market value of the portfolio as of April 30, 1998.
**Backed by a fund holding US Treasury or other high-quality
securities.
++Temporary investments in short-term municipal securities.
