UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-06208 Morgan Stanley Multi-State Municipal Series Trust (Exact name of registrant as specified in charter) 1221 Avenue of the Americas, New York, New York 10020 (Address of principal executive offices) (Zip code) Ronald E. Robison 1221 Avenue of the Americas, New York, New York 10020 (Name and address of agent for service) Registrant's telephone number, including area code: 212-762-4000 Date of fiscal year end: November 30, 2003 Date of reporting period: May 31, 2003
Item 1. Report to Stockholders
Morgan Stanley Multi-State Municipal Series Trust
Letter to the Shareholders May 31, 2003
Dear Shareholder:
During the six-month period ended May 31, 2003, U.S. economic growth was positive but below potential. The pattern of the recovery remained uneven with a number of indicators fluctuating between strength and weakness. The relatively brief military conflict in Iraq and the ongoing war against terrorism cast a shadow over the economy and the financial markets. A sluggish economy and uncertain geopolitical outlook favored bonds and led to record low interest rates.
Throughout the period, consumer spending was the best-performing economic sector. Mortgage refinancing and low auto loan rates helped keep Americans buying. However, early this year concern about Iraq dominated investor sentiment and consumer confidence waned. Confidence was also shaken when unemployment reached an eight-year high. To guard against further downside risks, in early November the Federal Reserve Board lowered the federal funds rate from 1.75 to 1.25 percent. This marked the first change by the central bank in almost a year. A quick resolution of the Iraqi conflict prompted the financial markets to focus on the economy. In an effort to stimulate growth, President Bush signed the $350 billion Jobs and Growth Tax Relief Reconciliation Act of 2003 in May. Tax reductions originally scheduled to be phased in through 2006 were accelerated. In June, the Federal Reserve again lowered the federal funds rate by 25 basis points to 1.00 percent.
Municipal Market Conditions
The yield on the 30-year insured municipal bond index continued to trend lower over the six-month period ended May 31, 2003. The yield declined from a high of 4.99 percent in January 2003 to a low of 4.44 percent in May. Throughout the period, the municipal yield curve steepened. The pickup along the yield curve for extending maturities from one to 30 years was 344 basis points on May 31, 2003.
The ratio of municipal yields as a percentage of U.S. Treasury yields gauges the relative value of municipals. In five of the past six months 30-year insured municipal bonds yielded more than 30-year Treasuries. This ratio signaled the relative attractiveness of municipals.
Long-term municipal volume increased to a record $357 billion in 2002 as state and local governments took advantage of lower interest rates to meet their cash flow needs and refinance outstanding debt. In the first five months of 2003, new-issue volume increased 14 percent to $146 billion. Many analysts expect this pace to continue throughout the year as budgetary pressures force states and municipalities to borrow. Arizona, Florida, New Jersey and Pennsylvania issuers represented 17 percent of national volume.
Morgan Stanley Multi-State Municipal Series Trust
Letter to the Shareholders May 31, 2003 continued
Portfolio Structure
Morgan Stanley Multi-State Municipal Series Trust is comprised of four series of state portfolios: Arizona, Florida, New Jersey and Pennsylvania.
The Arizona Series' net assets of $30 million were diversified among 9 long-term sectors and 23 credits. In 2003, the Fund sold five- and ten-year U.S. Treasury futures to hedge the portfolio against potential changes in interest rates. This reduced the Fund's duration (a measure of sensitivity to interest-rate changes) at the end of May 2003 from 7.5 to 7.2 years. The long-term portfolio's average maturity and call protection were 16 and 8 years, respectively. More than 85 percent of the portfolio was rated AA or AAA.
The Florida Series' net assets of $39 million were diversified among 9 long-term sectors and 30 credits. In 2003, the Fund sold five-year U.S. Treasury futures to hedge the portfolio against potential changes in interest rates. This reduced the Fund's duration (a measure of sensitivity to interest-rate changes) at the end of May 2003 from 7.9 to 7.5 years. The long-term portfolio's average maturity and call protection were 18 and 8 years, respectively. More than 90 percent of the portfolio was rated AA or AAA.
The New Jersey Series' net assets of $37 million were diversified among 14 long-term sectors and 31 credits. Duration, a measure of sensitivity to interest-rate changes, was 7.2 years at the end of May. The long-term portfolio's average maturity and call protection were 18 and 6 years, respectively. More than 85 percent of the portfolio was rated AA or AAA.
The Pennsylvania Series' net assets of $35 million were diversified among 12 long-term sectors and 27 credits. In 2003, the Fund sold five- and ten-year U.S. Treasury futures to hedge the portfolio against potential changes in interest rates. This reduced the Fund's duration (a measure of sensitivity to interest-rate changes) at the end of May 2003 from 8.2 to 7.4 years. The long-term portfolio's average maturity and call protection were 19 and 7 years, respectively. More than 70 percent of the portfolio was rated AA or AAA.
For your convenience, we have summarized details regarding each Series on the following pages. Here you will find information on credit quality, duration, maturity, call protection, distributions and performance.
2
Morgan Stanley Multi-State Municipal Series Trust
Letter to the Shareholders May 31, 2003 continued
We appreciate your ongoing support of Morgan Stanley Multi-State Municipal Series Trust and look forward to continuing to serve your investment needs.
Very truly yours,
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Charles A. Fiumefreddo Chairman of the Board | ![]() | Mitchell M. Merin President | ||||
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3
Morgan Stanley Multi-State Municipal Series Trust
Fund Performance May 31, 2003
Average Annual Total Returns
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PERIOD ENDED 5/31/03 | |||||||||||||||||||||||||||
![]() | 1 YEAR | ![]() | 5 YEARS | ![]() | 10 YEARS | ![]() | |||||||||||||||||||||
Arizona | ![]() | 10.11 | % (1) | ![]() | 5.70 | % (2) | ![]() | 5.46 | % (1) | ![]() | 4.60 | % (2) | ![]() | 5.53 | % (1) | ![]() | 5.10 | % (2) | |||||||||
Florida | ![]() | 10.44 | % (1) | ![]() | 6.02 | % (2) | ![]() | 5.61 | % (1) | ![]() | 4.75 | % (2) | ![]() | 5.84 | % (1) | ![]() | 5.41 | % (2) | |||||||||
New Jersey | ![]() | 9.09 | % (1) | ![]() | 4.73 | % (2) | ![]() | 5.37 | % (1) | ![]() | 4.51 | % (2) | ![]() | 5.67 | % (1) | ![]() | 5.24 | % (2) | |||||||||
Pennsylvania | ![]() | 9.13 | % (1) | ![]() | 4.77 | % (2) | ![]() | 5.45 | % (1) | ![]() | 4.60 | % (2) | ![]() | 5.70 | % (1) | ![]() | 5.27 | % (2) | |||||||||
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Past performance is not predictive of future returns. Investment return and principal value will fluctuate. When you sell fund shares, they may be worth less than their original cost. The table does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
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(1) | Figure shown assumes reinvestment of all distributions and does not reflect the deduction of any sales charges. |
(2) | Figure shown assumes reinvestment of all distributions and the deduction of the maximum applicable sales charge. See the Fund's current prospectus for complete details on fees and sales charges. |
4
Morgan Stanley Multi-State Municipal Series Trust
Portfolio Summary May 31, 2003 (unaudited)
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![]() | ARIZONA SERIES | ![]() | FLORIDA SERIES | ![]() | NEW JERSEY SERIES | ![]() | PENNSYLVANIA SERIES | |||||||||||
Credit Ratings (1)(2): | ||||||||||||||||||
Aaa or AAA | ![]() | 72 | % | ![]() | 83 | % | ![]() | 79 | % | ![]() | 57 | % | ||||||
Aa or AA | ![]() | 16 | ![]() | 11 | ![]() | 9 | ![]() | 17 | ||||||||||
A or A | ![]() | 7 | ![]() | 3 | ![]() | 12 | ![]() | 15 | ||||||||||
Baa or BBB | ![]() | 5 | ![]() | 3 | ![]() | — | ![]() | 11 | ||||||||||
Portfolio Distribution by Call Date (1): | ||||||||||||||||||
2003 | ![]() | 5 | % | ![]() | — | ![]() | 8 | % | ![]() | 10 | % | |||||||
2004 | ![]() | 13 | ![]() | 10 | % | ![]() | 8 | ![]() | 5 | |||||||||
2005 | ![]() | — | ![]() | 8 | ![]() | 10 | ![]() | 3 | ||||||||||
2006 | ![]() | — | ![]() | 3 | ![]() | 3 | ![]() | 3 | ||||||||||
2007 | ![]() | — | ![]() | 6 | ![]() | 3 | ![]() | 3 | ||||||||||
2008 | ![]() | — | ![]() | — | ![]() | 9 | ![]() | 3 | ||||||||||
2009 | ![]() | 4 | ![]() | 3 | ![]() | 4 | ![]() | 5 | ||||||||||
2010 | ![]() | 11 | ![]() | 5 | ![]() | 17 | ![]() | 10 | ||||||||||
2011 | ![]() | 26 | ![]() | 29 | ![]() | 9 | ![]() | 17 | ||||||||||
2012 | ![]() | 24 | ![]() | 12 | ![]() | 12 | ![]() | 14 | ||||||||||
2013+ | ![]() | 17 | ![]() | 24 | ![]() | 17 | ![]() | 27 | ||||||||||
Weighted Average: | ![]() | |||||||||||||||||
Maturity (1) | ![]() | 16 | Years | ![]() | 18 | Years | ![]() | 18 | Years | ![]() | 19 | Years | ||||||
Call Protection (1) | ![]() | 8 | Years | ![]() | 8 | Years | ![]() | 6 | Years | ![]() | 7 | Years | ||||||
Duration (3) | ![]() | 7.2 | Years | ![]() | 7.5 | Years | ![]() | 7.2 | Years | ![]() | 7.4 | Years | ||||||
Per Share Net Asset Value: | ||||||||||||||||||
November 30, 2002 | ![]() | $ | 10.44 | ![]() | $ | 10.65 | ![]() | $ | 10.75 | ![]() | $ | 10.76 | ||||||
May 31, 2003 | ![]() | $ | 10.81 | ![]() | $ | 10.97 | ![]() | $ | 11.07 | ![]() | $ | 11.09 | ||||||
Distributions (4) | ![]() | $ | 0.32 | ![]() | $ | 0.42 | ![]() | $ | 0.33 | ![]() | $ | 0.32 | ||||||
Total Return (5): | ||||||||||||||||||
6 months ended 05/31/03 | ![]() | 6.79 | % | ![]() | 7.10 | % | ![]() | 6.14 | % | ![]() | 6.14 | % | ||||||
12 months ended 05/31/03 | ![]() | 10.11 | % | ![]() | 10.44 | % | ![]() | 9.09 | % | ![]() | 9.13 | % | ||||||
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(1) | Based on long-term portfolio. |
(2) | Represents Moody's or Standard & Poor's ratings of the credit quality of the long-term bonds owned by each Series. |
(3) | Includes short-term securities and hedge positions, if any. |
(4) | Includes all income dividends and capital gains distributions, if any, paid by each Series for the six months ended May 31, 2003. |
(5) | Total return figures represent the change in each Series' total value for each period measured, taking into account the change in NAV plus reinvested distributions and do not reflect the deduction of sales load. Calculated based on the net asset value as of the last business day of the period. |
5
Morgan Stanley Multi-State Municipal Series Trust — Arizona Series
Portfolio of Investments May 31, 2003 (unaudited)
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PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | Arizona Tax-Exempt Municipal Bonds* (91.6%) | ![]() | ![]() | ![]() | ||||||||||||||
![]() | General Obligation (6.1%) | ![]() | ![]() | ![]() | ||||||||||||||
$ | 500 | ![]() | Maricopa County Community College District, Refg Ser 2002 | ![]() | 5.25 | % | ![]() | 07/01/11 | ![]() | $ | 583,750 | |||||||
1,000 | ![]() | Puerto Rico, Public Impr Ser 1998 (MBIA) | ![]() | 6.00 | ![]() | 07/01/16 | ![]() | 1,259,440 | ||||||||||
1,500 | ![]() | ![]() | ![]() | ![]() | 1,843,190 | |||||||||||||
![]() | Educational Facilities Revenue (11.0%) | ![]() | ![]() | ![]() | ||||||||||||||
![]() | Arizona Board of Regents, | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Arizona State University Ser 2002 COPs (MBIA) | ![]() | 5.375 | ![]() | 07/01/19 | ![]() | 1,124,110 | ||||||||||
1,000 | ![]() | Northern Arizona University Ser 2002 (FGIC) | ![]() | 5.00 | ![]() | 06/01/30 | ![]() | 1,048,750 | ||||||||||
1,000 | ![]() | University of Arizona Ser 2001 A COPs (Ambac) | ![]() | 5.50 | ![]() | 06/01/18 | ![]() | 1,141,210 | ||||||||||
3,000 | ![]() | ![]() | ![]() | ![]() | 3,314,070 | |||||||||||||
![]() | Electric Revenue (7.6%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Arizona Power Authority, Hoover Uprating Refg Ser 2001 | ![]() | 5.25 | ![]() | 10/01/17 | ![]() | 1,178,540 | ||||||||||
1,000 | ![]() | Salt River Project Agricultural Improvement & Power District, | ||||||||||||||||
![]() | Refg 2002 Ser A | ![]() | 5.25 | ![]() | 01/01/19 | ![]() | 1,117,260 | |||||||||||
2,000 | ![]() | ![]() | ![]() | ![]() | 2,295,800 | |||||||||||||
![]() | Hospital Revenue (12.4%) | ![]() | ![]() | ![]() | ||||||||||||||
1,500 | ![]() | Maricopa County Industrial Development Authority, Catholic Healthcare West 1992 Ser A (MBIA) | ![]() | 5.75 | ![]() | 07/01/11 | ![]() | 1,534,995 | ||||||||||
1,000 | ![]() | Pima County Industrial Development Authority, Carondelet Health Care Ser 1993 (MBIA) | ![]() | 5.25 | ![]() | 07/01/13 | ![]() | 1,159,600 | ||||||||||
1,000 | ![]() | Scottsdale Industrial Development Authority, Scottsdale Health Care Ser 2001 | ![]() | 5.80 | ![]() | 12/01/31 | ![]() | 1,054,670 | ||||||||||
3,500 | ![]() | ![]() | ![]() | ![]() | 3,749,265 | |||||||||||||
![]() | Industrial Development/Pollution Control Revenue (4.8%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Greenlee County Industrial Development Authority, Phelps Dodge Corp Refg 1994 | ![]() | 5.45 | ![]() | 06/01/09 | ![]() | 978,360 | ||||||||||
500 | ![]() | Mohave County Industrial Development Authority, Citizens Utilities Co 1993 Ser B (AMT) | ![]() | 5.80 | ![]() | 11/15/28 | ![]() | 458,440 | ||||||||||
1,500 | ![]() | ![]() | ![]() | ![]() | 1,436,800 | |||||||||||||
![]() | Mortgage Revenue – Single Family (2.1%) | ![]() | ![]() | ![]() | ||||||||||||||
610 | ![]() | Maricopa County Industrial Development Authority, Ser 2000 – 1C (AMT) | ![]() | 6.25 | ![]() | 12/01/30 | ![]() | 639,152 | ||||||||||
![]() | Public Facilities Revenue (14.5%) | ![]() | ![]() | ![]() | ||||||||||||||
![]() | Arizona School Facilities Board, | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | School Impr, Ser 2001 | ![]() | 5.00 | ![]() | 07/01/19 | ![]() | 1,091,610 | ||||||||||
1,000 | ![]() | School Impr, Ser 2002 | ![]() | 5.25 | ![]() | 07/01/20 | ![]() | 1,112,120 | ||||||||||
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See Notes to Financial Statements
6
Morgan Stanley Multi-State Municipal Series Trust — Arizona Series
Portfolio of Investments May 31, 2003 (unaudited) continued
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PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
$ | 1,000 | ![]() | Phoenix Civic Improvement Corporation, Phoenix Municipal Courthouse Sr Lien Excise Tax Ser 1999 A | ![]() | 5.25 | % | ![]() | 07/01/24 | ![]() | $ | 1,080,040 | |||||||
1,000 | ![]() | Phoenix Industrial Development Authority, Capitol Mall LLC Ser 2000 (Ambac) | ![]() | 5.375 | ![]() | 09/15/22 | ![]() | 1,102,400 | ||||||||||
4,000 | ![]() | ![]() | ![]() | ![]() | 4,386,170 | |||||||||||||
![]() | Transportation Facilities Revenue (17.8%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Arizona Transportation Board, Highway Ser 2001 | ![]() | 5.25 | ![]() | 07/01/20 | ![]() | 1,100,040 | ||||||||||
1,000 | ![]() | Phoenix Civic Improvement Corporation, Sr Lien Airport Ser 2002 B (AMT) (FGIC) | ![]() | 5.75 | ![]() | 07/01/19 | ![]() | 1,124,880 | ||||||||||
![]() | Phoenix, | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Street & Highway Jr Lien Refg Ser 2002 (FGIC) | ![]() | 5.00 | ![]() | 07/01/11 | ![]() | 1,145,720 | ||||||||||
1,000 | ![]() | Street & Highway Refg Ser 1993 | ![]() | 5.125 | ![]() | 07/01/11 | ![]() | 1,022,970 | ||||||||||
1,000 | ![]() | Puerto Rico Highway & Transportation Authority, Ser 1998 A# | ![]() | 4.75 | ![]() | 07/01/38 | ![]() | 978,230 | ||||||||||
5,000 | ![]() | ![]() | ![]() | ![]() | 5,371,840 | |||||||||||||
![]() | Water & Sewer Revenue (11.2%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Arizona Water Infrastucture Finance Authority, Ser 2001 A | ![]() | 5.375 | ![]() | 10/01/18 | ![]() | 1,141,570 | ||||||||||
1,000 | ![]() | Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) | ![]() | 6.50 | ![]() | 07/01/22 | ![]() | 1,063,490 | ||||||||||
![]() | Tucson, | ![]() | ![]() | ![]() | ||||||||||||||
500 | ![]() | Water Refg Ser 2002 (FGIC) | ![]() | 5.50 | ![]() | 07/01/17 | ![]() | 582,405 | ||||||||||
500 | ![]() | Water Refg Ser 2002 (FGIC) | ![]() | 5.50 | ![]() | 07/01/18 | ![]() | 578,590 | ||||||||||
3,000 | ![]() | ![]() | ![]() | ![]() | 3,366,055 | |||||||||||||
![]() | Refunded (4.1%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Phoenix, Ser 2000 | ![]() | 5.875 | ![]() | 07/01/10† | ![]() | 1,204,930 | ||||||||||
25,110 | ![]() | Total Arizona Tax-Exempt Municipal Bonds (Cost $25,457,101) | ![]() | 27,607,272 | ||||||||||||||
![]() | Short-Term Arizona Tax-Exempt Municipal Obligations (5.6%) | ![]() | ![]() | ![]() | ||||||||||||||
![]() | Pinal County Industrial Development Authority, | ![]() | ![]() | ![]() | ||||||||||||||
200 | ![]() | Newmont Mining Co Ser 1984 (Demand 06/02/03) | ![]() | 1.35* | * | ![]() | 12/01/09 | ![]() | 200,000 | |||||||||
1,500 | ![]() | Newmont Mining Co Ser 1984 (Demand 06/02/03) | ![]() | 1.35* | * | ![]() | 12/01/09 | ![]() | 1,500,000 | |||||||||
1,700 | ![]() | Total Short-Term Arizona Tax-Exempt Municipal Obligations (Cost $1,700,000) | ![]() | 1,700,000 | ||||||||||||||
$ | 26,810 | ![]() | Total Investments (Cost $27,157,101) (a) (b) | ![]() | 97.2 | % | ![]() | 29,307,272 | ||||||||||
![]() | Other Assets in Excess of Liabilities | ![]() | 2.8 | ![]() | 845,523 | |||||||||||||
![]() | Net Assets | ![]() | 100.0 | % | ![]() | $ | 30,152,795 | |||||||||||
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See Notes to Financial Statements
7
Morgan Stanley Multi-State Municipal Series Trust — Arizona Series
Portfolio of Investments May 31, 2003 (unaudited) continued
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AMT | Alternative Minimum Tax. |
COPs | Certificates of Participation. |
* | Puerto Rico issues represent 7.4% of net assets. |
** | Current coupon of variable rate demand obligation. |
# | This security has been physically segregated in connection with open futures contracts. |
† | Prerefunded to call date shown. |
(a) | Securities have been designated as collateral in an amount equal to $755,676 in connection with the open futures contracts. |
(b) | The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $2,213,371 and the aggregate gross unrealized depreciation is $63,200, resulting in net unrealized appreciation of $2,150,171. |
Bond Insurance: |
Ambac | Ambac Assurance Corporation. |
FGIC | Financial Guaranty Insurance Company. |
MBIA | Municipal Bond Investors Assurance Corporation. |
Futures Contracts Open at May 31, 2003:
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NUMBER OF CONTRACTS | ![]() | LONG/SHORT | ![]() | DESCRIPTION, DELIVERY MONTH AND YEAR | ![]() | UNDERLYING FACE AMOUNT AT VALUE | ![]() | UNREALIZED DEPRECIATION | ||||||||||
10 | ![]() | Short | ![]() | U.S. Treasury Notes 5 yr September/2003 | ![]() | $ | (1,156,875 | ) | ![]() | $ | (3,543 | ) | ||||||
5 | ![]() | Short | ![]() | U.S. Treasury Notes 10 yr June/2003 | ![]() | (595,313 | ) | ![]() | (14,780 | ) | ||||||||
![]() | Total unrealized depreciation | ![]() | $ | (18,323 | ) | |||||||||||||
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See Notes to Financial Statements
8
Morgan Stanley Multi-State Municipal Series Trust — Florida Series
Portfolio of Investments May 31, 2003 (unaudited)
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PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | Florida Tax-Exempt Municipal Bonds* (94.9%) | |||||||||||||||||
![]() | Educational Facilities Revenue (2.7%) | ![]() | ![]() | ![]() | ||||||||||||||
$ | 1,000 | ![]() | Volusia County Educational Facilities Authority, Embry-Riddle Aeronautical University Ser 1996 A | ![]() | 6.125 | % | ![]() | 10/15/16 | ![]() | $ | 1,069,460 | |||||||
![]() | Electric Revenue (11.7%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Gainesville, Utilities 2003 Ser A (FSA) | ![]() | 5.00 | ![]() | 10/01/33 | ![]() | 1,057,860 | ||||||||||
1,000 | ![]() | Jacksonville Electric Authority, St Johns Power Park Issue 2 Ser 7 | ![]() | 5.00 | ![]() | 10/01/18 | ![]() | 1,087,360 | ||||||||||
2,000 | ![]() | Lakeland, Refg Ser 1999 A (MBIA) | ![]() | 0.00 | ![]() | 10/01/14 | ![]() | 1,299,480 | ||||||||||
1,000 | ![]() | Orlando Utilities Commission, Water & Electric Ser 2001 | ![]() | 5.25 | ![]() | 10/01/19 | ![]() | 1,115,340 | ||||||||||
5,000 | ![]() | ![]() | ![]() | ![]() | 4,560,040 | |||||||||||||
![]() | Hospital Revenue (11.2%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Alachua County Health Facilities Authority, Shands Teaching Hospital & Clinics Ser 1996 A (MBIA) | ![]() | 6.25 | ![]() | 12/01/11 | ![]() | 1,229,730 | ||||||||||
1,000 | ![]() | Jacksonville, University Medical Center Ser 1992 (Connie Lee) | ![]() | 6.60 | ![]() | 02/01/21 | ![]() | 1,014,120 | ||||||||||
905 | ![]() | Polk County Industrial Development Authority, Winter Haven Hospital 1985 Ser 2 (MBIA) | ![]() | 6.25 | ![]() | 09/01/15 | ![]() | 930,838 | ||||||||||
1,000 | ![]() | Tampa, Catholic Health East Ser 1998 A-1 (MBIA) | ![]() | 5.50 | ![]() | 11/15/14 | ![]() | 1,193,700 | ||||||||||
3,905 | ![]() | ![]() | ![]() | ![]() | 4,368,388 | |||||||||||||
![]() | Public Facilities Revenue (24.6%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Alachua County School Board, Ser 2001 COPs (Ambac) | ![]() | 5.00 | ![]() | 07/01/21 | ![]() | 1,078,610 | ||||||||||
1,000 | ![]() | Hillsborough County School District, Sales Tax Refg (Ambac) | ![]() | 5.375 | ![]() | 10/01/20 | ![]() | 1,114,740 | ||||||||||
1,500 | ![]() | Jacksonville, Sales Tax Ser 2001 (Ambac) | ![]() | 5.50 | ![]() | 10/01/17 | ![]() | 1,722,330 | ||||||||||
1,000 | ![]() | Lake County School Board, Ser 2002 COPs (Ambac) | ![]() | 5.375 | ![]() | 07/01/18 | ![]() | 1,136,490 | ||||||||||
1,000 | ![]() | Osceola County, Sales Surtax Ser 2002 (Ambac) | ![]() | 5.375 | ![]() | 10/01/21 | ![]() | 1,116,100 | ||||||||||
1,000 | ![]() | Osceola County School District, Ser 2001 (FGIC) | ![]() | 5.125 | ![]() | 06/01/25 | ![]() | 1,069,520 | ||||||||||
1,000 | ![]() | Palm Beach County, Criminal Justice Ser 1997 (FGIC) | ![]() | 5.75 | ![]() | 06/01/13 | ![]() | 1,223,530 | ||||||||||
1,000 | ![]() | Tampa, Sales Tax Ser A 2001 (Ambac) | ![]() | 5.375 | ![]() | 10/01/21 | ![]() | 1,114,330 | ||||||||||
8,500 | ![]() | ![]() | ![]() | ![]() | 9,575,650 | |||||||||||||
![]() | Recreational Facilities Revenue (2.6%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) | ![]() | 6.15 | ![]() | 10/01/20 | ![]() | 1,023,750 | ||||||||||
![]() | Retirement & Life Care Facilities Revenue (2.7%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Escambia County Health Facilities Authority, Ascension Health Ser 2002 C | ![]() | 5.25 | ![]() | 11/15/32 | ![]() | 1,046,690 | ||||||||||
![]() | Transportation Facilities Revenue (18.0%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Greater Orlando Aviation Authority, Ser 1997 (AMT) (FGIC) | ![]() | 5.75 | ![]() | 10/01/11 | ![]() | 1,161,410 | ||||||||||
1,000 | ![]() | Miami-Dade County Aviation, Miami Int'l Airport Ser A (AMT) (FGIC) | ![]() | 5.00 | ![]() | 10/01/33 | ![]() | 1,015,270 | ||||||||||
![]() |
See Notes to Financial Statements
9
Morgan Stanley Multi-State Municipal Series Trust — Florida Series
Portfolio of Investments May 31, 2003 (unaudited) continued
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
$ | 2,000 | ![]() | Mid-Bay Bridge Authority, Refg Ser 1993 A (Ambac) | ![]() | 5.95 | % | ![]() | 10/01/22 | ![]() | $ | 2,308,460 | |||||||
1,500 | ![]() | Osceola County, Osceola Parkway (MBIA) | ![]() | 6.10 | ![]() | 04/01/17 | ![]() | 1,520,640 | ||||||||||
1,000 | ![]() | Puerto Rico Highway & Transportation Authority, Ser 1998 A | ![]() | 4.75 | ![]() | 07/01/38 | ![]() | 978,230 | ||||||||||
6,500 | ![]() | ![]() | ![]() | ![]() | 6,984,010 | |||||||||||||
![]() | Water & Sewer Revenue (17.1%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Broward County, Florida, Utility Ser 2003 (MBIA) | ![]() | 5.00 | ![]() | 10/01/24 | ![]() | 1,069,930 | ||||||||||
2,000 | ![]() | Dade County, Water & Sewer Ser 1995 (FGIC) | ![]() | 5.50 | ![]() | 10/01/25 | ![]() | 2,197,120 | ||||||||||
1,000 | ![]() | Florida Governmental Utility Authority, Golden Gate Ser 1999 (Ambac) | ![]() | 5.25 | ![]() | 07/01/18 | ![]() | 1,114,050 | ||||||||||
1,000 | ![]() | Lakeland, Water & Wastewater Refg & Impr Ser 2002 | ![]() | 5.00 | ![]() | 10/01/32 | ![]() | 1,051,730 | ||||||||||
1,000 | ![]() | Sunrise, Utility Refg Ser 1998 (Ambac) | ![]() | 5.50 | ![]() | 10/01/18 | ![]() | 1,205,250 | ||||||||||
6,000 | ![]() | ![]() | ![]() | ![]() | 6,638,080 | |||||||||||||
![]() | Refunded (4.3%) | ![]() | ![]() | ![]() | ||||||||||||||
1,500 | ![]() | Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM)# | ![]() | 5.375 | ![]() | 10/01/24 | ![]() | 1,672,110 | ||||||||||
34,405 | ![]() | Total Florida Tax-Exempt Municipal Bonds (Cost $33,811,365) | ![]() | 36,938,178 | ||||||||||||||
![]() | Short-Term Florida Tax-Exempt Municipal Obligations (3.6%) | ![]() | ![]() | ![]() | ||||||||||||||
300 | ![]() | Jacksonville Electric Authority, Electric Ser A (Demand 06/02/03) | ![]() | 1.30* | * | ![]() | 10/01/10 | ![]() | 300,000 | |||||||||
1,100 | ![]() | Orange County School Board, 2000 Ser B COPs (Demand 06/02/03) | ![]() | 1.25* | * | ![]() | 08/01/25 | ![]() | 1,100,000 | |||||||||
1,400 | ![]() | Total Short-Term Florida Tax-Exempt Municipal Obligations (Cost $1,400,000) | ![]() | 1,400,000 | ||||||||||||||
$ | 35,805 | ![]() | Total Investments (Cost $35,211,365) (a) (b) | ![]() | 98.5 | % | ![]() | 38,338,178 | ||||||||||
![]() | Other Assets in Excess of Liabilities | ![]() | 1.5 | ![]() | 592,141 | |||||||||||||
![]() | Net Assets | ![]() | 100.0 | % | ![]() | $ | 38,930,319 | |||||||||||
![]() |
See Notes to Financial Statements
10
Morgan Stanley Multi-State Municipal Series Trust — Florida Series
Portfolio of Investments May 31, 2003 (unaudited) continued
![]() |
![]() |
AMT | Alternative Minimum Tax. |
COPs | Certificates of Participation. |
ETM | Escrowed to maturity. |
* | Puerto Rico issues represent 6.8% of net assets. |
** | Current coupon of variable rate demand obligation. |
# | A portion of this security has been physically segregated in connection with open futures contracts. |
(a) | Securities have been designated as collateral in an amount equal to $1,768,659 in connection with the open futures contracts. |
(b) | The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross and net unrealized appreciation is $3,126,813. |
Bond Insurance: |
Ambac | Ambac Assurance Corporation. |
Connie Lee | Connie Lee Insurance Company – a wholly owned subsidiary of Ambac Corporation. |
FGIC | Financial Guaranty Insurance Company. |
FSA | Financial Security Assurance Inc. |
MBIA | Municipal Bond Investors Assurance Corporation. |
Futures Contracts Open at May 31, 2003:
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
NUMBER OF CONTRACTS | ![]() | LONG/SHORT | ![]() | DESCRIPTION, DELIVERY MONTH AND YEAR | ![]() | UNDERLYING FACE AMOUNT AT FACE | ![]() | UNREALIZED DEPRECIATION | ||||||||||
25 | ![]() | Short | ![]() | U.S. Treasury Notes 5 Yr September/2003 | ![]() | $ | (2,883,399 | ) | ![]() | $ | (8,858 | ) | ||||||
![]() |
See Notes to Financial Statements
11
Morgan Stanley Multi-State Municipal Series Trust — New Jersey Series
Portfolio of Investments May 31, 2003 (unaudited)
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | New Jersey Tax-Exempt Municipal Bonds* (96.7%) | |||||||||||||||||
![]() | General Obligation (6.6%) | |||||||||||||||||
$ | 1,000 | ![]() | Burlington County Bridge Commission, Pooled Loan Ser 2002 | ![]() | 5.00 | % | ![]() | 10/15/19 | ![]() | $ | 1,098,000 | |||||||
415 | ![]() | New Jersey, Refg Ser F | ![]() | 5.25 | ![]() | 08/01/14 | ![]() | 469,714 | ||||||||||
800 | ![]() | West Windsor – Plainsboro Regional School District, Refg Ser 2002 (FSA) | ![]() | 5.00 | ![]() | 12/01/15 | ![]() | 908,768 | ||||||||||
2,215 | ![]() | ![]() | ![]() | ![]() | 2,476,482 | |||||||||||||
![]() | Educational Facilities Revenue (10.8%) | |||||||||||||||||
![]() | New Jersey Educational Facilities Authority, | |||||||||||||||||
1,000 | ![]() | Drew University Ser 2003 C (FGIC) | ![]() | 5.25 | ![]() | 07/01/19 | ![]() | 1,173,290 | ||||||||||
1,000 | ![]() | Princeton University Ser 1999 A | ![]() | 4.75 | ![]() | 07/01/25 | ![]() | 1,025,450 | ||||||||||
750 | ![]() | Stevens Institute of Technology, 2002 Ser C | ![]() | 5.25 | ![]() | 07/01/32 | ![]() | 773,678 | ||||||||||
1,000 | ![]() | University of Medicine & Dentistry, 1997 Ser A (MBIA) | ![]() | 5.00 | ![]() | 09/01/17 | ![]() | 1,094,090 | ||||||||||
3,750 | ![]() | ![]() | ![]() | ![]() | 4,066,508 | |||||||||||||
![]() | Hospital Revenue (11.9%) | |||||||||||||||||
![]() | New Jersey Health Care Facilities Financing Authority, | |||||||||||||||||
1,000 | ![]() | AHS Hospital Corp Ser 1997 A (Ambac) | ![]() | 6.00 | ![]() | 07/01/13 | ![]() | 1,225,190 | ||||||||||
465 | ![]() | Robert Wood Johnson University Hospital Ser B (MBIA) | ![]() | 6.625 | ![]() | 07/01/16 | ![]() | 484,205 | ||||||||||
2,500 | ![]() | Robert Wood Johnson University Hospital Ser 2000 | ![]() | 5.75 | ![]() | 07/01/25 | ![]() | 2,736,875 | ||||||||||
3,965 | ![]() | ![]() | ![]() | ![]() | 4,446,270 | |||||||||||||
![]() | Industrial Development/Pollution Control Revenue (2.7%) | |||||||||||||||||
1,000 | ![]() | Salem County Pollution Control Financing Authority, E I du Pont de Nemours & Co 1992 Ser A (AMT) | ![]() | 6.125 | ![]() | 07/15/22 | ![]() | 1,021,870 | ||||||||||
![]() | Mortgage Revenue – Multi-Family (8.4%) | |||||||||||||||||
![]() | New Jersey Housing & Mortgage Finance Agency, | |||||||||||||||||
2,000 | ![]() | 1995 Ser A (Ambac) | ![]() | 6.00 | ![]() | 11/01/14 | ![]() | 2,107,520 | ||||||||||
1,000 | ![]() | Presidential Plaza at Newport – FHA Insured Mtges Refg 1991 Ser 1 | ![]() | 7.00 | ![]() | 05/01/30 | ![]() | 1,036,500 | ||||||||||
3,000 | ![]() | ![]() | ![]() | ![]() | 3,144,020 | |||||||||||||
![]() | Mortgage Revenue – Single Family (5.7%) | |||||||||||||||||
2,000 | ![]() | New Jersey Housing & Mortgage Finance Agency, Home Buyer Ser 2000 CC (AMT) (MBIA) | ![]() | 5.875 | ![]() | 10/01/31 | ![]() | 2,134,020 | ||||||||||
![]() | ![]() | ![]() | ![]() | |||||||||||||||
![]() | Nursing & Health Related Facilities Revenue (2.2%) | ![]() | ![]() | ![]() | ||||||||||||||
820 | ![]() | New Jersey Health Care Facilities Financing Authority, Spectrum For Living – FHA Insured Mortgage Refg Ser B | ![]() | 6.50 | ![]() | 02/01/22 | ![]() | 838,229 | ||||||||||
![]() |
See Notes to Financial Statements
12
Morgan Stanley Multi-State Municipal Series Trust — New Jersey Series
Portfolio of Investments May 31, 2003 (unaudited) continued
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | Public Facilities Revenue (11.6%) | ![]() | ![]() | ![]() | ||||||||||||||
$ | 1,000 | ![]() | Essex County Improvement Authority Ser 2002 (MBIA) | ![]() | 5.25 | % | ![]() | 10/01/19 | ![]() | $ | 1,122,210 | |||||||
1,000 | ![]() | Middlesex County, Ser 2001 COPs (MBIA) | ![]() | 5.00 | ![]() | 08/01/22 | ![]() | 1,070,490 | ||||||||||
1,000 | ![]() | New Jersey Economic Development Authority, School Facilities Construction 2001 Ser A (Ambac) | ![]() | 5.25 | ![]() | 06/15/19 | ![]() | 1,106,800 | ||||||||||
1,000 | ![]() | Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997A (Ambac) | ![]() | 5.00 | ![]() | 07/01/28 | ![]() | 1,040,440 | ||||||||||
4,000 | ![]() | ![]() | ![]() | ![]() | 4,339,940 | |||||||||||||
![]() | Recreational Facilities Revenue (1.4%) | ![]() | ![]() | ![]() | ||||||||||||||
500 | ![]() | New Jersey Sports & Exposition Authority, State Contract 1993 Ser A | ![]() | 5.50 | ![]() | 09/01/23 | ![]() | 506,940 | ||||||||||
![]() | Resource Recovery Revenue (2.4%) | ![]() | ![]() | ![]() | ||||||||||||||
900 | ![]() | Warren County Pollution Control Financing Authority, Warren Energy Resource Co Ltd Partnership Ser 1984 (MBIA) | ![]() | 6.60 | ![]() | 12/01/07 | ![]() | 910,143 | ||||||||||
![]() | Transportation Facilities Revenue (10.2%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Delaware River Bay Authority, Ser 2003 (MBIA)# | ![]() | 5.25 | ![]() | 01/01/22 | ![]() | 1,102,870 | ||||||||||
1,000 | ![]() | Delaware River Port Authority, Ser 1995 (FGIC)## | ![]() | 5.50 | ![]() | 01/01/26 | ![]() | 1,104,640 | ||||||||||
1,500 | ![]() | Port Authority of New York & New Jersey, Cons 99th Ser (AMT) (FGIC) ### | ![]() | 5.75 | ![]() | 05/01/15 | ![]() | 1,610,954 | ||||||||||
3,500 | ![]() | ![]() | ![]() | ![]() | 3,818,464 | |||||||||||||
![]() | Water & Sewer Revenue (17.3%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Bergen County Utilities Authority, Water 1998 Ser A (FGIC) | ![]() | 4.75 | ![]() | 12/15/15 | ![]() | 1,059,730 | ||||||||||
1,000 | ![]() | Camden County Municipal Utilities Authority, Sewer Refg Ser 1997 (FGIC) | ![]() | 5.25 | ![]() | 07/15/17 | ![]() | 1,120,050 | ||||||||||
1,000 | ![]() | North Hudson Sewerage Authority, Refg Ser 2002 A (FGIC) | ![]() | 5.25 | ![]() | 08/01/19 | ![]() | 1,120,369 | ||||||||||
1,000 | ![]() | Northwest Bergen County Utilities Authority, Refg 1992 Ser (MBIA) | ![]() | 6.00 | ![]() | 07/15/13 | ![]() | 1,025,590 | ||||||||||
1,000 | ![]() | Passaic Valley Sewerage Commissioners, Ser F (FGIC) | ![]() | 5.00 | ![]() | 12/01/20 | ![]() | 1,099,480 | ||||||||||
1,000 | ![]() | Puerto Rico Public Finance Corporation, 2001 Ser A (MBIA) | ![]() | 5.00 | ![]() | 08/01/29 | ![]() | 1,052,660 | ||||||||||
6,000 | ![]() | ![]() | ![]() | ![]() | 6,477,879 | |||||||||||||
![]() | Other Revenue (2.5%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Tobacco Settlement Financing Corporation, Ser 2003 | ![]() | 6.125 | ![]() | 06/01/24 | ![]() | 946,430 | ||||||||||
![]() | Refunded (3.0%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Puerto Rico Infrastructure Financing Authority, 2000 Ser A (ETM) | ![]() | 5.375 | ![]() | 10/01/24 | ![]() | 1,114,740 | ||||||||||
33,650 | ![]() | Total New Jersey Tax-Exempt Municipal Bonds(Cost $33,802,182) | ![]() | 36,241,935 | ||||||||||||||
![]() |
See Notes to Financial Statements
13
Morgan Stanley Multi-State Municipal Series Trust — New Jersey Series
Portfolio of Investments May 31, 2003 (unaudited) continued
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | Short-Term New Jersey Tax-Exempt Municipal Obligations (1.6%) | ![]() | ![]() | ![]() | ||||||||||||||
$ | 200 | ![]() | New Jersey Economic Development Authority, Foreign Trade Zone Ser 1998 (Demand 06/02/03) | ![]() | 1.30 | **% | ![]() | 12/01/07 | ![]() | $ | 200,000 | |||||||
400 | ![]() | Rutgers University, 2002 Ser A (Demand 06/02/03) | ![]() | 1.20 | ** | ![]() | 05/01/18 | ![]() | 400,000 | |||||||||
600 | ![]() | Total Short-Term New Jersey Tax-Exempt Municipal Obligations (Cost $600,000) | ![]() | 600,000 | ||||||||||||||
$ | 34,250 | ![]() | Total Investments (Cost $34,402,182) (a) | ![]() | 98.3 | % | ![]() | 36,841,935 | ||||||||||
![]() | Other Assets in Excess of Liabilities | ![]() | 1.7 | ![]() | 646,183 | |||||||||||||
![]() | Net Assets | ![]() | 100.0 | % | ![]() | $ | 37,488,118 | |||||||||||
![]() |
![]() |
![]() |
AMT | Alternative Minimum Tax. |
COPs | Certificates of Participation. |
ETM | Escrowed to maturity. |
# | Joint exemption in New Jersey and Delaware. |
## | Joint exemption in New Jersey and Pennsylvania. |
### | Joint exemption in New York and New Jersey. |
* | Puerto Rico issues represent 8.6% of net assets. |
** | Current coupon of variable rate demand obligation. |
(a) | The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $2,472,972 and the aggregate gross unrealized depreciation is $33,219, resulting in net unrealized appreciation of $2,439,753. |
Bond Insurance: |
Ambac | Ambac Assurance Corporation. |
FGIC | Financial Guaranty Insurance Company. |
FSA | Financial Security Assurance Inc. |
MBIA | Municipal Bond Investors Assurance Corporation. |
See Notes to Financial Statements
14
Morgan Stanley Multi-State Municipal Series Trust — Pennsylvania Series
Portfolio of Investments May 31, 2003 (unaudited)
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | ||||||||||||
![]() | Pennsylvania Tax-Exempt Municipal Bonds* (91.3%) | ||||||||||||||||||
![]() | General Obligation (13.0%) | ||||||||||||||||||
$ | 1,000 | ![]() | Luzerne County, Ser A 2003 | ![]() | 5.25 | % | ![]() | 11/15/19 | ![]() | $ | 1,123,680 | ||||||||
![]() | Pennsylvania, | ![]() | ![]() | ![]() | |||||||||||||||
500 | ![]() | RITES PA – 1112 A (MBIA) | ![]() | 8.332 | ‡ | ![]() | 01/01/18 | ![]() | 604,930 | ||||||||||
500 | ![]() | RITES PA – 1112 B (MBIA) | ![]() | 8.332 | ‡ | ![]() | 01/01/19 | ![]() | 596,470 | ||||||||||
2,000 | ![]() | Puerto Rico Municipal Finance Agency 2002 Ser A (FSA) | ![]() | 5.25 | ![]() | 08/01/20 | ![]() | 2,234,140 | |||||||||||
4,000 | ![]() | ![]() | ![]() | ![]() | 4,559,220 | ||||||||||||||
![]() | Educational Facilities Revenue (18.7%) | ![]() | ![]() | ![]() | |||||||||||||||
1,000 | ![]() | Allegheny County Higher Education Building Authority, Carnegie Mellon University Ser 2002 | ![]() | 5.25 | ![]() | 03/01/32 | ![]() | 1,059,630 | |||||||||||
1,000 | ![]() | Delaware County Authority, Villanova University Ser 1995 (Ambac) | ![]() | 5.80 | ![]() | 08/01/25 | ![]() | 1,099,410 | |||||||||||
![]() | Pennsylvania Higher Educational Facilities Authority, | ![]() | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Drexel University Ser 2003 | ![]() | 5.50 | ![]() | 05/01/18 | ![]() | 1,116,730 | |||||||||||
1,000 | ![]() | Thomas Jefferson University Ser 2002 | ![]() | 5.375 | ![]() | 01/01/25 | ![]() | 1,077,170 | |||||||||||
1,000 | ![]() | Pennsylvania State University, Refg Ser 2002 | ![]() | 5.25 | ![]() | 08/15/13 | ![]() | 1,183,020 | |||||||||||
1,000 | ![]() | Swarthmore Boro Authority, Pennsylvania, Swarthmore College Ser 2001 | ![]() | 5.00 | ![]() | 09/15/31 | ![]() | 1,044,780 | |||||||||||
6,000 | ![]() | ![]() | ![]() | ![]() | 6,580,740 | ||||||||||||||
![]() | Electric Revenue (3.0%) | ![]() | ![]() | ![]() | |||||||||||||||
1,000 | ![]() | Puerto Rico Electric Power Authority, Power Ser DD (FSA) | ![]() | 4.50 | ![]() | 07/01/19 | ![]() | 1,037,430 | |||||||||||
![]() | Hospital Revenue (8.0%) | ![]() | ![]() | ![]() | |||||||||||||||
1,000 | ![]() | Lehigh County General Purpose Authority, Lehigh Valley Health Ser B 2001 (FSA) | ![]() | 5.00 | ![]() | 07/01/31 | ![]() | 1,038,500 | |||||||||||
1,750 | ![]() | Philadelphia Hospitals & Higher Education Facilities Authority, Chestnut Hill Hospital Ser of 1992 | ![]() | 6.375 | ![]() | 11/15/11 | ![]() | 1,772,348 | |||||||||||
2,750 | ![]() | ![]() | ![]() | ![]() | 2,810,848 | ||||||||||||||
![]() | Industrial Development/Pollution Control Revenue (5.9%) | ![]() | ![]() | ![]() | |||||||||||||||
1,000 | ![]() | Carbon County Industrial Development Authority, Panther Creek Partners Refg 2000 Ser (AMT) | ![]() | 6.65 | ![]() | 05/01/10 | ![]() | 1,051,070 | |||||||||||
1,000 | ![]() | Delaware County Industrial Development Authority, Suburban Water Co Ser A 2002 (AMT) (Ambac) | ![]() | 5.15 | ![]() | 09/01/32 | ![]() | 1,035,630 | |||||||||||
2,000 | ![]() | ![]() | ![]() | ![]() | 2,086,700 | ||||||||||||||
![]() | Mortgage Revenue – Single Family (5.9%) | ![]() | ![]() | ![]() | |||||||||||||||
![]() | Pennsylvania Housing Finance Agency, | ![]() | ![]() | ![]() | |||||||||||||||
450 | ![]() | Ser 1991-31 C (AMT) | ![]() | 10.98 | ‡ | ![]() | 04/01/25 | ![]() | 470,952 | ||||||||||
1,500 | ![]() | Ser 2000-70 A (AMT) | ![]() | 5.90 | ![]() | 04/01/31 | ![]() | 1,594,170 | |||||||||||
1,950 | ![]() | ![]() | ![]() | ![]() | 2,065,122 | ||||||||||||||
![]() |
See Notes to Financial Statements
15
Morgan Stanley Multi-State Municipal Series Trust — Pennsylvania Series
Portfolio of Investments May 31, 2003 (unaudited) continued
![](https://capedge.com/proxy/N-CSR/0000950136-03-001858/spacer.gif)
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | COUPON RATE | ![]() | MATURITY DATE | ![]() | VALUE | |||||||||||
![]() | Public Facilities Revenue (3.2%) | ![]() | ![]() | ![]() | ||||||||||||||
$ | 1,000 | ![]() | York County School of Technology, Ser 2003 (FGIC) | ![]() | 5.50 | % | ![]() | 02/15/23 | ![]() | $ | 1,117,079 | |||||||
![]() | Recreational Facilities Revenue (6.0%) | ![]() | ![]() | ![]() | ||||||||||||||
![]() | Philadelphia Industrial Development Authority, | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Stadium Ser B 2001 (FSA) | ![]() | 5.50 | ![]() | 10/01/17 | ![]() | 1,143,940 | ||||||||||
1,000 | ![]() | The Franklin Institute Ser 1998 | ![]() | 5.20 | ![]() | 06/15/26 | ![]() | 952,400 | ||||||||||
2,000 | ![]() | ![]() | ![]() | ![]() | 2,096,340 | |||||||||||||
![]() | Resource Recovery Revenue (3.4%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Montgomery County Industrial Development Authority, Refg 2002 Ser A (MBIA) | ![]() | 5.25 | ![]() | 11/01/14 | ![]() | 1,173,840 | ||||||||||
![]() | Transportation Facilities Revenue (5.9%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Delaware River Port Authority, Ser 1995 (FGIC)# | ![]() | 5.50 | ![]() | 01/01/26 | ![]() | 1,104,640 | ||||||||||
1,000 | ![]() | Puerto Rico Highway & Transportation Authority, Ser 1998 A | ![]() | 4.75 | ![]() | 07/01/38 | ![]() | 978,230 | ||||||||||
2,000 | ![]() | ![]() | ![]() | ![]() | 2,082,870 | |||||||||||||
![]() | Water & Sewer Revenue (10.9%) | ![]() | ![]() | ![]() | ||||||||||||||
1,000 | ![]() | Allegheny County Sanitary Authority, Sewer Ser 2000 (MBIA) | ![]() | 5.50 | ![]() | 12/01/24 | ![]() | 1,111,860 | ||||||||||
1,000 | ![]() | Pennsylvania Finance Authority, Penn Hills Ser A 2000 (FGIC) | ![]() | 5.50 | ![]() | 12/01/22 | ![]() | 1,119,200 | ||||||||||
1,000 | ![]() | Philadelphia, Water & Wastewater Ser 1995 (MBIA)† | ![]() | 6.25 | ![]() | 08/01/11 | ![]() | 1,236,980 | ||||||||||
1,250 | ![]() | Pittsburgh Water & Sewer Authority, 1998 Ser B (FGIC) | ![]() | 0.00 | ![]() | 09/01/28 | ![]() | 363,613 | ||||||||||
4,250 | ![]() | ![]() | ![]() | ![]() | 3,831,653 | |||||||||||||
![]() | Other Revenue (7.4%) | ![]() | ![]() | ![]() | ||||||||||||||
1,500 | ![]() | Pennsylvania Finance Authority, Capital Impr Refg Ser 1993 | ![]() | 6.60 | ![]() | 11/01/09 | ![]() | 1,562,175 | ||||||||||
1,000 | ![]() | Philadelphia Gas Works Third Ser 1998 (FSA) | ![]() | 5.125 | ![]() | 08/01/31 | ![]() | 1,050,780 | ||||||||||
2,500 | ![]() | ![]() | ![]() | ![]() | 2,612,955 | |||||||||||||
30,450 | ![]() | Total Pennsylvania Tax-Exempt Municipal Bonds(Cost $29,734,735) | ![]() | 32,054,797 | ||||||||||||||
![]() | Short-Term Pennsylvania Tax-Exempt Municipal Obligations (7.1%) | ![]() | ![]() | |||||||||||||||
800 | ![]() | Delaware County Industrial Development Authority United Parcel Service of America Inc Ser 1985 (Demand 06/02/03) | ![]() | 1.12* | * | ![]() | 12/01/15 | ![]() | 800,000 | |||||||||
1,700 | ![]() | South Fork Municipal Authority, Conemaugh Health Ser A 1998 (MBIA) (Demand 06/02/03) | ![]() | 1.27* | * | ![]() | 07/01/28 | ![]() | 1,700,000 | |||||||||
2,500 | ![]() | Total Short-Term Pennsylvania Tax-Exempt Municipal Obligations (Cost $2,500,000) | ![]() | 2,500,000 | ||||||||||||||
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See Notes to Financial Statements
16
Morgan Stanley Multi-State Municipal Series Trust — Pennsylvania Series
Portfolio of Investments May 31, 2003 (unaudited) continued
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PRINCIPAL AMOUNT IN THOUSANDS | ![]() | ![]() | ![]() | ![]() | VALUE | ||||||||||||||||
$ | 32,950 | ![]() | Total Investments (Cost $32,234,735) (a) (b) | ![]() | 98.4 | % | ![]() | $ | 34,554,797 | ||||||||||||
![]() | Other Assets in Excess of Liabilities | ![]() | 1.6 | ![]() | 560,332 | ||||||||||||||||
![]() | Net Assets | ![]() | 100.0 | % | ![]() | $ | 35,115,129 | ||||||||||||||
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![]() |
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AMT | Alternative Minimum Tax. |
RITES | Residual Interest Tax-Exempt Securities. |
# | Joint exemption in Pennsylvania and New Jersey. |
† | A portion of this security has been physically segregated in connection with open futures contracts. |
‡ | Current coupon rate for residual interest bonds. This rate resets periodically as the auction rate, on the related short-term security fluctuates. |
* | Puerto Rico issues represent 12.1% of net assets. |
** | Current coupon of variable rate demand obligation. |
(a) | Securities have been designated as collateral in an amount equal to $5,703,879 in connection with the open futures contracts. |
(b) | The aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is $2,336,359 and the aggregate gross unrealized depreciation is $16,297, resulting in net unrealized appreciation of $2,320,062. |
Bond Insurance: |
Ambac | Ambac Assurance Corporation. |
FGIC | Financial Guaranty Insurance Company. |
FSA | Financial Security Assurance Inc. |
MBIA | Municipal Bond Investors Assurance Corporation. |
Futures Contracts Open at May 31, 2003:
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NUMBER OF CONTRACTS | ![]() | LONG/SHORT | ![]() | DESCRIPTION, DELIVERY MONTH AND YEAR | ![]() | UNDERLYING FACE AMOUNT AT VALUE | ![]() | UNREALIZED DEPRECIATION | ||||||||||
35 | ![]() | Short | ![]() | U.S. Treasury Notes 5 yrSeptember/ 2003 | ![]() | $ | (4,049,063 | ) | ![]() | $ | (12,401 | ) | ||||||
25 | ![]() | Short | ![]() | U.S. Treasury Notes 10 yrJune/ 2003 | ![]() | (2,976,563 | ) | ![]() | (72,561 | ) | ||||||||
![]() | Total unrealized depreciation | ![]() | $ | (84,962 | ) | |||||||||||||
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See Notes to Financial Statements
17
Morgan Stanley Multi-State Municipal Series Trust
Financial Statements
Statements of Assets and Liabilities
May 31, 2003 (unaudited)
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Assets: | ||||||||||||||||||
Investments in securities, at value* | ![]() | $ | 29,307,272 | ![]() | $ | 38,338,178 | ![]() | $ | 36,841,935 | ![]() | $ | 34,554,797 | ||||||
Cash | ![]() | 371,583 | ![]() | 35,225 | ![]() | 13,455 | ![]() | 76,025 | ||||||||||
Receivable for: | ||||||||||||||||||
Interest | ![]() | 545,351 | ![]() | 409,805 | ![]() | 564,845 | ![]() | 442,220 | ||||||||||
Shares of beneficial interest sold | ![]() | 4,860 | ![]() | 185,330 | ![]() | 106,023 | ![]() | 81,231 | ||||||||||
Variation margin | ![]() | 391 | ![]() | 781 | ![]() | — | ![]() | 1,485 | ||||||||||
Prepaid expenses | ![]() | 9,196 | ![]() | 10,230 | ![]() | 11,606 | ![]() | 5,897 | ||||||||||
Total Assets | ![]() | 30,238,653 | ![]() | 38,979,549 | ![]() | 37,537,864 | ![]() | 35,161,655 | ||||||||||
Liabilities: | ||||||||||||||||||
Payable for: | ||||||||||||||||||
Shares of beneficial interest redeemed | ![]() | 47,125 | ![]() | — | ![]() | — | ![]() | — | ||||||||||
Dividends to shareholders | ![]() | 6,314 | ![]() | 8,985 | ![]() | 8,795 | ![]() | 7,894 | ||||||||||
Investment management fee | ![]() | 8,910 | ![]() | 11,491 | ![]() | 11,051 | ![]() | 10,348 | ||||||||||
Distribution fee | ![]() | 3,819 | ![]() | 4,925 | ![]() | 4,736 | ![]() | 4,435 | ||||||||||
Accrued expenses | ![]() | 19,690 | ![]() | 23,829 | ![]() | 25,164 | ![]() | 23,849 | ||||||||||
Total Liabilities | ![]() | 85,858 | ![]() | 49,230 | ![]() | 49,746 | ![]() | 46,526 | ||||||||||
Net Assets | ![]() | $ | 30,152,795 | ![]() | $ | 38,930,319 | ![]() | $ | 37,488,118 | ![]() | $ | 35,115,129 | ||||||
Composition of Net Assets: | ||||||||||||||||||
Paid-in-capital | ![]() | $ | 27,970,421 | ![]() | $ | 35,617,355 | ![]() | $ | 34,901,747 | ![]() | $ | 32,946,200 | ||||||
Accumulated undistributed net investment income | ![]() | 3,312 | ![]() | 41,847 | ![]() | 14,161 | ![]() | 4,118 | ||||||||||
Accumulated undistributed net realized gain (loss) | ![]() | 47,214 | ![]() | 153,162 | ![]() | 132,457 | ![]() | (70,289 | ) | |||||||||
Net unrealized appreciation | ![]() | 2,131,848 | ![]() | 3,117,955 | ![]() | 2,439,753 | ![]() | 2,235,100 | ||||||||||
Net Assets | ![]() | $ | 30,152,795 | ![]() | $ | 38,930,319 | ![]() | $ | 37,488,118 | ![]() | $ | 35,115,129 | ||||||
*Cost | ![]() | $ | 27,157,101 | ![]() | $ | 35,211,365 | ![]() | $ | 34,402,182 | ![]() | $ | 32,234,735 | ||||||
Shares of Beneficial Interest Outstanding | ![]() | 2,789,038 | ![]() | 3,550,023 | ![]() | 3,386,830 | ![]() | 3,165,211 | ||||||||||
Net Asset Value Per Share (unlimited authorized shares of $.01 par value) | ![]() | $10.81 | ![]() | $10.97 | ![]() | $11.07 | ![]() | $11.09 | ||||||||||
Maximum Offering Price Per Share (net asset value plus 4.17% of net asset value) | ![]() | $11.26 | ![]() | $11.43 | ![]() | $11.53 | ![]() | $11.55 | ||||||||||
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See Notes to Financial Statements
18
Morgan Stanley Multi-State Municipal Series Trust
Financial Statements continued
Statements of Operations
For the six months ended May 31, 2003 (unaudited)
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Net Investment Income: | ||||||||||||||||||
Interest Income | ![]() | $ | 714,939 | ![]() | $ | 947,813 | ![]() | $ | 908,889 | ![]() | $ | 848,441 | ||||||
Expenses | ||||||||||||||||||
Investment management fee | ![]() | 52,517 | ![]() | 68,048 | ![]() | 63,589 | ![]() | 59,113 | ||||||||||
Distribution fee | ![]() | 22,507 | ![]() | 28,928 | ![]() | 27,252 | ![]() | 24,771 | ||||||||||
Professional fees | ![]() | 11,410 | ![]() | 9,201 | ![]() | 8,865 | ![]() | 9,907 | ||||||||||
Transfer agent fees and expenses | ![]() | 5,238 | ![]() | 7,734 | ![]() | 9,088 | ![]() | 6,999 | ||||||||||
Shareholder reports and notices | ![]() | 4,545 | ![]() | 7,410 | ![]() | 8,643 | ![]() | 8,016 | ||||||||||
Trustees' fees and expenses | ![]() | 2,307 | ![]() | 3,110 | ![]() | 5,013 | ![]() | 1,244 | ||||||||||
Custodian fees | ![]() | 1,017 | ![]() | 1,590 | ![]() | 1,252 | ![]() | 1,563 | ||||||||||
Registration fees | ![]() | 6,429 | ![]() | 2,460 | ![]() | 2,363 | ![]() | 1,422 | ||||||||||
Other | ![]() | 2,995 | ![]() | 2,833 | ![]() | 2,998 | ![]() | 2,639 | ||||||||||
Total Expenses | ![]() | 108,965 | ![]() | 131,314 | ![]() | 129,063 | ![]() | 115,674 | ||||||||||
Less: expense offset | ![]() | (1,014 | ) | ![]() | (1,587 | ) | ![]() | (1,249 | ) | ![]() | (1,561 | ) | ||||||
Net Expenses | ![]() | 107,951 | ![]() | 129,727 | ![]() | 127,814 | ![]() | 114,113 | ||||||||||
Net Investment Income | ![]() | 606,988 | ![]() | 818,086 | ![]() | 781,075 | ![]() | 734,328 | ||||||||||
Net Realized and Unrealized Gain (Loss): | ||||||||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||||
Investments | ![]() | 63,365 | ![]() | 225,988 | ![]() | 132,458 | ![]() | 126,705 | ||||||||||
Futures contracts | ![]() | (16,149 | ) | ![]() | (72,825 | ) | ![]() | — | ![]() | (196,991 | ) | |||||||
Net Realized Gain (Loss) | ![]() | 47,216 | ![]() | 153,163 | ![]() | 132,458 | ![]() | (70,286 | ) | |||||||||
Net Change in Unrealized Appreciation on: | ||||||||||||||||||
Investments | ![]() | 1,325,034 | ![]() | 1,706,033 | ![]() | 1,243,173 | ![]() | 1,466,577 | ||||||||||
Futures contracts | ![]() | (18,323 | ) | ![]() | (8,858 | ) | ![]() | — | ![]() | (84,962 | ) | |||||||
Net Appreciation | ![]() | 1,306,711 | ![]() | 1,697,175 | ![]() | 1,243,173 | ![]() | 1,381,615 | ||||||||||
Net Gain | ![]() | 1,353,927 | ![]() | 1,850,338 | ![]() | 1,375,631 | ![]() | 1,311,329 | ||||||||||
Net Increase | ![]() | $ | 1,960,915 | ![]() | $ | 2,668,424 | ![]() | $ | 2,156,706 | ![]() | $ | 2,045,657 | ||||||
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See Notes to Financial Statements
19
Morgan Stanley Multi-State Municipal Series Trust
Financial Statements continued
Statement of Changes in Net Assets
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | |||||||||||||||
![]() | FOR THE SIX MONTHS ENDED MAY 31, 2003 | ![]() | FOR THE YEAR ENDED NOVEMBER 30, 2002 | ![]() | FOR THE SIX MONTHS ENDED MAY 31, 2003 | ![]() | FOR THE YEAR ENDED NOVEMBER 30, 2002 | ||||||||||||
![]() | (unaudited) | ![]() | ![]() | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | ![]() | $ | 606,988 | ![]() | $ | 1,305,997 | ![]() | $ | 818,086 | ![]() | $ | 1,897,326 | |||||||
Net realized gain | ![]() | 47,216 | ![]() | 326,643 | ![]() | 153,163 | ![]() | 681,036 | |||||||||||
Net change in unrealized appreciation | ![]() | 1,306,711 | ![]() | 61,360 | ![]() | 1,697,175 | ![]() | (333,166 | ) | ||||||||||
Net Increase | ![]() | 1,960,915 | ![]() | 1,694,000 | ![]() | 2,668,424 | ![]() | 2,245,196 | |||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||
Net investment income | ![]() | (607,358 | ) | ![]() | (1,302,378 | ) | ![]() | (832,963 | ) | ![]() | (1,891,394 | ) | |||||||
Net realized gain | ![]() | (326,845 | ) | ![]() | (66,842 | ) | ![]() | (694,053 | ) | ![]() | (135,896 | ) | |||||||
Total Dividends and Distributions | ![]() | (934,203 | ) | ![]() | (1,369,220 | ) | ![]() | (1,527,016 | ) | ![]() | (2,027,290 | ) | |||||||
Transactions in Shares of Beneficial Interest: | |||||||||||||||||||
Net proceeds from sales | ![]() | 1,251,915 | ![]() | 1,682,214 | ![]() | 2,040,511 | ![]() | 4,581,829 | |||||||||||
Reinvestment of dividends and distributions | ![]() | 459,331 | ![]() | 641,507 | ![]() | 621,056 | ![]() | 665,499 | |||||||||||
Cost of shares redeemed | ![]() | (2,831,998 | ) | ![]() | (4,123,198 | ) | ![]() | (5,499,255 | ) | ![]() | (9,049,359 | ) | |||||||
Net Decrease | ![]() | (1,120,752 | ) | ![]() | (1,799,477 | ) | ![]() | (2,837,688 | ) | ![]() | (3,802,031 | ) | |||||||
Total Decrease | ![]() | (94,040 | ) | ![]() | (1,474,697 | ) | ![]() | (1,696,280 | ) | ![]() | (3,584,125 | ) | |||||||
Net Assets: | |||||||||||||||||||
Beginning of period | ![]() | 30,246,835 | ![]() | 31,721,532 | ![]() | 40,626,599 | ![]() | 44,210,724 | |||||||||||
End of Period | ![]() | $ | 30,152,795 | ![]() | $ | 30,246,835 | ![]() | $ | 38,930,319 | ![]() | $ | 40,626,599 | |||||||
Accumulated Undistributed Net Investment Income | ![]() | $ | 3,312 | ![]() | $ | 3,682 | ![]() | $ | 41,847 | ![]() | $ | 56,724 | |||||||
Shares Issued and Redeemed: | |||||||||||||||||||
Sold | ![]() | 118,684 | ![]() | 161,454 | ![]() | 190,721 | ![]() | 428,331 | |||||||||||
Reinvestment of dividends and distributions | ![]() | 43,528 | ![]() | 61,771 | ![]() | 58,096 | ![]() | 62,790 | |||||||||||
Redeemed | ![]() | (269,162 | ) | ![]() | (397,347 | ) | ![]() | (513,859 | ) | ![]() | (849,113 | ) | |||||||
Net Decrease | ![]() | (106,950 | ) | ![]() | (174,122 | ) | ![]() | (265,042 | ) | ![]() | (357,992 | ) | |||||||
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See Notes to Financial Statements
20
Morgan Stanley Multi-State Municipal Series Trust
Financial Statements continued
Statement of Changes in Net Assets continued
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![]() | NEW JERSEY | ![]() | PENNSYLVANIA | ![]() | |||||||||||||||
![]() | FOR THE SIX MONTHS ENDED MAY 31, 2003 | ![]() | FOR THE YEAR ENDED NOVEMBER 30, 2002 | ![]() | FOR THE SIX MONTHS ENDED MAY 31, 2003 | ![]() | FOR THE YEAR ENDED NOVEMBER 30, 2002 | ||||||||||||
![]() | (unaudited) | ![]() | ![]() | (unaudited) | |||||||||||||||
Increase (Decrease) in Net Assets: | |||||||||||||||||||
Operations: | |||||||||||||||||||
Net investment income | ![]() | $ | 781,075 | ![]() | $ | 1,622,940 | ![]() | $ | 734,328 | ![]() | $ | 1,579,972 | |||||||
Net realized gain (loss) | ![]() | 132,458 | ![]() | 430,385 | ![]() | (70,286 | ) | ![]() | 243,854 | ||||||||||
Net change in unrealized appreciation | ![]() | 1,243,173 | ![]() | (193,891 | ) | ![]() | 1,381,615 | ![]() | (284,848 | ) | |||||||||
Net Increase | ![]() | 2,156,706 | ![]() | 1,859,434 | ![]() | 2,045,657 | ![]() | 1,538,978 | |||||||||||
Dividends and Distributions to Shareholders from: | |||||||||||||||||||
Net investment income | ![]() | (780,169 | ) | ![]() | (1,615,666 | ) | ![]() | (735,969 | ) | ![]() | (1,574,345 | ) | |||||||
Net realized gain | ![]() | (318,394 | ) | ![]() | — | ![]() | (254,759 | ) | ![]() | — | |||||||||
Total Dividends and Distributions | ![]() | (1,098,563 | ) | ![]() | (1,615,666 | ) | ![]() | (990,728 | ) | ![]() | (1,574,345 | ) | |||||||
Transactions in Shares of Beneficial Interest: | |||||||||||||||||||
Net proceeds from sales | ![]() | 1,929,096 | ![]() | 4,749,420 | ![]() | 1,679,357 | ![]() | 2,645,466 | |||||||||||
Reinvestment of dividends and distributions | ![]() | 611,877 | ![]() | 840,799 | ![]() | 535,037 | ![]() | 766,720 | |||||||||||
Cost of shares redeemed | ![]() | (1,994,932 | ) | ![]() | (6,706,663 | ) | ![]() | (1,176,071 | ) | ![]() | (5,868,811 | ) | |||||||
Net Increase (Decrease) | ![]() | 546,041 | ![]() | (1,116,444 | ) | ![]() | 1,038,323 | ![]() | (2,456,625 | ) | |||||||||
Total Increase (Decrease) | ![]() | 1,604,184 | ![]() | (872,676 | ) | ![]() | 2,093,252 | ![]() | (2,491,992 | ) | |||||||||
Net Assets: | |||||||||||||||||||
Beginning of period | ![]() | 35,883,934 | ![]() | 36,756,610 | ![]() | 33,021,877 | ![]() | 35,513,869 | |||||||||||
End of Period | ![]() | $ | 37,488,118 | ![]() | $ | 35,883,934 | ![]() | $ | 35,115,129 | ![]() | $ | 33,021,877 | |||||||
Accumulated Undistributed Net Investment Income | ![]() | $ | 14,161 | ![]() | $ | 13,255 | ![]() | $ | 4,118 | ![]() | $ | 5,759 | |||||||
Shares Issued and Redeemed: | |||||||||||||||||||
Sold | ![]() | 177,918 | ![]() | 441,017 | ![]() | 154,674 | ![]() | 245,641 | |||||||||||
Reinvestment of dividends and distributions | ![]() | 56,394 | ![]() | 78,409 | ![]() | 49,160 | ![]() | 71,268 | |||||||||||
Redeemed | ![]() | (184,184 | ) | ![]() | (626,811 | ) | ![]() | (108,372 | ) | ![]() | (548,168 | ) | |||||||
Net Increase (Decrease) | ![]() | 50,128 | ![]() | (107,385 | ) | ![]() | 95,462 | ![]() | (231,259 | ) | |||||||||
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See Notes to Financial Statements
21
Morgan Stanley Multi-State Municipal Series Trust
Notes to Financial Statements May 31, 2003 (unaudited)
1. Organization and Accounting Policies
Morgan Stanley Multi-State Municipal Series Trust (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a non-diversified, open-end management investment company. The investment objective of each Series is to provide a high level of current income exempt from both Federal and the designated state income taxes consistent with preservation of capital.
The Fund, organized on October 29, 1990, as a Massachusetts business trust, is comprised of four separate Series (the "Series"): the Arizona Series, the Florida Series, the New Jersey Series, and the Pennsylvania Series. Each of the Series commenced operations on January 15, 1991, with the exception of the Arizona Series which commenced operations on April 30, 1991.
The following is a summary of significant accounting policies:
A. Valuation of Investments — (1) portfolio securities are valued by an outside independent pricing service approved by the Trustees. The pricing service uses both a computerized grid matrix of tax-exempt securities and evaluations by its staff, in each case based on information concerning market transactions and quotations from dealers which reflect the bid side of the market each day. The portfolio securities are thus valued by reference to a combination of transactions and quotations for the same or other securities believed to be comparable in quality, coupon, maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant; (2) futures are valued at the latest sale price on the commodities exchange on which they trade unless the Trustees determine that such price does not reflect their market value, in which case they will be valued at their fair value as determined in good faith under procedures established by and under the supervision of the Trustees; and (3) short-term debt securities having a maturity date of more than sixty days at time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost.
B. Accounting for Investments — Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on security transactions are determined by the identified cost method. Discounts are accreted and premiums are amortized over the life of the respective securities. Interest income is accrued daily.
C. Futures Contracts — A futures contract is an agreement between two parties to buy and sell financial instruments or contracts based on financial indices at a set price on a future date. Upon entering into such a contract, the Fund is required to pledge to the broker cash, U.S. Government securities or other liquid portfolio securities equal to the minimum initial margin requirements of the applicable futures exchange. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of
22
Morgan Stanley Multi-State Municipal Series Trust
Notes to Financial Statements May 31, 2003 (unaudited) continued
cash equal to the daily fluctuation in the value of the contract. Such receipts or payments known as variation margin are recorded by the Fund as unrealized gains and losses. Upon closing of the contract, the Fund realizes a 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.
D. Federal Income Tax Policy — It is the Fund's policy to comply individually for each Series with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable and nontaxable income to its shareholders. Accordingly, no federal income tax provision is required.
E. Dividends and Distributions to Shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as dividends in excess of net investment income or distributions in excess of net realized capital gains. To the extent they exceed net investment income and net realized capital gains for tax purposes, they are reported as distributions of paid-in-capital.
F. Expenses — Direct expenses are charged to the respective Series and general corporate expenses are allocated on the basis of relative net assets or equally among the Series.
G. Use of Estimates — The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates.
2. Investment Management Agreement
Pursuant to an Investment Management Agreement, each Series of the Fund pays Morgan Stanley Investment Advisors Inc. (the "Investment Manager") a management fee, accrued daily and payable monthly, by applying the annual rate of 0.35% to the daily net assets of each Series determined as of the close of each business day.
23
Morgan Stanley Multi-State Municipal Series Trust
Notes to Financial Statements May 31, 2003 (unaudited) continued
3. Plan of Distribution
Morgan Stanley Distributors Inc. (the "Distributor"), an affiliate of the Investment Manager, is the distributor of the Fund's shares and, in accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act, finances certain services in connection with the promotion of sales of Fund shares.
Reimbursements for these expenses are made in monthly payments by the Fund to the Distributor, which will in no event exceed an amount equal to a payment at the annual rate of 0.15% of the Fund's average daily net assets during the month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal year will not be reimbursed by the Fund through payments accrued in any subsequent fiscal year. For the six months ended May 31, 2003, the distribution fees were accrued at the following annual rates:
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Annual rate | ![]() | 0.15 | % | ![]() | 0.15 | % | ![]() | 0.15 | % | ![]() | 0.15 | % | ||||||
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The Distributor has informed the Fund that for the six months ended May 31, 2003 it received commissions from the sale of the Fund's shares of beneficial interest as follows:
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Commissions | ![]() | $ | 30,717 | ![]() | $ | 54,434 | ![]() | $ | 44,718 | ![]() | $ | 44,168 | ||||||
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Such commissions are deducted from the proceeds of the sale of the Fund's shares and are not an expense of the Fund.
4. Security Transactions and Transactions with Affiliates
The cost of purchases and proceeds from the sales of portfolio securities, excluding short-term investments, for the six months ended May 31, 2003 were as follows:
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Purchases | ![]() | — | ![]() | $ | 3,045,830 | ![]() | $ | 5,623,452 | ![]() | $ | 8,371,385 | |||||||
Sales | ![]() | $ | 2,357,733 | ![]() | $ | 7,028,222 | ![]() | $ | 4,289,130 | ![]() | $ | 6,624,625 | ||||||
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Included in the forementioned sales of the Florida Series are $527,120 with Morgan Stanley Hawaii Municipal Trust, an affiliate of the Fund.
The Fund has an unfunded noncontributory defined benefit pension plan covering all independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of
24
Morgan Stanley Multi-State Municipal Series Trust
Notes to Financial Statements May 31, 2003 (unaudited) continued
retirement. Benefits under this plan are based on years of service and compensation during the last five years of service. Aggregate pension costs for the six months ended May 31, 2003 included in Trustees' fees and expenses in the Statement of Operations and the accrued pension liability included in accrued expenses in the Statement of Assets and Liabilities for each of the respective Series were as follows:
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![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Aggregate Pension Costs | ![]() | $ | 981 | ![]() | $ | 890 | ![]() | $ | 3,018 | ![]() | $ | 716 | ||||||
Accrued Pension Liability | ![]() | $ | 10,485 | ![]() | $ | 13,463 | ![]() | $ | 12,948 | ![]() | $ | 12,094 | ||||||
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Morgan Stanley Trust, an affiliate of the Investment Manager and Distributor, is the Fund's transfer agent. At May 31, 2003, each of the Series had transfer agent fees and expenses payable as follows:
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ARIZONA | ![]() | FLORIDA | ![]() | NEW JERSEY | ![]() | PENNSYLVANIA | |||||||||||
Transfer Agent Fees and Expenses Payable | ![]() | $ | 607 | ![]() | $ | 609 | ![]() | $ | 496 | ![]() | $ | 33 | ||||||
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5. Expense Offset
The expense offset represents a reduction of the custodian fees for earnings on cash balances maintained by the Fund.
6. Risks Relating to Certain Financial Instruments
The Fund may invest a portion of its assets in residual interest bonds, which are inverse floating rate municipal obligations. The prices of these securities are subject to greater market fluctuations during periods of changing prevailing interest rates than are comparable fixed rate obligations.
At May 31, 2003, the Pennsylvania Series held positions in residual interest bonds having a total value of $1,672,352 which represent 4.8% of the Series' net assets.
To hedge against adverse interest rate changes, the Fund may invest in financial futures contracts or municipal bond index futures contracts ("futures contracts").
These futures contracts involve elements of market risk in excess of the amount reflected in the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the value of the underlying securities.
At May 31, 2003, the Arizona, Florida and Pennsylvania Series had outstanding futures contracts.
25
Morgan Stanley Multi-State Municipal Series Trust
Financial Highlights
Selected ratios and per share data for a share of beneficial interest outstanding throughout each period:
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YEAR ENDED NOVEMBER 30 | ![]() | NET ASSET VALUE BEGINNING OF PERIOD | ![]() | NET INVESTMENT INCOME | ![]() | NET REALIZED AND UNREALIZED GAIN (LOSS) | ![]() | TOTAL FROM INVESTMENT OPERATIONS | ![]() | DIVIDENDS TO SHAREHOLDERS | ![]() | DISTRIBUTIONS TO SHAREHOLDERS | ![]() | TOTAL DIVIDENDS AND DISTRIBUTIONS | ||||||||||||||||
ARIZONA SERIES | ![]() | |||||||||||||||||||||||||||||
1998 | ![]() | $ | 10.64 | ![]() | $ | 0.51 | ![]() | $ | 0.17 | ![]() | $ | 0.68 | ![]() | $ | (0.51 | ) | ![]() | — | ![]() | $ | (0.51 | ) | ||||||||
1999 | ![]() | 10.81 | ![]() | 0.49 | ![]() | (0.75 | ) | ![]() | (0.26 | ) | ![]() | (0.49 | ) | ![]() | $ | (0.16 | ) | ![]() | (0.65 | ) | ||||||||||
2000 | ![]() | 9.90 | ![]() | 0.49 | ![]() | 0.22 | ![]() | 0.71 | ![]() | (0.49 | ) | ![]() | — | ![]() | (0.49 | ) | ||||||||||||||
2001 | ![]() | 10.12 | ![]() | 0.47 | ![]() | 0.21 | ![]() | 0.68 | ![]() | (0.47 | ) | ![]() | — | ![]() | (0.47 | ) | ||||||||||||||
2002 | ![]() | 10.33 | ![]() | 0.44 | ![]() | 0.13 | ![]() | 0.57 | ![]() | (0.44 | ) | ![]() | (0.02 | ) | ![]() | (0.46 | ) | |||||||||||||
2003* | ![]() | 10.44 | ![]() | 0.21 | ![]() | 0.48 | ![]() | 0.69 | ![]() | (0.21 | ) | ![]() | (0.11 | ) | ![]() | (0.32 | ) | |||||||||||||
FLORIDA SERIES | ![]() | |||||||||||||||||||||||||||||
1998 | ![]() | 10.97 | ![]() | 0.52 | ![]() | 0.28 | ![]() | 0.80 | ![]() | (0.52 | ) | ![]() | — | ![]() | (0.52 | ) | ||||||||||||||
1999 | ![]() | 11.25 | ![]() | 0.50 | ![]() | (0.78 | ) | ![]() | (0.28 | ) | ![]() | (0.50 | ) | ![]() | (0.37 | ) | ![]() | (0.87 | ) | |||||||||||
2000 | ![]() | 10.10 | ![]() | 0.50 | ![]() | 0.25 | ![]() | 0.75 | ![]() | (0.50 | ) | ![]() | — | ![]() | (0.50 | ) | ||||||||||||||
2001 | ![]() | 10.35 | ![]() | 0.50 | ![]() | 0.24 | ![]() | 0.74 | ![]() | (0.50 | ) | ![]() | — | ![]() | (0.50 | ) | ||||||||||||||
2002 | ![]() | 10.59 | ![]() | 0.47 | ![]() | 0.09 | ![]() | 0.56 | ![]() | (0.47 | ) | ![]() | (0.03 | ) | ![]() | (0.50 | ) | |||||||||||||
2003* | ![]() | 10.65 | ![]() | 0.23 | ![]() | 0.51 | ![]() | 0.74 | ![]() | (0.23 | ) | ![]() | (0.19 | ) | ![]() | (0.42 | ) | |||||||||||||
NEW JERSEY SERIES | ![]() | |||||||||||||||||||||||||||||
1998 | ![]() | 10.88 | ![]() | 0.53 | ![]() | 0.27 | ![]() | 0.80 | ![]() | (0.53 | ) | ![]() | — | ![]() | (0.53 | ) | ||||||||||||||
1999 | ![]() | 11.15 | ![]() | 0.51 | ![]() | (0.77 | ) | ![]() | (0.26 | ) | ![]() | (0.51 | ) | ![]() | (0.16 | ) | ![]() | (0.67 | ) | |||||||||||
2000 | ![]() | 10.22 | ![]() | 0.50 | ![]() | 0.22 | ![]() | 0.72 | ![]() | (0.50 | ) | ![]() | — | ![]() | (0.50 | ) | ||||||||||||||
2001 | ![]() | 10.44 | ![]() | 0.50 | ![]() | 0.23 | ![]() | 0.73 | ![]() | (0.50 | ) | ![]() | — | ![]() | (0.50 | ) | ||||||||||||||
2002 | ![]() | 10.67 | ![]() | 0.49 | ![]() | 0.08 | ![]() | 0.57 | ![]() | (0.49 | ) | ![]() | — | ![]() | (0.49 | ) | ||||||||||||||
2003* | ![]() | 10.75 | ![]() | 0.23 | ![]() | 0.42 | ![]() | 0.65 | ![]() | (0.23 | ) | ![]() | (0.10 | ) | ![]() | (0.33 | ) | |||||||||||||
PENNSYLVANIA SERIES | ![]() | |||||||||||||||||||||||||||||
1998 | ![]() | 10.97 | ![]() | 0.53 | ![]() | 0.18 | ![]() | 0.71 | ![]() | (0.53 | ) | ![]() | — | ![]() | (0.53 | ) | ||||||||||||||
1999 | ![]() | 11.15 | ![]() | 0.52 | ![]() | (0.84 | ) | ![]() | (0.32 | ) | ![]() | (0.52 | ) | ![]() | (0.12 | ) | ![]() | (0.64 | ) | |||||||||||
2000 | ![]() | 10.19 | ![]() | 0.52 | ![]() | 0.27 | ![]() | 0.79 | ![]() | (0.52 | ) | ![]() | — | ![]() | (0.52 | ) | ||||||||||||||
2001 | ![]() | 10.46 | ![]() | 0.54 | ![]() | 0.30 | ![]() | 0.84 | ![]() | (0.54) | ‡ | ![]() | — | ![]() | (0.54 | ) | ||||||||||||||
2002 | ![]() | 10.76 | ![]() | 0.51 | ![]() | 0.00 | ![]() | 0.51 | ![]() | (0.51 | ) | ![]() | — | ![]() | (0.51 | ) | ||||||||||||||
2003* | ![]() | 10.76 | ![]() | 0.24 | ![]() | 0.41 | ![]() | 0.65 | ![]() | (0.24 | ) | ![]() | (0.08 | ) | ![]() | (0.32 | ) | |||||||||||||
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* | For the six months ended May 31, 2003 (unaudited). |
† | Does not reflect the deduction of sales load. Calculated based on the net asset value as of the last business day of the period. |
‡ | Includes capital gain distribution of $0.0029. |
(1) | Does not reflect the effect of expense offset of 0.01%. |
(2) | Annualized. |
(3) | Not annualized. |
See Notes to Financial Statements
26
Morgan Stanley Multi-State Municipal Series Trust
Financial Highlights continued
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NET ASSET VALUE END OF PERIOD | ![]() | TOTAL RETURN† | ![]() | NET ASSETS END OF PERIOD (000'S) | ![]() | RATIOS TO AVERAGE NET ASSETS | ![]() | PORTFOLIO TURNOVER DATE | ||||||||||||||
EXPENSES (BEFORE EXPENSE OFFSET) | ![]() | NET INVESTMENT INCOME | ||||||||||||||||||||
$ | 10.81 | ![]() | 6.56 | % | ![]() | $ | 41,655 | ![]() | 0.65 | %(1) | ![]() | 4.77 | % | ![]() | 30 | % | ||||||
9.90 | ![]() | (2.53 | ) | ![]() | 36,867 | ![]() | 0.66 | (1) | ![]() | 4.72 | ![]() | 13 | ||||||||||
10.12 | ![]() | 7.42 | ![]() | 32,329 | ![]() | 0.67 | (1) | ![]() | 4.93 | ![]() | 10 | |||||||||||
10.33 | ![]() | 6.82 | ![]() | 31,722 | ![]() | 0.71 | (1) | ![]() | 4.54 | ![]() | 30 | |||||||||||
10.44 | ![]() | 5.64 | ![]() | 30,247 | ![]() | 0.70 | (1) | ![]() | 4.23 | ![]() | 29 | |||||||||||
10.81 | ![]() | 6.79 | (3) | ![]() | 30,153 | ![]() | 0.73 | (1)(2) | ![]() | 4.05 | (2) | ![]() | 21 | (3) | ||||||||
11.25 | ![]() | 7.58 | ![]() | 61,262 | ![]() | 0.62 | (1) | ![]() | 4.69 | ![]() | 26 | |||||||||||
10.10 | ![]() | (2.70 | ) | ![]() | 53,555 | ![]() | 0.64 | (1) | ![]() | 4.69 | ![]() | 13 | ||||||||||
10.35 | ![]() | 7.70 | ![]() | 47,951 | ![]() | 0.63 | (1) | ![]() | 4.95 | ![]() | 4 | |||||||||||
10.59 | ![]() | 7.23 | ![]() | 44,211 | ![]() | 0.65 | (1) | ![]() | 4.69 | ![]() | 16 | |||||||||||
10.65 | ![]() | 5.44 | ![]() | 40,627 | ![]() | 0.66 | (1) | ![]() | 4.45 | ![]() | 22 | |||||||||||
10.97 | ![]() | 7.10 | (3) | ![]() | 38,930 | ![]() | 0.68 | (1)(2) | ![]() | 4.21 | (2) | ![]() | 8 | (3) | ||||||||
11.15 | ![]() | 7.49 | ![]() | 41,803 | ![]() | 0.67 | (1) | ![]() | 4.77 | ![]() | 21 | |||||||||||
10.22 | ![]() | (2.44 | ) | ![]() | 38,566 | ![]() | 0.69 | ![]() | 4.73 | ![]() | 10 | |||||||||||
10.44 | ![]() | 7.32 | ![]() | 36,306 | ![]() | 0.69 | (1) | ![]() | 4.90 | ![]() | 20 | |||||||||||
10.67 | ![]() | 7.07 | ![]() | 36,757 | ![]() | 0.69 | ![]() | 4.65 | ![]() | 9 | ||||||||||||
10.75 | ![]() | 5.41 | ![]() | 35,884 | ![]() | 0.70 | (1) | ![]() | 4.55 | ![]() | 14 | |||||||||||
11.07 | ![]() | 6.14 | (3) | ![]() | 37,488 | ![]() | 0.71 | (1)(2) | ![]() | 4.30 | (2) | ![]() | 12 | (3) | ||||||||
11.15 | ![]() | 6.60 | ![]() | 53,808 | ![]() | 0.64 | (1) | ![]() | 4.75 | ![]() | 26 | |||||||||||
10.19 | ![]() | (3.02 | ) | ![]() | 49,059 | ![]() | 0.64 | (1) | ![]() | 4.83 | ![]() | 6 | ||||||||||
10.46 | ![]() | 8.03 | ![]() | 52,041 | ![]() | 0.64 | (1) | ![]() | 5.07 | ![]() | 6 | |||||||||||
10.76 | ![]() | 8.19 | ![]() | 35,514 | ![]() | 0.68 | (1) | ![]() | 5.05 | ![]() | 11 | |||||||||||
10.76 | ![]() | 4.83 | ![]() | 33,022 | ![]() | 0.71 | (1) | ![]() | 4.74 | ![]() | 21 | |||||||||||
11.09 | ![]() | 6.14 | (3) | ![]() | 35,115 | ![]() | 0.68 | (1)(2) | ![]() | 4.35 | (2) | ![]() | 21 | (3) | ||||||||
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27
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Item 9 - Controls and Procedures The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report. There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Fund's internal controls or in other factors that could significantly affect the Fund's internal controls subsequent to the date of their evaluation.Item 10b Exhibits A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT. Items 2 - 8 and Item 10a are not applicable SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Morgan Stanley Multi-State Municipal Series Trust Ronald E. Robison Principal Executive Officer July 22, 2003 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Ronald E. Robison Principal Executive Officer July 22, 2003 Francis Smith Principal Financial Officer July 22, 2003 EXHIBIT B1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER CERTIFICATIONS I, Ronald E. Robison, certify that: 1. I have reviewed this report on Form N-CSR of Morgan Stanley Multi-State Municipal Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 22, 2003 Ronald E. Robison Principal Executive Officer EXHIBIT B2 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER CERTIFICATIONS I, Francis Smith, certify that: 1. I have reviewed this report on Form N-CSR of Morgan Stanley Multi-State Municipal Series Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: (i) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (ii) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and (iii) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 22, 2003 Francis Smith Principal Financial Officer SECTION 906 CERTIFICATION Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Morgan Stanley Multi-State Municipal Series Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended May 31, 2003 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: July 22, 2003 Ronald E. Robison Principal Executive Officer A signed original of this written statement required by Section 906 has been provided to Morgan Stanley Multi-State Municipal Series Trust and will be retained by Morgan Stanley Multi-State Municipal Series Trust and furnished to the Securities and Exchange Commission or its staff upon request. SECTION 906 CERTIFICATION Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Morgan Stanley Multi-State Municipal Series Trust In connection with the Report on Form N-CSR (the "Report") of the above-named issuer for the period ended May 31, 2003 that is accompanied by this certification, the undersigned hereby certifies that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: July 22, 2003 Francis Smith Principal Financial Officer A signed original of this written statement required by Section 906 has been provided to Morgan Stanley Multi-State Municipal Series Trust and will be retained by Morgan Stanley Multi-State Municipal Series Trust and furnished to the Securities and Exchange Commission or its staff upon request.