UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04375
Name of Fund: Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch
Multi-State Municipal Series Trust
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch
Multi-State Municipal Series Trust, 800 Scudders Mill Road, Plainsboro,
NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 07/31/05
Date of reporting period: 08/01/04 - 01/31/05
Item 1 - Report to Stockholders
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
Merrill Lynch
Florida Municipal
Bond Fund
Semi-Annual Report
January 31, 2005
[LOGO] Merrill Lynch Investment Managers
Merrill Lynch Florida Municipal Bond Fund
Portfolio Information as of January 31, 2005
Percent of Total
Distribution by Market Sector Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds ........................................ 85.2%
Prerefunded Bonds* ......................................... 7.6
General Obligation Bonds ................................... 4.7
Mutual Funds ............................................... 2.5
- --------------------------------------------------------------------------------
* Backed by an escrow fund.
Quality Ratings by Percent of Total
S&P/Moody's Investments
- --------------------------------------------------------------------------------
AAA/Aaa ................................................. 55.2%
AA/Aa ................................................... 5.3
A/A ..................................................... 8.7
BBB/Baa ................................................. 10.5
NR (Not Rated) .......................................... 17.9
Other* .................................................. 2.4
- --------------------------------------------------------------------------------
* Includes portfolio holdings in mutual funds and short-term securities.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("SEC") for the first and third quarters of each fiscal
year on Form N-Q. The Fund's Forms N-Q are available on the SEC's Web site at
http://www.sec.gov. The Fund's Forms N-Q may also be reviewed and copied at the
SEC's Public Reference Room in Washington, DC. Information on the operation of
the Public Reference Room may be obtained by calling 1-800-SEC-0330.
2 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
A Letter From the President
Dear Shareholder
The U.S. equity market ended the current reporting period in positive territory,
although not without some suspense along the way. Fixed income markets also
performed well, with high yield bond investors enjoying some of the best
returns.
Total Returns as of January 31, 2005 6-month 12-month
===================================================================================
Equities (Standard & Poor's 500 Index) +8.16% +6.23%
- -----------------------------------------------------------------------------------
Fixed income (Lehman Brothers Aggregate Bond Index) +3.81 +4.16
- -----------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +4.80 +4.86
- -----------------------------------------------------------------------------------
High yield bonds (Credit Suisse First Boston High Yield Index) +7.85 +9.81
- -----------------------------------------------------------------------------------
Over the past year, the U.S. economy transitioned from dependence on record
monetary and fiscal stimulus to a broad-based, high-productivity,
high-profit-margin growth engine. The year also marked the end of one of the
most aggressive Federal Reserve Board (Fed) policy periods in history as
deflation concerns, prevalent at the beginning of 2004, gave way to modest
inflation scares -- notably, food prices in the spring and energy prices in the
fall.
The Fed more than doubled the federal funds rate, increasing it from 1% to 2.25%
in five separate moves between June and December 2004. Yet, even as the Fed
raised its target short-term interest rate, long-term bond yields were little
changed year over year as buying interest on the part of foreign central banks
remained strong. The yield on the 10-year Treasury note stood at 4.14% on
January 31, 2005. Despite very strong earnings growth, stocks remained in a
narrow trading range for most of 2004, but rebounded nicely in the fourth
quarter as election uncertainties and energy price concerns dissipated. January,
the first month of the new year and the final month of the current reporting
period, was a challenging one for equities as reflected in the -2.44% return of
the S&P 500 Index for the month.
As we ended the current reporting period, the economy and earnings growth were
beginning to slow and the Fed appeared poised to continue moving interest rates
higher (and, in fact, raised the federal funds rate another 25 basis points on
February 2, 2005). Progress was being monitored on many fronts in Washington,
although concerns remained about the structural problems of debt and deficits,
as reflected by a significant decline in the U.S. dollar.
Looking ahead, the environment is likely to be a challenging one for investors.
At the start of the new year, we encourage you to meet with your financial
advisor to review your goals and asset allocation and to rebalance your
portfolio, as necessary, to ensure it remains aligned with your objectives and
risk tolerance. As always, we thank you for trusting Merrill Lynch Investment
Managers with your investment assets, and we look forward to serving you in the
months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
President and Trustee
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 3
[LOGO] Merrill Lynch Investment Managers
A Discussion With Your Fund's Portfolio Manager
The Fund outperformed its broad market benchmark and its Lipper category
average for the period as we maintained our focus on increasing yield and
protecting net asset value.
Discuss the recent market environment relative to municipal bonds.
Long-term bond yields exhibited significant declines over the past six months,
even as the Federal Reserve Board (the Fed) continued to raise short-term
interest rates. The associated rise in long-term bond prices, which move
opposite yields, came as somewhat of a surprise given the generally positive
economic environment. Gross domestic product (GDP) in the United States grew at
a rate of 4% in the third quarter of 2004 and was recently estimated at a 3.1%
rate for the fourth quarter. During all of 2004, real GDP expanded at a rate of
4%, well above the 3% growth rate registered in 2003. Nevertheless, recent
improvements in domestic business activity have been offset by inflationary
measures remaining in the 1.5% - 2% range. The Fed's measured program of
interest rate increases, which brought the federal funds rate to 2.25% by
period-end, had limited market impact as monthly U.S. employment gains remained
modest. In addition, strong currency-related demand for U.S. Treasury issues
from many foreign governments has helped bolster fixed income bond prices. By
the end of January, long-term U.S. Treasury bond yields stood at 4.59%, a
decline of 70 basis points (.70%) over the past six months. The 10-year U.S.
Treasury note yield was 4.14% at period-end, representing a decline of 45 basis
points during the period.
While tax-exempt bond yields followed the same pattern as their taxable
counterparts, yield volatility in the municipal market was generally more
subdued. Long-term revenue bond yields, as measured by the Bond Buyer Revenue
Bond Index, fell 44 basis points over the past six months. According to
Municipal Market Data, AAA-rated issues maturing in 30 years saw their yields
decline 59 basis points to 4.43% while yields on AAA-rated issues maturing in 10
years declined 47 basis points to 3.48%.
Declining supply trends allowed tax-exempt bond prices to register significant
gains over the past six months. During this time, more than $165 billion in new
long-term tax-exempt bonds was underwritten, a decline of nearly 2% versus the
same period a year ago. New-issue municipal volume is expected to be easily
manageable in early 2005 and should continue to support the tax-exempt market's
favorable technical position.
Finally, long-term tax-exempt bond yield ratios (relative to their taxable
counterparts) have remained in the 89% - 96% range, at or above their recent
historic average of 85% - 88%. These attractive yield ratios should continue to
draw both traditional and non-traditional investors to the municipal market. The
positive technical position should allow the municipal market to continue to
outperform the taxable market in the coming months.
Describe conditions in the State of Florida.
The overall economic picture remains bright in Florida. Moody's recently
increased the state's credit rating from AA2 to AA1, whereas Standard & Poor's
and Fitch maintained favorable ratings of AA+ and AA, respectively. The ratings
are based on solid economic and financial performance, in addition to moderate
debt and a proactive government that responds to economic downturns faster than
other states.
This past year's brutal hurricane season had little impact on the state's
finances. Florida's continued economic strength is bolstered by robust
population growth, which is attributed to its attractive physical environment
and favorable business climate. Although the growth in population has put a
strain on services such as education, transportation and healthcare, it also has
allowed the state to recover more quickly from the recent sub par economic
trends.
Currently, the state's revenues are higher than budgeted and expenditures remain
under control due to prudent fiscal oversight. The fiscal year 2005 budget was
brought into balance through tight expenditure controls, including outsourcing
work and requiring local governments to pick up costs historically incurred by
the state. To pay for these additional expenses, municipalities imposed
increases to property taxes and/or local sales taxes through voter initiatives.
Given the government's concerns over the high healthcare costs facing the state
- -- roughly $15 billion or 26% in the upcoming budget -- Governor Jeb Bush has
proposed a partially private health insurance plan.
4 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Florida continues to maintain sound and solid fund balances with consistent
General Fund operations. In addition, the state has a working Capital Reserve
Fund and a Budget Stabilization Fund in excess of $1.8 billion. Our strategy in
purchasing Florida issues has been to favor insured general obligation bonds and
their equivalents rather than uninsured bonds. We believe this is a prudent
approach, as there is no meaningful yield offered in exchange for the additional
risk associated with uninsured bonds.
How did the Fund perform during the period in light of the existing market
conditions?
For the six-month period ended January 31, 2005, the Fund's Class A, Class B,
Class C and Class I Shares had total returns of +5.11%, +4.99%, +4.84% and
+5.26%, respectively, outpacing the +4.80% return of the benchmark Lehman
Brothers Municipal Bond Index for the same period. (Fund results shown do not
reflect sales charges and would be lower if sales charges were included.
Complete performance information can be found on pages 6 and 7 of this report to
shareholders.) The Fund also outperformed its comparable Lipper category of
Florida Municipal Debt Funds, which had an average return of +4.05% for the
six-month period. (Funds in this Lipper category limit their investment to those
securities exempt from taxation in the State of Florida.) In addition to its
favorable total return performance for the period, the Fund's six-month yield
exceeded that of its peers.
The Fund's outperformance is primarily attributed to three factors. First, we
continued to focus on longer-dated bonds, which have been less affected by
interest rate volatility than bonds in the shorter and intermediate maturity
ranges where the yield curve is beginning to flatten. By taking advantage of the
steepness at the longer end of the municipal yield curve, we have been able to
increase the Fund's yield while muting its price volatility. Second, the Fund's
performance had been positively influenced in recent months by an overweight
position in a select basket of Florida hospitals. Finally, our long-term
commitment to an above-average yield has continued to offer an incremental
advantage, and ultimately served to boost the Fund's total return performance.
What changes were made to the portfolio during the period?
We maintained our focus on increasing the income provided to shareholders and
muting the Fund's net asset value volatility. In general, we sought to reduce
some of our holdings in the 10-year - 15-year maturity range, where we have
found limited value. With the proceeds from the sales, we looked to purchase
premium-coupon bonds in the 25-year - 30-year maturity range whenever they
became available. This proved to be a challenge at times, as new-issue volume in
Florida has been on the decline in recent months. New supply of Florida
municipal bonds fell 25% during the past six months versus the same period a
year ago. In addition, much of the recent new supply was comprised of small
issues extending to only 20 years and, therefore, did not offer the
characteristics we desired in making new investments for the portfolio.
Importantly, we remained fully invested throughout the period in order to
augment the portfolio's yield.
How would you characterize the Fund's position at the close of the period?
With the long end of the municipal yield curve still quite steep, our strategy
is to continue selling the intermediate part of the curve in favor of bonds in
the 25-year - 30-year maturity range.
We expect the U.S. equity and bond markets to remain volatile as investors
continue to anticipate and react to economic data and Fed actions. We believe
the Fed will continue to raise short-term interest rates at a measured pace. In
fact, the Fed increased the federal funds rate another 25 basis points shortly
after the close of the period on February 2. Under these circumstances, we
believe a defensive market posture continues to be the prudent course.
As we have seen, long-term bond yields have been slow to react to the Fed's
interest rate hikes. Should long-term interest rates continue to decline, our
strategy would be to shift to an even more defensive position to prepare the
Fund for relative outperformance when long-term interest rates inevitably head
higher.
Robert D. Sneeden
Vice President and Portfolio Manager
February 9, 2005
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 5
[LOGO] Merrill Lynch Investment Managers
Performance Data
About Fund Performance
Investors are able to purchase shares of the Fund through multiple pricing
alternatives:
o Class A Shares incur a maximum initial sales charge (front-end load) of 4%
and an account maintenance fee of 0.10% per year (but no distribution
fee).
o Class B Shares are subject to a maximum contingent deferred sales charge
of 4%, declining to 0% after six years. All Class B Shares purchased prior
to December 1, 2002 will maintain the four-year schedule. In addition,
Class B Shares are subject to a distribution fee of 0.25% per year and an
account maintenance fee of 0.25% per year. These shares automatically
convert to Class A Shares after approximately ten years. (There is no
initial sales charge for automatic share conversions.)
o Class C Shares are subject to a distribution fee of 0.35% per year and an
account maintenance fee of 0.25% per year. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
o Class I Shares incur a maximum initial sales charge (front-end load) of 4%
and bear no ongoing distribution or account maintenance fees. Class I
Shares are available only to eligible investors.
None of the past results shown should be considered a representation of future
performance. Current performance may be lower or higher than the performance
data quoted. Refer to www.mlim.ml.com to obtain performance data current to the
most recent month-end. Performance results do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Figures shown in each of the following tables assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value on the
payable date. Investment return and principal value of shares will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Dividends paid to each class of shares will vary because of the different levels
of account maintenance, distribution and transfer agency fees applicable to each
class, which are deducted from the income available to be paid to shareholders.
The Fund's Investment Adviser agreed to reimburse a portion of its fee. Without
such reimbursement, the Fund's performance may have been lower.
Recent Performance Results
6-Month 12-Month 10-Year Standardized
As of January 31, 2005 Total Return Total Return Total Return 30-Day Yield
==================================================================================================================
ML Florida Municipal Bond Fund Class A Shares* +5.11% +5.61% +80.18% 4.11%
- ------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class B Shares* +4.99 +5.18 +73.16 3.87
- ------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class C Shares* +4.84 +5.08 +71.28 3.78
- ------------------------------------------------------------------------------------------------------------------
ML Florida Municipal Bond Fund Class I Shares* +5.26 +5.71 +82.15 4.20
- ------------------------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index** +4.80 +4.86 +94.07 --
- ------------------------------------------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results would be
lower if a sales charge was included. Cumulative 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.
** This unmanaged Index consists of long-term revenue bonds, prerefunded
bonds, general obligation bonds and insured bonds.
6 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Performance Data (concluded)
Average Annual Total Return
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class A Shares*
================================================================================
One Year Ended 1/31/05 +5.61% +1.38%
- --------------------------------------------------------------------------------
Five Years Ended 1/31/05 +7.42 +6.54
- --------------------------------------------------------------------------------
Ten Years Ended 1/31/05 +6.06 +5.63
- --------------------------------------------------------------------------------
* Maximum sales charge is 4%.
** Assuming maximum sales charge.
Return Return
Without CDSC With CDSC**
================================================================================
Class B Shares*
================================================================================
One Year Ended 1/31/05 +5.18% +1.18%
- --------------------------------------------------------------------------------
Five Years Ended 1/31/05 +6.98 +6.67
- --------------------------------------------------------------------------------
Ten Years Ended 1/31/05 +5.64 +5.64
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
** Assuming payment of applicable contingent deferred sales charge.
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC**
================================================================================
Class C Shares*
================================================================================
One Year Ended 1/31/05 +5.08% +4.08%
- --------------------------------------------------------------------------------
Five Years Ended 1/31/05 +6.88 +6.88
- --------------------------------------------------------------------------------
Ten Years Ended 1/31/05 +5.53 +5.53
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
** Assuming payment of applicable contingent deferred sales charge.
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Class I Shares*
================================================================================
One Year Ended 1/31/05 +5.71% +1.48%
- --------------------------------------------------------------------------------
Five Years Ended 1/31/05 +7.52 +6.64
- --------------------------------------------------------------------------------
Ten Years Ended 1/31/05 +6.18 +5.75
- --------------------------------------------------------------------------------
* Maximum sales charge is 4%.
** Assuming maximum sales charge.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 7
[LOGO] Merrill Lynch Investment Managers
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses including advisory fees, distribution fees including
12(b)-1 fees, and other Fund expenses. The following example (which is based on
a hypothetical investment of $1,000 invested on August 1, 2004 and held through
January 31, 2005) is intended to assist shareholders both in calculating
expenses based on an investment in the Fund and in comparing these expenses with
similar costs of investing in other mutual funds.
The first table below provides information about actual account values and
actual expenses. In order to estimate the expenses a shareholder paid during the
period covered by this report, shareholders can divide their account value by
$1,000 and then multiply the result by the number in the first line under the
heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical account values
and hypothetical expenses based on the Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in this Fund and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the second table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
Expenses Paid
Beginning Ending During the Period*
Account Value Account Value August 1, 2004 to
August 1, 2004 January 31, 2005 January 31, 2005
============================================================================================================
Actual
============================================================================================================
Class A $1,000 $1,051.10 $4.58
- ------------------------------------------------------------------------------------------------------------
Class B $1,000 $1,049.90 $6.68
- ------------------------------------------------------------------------------------------------------------
Class C $1,000 $1,048.40 $7.19
- ------------------------------------------------------------------------------------------------------------
Class I $1,000 $1,052.60 $4.06
============================================================================================================
Hypothetical (5% annual return before expenses)**
============================================================================================================
Class A $1,000 $1,020.61 $4.51
- ------------------------------------------------------------------------------------------------------------
Class B $1,000 $1,018.55 $6.58
- ------------------------------------------------------------------------------------------------------------
Class C $1,000 $1,018.05 $7.08
- ------------------------------------------------------------------------------------------------------------
Class I $1,000 $1,021.11 $4.00
- ------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.89% for Class A, 1.30% for Class B, 1.40% for Class
C and 0.79% for Class I), multiplied by the average account value over the
period, multiplied by 183/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half-year divided by 365.
8 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Schedule of Investments (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
Florida--82.6%
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,095 Altamonte Springs, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health Systems-Sunbelt), 7% due 10/01/2014 (c) $ 1,405
----------------------------------------------------------------------------------------------------------
50 Arbor Greene, Florida, Community Development District, Special Assessment Revenue
Bonds, 6.50% due 5/01/2007 51
----------------------------------------------------------------------------------------------------------
1,265 Ballantrae, Florida, Community Development District, Capital Improvement Revenue
Bonds, 6% due 5/01/2035 1,286
----------------------------------------------------------------------------------------------------------
Broward County, Florida, HFA, M/F Housing Revenue Refunding Bonds (Lakeside
Apartments Project) (d):
1,100 6.90% due 8/01/2015 1,124
1,100 7% due 2/01/2025 1,124
----------------------------------------------------------------------------------------------------------
925 Broward County, Florida, Resource Recovery Revenue Refunding Bonds (Wheelabrator
South Broward), Series A, 5.375% due 12/01/2009 1,005
----------------------------------------------------------------------------------------------------------
550 Capital Trust Agency, Florida, Air Cargo Revenue Bonds, AMT, 6.25% due 1/01/2019 569
----------------------------------------------------------------------------------------------------------
775 Celebration Community Development District, Florida (Special Assessment), 6%
due 5/01/2010 (b) 782
----------------------------------------------------------------------------------------------------------
Citrus County, Florida, Hospital Board Revenue Refunding Bonds (Citrus Memorial
Hospital):
990 6.25% due 8/15/2023 1,057
1,500 6.375% due 8/15/2032 1,590
----------------------------------------------------------------------------------------------------------
10 Clay County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County), AMT, 6.30%
due 10/01/2020 (d)(f) 10
----------------------------------------------------------------------------------------------------------
65 Clearwater, Florida, Revenue Bonds (Spring Training Facility), 5.375%
due 3/01/2027 (b) 75
----------------------------------------------------------------------------------------------------------
1,000 Cypress Lakes, Florida, Community Development District, Special Assessment Bonds,
Series A, 6% due 5/01/2034 1,009
----------------------------------------------------------------------------------------------------------
295 Double Branch Community, Florida, Development District, Special Assessment Bonds,
Series B-1, 5.60% due 5/01/2007 297
----------------------------------------------------------------------------------------------------------
3,975 Escambia County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, 7%
due 4/01/2028 (d)(f) 4,064
----------------------------------------------------------------------------------------------------------
3,920 Escambia County, Florida, Health Facilities Authority, Health Facility Revenue
Bonds (Florida Health Care Facility Loan), 5.95% due 7/01/2020 (a) 3,979
----------------------------------------------------------------------------------------------------------
1,500 Fiddlers Creek, Florida, Community Development District Number 2, Special
Assessment Revenue Bonds, Series A, 6.375% due 5/01/2035 1,550
----------------------------------------------------------------------------------------------------------
1,735 Florida HFA, Homeowner Mortgage Revenue Bonds, AMT, Series 3, 6.35%
due 7/01/2028 (b)(l) 1,809
----------------------------------------------------------------------------------------------------------
805 Florida Housing Finance Corporation, Homeowner Mortgage Revenue Refunding Bonds,
AMT, Series 4, 6.25% due 7/01/2022 (g) 814
----------------------------------------------------------------------------------------------------------
5,000 Florida State Board of Education, Lottery Revenue Bonds, DRIVERS, Series 222,
11.185% due 7/01/2017 (h)(e) 6,630
----------------------------------------------------------------------------------------------------------
2,500 Florida State Turnpike Authority, Turnpike Revenue Bonds, DRIVERS, Series 218,
10.934% due 7/01/2029 (h)(e) 3,271
----------------------------------------------------------------------------------------------------------
985 Harbor Bay, Florida, Community Development District, Capital Improvement Special
Assessment Revenue Bonds, Series A, 7% due 5/01/2033 1,058
----------------------------------------------------------------------------------------------------------
390 Heritage Isles Community Development District, Florida, Special Assessment Revenue
Refunding Bonds, 5.90% due 11/01/2006 391
----------------------------------------------------------------------------------------------------------
225 Heritage Palms, Florida, Community Development District, Capital Improvement
Revenue Bonds, 6.25% due 11/01/2007 227
----------------------------------------------------------------------------------------------------------
3,500 Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Adventist Health System), Series A, 6% due 11/15/2031 3,800
----------------------------------------------------------------------------------------------------------
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 at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
M/F Multi-Family
S/F Single-Family
VRDN Variable Rate Demand Notes
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 9
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
Florida (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National
Gypsum), AMT:
$ 1,000 Series A, 7.125% due 4/01/2030 $ 1,104
1,750 Series B, 7.125% due 4/01/2030 1,932
----------------------------------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development Commission, Health Care Facilities
Revenue Bonds (Mayo Clinic-Jacksonville):
1,000 Series A, 5.50% due 11/15/2036 1,066
1,000 Series A, 5.50% due 11/15/2036 (b) 1,108
2,000 Series B, 5.50% due 11/15/2036 2,135
410 Series B, 5.50% due 11/15/2036 (b) 454
----------------------------------------------------------------------------------------------------------
2,800 Jacksonville, Florida, Electric Authority, Electric System Revenue Bonds, Series
3-C, 5.50% due 10/01/2005 (i) 2,849
----------------------------------------------------------------------------------------------------------
1,200 Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding and Improvement
Bonds, 5.25% due 10/01/2032 (e) 1,286
----------------------------------------------------------------------------------------------------------
2,320 Martin County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Martin Memorial Medical Center), Series A, 5.875% due 11/15/2032 2,396
----------------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue Bonds (Miami International Airport):
5,545 AMT, Series A, 5% due 10/01/2033 (g) 5,661
1,100 AMT, Series A, 5% due 10/01/2030 (e) 1,130
6,000 Series B, 5% due 10/01/2037 (e) 6,254
----------------------------------------------------------------------------------------------------------
2,495 Miami-Dade County, Florida, Expressway Authority, Toll System Revenue Bonds,
Series B, 5.25% due 7/01/2026 (e) 2,729
----------------------------------------------------------------------------------------------------------
1,000 Middle Village Community Development District, Florida, Special Assessment Bonds,
Series A, 6% due 5/01/2035 1,022
----------------------------------------------------------------------------------------------------------
2,000 Midtown Miami, Florida, Community Development District, Special Assessment Revenue
Bonds, Series A, 6.25% due 5/01/2037 2,077
----------------------------------------------------------------------------------------------------------
1,000 Oak Creek, Florida, Community Development District, Special Assessment Bonds,
5.80% due 5/01/2035 998
----------------------------------------------------------------------------------------------------------
1,000 Old Palm Community Development District, Florida, Special Assessment Bonds (Palm
Beach Gardens), Series A, 5.90% due 5/01/2035 1,009
----------------------------------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds:
500 (Adventist Health System), 6.25% due 11/15/2024 555
2,705 (Orlando Regional Healthcare), 6% due 12/01/2028 2,948
----------------------------------------------------------------------------------------------------------
6,500 Orange County, Florida, Tourist Development, Tax Revenue Bonds, 5.50%
due 10/01/2031 (a) 7,093
----------------------------------------------------------------------------------------------------------
Orlando, Florida, Urban Community Development District, Capital Improvement
Special Assessment Bonds:
1,000 6.25% due 5/01/2034 1,033
990 Series A, 6.95% due 5/01/2033 1,058
----------------------------------------------------------------------------------------------------------
1,265 Osceola County, Florida, Infrastructure Sales Surplus Tax Revenue Bonds, 5.25%
due 10/01/2025 (a) 1,389
----------------------------------------------------------------------------------------------------------
2,000 Osceola County, Florida, School Board, COP, Series A, 5.25% due 6/01/2027 (a) 2,160
----------------------------------------------------------------------------------------------------------
925 Osceola County, Florida, Tourist Development Tax Revenue Bonds, Series A, 5.50%
due 10/01/2027 (e) 1,033
----------------------------------------------------------------------------------------------------------
175 Panther Trace, Florida, Community Development District, Special Assessment Revenue
Bonds, Series B, 6.50% due 5/01/2009 177
----------------------------------------------------------------------------------------------------------
Park Place Community Development District, Florida, Special Assessment Revenue
Bonds:
500 6.75% due 5/01/2032 528
1,000 6.375% due 5/01/2034 1,031
----------------------------------------------------------------------------------------------------------
2,080 Pasco County, Florida, Health Facilities Authority, Gross Revenue Bonds (Adventist
Health System--Sunbelt), 7% due 10/01/2014 (c) 2,640
----------------------------------------------------------------------------------------------------------
2,000 Pinellas County, Florida, Health Facilities Authority Revenue Bonds (BayCare
Health System Inc.), 5.75% due 11/15/2029 2,150
----------------------------------------------------------------------------------------------------------
490 Reunion East Community Development District, Florida, Special Assessment,
Series B, 5.90% due 11/01/2007 500
----------------------------------------------------------------------------------------------------------
1,000 Saint Johns County, Florida, Sales Tax Revenue Bonds, GO, Series A, 5.25%
due 10/01/2028 (a) 1,087
----------------------------------------------------------------------------------------------------------
2,320 South Broward, Florida, Hospital District Revenue Bonds, DRIVERS, Series 337,
9.105% due 5/01/2032 (b)(h) 2,784
----------------------------------------------------------------------------------------------------------
1,000 South Kendall, Florida, Community Development District, Special Assessment Bonds,
Series A, 5.90% due 5/01/2035 1,004
----------------------------------------------------------------------------------------------------------
10 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Schedule of Investments (continued) (in Thousands)
Face
Amount Municipal Bonds Value
====================================================================================================================================
Florida (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
South Lake County, Florida, Hospital District Revenue Bonds (South Lake Hospital
Inc.):
$ 1,000 5.80% due 10/01/2034 $ 1,040
995 6.375% due 10/01/2034 1,036
----------------------------------------------------------------------------------------------------------
1,000 Sterling Hill, Florida, Community Development District, Capital Improvement
Revenue Refunding Bonds, Series B, 5.50% due 11/01/2010 1,020
----------------------------------------------------------------------------------------------------------
255 Stoneybrook West, Florida, Community Development District, Special Assessment
Revenue Bonds, Series B, 6.45% due 5/01/2010 260
----------------------------------------------------------------------------------------------------------
2,360 University of Central Florida (UCF) Athletics Association Inc., COP, Series A,
5.25% due 10/01/2034 (e) 2,543
----------------------------------------------------------------------------------------------------------
690 Verandah West, Florida, Community Development District, Capital Improvement
Revenue Bonds, Series B, 5.25% due 5/01/2008 695
----------------------------------------------------------------------------------------------------------
1,000 Village Center Community Development District, Florida, Utility Revenue Bonds,
5.125% due 10/01/2028 (b) 1,065
----------------------------------------------------------------------------------------------------------
1,485 Vista Lakes Community Development District, Florida, Capital Improvement Revenue
Bonds, Series A, 6.75% due 5/01/2034 1,563
====================================================================================================================================
Michigan--2.1%
- ------------------------------------------------------------------------------------------------------------------------------------
2,800 Detroit, Michigan, Sewer Disposal Revenue Bonds, Senior Lien, VRDN, Series A,
1.84% due 7/01/2033 (g)(k) 2,800
====================================================================================================================================
New Jersey--5.8%
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,500 5.50% due 6/15/2024 1,572
4,650 5.75% due 6/15/2029 (m) 5,146
1,020 5.75% due 6/15/2034 1,076
====================================================================================================================================
Texas--0.7%
- ------------------------------------------------------------------------------------------------------------------------------------
1,000 Austin, Texas, Water and Wastewater System, Revenue Refunding Bonds, VRDN, 1.83%
due 5/15/2024 (g)(k) 1,000
====================================================================================================================================
Puerto Rico--4.2%
- ------------------------------------------------------------------------------------------------------------------------------------
1,365 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Revenue Bonds (Cogeneration Facility--AES Puerto Rico Project), AMT,
6.625% due 6/01/2026 1,480
----------------------------------------------------------------------------------------------------------
1,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding
Bonds, Series I, 5% due 7/01/2036 1,034
----------------------------------------------------------------------------------------------------------
3,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds,
Series E, 5.75% due 2/01/2007 (i) 3,193
----------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Cost--$123,524)--95.4% 129,880
==========================================================================================================
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 11
[LOGO] Merrill Lynch Investment Managers
Schedule of Investments (concluded) (in Thousands)
Shares
Held Mutual Funds Value
==========================================================================================================
211 BlackRock Florida Insured Municipal 2008 Term Trust $ 3,292
----------------------------------------------------------------------------------------------------------
Total Mutual Funds (Cost--$3,495)--2.4% 3,292
==========================================================================================================
Short-Term Securities
==========================================================================================================
13 Merrill Lynch Institutional Tax-Exempt Fund (j) 13
----------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost--$13)--0.0% 13
==========================================================================================================
Total Investments (Cost--$127,032*)--97.8% 133,185
Other Assets Less Liabilities--2.2% 3,015
--------
Net Assets--100.0% $136,200
========
* The cost and unrealized appreciation (depreciation) of investments as of
January 31, 2005, as computed for federal income tax purposes, were as
follows:
(in Thousands)
-------------------------------------------------------------------------
Aggregate cost ....................................... $ 127,032
=========
Gross unrealized appreciation ........................ $ 6,536
Gross unrealized depreciation ........................ (383)
---------
Net unrealized appreciation .......................... $ 6,153
=========
(a) AMBAC Insured.
(b) MBIA Insured.
(c) Escrowed to maturity.
(d) FNMA Collateralized.
(e) FGIC Insured.
(f) GNMA Collateralized.
(g) FSA Insured.
(h) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(i) Prerefunded.
(j) Investments in companies considered to be an affiliate of the Fund (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) were as follows:
(in Thousands)
-------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
-------------------------------------------------------------------------
Merrill Lynch Institutional
Tax-Exempt Fund -- $ --+
-------------------------------------------------------------------------
+ Amount is less than $1,000.
(k) Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically
based upon prevailing market rates.
(l) FHA Insured.
(m) AGC Insured.
See Notes to Financial Statements.
12 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Statement of Assets and Liabilities
As of January 31, 2005
=============================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value (identified
cost--$127,018,797) .............................................. $ 133,172,093
Investments in affiliated securities, at value (identified
cost--$13,329) ................................................... 13,329
Cash .............................................................. 26,056
Receivables:
Interest ....................................................... $ 1,829,379
Beneficial interest sold ....................................... 1,494,407
Dividends (including $258 from affiliates) ..................... 13,446 3,337,232
-------------
Prepaid expenses .................................................. 12,005
-------------
Total assets ...................................................... 136,560,715
-------------
=============================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Payables:
Dividends to shareholders ...................................... 124,711
Beneficial interest redeemed ................................... 112,726
Investment adviser ............................................. 58,704
Distributor .................................................... 26,986
Other affiliates ............................................... 9,536 332,663
-------------
Accrued expenses .................................................. 28,081
-------------
Total liabilities ................................................. 360,744
-------------
=============================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Net assets ........................................................ $ 136,199,971
=============
=============================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------
Class A Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ...................................... $ 607,178
Class B Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ...................................... 364,716
Class C Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ...................................... 142,233
Class I Shares of beneficial interest, $.10 par value, unlimited
number of shares authorized ...................................... 193,976
Paid-in capital in excess of par .................................. 133,895,959
Undistributed investment income--net .............................. $ 123,585
Accumulated realized capital losses--net .......................... (5,280,972)
Unrealized appreciation--net ...................................... 6,153,296
-------------
Total accumulated earnings--net ................................... 995,909
-------------
Net Assets ........................................................ $ 136,199,971
=============
=============================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------
Class A--Based on net assets of $63,173,061 and 6,071,776 shares
of beneficial interest outstanding ............................... $ 10.40
=============
Class B--Based on net assets of $38,012,254 and 3,647,155 shares
of beneficial interest outstanding ............................... $ 10.42
=============
Class C--Based on net assets of $14,798,404 and 1,422,331 shares
of beneficial interest outstanding ............................... $ 10.40
=============
Class I--Based on net assets of $20,216,252 and 1,939,764 shares
of beneficial interest outstanding ............................... $ 10.42
=============
See Notes to Financial Statements.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 13
[LOGO] Merrill Lynch Investment Managers
Statement of Operations
For the Six Months Ended January 31, 2005
=============================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Interest .......................................................... $ 3,778,033
Dividends (including $414 from affiliates) ........................ 79,539
-------------
Total income ...................................................... 3,857,572
-------------
=============================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees .......................................... $ 365,672
Account maintenance and distribution fees--Class B ................ 99,947
Accounting services ............................................... 47,380
Account maintenance and distribution fees--Class C ................ 41,851
Account maintenance fees--Class A ................................. 29,536
Professional fees ................................................. 27,950
Printing and shareholder reports .................................. 21,074
Registration fees ................................................. 12,698
Transfer agent fees--Class A ...................................... 11,180
Transfer agent fees--Class B ...................................... 8,808
Trustees' fees and expenses ....................................... 7,904
Custodian fees .................................................... 5,167
Pricing fees ...................................................... 4,986
Transfer agent fees--Class I ...................................... 3,780
Transfer agent fees--Class C ...................................... 3,044
Other ............................................................. 10,466
-------------
Total expenses before reimbursement ............................... 701,443
Reimbursement of expenses ......................................... (52)
-------------
Total expenses after reimbursement ................................ 701,391
-------------
Investment income--net ............................................ 3,156,181
-------------
=============================================================================================================================
Realized & Unrealized Gain--Net
- -----------------------------------------------------------------------------------------------------------------------------
Realized gain on investments--net ................................. 776,578
Change in unrealized appreciation on investments--net ............. 2,667,017
-------------
Total realized and unrealized gain--net ........................... 3,443,595
-------------
Net Increase in Net Assets Resulting from Operations .............. $ 6,599,776
=============
See Notes to Financial Statements.
14 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
January 31, July 31,
Increase (Decrease) in Net Assets: 2005 2004
=============================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------
Investment income--net ............................................ $ 3,156,181 $ 7,162,085
Realized gain--net ................................................ 776,578 1,182,484
Change in unrealized appreciation--net ............................ 2,667,017 405,219
-------------------------------
Net increase in net assets resulting from operations .............. 6,599,776 8,749,788
-------------------------------
=============================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------
Investment income--net:
Class A ........................................................ (1,447,883) (2,995,637)
Class B ........................................................ (900,218) (2,383,130)
Class C ........................................................ (306,555) (675,142)
Class I ........................................................ (499,722) (1,099,859)
-------------------------------
Net decrease in net assets resulting from dividends to shareholders (3,154,378) (7,153,768)
-------------------------------
=============================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from beneficial
interest transactions ............................................ 467,046 (24,828,973)
-------------------------------
=============================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ........................... 3,912,444 (23,232,953)
Beginning of period ............................................... 132,287,527 155,520,480
-------------------------------
End of period* .................................................... $ 136,199,971 $ 132,287,527
===============================
* Undistributed investment income--net ......................... $ 123,585 $ 121,782
===============================
See Notes to Financial Statements.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 15
[LOGO] Merrill Lynch Investment Managers
Financial Highlights
Class A
-------------------------------------------------------------
For the Six For the
Months Ended Year Ended July 31,
The following per share data and ratios have been derived January 31, -----------------------------------------------
from information provided in the financial statements. 2005 2004 2003 2002 2001
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ... $ 10.14 $ 10.04 $ 10.19 $ 10.13 $ 9.71
-------------------------------------------------------------
Investment income--net ................. .25+ .52+ .52+ .51 .49
Realized and unrealized gain (loss)--net .26 .10 (.15) .06 .43
-------------------------------------------------------------
Total from investment operations ....... .51 .62 .37 .57 .92
-------------------------------------------------------------
Less dividends and distributions:
Investment income--net .............. (.25) (.52) (.52) (.51) (.49)
In excess of realized gain--net ..... -- -- -- -- (.01)
-------------------------------------------------------------
Total dividends and distributions ...... (.25) (.52) (.52) (.51) (.50)
-------------------------------------------------------------
Net asset value, end of period ......... $ 10.40 $ 10.14 $ 10.04 $ 10.19 $ 10.13
=============================================================
================================================================================================================================
Total Investment Return**
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 5.11%@ 6.24% 3.66% 5.81% 9.72%
=============================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... .89%* .87% .88% .89% .86%
=============================================================
Expenses ............................... .89%* .88% .88% .89% .86%
=============================================================
Investment income--net ................. 4.90%* 5.05% 5.08% 5.07% 4.99%
=============================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 63,173 $ 57,521 $ 57,610 $ 43,909 $ 38,564
=============================================================
Portfolio turnover ..................... 26.53% 31.83% 45.50% 41.29% 81.27%
=============================================================
* Annualized.
** Total investment returns exclude the effect of sales charges. The Fund's
Investment Adviser agreed to reimburse a portion of its fee. Without such
reimbursement, the Fund's performance may have been lower.
+ Based on average shares outstanding.
@ Aggregate total investment return.
See Notes to Financial Statements.
16 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Financial Highlights (continued)
Class B
-------------------------------------------------------------
For the Six For the
Months Ended Year Ended July 31,
The following per share data and ratios have been derived January 31, -----------------------------------------------
from information provided in the financial statements. 2005 2004 2003 2002 2001
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ... $ 10.15 $ 10.06 $ 10.20 $ 10.14 $ 9.73
-------------------------------------------------------------
Investment income--net ................. .23+ .48+ .48+ .47 .46
Realized and unrealized gain (loss)--net .27 .09 (.14) .06 .42
-------------------------------------------------------------
Total from investment operations ....... .50 .57 .34 .53 .88
-------------------------------------------------------------
Less dividends and distributions:
Investment income--net .............. (.23) (.48) (.48) (.47) (.46)
In excess of realized gain--net ..... -- -- -- -- (.01)
-------------------------------------------------------------
Total dividends and distributions ...... (.23) (.48) (.48) (.47) (.47)
-------------------------------------------------------------
Net asset value, end of period ......... $ 10.42 $ 10.15 $ 10.06 $ 10.20 $ 10.14
=============================================================
================================================================================================================================
Total Investment Return**
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 4.99%@ 5.70% 3.35% 5.38% 9.16%
=============================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... 1.30%* 1.28% 1.28% 1.29% 1.26%
=============================================================
Expenses ............................... 1.30%* 1.28% 1.28% 1.29% 1.26%
=============================================================
Investment income--net ................. 4.51%* 4.64% 4.67% 4.65% 4.59%
=============================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 38,012 $ 41,705 $ 61,098 $ 73,034 $ 86,433
=============================================================
Portfolio turnover ..................... 26.53% 31.83% 45.50% 41.29% 81.27%
=============================================================
* Annualized.
** Total investment returns exclude the effect of sales charges. The Fund's
Investment Adviser agreed to reimburse a portion of its fee. Without such
reimbursement, the Fund's performance may have been lower.
+ Based on average shares outstanding.
@ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 17
[LOGO] Merrill Lynch Investment Managers
Financial Highlights (continued)
Class C
-------------------------------------------------------------
For the Six For the
Months Ended Year Ended July 31,
The following per share data and ratios have been derived January 31, -----------------------------------------------
from information provided in the financial statements. 2005 2004 2003 2002 2001
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ... $ 10.14 $ 10.04 $ 10.18 $ 10.13 $ 9.71
-------------------------------------------------------------
Investment income--net ................. .23+ .47+ .47+ .46 .44
Realized and unrealized gain (loss)--net .26 .10 (.14) .05 .43
-------------------------------------------------------------
Total from investment operations ....... .49 .57 .33 .51 .87
-------------------------------------------------------------
Less dividends and distributions:
Investment income--net .............. (.23) (.47) (.47) (.46) (.44)
In excess of realized gain--net ..... -- -- -- -- (.01)
-------------------------------------------------------------
Total dividends and distributions ...... (.23) (.47) (.47) (.46) (.45)
-------------------------------------------------------------
Net asset value, end of period ......... $ 10.40 $ 10.14 $ 10.04 $ 10.18 $ 10.13
=============================================================
================================================================================================================================
Total Investment Return**
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 4.84%@ 5.70% 3.24% 5.17% 9.17%
=============================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... 1.40%* 1.38% 1.38% 1.39% 1.36%
=============================================================
Expenses ............................... 1.40%* 1.38% 1.39% 1.39% 1.36%
=============================================================
Investment income--net ................. 4.40%* 4.54% 4.57% 4.56% 4.49%
=============================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 14,798 $ 13,381 $ 14,759 $ 10,489 $ 9,110
=============================================================
Portfolio turnover ..................... 26.53% 31.83% 45.50% 41.29% 81.27%
=============================================================
* Annualized.
** Total investment returns exclude the effect of sales charges. The Fund's
Investment Adviser agreed to reimburse a portion of its fee. Without such
reimbursement, the Fund's performance may have been lower.
+ Based on average shares outstanding.
@ Aggregate total investment return.
See Notes to Financial Statements.
18 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Financial Highlights (concluded)
Class I
-------------------------------------------------------------
For the Six For the
Months Ended Year Ended July 31,
The following per share data and ratios have been derived January 31, -----------------------------------------------
from information provided in the financial statements. 2005 2004 2003 2002 2001
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ... $ 10.15 $ 10.06 $ 10.20 $ 10.14 $ 9.73
-------------------------------------------------------------
Investment income--net ................. .26+ .53+ .53+ .52 .51
Realized and unrealized gain (loss)--net .27 .09 (.14) .06 .42
-------------------------------------------------------------
Total from investment operations ....... .53 .62 .39 .58 .93
-------------------------------------------------------------
Less dividends and distributions:
Investment income--net .............. (.26) (.53) (.53) (.52) (.51)
In excess of realized gain--net ..... -- -- -- -- (.01)
-------------------------------------------------------------
Total dividends and distributions ...... (.26) (.53) (.53) (.52) (.52)
-------------------------------------------------------------
Net asset value, end of period ......... $ 10.42 $ 10.15 $ 10.06 $ 10.20 $ 10.14
=============================================================
================================================================================================================================
Total Investment Return**
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ..... 5.26%@ 6.24% 3.87% 5.91% 9.71%
=============================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Expenses, net of reimbursement ......... .79%* .78% .77% .79% .76%
=============================================================
Expenses ............................... .79%* .78% .78% .79% .76%
=============================================================
Investment income--net ................. 5.01%* 5.15% 5.18% 5.16% 5.10%
=============================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 20,216 $ 19,681 $ 22,053 $ 25,886 $ 29,053
=============================================================
Portfolio turnover ..................... 26.53% 31.83% 45.50% 41.29% 81.27%
=============================================================
* Annualized.
** Total investment returns exclude the effect of sales charges. The Fund's
Investment Adviser agreed to reimburse a portion of its fee. Without such
reimbursement, the Fund's performance may have been lower.
+ Based on average shares outstanding.
@ Aggregate total investment return.
See Notes to Financial Statements.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 19
[LOGO] Merrill Lynch Investment Managers
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 amended, as a non-diversified, open-end
management investment company. The Fund's financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. These unaudited financial statements reflect all adjustments,
which are, in the opinion of management, necessary to present a fair statement
of the results for the interim period. All such adjustments are of a normal,
recurring nature. The Fund offers multiple classes of shares. Shares of Class A
and Class I 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 A, Class B and Class C 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 (except that Class B
shareholders may vote on certain changes to the Class A distribution plan).
Income, expenses (other than expenses attributable to a specific class) and
realized and unrealized gains and losses are allocated daily to each class based
on its relative net assets. The following is a summary of significant accounting
policies followed by the Fund.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter markets and are valued at the last available bid price in the
over-the-counter market or on the basis of values as obtained by a pricing
service. Pricing services use valuation matrixes that incorporate both
dealer-supplied valuations and valuation models. The procedures of the pricing
service and its valuations are reviewed by the officers of the Trust under the
general direction of the Board of Trustees. Such valuations and procedures will
be reviewed periodically by the Board of Trustees of the Trust. Financial
futures contracts and options thereon, which are traded on exchanges, are valued
at their closing prices as of the close of such exchanges. Options written or
purchased are valued at the last sale price in the case of exchange-traded
options. In the case of options traded in the over-the-counter market, valuation
is the last asked price (options written) or the last bid price (options
purchased). Swap agreements are valued by quoted fair values received daily by
the Fund's pricing service. Short-term investments with a remaining maturity of
60 days or less are valued at amortized cost, which approximates market value,
under which method the investment is valued at cost and any premium or discount
is amortized on a straight line basis to maturity. Investments in open-end
investment companies are valued at their net asset value each business day.
Securities and other 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.
(b) Derivative financial instruments -- The Fund may engage in various portfolio
investment strategies both to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
o Financial futures contracts -- The Fund may purchase or sell financial
futures contracts and options on such futures contracts. 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).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
20 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Notes to Financial Statements (continued)
Interest income is recognized on the accrual basis. The Fund amortizes all
premiums and discounts on debt securities.
(e) Dividends and distributions -- Dividends from net investment income are
declared daily and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates.
(f) Expenses -- Certain expenses have been allocated to the individual Funds in
the Trust on a pro rata basis based upon the respective aggregate net asset
value of each Fund included in the Trust.
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 Plan with FAM Distributors, Inc. ("FAMD"
or the "Distributor"), 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. The Investment Adviser agreed to reimburse its management fee by the
amount of management fees the Fund pays to FAM indirectly through its investment
in Merrill Lynch Institutional Tax-Exempt Fund. For the six months ended January
31, 2005, FAM reimbursed the Fund in the amount of $52.
Pursuant to the Distribution Plan 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 A ................................ .10% --
Class B ................................ .25% .25%
Class C ................................ .25% .35%
- --------------------------------------------------------------------------------
Pursuant to a sub-agreement with the Distributor, Merrill Lynch, Pierce, Fenner
& Smith Incorporated ("MLPF&S"), an affiliate of FAM, also provides 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 A, Class B and Class C 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, 2005, FAMD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Fund's Class A and Class I
Shares as follows:
- --------------------------------------------------------------------------------
FAMD MLPF&S
- --------------------------------------------------------------------------------
Class A ............................ $ 3,612 $28,160
Class I ............................ $ 18 $ 198
- --------------------------------------------------------------------------------
For the six months ended January 31, 2005, MLPF&S received contingent deferred
sales charges of $16,400 and $18,685 relating to transactions in Class B and
Class C Shares, respectively.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
For the six months ended January 31, 2005, the Fund reimbursed FAM $1,444 for
certain accounting services.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, FAMD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended January 31, 2005 were $33,680,170 and $37,488,224, respectively.
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was $467,046 and $(24,828,973) for the six months ended January 31,
2005 and for the year ended July 31, 2004, respectively.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 21
[LOGO] Merrill Lynch Investment Managers
Notes to Financial Statements (concluded)
Transactions in shares of beneficial interest for each class were as follows:
- -------------------------------------------------------------------------------
Class A Shares for the Six Months Dollar
Ended January 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 617,564 $ 6,383,135
Automatic conversion of shares ........... 122,466 1,258,213
Shares issued to shareholders in
reinvestment of dividends ............. 51,173 527,291
-------------------------------
Total issued ............................. 791,203 8,168,639
Shares redeemed .......................... (393,673) (4,044,609)
-------------------------------
Net increase ............................. 397,530 $ 4,124,030
===============================
- -------------------------------------------------------------------------------
Class A Shares for the Year Dollar
Ended July 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 296,843 $ 3,037,472
Automatic conversion of shares ........... 897,388 9,133,101
Shares issued to shareholders in
reinvestment of dividends ............. 122,927 1,256,246
-------------------------------
Total issued ............................. 1,317,158 13,426,819
Shares redeemed .......................... (1,379,798) (14,069,718)
-------------------------------
Net decrease ............................. (62,640) $ (642,899)
===============================
- -------------------------------------------------------------------------------
Class B Shares for the Six Months Dollar
Ended January 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 55,033 $ 566,363
Shares issued to shareholders in
reinvestment of dividends ............. 28,346 292,549
-------------------------------
Total issued ............................. 83,379 858,912
-------------------------------
Automatic conversion of shares ........... (122,274) (1,258,213)
Shares redeemed .......................... (420,823) (4,331,669)
-------------------------------
Total redeemed ........................... (543,097) (5,589,882)
-------------------------------
Net decrease ............................. (459,718) $ (4,730,970)
===============================
- -------------------------------------------------------------------------------
Class B Shares for the Year Dollar
Ended July 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 309,980 $ 3,168,039
Shares issued to shareholders in
reinvestment of dividends ............. 77,843 796,616
-------------------------------
Total issued ............................. 387,823 3,964,655
-------------------------------
Automatic conversion of shares ........... (896,109) (9,133,101)
Shares redeemed .......................... (1,458,472) (14,903,551)
-------------------------------
Total redeemed ........................... (2,354,581) (24,036,652)
-------------------------------
Net decrease ............................. (1,966,758) $(20,071,997)
===============================
- -------------------------------------------------------------------------------
Class C Shares for the Six Months Dollar
Ended January 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 191,580 $ 1,970,790
Shares issued to shareholders in
reinvestment of dividends ............. 10,725 110,529
-------------------------------
Total issued ............................. 202,305 2,081,319
Shares redeemed .......................... (99,896) (1,025,201)
-------------------------------
Net increase ............................. 102,409 $ 1,056,118
===============================
- -------------------------------------------------------------------------------
Class C Shares for the Year Dollar
Ended July 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 249,163 $ 2,566,138
Shares issued to shareholders in
reinvestment of dividends ............. 28,959 295,973
-------------------------------
Total issued ............................. 278,122 2,862,111
Shares redeemed .......................... (427,929) (4,341,021)
-------------------------------
Net decrease ............................. (149,807) $ (1,478,910)
===============================
- -------------------------------------------------------------------------------
Class I Shares for the Six Months Dollar
Ended January 31, 2005 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 166,508 $ 1,717,408
Shares issued to shareholders in
reinvestment of dividends ............. 20,323 209,798
-------------------------------
Total issued ............................. 186,831 1,927,206
Shares redeemed .......................... (185,169) (1,909,338)
-------------------------------
Net increase ............................. 1,662 $ 17,868
===============================
- -------------------------------------------------------------------------------
Class I Shares for the Year Dollar
Ended July 31, 2004 Shares Amount
- -------------------------------------------------------------------------------
Shares sold .............................. 324,251 $ 3,335,139
Shares issued to shareholders in
reinvestment of dividends ............. 44,636 456,863
-------------------------------
Total issued ............................. 368,887 3,792,002
Shares redeemed .......................... (623,105) (6,427,169)
-------------------------------
Net decrease ............................. (254,218) $ (2,635,167)
===============================
5. Short-Term Borrowings:
The Trust, on behalf of the Fund, along with certain other funds managed by FAM
and its affiliates, is a party to a $500,000,000 credit agreement with a group
of lenders. The Fund may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Fund may
borrow up to the maximum amount allowable under the Fund's current prospectus
and statement of additional information, subject to various other legal,
regulatory or contractual limits. The Fund pays a commitment fee of .07% per
annum based on the Fund's pro rata share of the unused portion of the credit
agreement. Amounts borrowed under the credit agreement bear interest at a rate
equal to, at each fund's election, the federal funds rate plus .50% or a base
rate as defined in the credit agreement. The Fund did not borrow under the
credit agreement during the six months ended January 31, 2005. On November 26,
2004, the credit agreement was renewed for one year under substantially the same
terms.
6. Capital Loss Carryforward:
On July 31, 2004, the Fund had a net capital loss carryforward of $5,250,187, of
which $4,131,859 expires in 2008 and $1,118,328 expires in 2009. This amount
will be available to offset like amounts of any future taxable gains.
22 MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005
Officers and Trustees
Robert C. Doll, Jr., President and Trustee
James H. Bodurtha, Trustee
Joe Grills, Trustee
Herbert I. London, Trustee
Roberta Cooper Ramo, Trustee
Robert S. Salomon, Jr., Trustee
Stephen B. Swensrud, Trustee
Kenneth A. Jacob, Senior Vice President
John M. Loffredo, Senior Vice President
Robert D. Sneeden, Vice President
Donald C. Burke, Vice President and Treasurer
Jeffrey Hiller, Chief Compliance Officer
Alice A. Pellegrino, Secretary
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
- --------------------------------------------------------------------------------
Andre F. Perold resigned as a Trustee of Merrill Lynch Florida Municipal Bond
Fund of Merrill Lynch Multi-State Municipal Series Trust effective October 22,
2004.
Effective January 1, 2005, Terry K. Glenn retired as President and Trustee of
the Fund. The Fund's Board of Trustees wishes Mr. Glenn well in his retirement.
Effective January 1, 2005, Robert C. Doll, Jr. became President and Trustee of
the Fund.
- --------------------------------------------------------------------------------
Electronic Delivery
The Fund offers electronic delivery of communications to its shareholders. In
order to receive this service, you must register your account and provide us
with e-mail information. To sign up for this service, simply access this Web
site at http://www.icsdelivery.com/live and follow the instructions. When you
visit this site, you will obtain a personal identification number (PIN). You
will need this PIN should you wish to update your e-mail address, choose to
discontinue this service and/or make any other changes to the service. This
service is not available for certain retirement accounts at this time.
MERRILL LYNCH FLORIDA MUNICIPAL BOND FUND JANUARY 31, 2005 23
[LOGO] Merrill Lynch Investment Managers www.mlim.ml.com
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.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free 1-800-MER-FUND (1-800-637-3863); (2)
at www.mutualfunds.ml.com; and (3) on the Securities and Exchange Commission's
Web site at http://www.sec.gov. Information about how the Fund voted proxies
relating to securities held in the Fund's portfolio during the most recent
12-month period ended June 30 is available (1) at www.mutualfunds.ml.com and (2)
on the Securities and Exchange Commission's Web site at http://www.sec.gov.
Merrill Lynch Florida Municipal Bond Fund of
Merrill Lynch Multi-State Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
#16031 -- 1/05
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual
report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - Not Applicable
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not
Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - Not Applicable
Item 11 - Controls and Procedures
11(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to
the filing date of this report.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal half-year of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
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.
Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch Multi-State Municipal
Series Trust
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch Multi-State
Municipal Series Trust
Date: March 21, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Robert C. Doll, Jr.
-----------------------------------
Robert C. Doll, Jr.,
Chief Executive Officer of
Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch Multi-State
Municipal Series Trust
Date: March 21, 2005
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke,
Chief Financial Officer of
Merrill Lynch Florida Municipal Bond Fund of Merrill Lynch Multi-State
Municipal Series Trust
Date: March 21, 2005