MERRILL LYNCH
FLORIDA MUNICIPAL
BOND FUND
[GRAPHIC OMITTED]
STRATEGIC Performance
Semi-Annual Report
January 31, 2000
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
TO OUR SHAREHOLDERS
The Municipal Market Environment
During the six months ended January 31, 2000, continued strong domestic growth,
gradual improvement in foreign economies and investor concerns regarding future
inflationary pressures pushed long-term fixed-income bond yields higher. The
Federal Reserve Board continued to raise short-term interest rates in August and
November 1999 as well as just after the period's close, seeking to moderate US
economic growth and maintain the existing benign inflationary environment. US
economic growth, in part intensified by Year 2000 (Y2K) preparations, grew 5.8%
during the last fiscal quarter of 1999 and had an annual rate of 4.1% for 1999.
A number of inflationary indicators have also begun to signal some increase in
price pressures.
However, most investors believe that the Federal Reserve Board will be extremely
vigilant in preventing such pressures from any material escalation. US Treasury
bond yields responded by rising approximately 60 basis points (0.60%) by
mid-January 2000. A strong rally, largely based upon an expected significant
reduction in the future supply of US Treasury 30-year maturity bonds, pushed
yields lower to 6.50% at January 31, 2000. Over the last six months, yields on
30-year US Treasury bonds rose approximately 40 basis points.
The tax-exempt bond market was also under pressure throughout the entire period.
Despite receiving more than $30 billion in coupon payments, bond matu-rities and
proceeds from early redemptions in December and January, overall investor demand
has diminished. It is likely that the returns generated by the US equity market
have continued to attract investor attention and have left little demand for
competing investment alternatives. At January 31, 2000, the long-term tax-exempt
revenue bond yield, as measured by the Bond Buyer Revenue Index, was 6.34%, an
increase of nearly 70 basis points over the last six months.
Issuance by municipalities has significantly declined in recent months. Over the
last six months, less than $100 billion in long-term tax-exempt bonds were
issued, representing a decline of over 20% compared to the same period a year
ago. During the last three months, less than $45 billion in long-term bonds were
issued by various municipalities. This most recent quarterly issuance is 30%
below the level of the January 31, 1999 quarter. Additionally, during January
2000, less than $8 billion in municipal debt was underwritten, down more than
50% from January 1999 levels. This represents the lowest monthly issuance in
over five years. Toward the end of 1999, consensus estimates for 2000 annual
issuance were in the $210 billion-$215 billion range. January's underwritings,
as well as those expected to be issued in the near future, have led some
analysts to revise their forecasts to the $190 billion range.
We believe an overall reduction in bond supply in the coming year should help
support the municipal bond market's overall technical position. While tax-exempt
bond yields, which are at their highest level in over three years, have
attracted significant retail investor interest, institutional demand declined
sharply. Long-term municipal mutual funds have seen consistent outflows in
recent months as the yields of individual securities rose faster than those of
larger, more diverse mutual funds. During the six months ended January 31, 2000,
tax-exempt mutual funds have had net redemptions of approximately $9 billion.
Also, the demand from property and casualty insurance companies has weakened as
a result of the losses and anticipated losses incurred from a series of
damag-ing storms across much of the eastern United States. Additionally, many
institutional investors who have in recent years been attracted to the municipal
bond market by historically attractive tax-exempt bond yield ratios of over 90%,
found other asset classes even more attractive. Even with a reduced supply
position, tax-exempt issuers have been forced to repeatedly raise municipal bond
yields in an attempt to attract adequate demand. We believe a reduced bond
supply going forward is likely to promote a more closely balanced supply/demand
structure and foster a more stable tax-exempt interest rate environment.
Looking ahead, it appears to us that long-term tax-exempt bond yields will
remain under pressure, trading in a broad range centered around current levels.
Investors are also likely to remain concerned regarding future action by the
Federal Reserve Board in early 2000. Any improvement in bond prices may be
contingent upon weakening in both US employment growth and consumer spending.
The 100 basis point rise in US Treasury bond yields seen thus far could
1
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
negatively affect US economic growth. The US housing market is likely to be
among the first sectors to be affected, as some declines have already been
evidenced because of higher mortgage rates. We believe it is also unrealistic to
expect double-digit returns in US equity markets to continue indefinitely. Much
of the US consumer's wealth is tied to recent stock market appreciation. Any
slowing in these incredible growth rates may reduce consumer spending. We
believe that these factors suggest that the worst of the recent increase in bond
yields has passed and stable, if not slightly improving, bond prices may be
expected.
Portfolio Strategy
Throughout the six months ended January 31, 2000, our investment strategy was
focused on seeking to enhance tax-exempt income. To achieve this goal, we kept
the Fund at an above-average duration as well as fully invested. During the
period, price volatility in the fixed-income market, particularly the municipal
market, was above average. This was the result of strong domestic growth,
concerns about inflation, and the uncertainty of the Y2K situation.
During the six months ended January 31, 2000, the long-term bond yield rose
approximately 25 basis points, while long-term tax-exempt interest rates rose
about 60 basis points. While this was not good for the Fund's total returns, it
enabled us to purchase large coupon bonds, which have not been available in the
Florida tax-exempt market since early 1995. However, we were able to generate a
higher level of tax-exempt income and limit the effects the Fund may experience
from any additional interest rate volatility.
In Conclusion
We appreciate your ongoing interest in Merrill Lynch Florida Municipal Bond
Fund, and we look forward to assisting you with your financial needs in the
months and years ahead.
Sincerely,
/s/ Terry K. Glen
Terry K. Glenn
President
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Robert A. DiMella
Robert A. DiMella
Vice President and Co-Portfolio Manager
/s/ Robert D. Sneeden
Robert D. Sneeden
Vice President and Co-Portfolio Manager
March 8, 2000
2
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the Merrill Lynch
Select PricingSM System, which offers four pricing alternatives:
o Class A Shares incur a maximum initial sales charge (front-end load) of 4%
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
4% if redeemed during the first year, decreasing to 1% each year thereafter
to 0% after the fourth year. In addition, Class B Shares are subject to a
distribution fee of 0.25% and an account maintenance fee of 0.25%. 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 0.35% and an account
maintenance fee of 0.25%. 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 4% 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 "Recent Performance Results" and "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 share holders.
Recent Performance Results*
<TABLE>
<CAPTION>
6 Month 12 Month Since Inception Standardized
As of January 31, 2000 Total Return Total Return Total Return 30-Day Yield
===========================================================================================================================
<S> <C> <C> <C> <C>
ML Florida Municipal Bond Fund Class A Shares -4.52% -6.92% +57.61% 4.98%
- ---------------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class B Shares -4.76 -7.39 +50.86 4.68
- ---------------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class C Shares -4.82 -7.50 +25.60 4.58
- ---------------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class D Shares -4.58 -7.03 +29.01 4.88
===========================================================================================================================
</TABLE>
*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 Fund's since inception dates are from 5/31/91 for Class A & Class B
Shares and from 10/21/94 for Class C & Class D Shares.
3
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
PERFORMANCE DATA (concluded)
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
Year Ended 12/31/99 -4.82% -8.65%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 +5.76 +4.90
- --------------------------------------------------------------------------------
Inception (5/31/91)
through 12/31/99 +5.57 +5.07
- --------------------------------------------------------------------------------
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
================================================================================
% Return % Return
Without CDSC With CDSC**
================================================================================
Class B Shares*
================================================================================
Year Ended 12/31/99 -5.32% -8.94%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 +5.22 +5.22
- --------------------------------------------------------------------------------
Inception (5/31/91)
through 12/31/99 +5.04 +5.04
- --------------------------------------------------------------------------------
*Maximum contingent deferred sales charge is 4% and is reduced to 0% after
4 years.
**Assuming payment of applicable contingent deferred sales charge.
================================================================================
% Return % Return
Without CDSC With CDSC**
================================================================================
Class C Shares*
================================================================================
Year Ended 12/31/99 -5.44% -6.34%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 +5.09 +5.09
- --------------------------------------------------------------------------------
Inception (10/21/94)
through 12/31/99 +4.71 +4.71
- --------------------------------------------------------------------------------
*Maximum contingent deferred sales charge is 1% and is reduced to 0% after 1
year.
**Assuming payment of applicable contingent deferred sales charge.
================================================================================
% Return Without % Return With
Sales Charge Sales Charge**
================================================================================
Class D Shares*
================================================================================
Year Ended 12/31/99 -4.96% -8.76%
- --------------------------------------------------------------------------------
Five Years Ended 12/31/99 +5.65 +4.79
- --------------------------------------------------------------------------------
Inception (10/21/94)
through 12/31/99 +5.25 +4.42
- --------------------------------------------------------------------------------
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
OFFICERS AND TRUSTEES
Terry K. Glenn, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Arthur Zeikel, Trustee
Vincent R. Giordano, Senior Vice President
Robert A. DiMella, Vice President
Kenneth A. Jacob, Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Alice A. Pellegrino, Secretary
-----------------------------------------------------------------------------
Robert R. Martin, Trustee of Merrill Lynch Florida Municipal Bond Fund has
recently retired. The Fund's Board of Trustees wishes Mr. Martin well in his
retirement.
-----------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 637-3863
4
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
SCHEDULE OF INVESTMENTS (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
- ------------------------------------------------------------------------------------------------------------------------------------
Florida--92.1%
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA Aaa $ 1,095 Altamonte Springs, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health Systems--Sunbelt), 7% due 10/01/2014 (e) $ 1,239
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 4,140 Brevard County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, 6.70% due 9/01/2027 (f) 4,199
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 9,000 Broward County, Florida, Airport System Revenue Bonds (Passenger Facility), Convertible
Lien, Series H-2, 4.75% due 10/01/2023 (b) 7,201
- ------------------------------------------------------------------------------------------------------------------------------------
Broward County, Florida, HFA, M/F Housing Revenue
Refunding Bonds (Lakeside Apartments Project) (d):
AAA NR* 1,100 6.90% due 8/01/2015 1,160
AAA NR* 1,100 7% due 2/01/2025 1,169
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,775 Celebration Community Development District, Florida (Special Assessment),
6% due 5/01/2010 (c) 2,859
- ------------------------------------------------------------------------------------------------------------------------------------
A+ A1 7,715 Citrus County, Florida, PCR, Refunding (Florida Power Corporation--Crystal River),
Series A, 6.625% due 1/01/2027 7,875
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 2,455 Dade County, Florida, HFA, S/F Mortgage Revenue Bonds, AMT, Series C,
7.75% due 9/01/2022 (f)(j) 2,509
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 140 Dade County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series B,
7.25% due 9/01/2023 (d)(f) 143
- ------------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 3,400 Dade County, Florida, IDA, Exempt Facilities Revenue Refunding Bonds (Florida Power and
Light Co.), VRDN, 3.65% due 6/01/2021 (a) 3,400
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 12,000 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT,
7% due 4/01/2028 (d)(f) 12,505
- ------------------------------------------------------------------------------------------------------------------------------------
BBB Baa1 11,620 Escambia County, Florida, PCR (Champion International Corporation Project), AMT,
6.90% due 8/01/2022 11,653
- ------------------------------------------------------------------------------------------------------------------------------------
BBB Baa1 1,500 Escambia County, Florida, PCR, Refunding (Champion International Corporation Project),
6.95% due 11/01/2007 1,565
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,950 Escambia County, Florida, Utilities Authority, Utility System Revenue Bonds,
5.25% due 1/01/2029 (i) 2,558
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 950 Florida HFA, Home Ownership Revenue Refunding Bonds, AMT, Series G1,
7.90% due 3/01/2022 (f)(k) 978
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 10,420 Florida HFA, Revenue Bonds (Maitland Club Apartments), AMT, Series B-1,
7% due 2/01/2035 (b) 10,870
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PORTFOLIO ABBREVIATIONS
To simplify the listings of Merrill Lynch Florida Municipal Bond Fund's
portfolio holdings in the Schedule of Investments, we have abbreviated the
names of many of the securities according to the list below and at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DATES Daily Adjustable Tax-Exempt Securities
HFA Housing Finance Agency
IDA Industrial Development Authority
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RITES Residual Interest Tax-Exempt Securities
S/F Single-Family
VRDN Variable Rate Demand Notes
5
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
- ------------------------------------------------------------------------------------------------------------------------------------
Florida (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR* Aaa $ 5,000 Florida State Governmental Utility Authority, Utility Revenue Bonds (Poinciana Utility
System), 5% due 10/01/2029 (b) $ 4,143
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,595 Florida State Turnpike Authority, Turnpike Revenue Bonds (Department of Transportation),
Series A, 4.50% due 7/01/2027 (i) 3,507
- ------------------------------------------------------------------------------------------------------------------------------------
NR* NR* 1,000 Heritage Palms, Florida, Community Development District, Capital Improvement Revenue
Bonds, 6.25% due 11/01/2004 989
- ------------------------------------------------------------------------------------------------------------------------------------
NR* VMIG1+ 5,200 Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project),
VRDN, 3.60% due 9/01/2025 (a) 5,200
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,400 Hillsborough County, Florida, School Board, COP, 6% due 7/01/2025 (c) 2,404
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,750 Hillsborough County, Florida, Utility Revenue Refunding Bonds, Series B,
6.50% due 8/01/2016 (c) 2,865
- ------------------------------------------------------------------------------------------------------------------------------------
NR* NR* 1,000 Indigo, Florida, Community Development District, Capital Improvement Revenue Refunding
Bonds, Series B, 6.40% due 5/01/2006 982
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 6,600 Jacksonville, Florida, Capital Improvement Revenue Refunding Bonds (Stadium Project),
4.75% due 10/01/2025 (b) 5,271
- ------------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 1,000 Jacksonville, Florida, PCR, Refunding (Florida Power and Light Co. Project), VRDN,
3.60% due 5/01/2029 (a) 1,000
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,500 Lakeland, Florida, Electric and Water Revenue Refunding Bonds, Series A,
5% due 10/01/2019 (c) 3,918
- ------------------------------------------------------------------------------------------------------------------------------------
Lee County, Florida, Water and Sewer Revenue Bonds, Series A (b):
AAA Aaa 3,500 5% due 10/01/2024 2,949
AAA Aaa 4,750 5% due 10/01/2029 3,936
- ------------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 3,800 Martin County, Florida, PCR, Refunding (Florida Power and Light Co. Project), VRDN,
3.65% due 9/01/2024 (a) 3,800
- ------------------------------------------------------------------------------------------------------------------------------------
NR* NR* 1,000 Mediterra, Florida, South Community Development District, Capital Improvement Revenue
Bonds, Series B, 6.25% due 5/01/2004 988
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,295 Miami Beach, Florida, Parking Revenue Bonds, 5.125% due 9/01/2022 (g) 1,987
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 7,000 Miami--Dade County, Florida, Expressway Authority, Toll System Revenue Bonds,
6.375% due 7/01/2029 (i) 7,214
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 7,000 Miami--Dade County, Florida, Special Obligation Revenue Refunding Bonds, Sub-Series A,
5.61%** due 10/01/2019 (c) 2,051
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 6,120 Miami--Dade County, Florida, Water and Sewer Revenue Bonds, Series A,
5% due 10/01/2029 (i) 5,071
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 5,000 Orlando and Orange County, Florida, Expressway Authority, Expressway Revenue Refunding
Bonds, Junior Lien, 5% due 7/01/2028 (i) 4,156
- ------------------------------------------------------------------------------------------------------------------------------------
NR* Aaa 1,940 Osceola County, Florida, Sales Tax Revenue Bonds, 5% due 4/01/2024 (g) 1,637
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 2,080 Pasco County, Florida, Health Facilities Authority, Gross Revenue Bonds (Adventist Health
System--Sunbelt), 7% due 10/01/2014 (e) 2,349
- ------------------------------------------------------------------------------------------------------------------------------------
A1+ VMIG1+ 7,000 Pinellas County, Florida, Health Facilities Authority, Revenue Refunding Bonds (Pooled
Hospital Loan Program), DATES, 3.65% due 12/01/2015 (a)(b) 7,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<TABLE>
<CAPTION>
S&P Moody's Face
Ratings Ratings Amount Issue Value
- ------------------------------------------------------------------------------------------------------------------------------------
Florida (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AAA Aaa $ 4,500 Polk County, Florida, School Board, COP, Series A, 5% due 1/01/2020 (g) $ 3,841
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 7,500 Sunrise, Florida, Utility System, Revenue Refunding Bonds, 5% due 10/01/2028 (b) 6,277
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 8,750 Tampa Bay, Florida, Water Utility System, Revenue Refunding Bonds, Series A,
4.75% due 10/01/2027 (i) 6,936
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 4,000 Tampa--Hillsborough County, Florida, Expressway Authority, Revenue Refunding Bonds,
5% due 7/01/2022 (b) 3,397
- ------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa 3,825 Winter Haven, Florida, Utility System, Revenue Refunding and Improvement Bonds,
4.75% due 10/01/2028 (c) 3,022
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Texas--1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
A1+ NR* 3,400 Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue
Refunding Bonds (Methodist Hospital), VRDN, 3.65% due 12/01/2025 (a) 3,400
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico--9.7%
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Highway Revenue
Refunding Bonds, RITES, Series X (h):
A1+ Baa1 7,600 6.059% due 7/01/2004 7,705
A1+ Baa1 10,000 6.159% due 7/01/2005 10,113
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$195,453)--103.7% 189,991
Variation Margin on Financial Futures Contracts***--0.1% 147
Liabilities in Excess of Other Assets--(3.8%) (6,909)
------
Net Assets--100.0% $183,229
========
- ------------------------------------------------------------------------------------------------------------------------------------
</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,
2000.
(b) AMBAC Insured.
(c) MBIA Insured.
(d) FNMA Collateralized.
(e) Escrowed to maturity.
(f) GNMA Collateralized.
(g) FSA Insured.
(h) The interest rate is subject to change periodically and inversely based
upon prevailing market rates. The interest rate shown is the rate in effect
at January 31, 2000.
(i) FGIC Insured.
(j) FHA Insured.
(k) All or a portion of security held as collateral in connection with open
financial futures contracts.
*Not Rated.
**Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase by the Fund.
***Financial futures contracts sold as of January 31, 2000 were as follows:
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
(in Thousands)
- --------------------------------------------------------------------------------
Number of Expiration
Contracts Issue Date Value
- --------------------------------------------------------------------------------
205 US Treasury Bonds March 2000 $18,905
- -------------------------------------------------------------------------------
Total Financial Futures Contracts Sold
(Total Contract Price--$18,469) $18,905
=======
- --------------------------------------------------------------------------------
+ Highest short-term rating by Moody's Investors Service, Inc.
7
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
FINANCIAL INFORMATION
Statement of Assets and Liabilities as of January 31, 2000
<TABLE>
<S> <C> <C> <C>
Assets: Investments, at value (identified cost--$195,452,889)........... $189,990,733
Cash............................................................ 47,525
Receivables:
Interest...................................................... $ 3,081,051
Securities sold............................................... 483,263
Variation margin.............................................. 147,344
Beneficial interest sold...................................... 20,316 3,731,974
------------
Prepaid expenses and other assets............................... 11,308
------------
Total assets.................................................... 193,781,540
------------
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities: Payables:
Securities purchased.......................................... 9,696,954
Beneficial interest redeemed.................................. 430,636
Dividends to shareholders..................................... 165,978
Investment adviser............................................ 81,314
Distributor................................................... 52,018 10,426,900
------------
Accrued expenses................................................ 125,192
------------
Total liabilities............................................... 10,552,092
------------
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets: Net assets...................................................... $183,229,448
============
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Class A Shares of beneficial interest, $.10 par value,
Consist of: shares authorized unlimited number of........................... $ 346,907
Class B Shares of beneficial interest, $.10 par value,
shares authorized unlimited number of ...................... 1,204,427
Class C Shares of beneficial interest, $.10 par value,
shares authorized unlimited number of ...................... 92,886
Class D Shares of beneficial interest, $.10 par value,
shares authorized unlimited number of ..................... 310,693
Paid-in capital in excess of par................................ 204,692,383
Accumulated realized capital losses on investments--net......... (17,520,067)
Unrealized depreciation on investments--net..................... (5,897,781)
------------
Net assets...................................................... $183,229,448
============
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value: Class A--Based on net assets of $32,526,716 and 3,469,074
shares of beneficial interest outstanding....................... $ 9.38
===========
Class B--Based on net assets of $112,926,619 and 12,044,273
sharesof beneficial interest outstanding........................ $ 9.38
===========
Class C--Based on net assets of $8,694,237 and 928,859
sharesof beneficial interest outstanding........................ $ 9.36
===========
Class D--Based on net assets of $29,081,876 and 3,106,932
sharesof beneficial interest outstanding....................... $ 9.36
===========
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
FINANCIAL INFORMATION (continued)
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
January 31, 2000
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income: Interest and amortization of premium and discount earned........ $ 5,748,495
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Expenses: Investment advisory fees........................................ $ 544,677
Account maintenance and distribution fees--Class B............... 306,111
Professional fees............................................... 44,412
Accounting services............................................. 33,542
Account maintenance and distribution fees--Class C............... 28,878
Transfer agent fees--Class B..................................... 25,057
Account maintenance fees--Class D................................ 15,585
Custodian fees.................................................. 7,595
Trustees' fees and expenses..................................... 6,843
Transfer agent fees--Class A..................................... 5,828
Transfer agent fees--Class D..................................... 5,216
Pricing fees.................................................... 3,855
Printing and shareholder reports................................ 3,143
Transfer agent fees--Class C..................................... 1,929
Registration fees............................................... 1,515
Other........................................................... 2,752
----------
Total expenses.................................................. 1,036,938
------------
Investment income--net .......................................... 4,711,557
------------
- --------------------------------------------------------------------------------------------------------------------------------
Realized & Realized loss on investments--net ............................... (3,564,136)
Unrealized Loss on Change in unrealized appreciation/depreciation on investments--net
Investments--Net: (10,998,448)
------------
Net Decrease in Net Assets Resulting from Operations............ $ (9,851,027)
============
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the Six For the
Months Ended Year Ended
January 31, July 31,
Increase (Decrease) in Net Assets: 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations: Investment income--net .......................................... $ 4,711,557 $ 10,368,688
Realized gain (loss) on investments--net ........................ (3,564,136) 817,507
Change in unrealized appreciation/depreciation on investments--net (10,998,448) (8,567,351)
------------ ------------
Net increase (decrease) in net assets resulting from operations.. (9,851,027) 2,618,844
------------ ------------
- --------------------------------------------------------------------------------------------------------------------------------
Dividends to Investment income--net:
Shareholders: Class A....................................................... (890,873) (2,053,636)
Class B....................................................... (2,822,016) (6,258,095)
Class C....................................................... (217,047) (448,971)
Class D....................................................... (781,621) (1,607,986)
------------ ------------
Net decrease in net assets resulting from dividends to shareholders (4,711,557) (10,368,688)
------------ ------------
- --------------------------------------------------------------------------------------------------------------------------------
Beneficial Interest Net increase (decrease) in net assets derived from beneficial
Transactions: interest transactions........................................... (22,308,281) 7,013,123
------------ ------------
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets: Total decrease in net assets.................................... (36,870,865) (736,721)
Beginning of period............................................. 220,100,313 220,837,034
------------ ------------
End of period................................................... $183,229,448 $220,100,313
============ ============
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
Jan. 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period..... $ 10.08 $ 10.41 $ 10.37 $ 9.94 $ 9.86
Operating -------- -------- -------- -------- --------
Performance: Investment income--net................... .25 .50 .53 .53 .53
Realized and unrealized gain (loss) on
investments--net ........................ (.70) (.33) .04 .43 .08
-------- -------- -------- -------- --------
Total from investment operations......... (.45) .17 .57 .96 .61
-------- -------- -------- -------- --------
Less dividends from investment income--net (.25) (.50) (.53) (.53) (.53)
-------- -------- -------- -------- --------
Net asset value, end of period........... $ 9.38 $ 10.08 $ 10.41 $ 10.37 $ 9.94
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Based on net asset value per share....... (4.52%)+ 1.57% 5.61% 9.99% 6.30%
Return:** ======== ======== ======== ======== ========
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses................................. .69%* .72% .69% .69% .68%
Net Assets: ======== ======== ======== ======== ========
Investment income--net................... 5.10%* 4.80% 5.06% 5.31% 5.30%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands). $ 32,527 $ 38,214 $ 44,173 $ 47,598 $ 46,765
Data: ======== ======== ======== ======== ========
Portfolio turnover....................... 33.98% 120.54% 101.75% 84.69% 162.83%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
*Annualized.
**Total investment returns exclude the effects of sales charges.
+Aggregate total investment return.
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
FINANCIAL INFORMATION (continued)
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
Jan. 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period..... $ 10.08 $ 10.41 $ 10.37 $ 9.94 $ 9.86
Operating -------- -------- -------- -------- --------
Performance: Investment income--net................... .22 .45 .47 .48 .48
Realized and unrealized gain (loss) on
investments--net ......................... (.70) (.33) .04 .43 .08
-------- -------- -------- -------- --------
Total from investment operations......... (.48) .12 .51 .91 .56
-------- -------- -------- -------- --------
Less dividends from investment income--net (.22) (.45) (.47) (.48) (.48)
-------- -------- -------- -------- --------
Net asset value, end of period........... $ 9.38 $ 10.08 $ 10.41 $ 10.37 $ 9.94
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Based on net asset value per share....... (4.76%)+ 1.06% 5.07% 9.43% 5.76%
Return:** ======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses................................. 1.19%* 1.23% 1.20% 1.20% 1.18%
Net Assets: ======== ======== ======== ======== ========
Investment income--net................... 4.60%* 4.29% 4.55% 4.80% 4.79%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands). $112,926 $133,276 $143,496 $160,562 $195,097
Data: ======== ======== ======== ======== ========
Portfolio turnover....................... 33.98% 120.54% 101.75% 84.69% 162.83%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
*Annualized.
**Total investment returns exclude the effects of sales charges.
+Aggregate total investment return.
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
FINANCIAL INFORMATION (concluded)
<TABLE>
<CAPTION>
Class C
--------------------------------------------------------------
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
Jan. 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period..... $ 10.06 $ 10.39 $ 10.35 $ 9.92 $ 9.85
Operating -------- -------- -------- -------- --------
Performance: Investment income--net.................... .22 .43 .46 .47 .47
Realized and unrealized gain (loss) on
investments--net ........................ (.70) (.33) .04 .43 .07
-------- -------- -------- -------- --------
Total from investment operations......... (.48) .10 .50 .90 .54
-------- -------- -------- -------- --------
Less dividends from investment
income--net ............................. (.22) (.43) (.46) (.47) (.47)
-------- -------- -------- -------- --------
Net asset value, end of period........... $ 9.36 $ 10.06 $ 10.39 $ 10.35 $ 9.92
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Based on net asset value per share....... (4.82%)+ .95% 4.97% 9.33% 5.54%
Return:** ======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses................................. 1.29%* 1.33% 1.30% 1.30% 1.28%
Net Assets: ======== ======== ======== ======== ========
Investment income--net.................... 4.50%* 4.19% 4.44% 4.70% 4.70%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands). $ 8,694 $ 10,897 $ 8,900 $ 5,976 $ 5,738
Data: ======== ======== ======== ======== ========
Portfolio turnover....................... 33.98% 120.54% 101.75% 84.69% 162.83%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Class D
--------------------------------------------------------------
For the
The following per share data and ratios have been derived Six Months
from information provided in the financial statements. Ended
Jan. 31, For the Year Ended July 31,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period..... $ 10.06 $ 10.39 $ 10.35 $ 9.92 $ 9.85
Operating -------- -------- -------- -------- --------
Performance: Investment income--net.................... .24 .49 .52 .52 .52
Realized and unrealized gain (loss) on
investments--net ........................ (.70) (.33) .04 .43 .07
-------- -------- -------- -------- --------
Total from investment operations......... (.46) .16 .56 .95 .59
-------- -------- -------- -------- --------
Less dividends from investment
income--net ............................. (.24) (.49) (.52) (.52) (.52)
-------- -------- -------- -------- --------
Net asset value, end of period........... $ 9.36 $ 10.06 $ 10.39 $ 10.35 $ 9.92
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Based on net asset value per share....... (4.58%)+ 1.46% 5.51% 9.89% 6.09%
Return:** ======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios to Average Expenses................................. .79%* .82% .79% .79% .78%
Net Assets: ======== ======== ======== ======== ========
Investment income--net.................... 5.00%* 4.69% 4.95% 5.21% 5.20%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
Supplemental Net assets, end of period (in thousands). $ 29,082 $ 37,713 $ 24,268 $ 19,511 $ 15,231
Data: ======== ======== ======== ======== ========
Portfolio turnover....................... 33.98% 120.54% 101.75% 84.69% 162.83%
======== ======== ======== ======== ========
- -----------------------------------------------------------------------------------------------------------------------------------
*Annualized.
**Total investment returns exclude the effects of sales charges.
+Aggregate total investment return.
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Florida Municipal Bond Fund (the "Fund") is part of Merrill
Lynch Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-diversified,
open-end management investment company. The Fund's financial statements are
prepared in accordance with generally accepted accounting principles, which
may require the use of management accruals and estimates. 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. The
Fund 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 follow ing is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Municipal bonds and other portfolio securities
in which the Fund invests are traded primarily in the over-the-counter
municipal bond and money markets and are valued at the last available bid
price in the over-the-counter market or on the basis of yield equivalents as
obtained from one or more dealers that make markets in the securities.
Financial futures contracts and options thereon, which are traded on
exchanges, are valued at their settlement prices as of the close of such
exchanges. Short-term investments with remaining maturities of sixty days or
less are valued at amortized cost, which approximates market value.
Securities and assets for which market quotations are not readily available
are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees of the Trust, including valuations
furnished by a pricing service retained by the Trust, which may utilize a
matrix system for valuations. The procedures of the pricing service and its
valuations are reviewed by the officers of the Trust under the general
supervision of the Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its portfolio
against adverse movements in the debt markets. Losses may arise due to
changes in the value of the con tract or if the counterparty does not perform
under the contract.
o Financial futures contracts--The Fund may purchase or sell financial
futures contracts and options on such futures contracts for the purpose of
hedging the market risk on existing securities or the intended purchase of
securities. Futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and maintains as collateral such
initial margin as required by the exchange on which the transaction is
effected. Pursuant to the contract, the Fund agrees to receive from or pay to
the broker an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at
the time it was closed.
(c) Income taxes--It is the 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) Dividends and distributions--Dividends from net investment income are
declared daily and paid
13
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
NOTES TO FINANCIAL STATEMENTS (concluded)
monthly. Distributions of capital gains are recorded on the ex-dividend
dates.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund 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 Fund has also entered
into a Distribution Agreement and Distribution Plans with Merrill Lynch Funds
Distributor ("MLFD" or the "Distributor"), a division of Princeton Funds
Distributor, Inc. ("PFD"), which is a wholly-owned subsidiary of Merrill
Lynch Group, Inc.
FAM is responsible for the management of the Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Fund. For such services, the Fund pays a
monthly fee based upon the average daily value of the Fund's net assets at
the following annual rates: .55% of the Fund's average daily net assets not
exceeding $500 million; .525% of average daily net assets in excess of $500
million but not exceeding $1 billion; and .50% of average daily net assets in
excess of $1 billion.
Pursuant to the Distribution Plans adopted by the Fund in accordance with
Rule 12b-1 under the Investment Company Act of 1940, the Fund pays the
Distributor ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the average daily
net assets of the shares as follows:
- -------------------------------------------------------------------------------
Account Distribution
Maintenance Fee Fee
- -------------------------------------------------------------------------------
Class B................. .25% .25%
Class C................. .25% .35%
Class D................. .10% --
- -------------------------------------------------------------------------------
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S"), a subsidiary of ML & Co., also pro
vides account maintenance and distribution services to the Fund. 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, 2000, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Fund's Class A and Class
D Shares as follows:
- -------------------------------------------------------------------------------
MLFD MLPF&S
- -------------------------------------------------------------------------------
Class A.................... $378 $ 750
Class D.................... $581 $3,660
- -------------------------------------------------------------------------------
For the six months ended January 31, 2000, MLPF&S received contingent
deferred sales charges of $114,577 and $3,933 relating to transactions in
Class B and Class C Shares, respectively. Furthermore, MLPF&S received
contingent deferred sales charges of $368 and $38,162 relating to
transactions subject to front-end sales charge waivers in Class A and Class D
Shares, respectively.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co.,
is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, PFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
six months ended January 31, 2000 were $63,248,152 and $89,891,653,
respectively.
Net realized gains (losses) for the six months ended January 31, 2000 and net
unrealized losses as of January 31, 2000 were as follows:
- -----------------------------------------------------------------------------
Realized Unrealized
Gains (Losses) Losses
- -----------------------------------------------------------------------------
Long-term investments......... $(4,962,848) $(5,462,156)
Financial futures contracts .. 1,398,712 (435,625)
--------- --------
Total......................... $(3,564,136) $(5,897,781)
=========== ===========
- -----------------------------------------------------------------------------
As of January 31, 2000, net unrealized depreciation for Federal income tax
purposes aggregated $5,462,156, of which $1,909,281 related to appreciated
securities and $7,371,437 related to depreciated securities. The aggregate
cost of investments at January 31, 2000 for Federal income tax purposes was
$195,452,889.
14
<PAGE>
Merrill Lynch Florida Municipal Bond Fund January 31, 2000
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $(22,308,281) and $7,013,123 for the six months ended
January 31, 2000 and for the year ended July 31, 1999, respectively.
Transactions in shares of beneficial interest for each class were as follows:
- ----------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 274,028 $ 2,620,138
Shares issued to shareholders
in reinvestment of dividends ..... 42,718 410,572
-------- ------------
Total issued...................... 316,746 3,030,710
Shares redeemed................... (639,484) (6,153,787)
-------- ------------
Net decrease...................... (322,738) $ (3,123,077)
======== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 623,802 $ 6,549,823
Shares issued to shareholders
in reinvestment of dividends ..... 93,638 977,452
---------- -----------
Total issued...................... 717,440 7,527,275
Shares redeemed................... (1,169,568) (12,154,623)
---------- -----------
Net decrease...................... (452,128) $ (4,627,348)
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 1,021,244 $ 9,819,956
Shares issued to shareholders
in reinvestment of dividends ..... 105,807 1,016,720
---------- -----------
Total issued...................... 1,127,051 10,836,676
Automatic conversion
of shares......................... (17,710) (170,577)
Shares redeemed................... (2,289,469) (22,057,315)
---------- -----------
Net decrease...................... (1,180,128) $(11,391,216)
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 2,641,615 $ 27,704,661
Shares issued to shareholders
in reinvestment of dividends ..... 223,635 2,334,238
---------- -----------
Total issued...................... 2,865,250 30,038,899
Automatic conversion
of shares......................... (45,399) (472,868)
Shares redeemed................... (3,382,327) (35,227,043)
---------- -----------
Net decrease...................... (562,476) $ (5,661,012)
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 124,613 $ 1,197,912
Shares issued to shareholders
in reinvestment of dividends ..... 10,949 105,059
---------- -----------
Total issued...................... 135,562 1,302,971
Shares redeemed................... (289,842) (2,798,213)
---------- -----------
Net decrease...................... (154,280) $ (1,495,242)
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 452,873 $ 4,749,589
Shares issued to shareholders
in reinvestment of dividends ..... 22,394 233,145
---------- -----------
Total issued...................... 475,267 4,982,734
Shares redeemed................... (248,663) (2,576,188)
---------- -----------
Net increase...................... 226,604 $ 2,406,546
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class D Shares for the Six Months Dollar
Ended January 31, 2000 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 670,552 $ 6,442,148
Automatic conversion
of shares......................... 17,743 170,577
Shares issued to shareholders
in reinvestment of dividends ..... 26,170 251,015
---------- -----------
Total issued...................... 714,465 6,863,740
Shares redeemed................... (1,356,102) (13,162,486)
---------- -----------
Net decrease...................... (641,637) $ (6,298,746)
========== ============
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Class D Shares for the Year Dollar
Ended July 31, 1999 Shares Amount
- ----------------------------------------------------------------------------
Shares sold....................... 2,718,041 $ 28,457,813
Automatic conversion
of shares......................... 45,482 472,868
Shares issued to shareholders
in reinvestment of dividends ..... 59,085 615,511
---------- -----------
Total issued...................... 2,822,608 29,546,192
Shares redeemed................... (1,409,467) (14,651,255)
---------- -----------
Net increase...................... 1,413,141 $ 14,894,937
========== ============
- ----------------------------------------------------------------------------
5. Capital Loss Carryforward:
At July 31, 1999, the Fund had a capital loss carry forward of approximately
$11,654,000, of which $9,378,000 expires in 2003 and $2,276,000 expires in
2004. This amount will be available to offset like amounts of any future
taxable gains.
15
<PAGE>
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund'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 Florida
Municipal Bond Fund
Merrill Lynch Multi-State
Municipal Series Trust
ox 9011
Princeton, NJ
08543-9011 #16031--1/00
Printed on post-consumer recycled paper
