Schedule of Investments as of July 31, 2007 (Unaudited) (concluded) (in Thousands)
Face
State Amount Municipal Bonds Value
California $ 915 Golden State Tobacco Securitization Corporation of California, Tobacco
(concluded) Settlement Revenue Refunding Bonds, Senior Series A-1, 5.125% due 6/01/2047 $ 853
2,405 Montebello, California, Unified School District, GO, 5.61% due 8/01/2022 (c)(m) 1,212
2,455 Montebello, California, Unified School District, GO, 5.61% due 8/01/2023 (c)(m) 1,175
2,095 Oceanside, California, Unified School District, GO (Election of 2000),
Series C, 5.25% due 8/01/2032 (h) 2,191
3,490 Sequoia, California, Unified High School District, GO, Refunding, Series B,
5.50% due 7/01/2035 (e) 3,811
1,000 Sunnyvale, California, School District, GO (Election of 2004), Series A, 5%
due 9/01/2026 (e) 1,042
2,915 Tustin, California, Unified School District, Senior Lien Special Tax Bonds
(Community Facilities District Number 97-1),
Series A, 5% due 9/01/2032 (e) 2,984
Colorado - 1.7% 2,645 Elk Valley, Colorado, Public Improvement Revenue Bonds (Public Improvement Fee),
Series A, 7.35% due 9/01/2031 2,775
1,000 Plaza Metropolitan District Number 1, Colorado, Tax Allocation Revenue Bonds
(Public Improvement Fees), 8.125% due 12/01/2025 1,003
Connecticut - 2.4% 2,165 Connecticut State Development Authority, Airport Facility Revenue Bonds
(Learjet Inc. Project), AMT, 7.95% due 4/01/2026 2,549
2,735 Connecticut State Development Authority, IDR (AFCO Cargo BDL-LLC Project), AMT,
8% due 4/01/2030 2,925
Florida - 8.1% 2,900 Highlands County, Florida, Health Facilities Authority, Hospital Revenue
Refunding Bonds (Adventist Health System), Series G, 5.125% due 11/15/2032 2,918
2,340 Miami-Dade County, Florida, Subordinate Special Obligation Revenue Bonds,
Series A, 5.24% due 10/01/2037 (h)(m) 500
2,250 Midtown Miami, Florida, Community Development District, Special Assessment
Revenue Bonds, Series A, 6.25% due 5/01/2037 2,291
2,550 Midtown Miami, Florida, Community Development District, Special Assessment
Revenue Bonds, Series B, 6.50% due 5/01/2037 2,631
3,225 Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds
(Orlando Regional Healthcare), 6% due 12/01/2012 (i) 3,543
2,095 Orlando, Florida, Greater Orlando Aviation Authority, Airport Facilities
Revenue Bonds (JetBlue Airways Corp.), AMT, 6.50% due 11/15/2036 2,183
800 Orlando, Florida, Urban Community Development District, Capital Improvement
Special Assessment Bonds, Series A, 6.95% due 5/01/2033 850
725 Palm Coast Park Community Development District, Florida, Special Assessment
Revenue Bonds, 5.70% due 5/01/2037 730
1,615 Preserve at Wilderness Lake, Florida, Community Development District,
Capital Improvement Bonds, Series A, 5.90% due 5/01/2034 1,641
1,000 Tern Bay Community Development District, Florida, Capital Improvement
Revenue Refunding Bonds, Series A, 5.375% due 5/01/2037 947
Georgia - 0.9% 1,750 Atlanta, Georgia, Tax Allocation Bonds (Atlantic Station Project),
7.90% due 12/01/2024 1,911
Illinois - 3.0% 1,200 Chicago, Illinois, Special Assessment Bonds (Lake Shore East), 6.75% due
12/01/2032 1,284
4,000 Illinois HDA, Homeowner Mortgage Revenue Bonds, AMT, Sub-Series C-2,
5.35% due 2/01/2027 4,070
700 Illinois State Finance Authority Revenue Bonds (Landing At Plymouth Place
Project), Series A, 6% due 5/15/2025 732
625 Naperville, Illinois, IDR (General Motors Corporation), Refunding, VRDN, 7.50%
due 12/01/2012 (f) 625
Indiana - 2.6% 8,325 Allen County, Indiana, Redevelopment District Tax Increment Revenue
Bonds (General Motors Development Area), 7% due 5/15/2008 (i)(m) 5,749
Kentucky - 0.9% 2,000 Louisville and Jefferson Counties, Kentucky, Metropolitan Sewer District, Sewer
and Drain System Revenue Bonds, Series A, 5.50% due 5/15/2034 (h) 2,125
Louisiana - 4.3% 4,115 Louisiana Public Facilities Authority, Hospital Revenue Bonds (Franciscan
Missionaries of Our Lady Health System, Inc.), Series A, 5.25% due 8/15/2036 4,169
1,750 New Orleans, Louisiana, Financing Authority Revenue Bonds (Xavier University of
Louisiana Project), 5.30% due 6/01/2026 (h) 1,816
3,540 New Orleans, Louisiana, GO (Public Improvements), 5% due 10/01/2033 (h) 3,625
Maryland - 3.5% 1,870 Anne Arundel County, Maryland, Special Obligation Revenue Bonds (Arundel Mills
Project), 7.10% due 7/01/2009 (i) 2,016
1,100 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series D, 5% due
7/01/2037 (b) 1,147
1,760 Maryland State Economic Development Corporation, Student Housing Revenue Bonds
(University of Maryland College Park Project), 6.% due 6/01/2013 (i) 1,958
2,750 Maryland State Energy Financing Administration, Limited Obligation
Revenue Bonds (Cogeneration-AES Warrior Run), AMT, 7.40% due 9/01/2019 2,757
Massachusetts - 3.6% 2,900 Massachusetts State, HFA, Housing Revenue Bonds, AMT, Series A, 5.25% due
12/01/2048 2,912
5,000 Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds,
Series A, 5% due 8/15/2030 (e) 5,201
Michigan - 2.6% 1,400 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 6% due 7/01/2020 (a) 1,498
3,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit
Edison Company Pollution Control Project), AMT, Series B, 5.65% due 9/01/2029 3,106
1,300 Michigan State Strategic Fund, PCR (General Motors Corporation Project),
VRDN, 7% due 12/01/2008 (f) 1,300
Minnesota - 1.7% 3,500 Minneapolis, Minnesota, Community Development Agency, Supported
Development Revenue Refunding Bonds, Series G-3, 5.45% due 12/01/2011 (i) 3,720
Mississippi - 5.4% 7,675 Claiborne County, Mississippi, PCR, Refunding (System Energy Resources Inc.
Project), 6.20% due 2/01/2026 7,703
2,500 Mississippi Business Finance Corporation, Mississippi, PCR, Refunding
(System Energy Resources Inc. Project), 5.90% due 5/01/2022 2,524
1,000 Mississippi Development Bank, Special Obligation Revenue Refunding Bonds
(Gulfport Water and Sewer System Project), 5.25% due 7/01/2017 (e) 1,085
810 Mississippi Development Bank, Special Obligation Revenue Refunding Bonds
(Gulfport Water and Sewer System Project), 5.25% due 7/01/2019 (e) 874
Missouri - 1.4% 1,915 Fenton, Missouri, Tax Increment Revenue Refunding and Improvement Bonds (Gravois
Bluffs), 7% due 10/01/2011 (i) 2,160
1,000 Missouri State Development Finance Board, Infrastructure Facilities Revenue
Refunding Bonds (Branson), Series A, 5.50% due 12/01/2032 1,033
New Jersey - 12.9% 5,385 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029 5,734
2,280 New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2034 2,417
1,475 New Jersey EDA, Retirement Community Revenue Bonds (Cedar Crest Village Inc.
Facility), Series A, 7.25% due 11/15/2011 (i) 1,674
2,600 New Jersey EDA, Retirement Community Revenue Bonds (Seabrook Village Inc.),
Series A, 8.25% due 11/15/2010 (i) 2,971
1,965 New Jersey EDA, School Facilities Construction Revenue Bonds, Series O,
5.125% due 3/01/2030 2,043
1,000 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project),
AMT, 6.625% due 9/15/2012 1,052
2,950 New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project),
AMT, 6.25% due 9/15/2029 3,034
3,325 New Jersey Health Care Facilities Financing Authority Revenue Bonds (South Jersey
Hospital), 6% due 7/01/2012 (i) 3,621
3,500 New Jersey State Turnpike Authority, Turnpike Revenue Bonds, Series C, 5% due
1/01/2030 (e) 3,631
2,315 Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed
Revenue Bonds, 7% due 6/01/2013 (i) 2,681
New Mexico - 2.7% 2,000 Farmington, New Mexico, PCR, Refunding (Public Service Company of New Mexico - San
Juan Project), Series A, 6.30% due 12/01/2016 2,043
3,720 New Mexico Finance Authority, Senior Lien State Transportation Revenue
Bonds, Series A, 5.125% due 6/15/2018 (h) 3,939
New York - 14.1% 1,155 Dutchess County, New York, IDA, Civic Facility Revenue Refunding Bonds (Saint
Francis Hospital), Series A, 7.50% due 3/01/2029 1,265
535 New York City, New York, City IDA, Civic Facility Revenue Bonds, Series C, 6.80%
due 6/01/2028 580
725 New York City, New York, City IDA, Special Facility Revenue Bonds (Continental
Airlines Inc. Project), AMT, 8% due 11/01/2012 785
725 New York City, New York, City IDA, Special Facility Revenue Bonds (Continental
Airlines Inc. Project), AMT, 8.375% due 11/01/2016 794
9,115 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5% due 10/15/2020 (h) 9,570
3,680 New York State Dormitory Authority Revenue Bonds (School Districts Financing
Program), Series D, 5.25% due 10/01/2023 (h) 3,884
3,150 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series A-1,
5.50% due 6/01/2018 3,339
3,500 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1,
5.50% due 6/01/2017 3,675
3,800 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1,
5.50% due 6/01/2020 (c) 4,065
1,400 Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series C-1,
5.50% due 6/01/2022 1,488
2,080 Westchester County, New York, IDA, Continuing Care Retirement, Mortgage Revenue
Bonds (Kendal on Hudson Project), Series A, 6.50% due 1/01/2034 2,182
Oklahoma - 0.8% 1,815 Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John
Health System), 5% due 2/15/2042 1,815
Pennsylvania - 5.7% 1,700 Bucks County, Pennsylvania, IDA, Retirement Community Revenue Bonds (Ann's Choice
Inc.), Series A, 6.25% due 1/01/2035 1,772
3,500 Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue
Bonds (National Gypsum Company), AMT, Series B, 6.125% due 11/01/2027 3,615
725 Philadelphia, Pennsylvania, Authority for IDR, Commercial Development, 7.75% due
12/01/2017 726
1,105 Philadelphia, Pennsylvania, Authority for Industrial Development, Senior Living
Revenue Bonds (Arbor House Inc. Project), Series E, 6.10% due 7/01/2033 1,156
1,245 Philadelphia, Pennsylvania, Authority for Industrial Development, Senior Living
Revenue Bonds (Saligman House Project), Series C, 6.10% due 7/01/2033 1,302
3,500 Sayre, Pennsylvania, Health Care Facilities Authority, Revenue Bonds (Guthrie
Healthcare System), Series B, 7.125% due 12/01/2011 (i) 4,165
Rhode Island - 1.4% 2,820 Rhode Island State Health and Educational Building Corporation, Hospital Financing
Revenue Bonds (Lifespan Obligation Group), 6.50% due 8/15/2012 (i) 3,151
South Carolina - 1.5% 3,020 Medical University Hospital Authority, South Carolina, Hospital Facilities Revenue
Refunding Bonds, Series A, 6.375% due 8/15/2012 (i) 3,368
South Dakota - 0.8% 1,825 South Dakota State Health and Educational Facilities Authority Revenue Bonds
(Sanford Health), 5% due 11/01/2040 1,827
Tennessee - 8.0% 1,900 Clarksville, Tennessee, Public Building Authority Revenue Bonds, Pooled Financing
(Tennessee Municipal Bond Fund), VRDN, 3.64% due 11/01/2035 (f) 1,900
4,030 Hardeman County, Tennessee, Correctional Facilities Corporation Revenue Bonds,
7.75% due 8/01/2017 4,115
4,575 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital
Revenue Refunding Bonds (Methodist Healthcare), 6.50% due 9/01/2012 (i) 5,132
3,500 Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital
Revenue Refunding Bonds (Saint Jude Children's Research Hospital), 5% due 7/01/2031 3,525
3,160 Tennessee Educational Loan Revenue Bonds (Educational Funding South Inc.), AMT,
Senior Series B, 6.20% due 12/01/2021 3,165
Texas - 13.4% 4,000 Austin, Texas, Convention Center Revenue Bonds (Convention Enterprises Inc.),
First Tier, Series A, 6.70% due 1/01/2011 (i) 4,359
100 Bell County, Texas, Health Facilities Development Corporation, Hospital Revenue
Bonds (Scott & White Memorial Hospital), VRDN, Series 2001-2, 3.64% due
8/15/2031 (f)(h) 100
2,340 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant Energy Inc.
Project), Series B, 7.75% due 12/01/2018 2,441
3,655 Brazos River, Texas, Harbor Navigation District, Brazoria County Environmental
Revenue Refunding Bonds (Dow Chemical Company Project), AMT, Series A-7, 6.625%
due 5/15/2033 3,896
1,800 Houston, Texas, Health Facilities Development Corporation, Retirement Facility
Revenue Bonds (Buckingham Senior Living Community), Series A, 7.125% due 2/15/2034 2,128
3,000 Lower Colorado River Authority, Texas, PCR (Samsung Austin Semiconductor),
AMT, 6.375% due 4/01/2027 3,064
1,485 Matagorda County, Texas, Navigation District Number 1, Revenue Refunding Bonds
(Reliant Energy Inc.), Series C, 8% due 5/01/2029 1,544
1,425 Port Corpus Christi, Texas, Individual Development Corporation, Environmental
Facilities Revenue Bonds (Citgo Petroleum Corporation Project), AMT, 8.25%
due 11/01/2031 1,457
2,425 SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue
Bonds, 5.50% due 8/01/2023 2,585
1,100 SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue
Bonds, 5.50% due 8/01/2024 1,174
1,120 SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue
Bonds, 5.50% due 8/01/2025 1,197
3,225 Texas State Department of Housing and Community Affairs, Residential Mortgage
Revenue Bonds, AMT, Series A, 5.70% due 1/01/2033 (d) 3,229
2,770 Texas State Department of Housing and Community Affairs, Residential Mortgage
Revenue Refunding Bonds, AMT, Series B, 5.25% due 7/01/2022 (d) 2,829
Vermont - 1.1% 2,370 Vermont Educational and Health Buildings Financing Agency, Revenue
Bonds (Developmental and Mental Health), Series A, 6% due 6/15/2017 2,446
Virginia - 3.7% 1,150 Chesterfield County, Virginia, IDA, PCR (Virginia Electric and Power Company),
Series A, 5.875% due 6/01/2017 1,219
3,000 Fairfax County, Virginia, EDA, Resource Recovery Revenue Refunding Bonds, AMT,
Series A, 6.10% due 2/01/2011 (b) 3,207
1,500 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior
Series B, 8.40% due 8/15/2008 (i)(m) 434
300 Pocahontas Parkway Association, Virginia, Toll Road Revenue Bonds, Senior
Series B, 8.80% due 8/15/2008 (i)(m) 82
3,035 Tobacco Settlement Financing Corporation of Virginia, Asset-Backed Revenue
Bonds, 5.625% due 6/01/2015 (i) 3,351
Washington - 0.6% 1,360 Seattle, Washington, Housing Authority Revenue Bonds (Replacement Housing
Project), 6.125% due 12/01/2032 1,388
Wisconsin - 1.2% 825 Wisconsin State Health and Educational Facilities Authority Revenue Bonds (New
Castle Place Project), Series A, 7% due 12/01/2031 851
1,755 Wisconsin State Health and Educational Facilities Authority Revenue Bonds
(SynergyHealth Inc.), 6% due 11/15/2032 1,855
Puerto Rico - 3.4% 2,680 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series N, 5.25% due 7/01/2036 (n) 2,957
2,060 Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities
Financing Authority, Special Facilities Revenue Bonds (American Airlines Inc.),
Series A, 6.45% due 12/01/2025 2,093
19,235 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds,
Series A, 5.06% due 8/01/2047 (b)(m) 2,663
U.S. Virgin 3,460 Virgin Islands Government Refinery Facilities, Revenue Refunding Bonds (Hovensa
Islands - 1.7% Coker Project), AMT, 6.50% due 7/01/2021 3,714
Total Municipal Bonds (Cost - $306,720) - 143.2% 321,035
Municipal Bonds Held in Trust (g)
California - 3.2% 6,810 California Pollution Control Financing Authority, PCR, Refunding (Pacific Gas
and Electric), AMT, Series A, 5.35% due 12/01/2016 (h) 7,181
Maryland - 5.1% 10,835 Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Senior Series A,
5.25% due 9/01/2039 (k) 11,410
New York - 2.0% 4,240 New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds,
Series A, 5.25% due 10/15/2027 (b) 4,522
South Carolina - 5.3% 11,600 South Carolina State Ports Authority, Ports Revenue Bonds, AMT, 5.30% due
7/01/2026 (e) 11,799
Texas - 5.4% 11,760 Harris County, Texas, Toll Road Revenue Refunding Bonds, Senior Lien, Series A,
5.25% due 8/15/2035 (e) 12,239
Total Municipal Bonds Held in Trust (Cost - $47,598) - 21.0% 47,151
Shares
Held Short-Term Securities
9 Merrill Lynch Institutional Tax-Exempt Fund, 3.47% (j)(l) 9
Total Short-Term Securities (Cost - $9) - 0.0% 9
Total Investments (Cost - $354,327*) - 164.2% 368,195
Other Assets Less Liabilities - 1.8% 4,007
Liability for Trust Certificates, Including Interest Expense Payable - (10.2%) (22,872)
Preferred Stock, at Redemption Value - (55.8%) (125,075)
----------
Net Assets Applicable to Common Stock - 100.0% $ 224,255
==========
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were
as follows:
Aggregate cost $ 331,711
===================
Gross unrealized appreciation $ 15,205
Gross unrealized depreciation (1,344)
-------------------
Net unrealized appreciation $ 13,861
===================
(a) ACA Insured.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) FNMA/GNMA Collateralized.
(e) FSA Insured.
(f) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(g) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction.
(h) MBIA Insured.
(i) Prerefunded.
(j) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Affiliate Net Dividend
Activity Income
Merrill Lynch Institutional
Tax-Exempt Fund - ++
++ Amount is less than $1,000.
(k) XL Capital Insured.
(l) Represents the current yield as of July 31, 2007.
(m) Represents a zero coupon bond; the interest rate shown reflects
the effective yield at the time of purchase.
(n) Assured Guaranty Insured.
o Forward interest rate swaps outstanding as of July 31, 2007
were as follows:
Notional Unrealized
Amount Depreciation
Receive a fixed rate of 5.39% and pay a
floating rate based on 3-month LIBOR
Broker, Deutsche Bank AG London
Expires August 2017 $12,085 $ (64)
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