EV CLASSIC CALIFORNIA MUNICIPALS FUND
Supplement to Prospectus dated February 1, 1995
1. Effective immediately, the Portfolio may invest without
limit in municipal obligations the interest on which is a tax
preference item under the federal alternative minimum tax. In
connection with this change, the Portfolio has changed its name
to "California Municipals Portfolio." This change will also
permit the Fund and the Portfolio to invest in municipal
obligations of the governments of Puerto Rico, Guam and the U.S.
Virgin Islands. The first sentence of the first paragraph under
"How the Fund and the Portfolio Invest their Assets" is replaced
with the following:
The Fund seeks to achieve its investment objective by
investing either directly or indirectly through another
open-end management investment company primarily (i.e., at
least 80% of its net assets during periods of normal market
conditions) in municipal obligations the interest on which
is exempt from regular federal income tax and from the State
taxes that, in accordance with its investment objective, the
Fund seeks to avoid.
2. Effective immediately, the diversification status of
the Fund and the Portfolio has changed from diversified to non-
diversified. In connection with this change (which shareholders
have approved), "Diversified Status" under "How the Fund and
Portfolio Invest their Assets" is replaced with the following:
Non-Diversified Status. The Portfolio's classification
under the Investment Company Act of 1940 (the "1940 Act") as
a "non-diversified" investment company allows it to invest,
with respect to 50% of its assets, more than 5% (but not
more than 25%) of its assets in the securities of any
issuer. The Portfolio is likely to invest a greater
percentage of its assets in the securities of a single
issuer than would a diversified fund. Therefore, the
Portfolio would be more susceptible to any single adverse
economic or political occurrence or development affecting
issuers of California municipal obligations.
December 11, 1995 C-CAPS2
EV CLASSIC CALIFORNIA MUNICIPALS FUND
Supplement to Statement of Additional Information
dated February 1, 1995
1. Effective immediately, the Portfolio has changed its
name to "California Municipals Portfolio."
2. Set forth below are revised fundamental and
nonfundamental investment restrictions, which shareholders have
approved. The following replaces "Investment Restrictions" in
the Statement of Additional Information:
INVESTMENT RESTRICTIONS
Certain investment restrictions of the Fund are
designated as fundamental policies and as such cannot be
changed without the approval of the holders of a majority of
the Fund's outstanding voting securities, which as used in
this Statement of Additional Information means the lesser of
(a) 67% of the shares of the Fund present or represented by
proxy at a meeting if the holders of more than 50% of the
shares are present or represented at the meeting or (b) more
than 50% of the shares of the Fund. Accordingly, the Fund
may not:
(1) Borrow money or issue senior securities except as
permitted by the Investment Company Act of 1940;
(2) Purchase securities on margin (but the Fund may
obtain such short-term credits as may be necessary for the
clearance of purchases and sales of securities). The
deposit or payment by the Fund of initial or maintenance
margin in connection with futures contracts or related
options transactions is not considered the purchase of a
security on margin;
(3) Underwrite or participate in the marketing of
securities of others, except insofar as it may technically
be deemed to be an underwriter in selling a portfolio
security under circumstances which may require the
registration of the same under the Securities Act of 1933;
(4) Purchase or sell real estate (including limited
partnership interests in real estate but excluding readily
marketable interests in real estate investment trusts or
readily marketable securities of companies which invest or
deal in real estate or securities which are secured by real
estate);
(5) Purchase or sell physical commodities or contracts
for the purchase or sale of physical commodities; or
(6) Make loans to any person except by (a) the
acquisition of debt instruments and making portfolio
investments, (b) entering into repurchase agreements and (c)
lending portfolio securities.
Notwithstanding the investment policies and
restrictions of the Fund, the Fund may invest all of its
investable assets in an open-end management investment
company with substantially the same investment objective,
policies and restrictions as the Fund.
The Portfolio has adopted substantially the same
fundamental investment restrictions as the investment
restrictions adopted by the Fund; such restrictions cannot
be changed without the approval of a "majority of the
outstanding voting securities" of the Portfolio, which as
used in this Statement of Additional Information means the
lesser of (a) 67% of the outstanding voting securities of
the Portfolio present or represented by proxy at a meeting
if the holders of more than 50% of the outstanding voting
securities of the Portfolio are present or represented at
the meeting or (b) more than 50% of the outstanding voting
securities of the Portfolio. The term "voting securities"
as used in this paragraph has the same meaning as in the
Investment Company Act of 1940 (the "1940 Act"). Whenever
the Trust is requested to vote on a change in the
fundamental investment restrictions of the Portfolio (or the
Portfolio's 80% investment policy with respect to State
obligations described in the Fund's current Prospectus), the
Trust will hold a meeting of Fund shareholders and will cast
its vote as instructed by the shareholders.
The Fund and the Portfolio have adopted the following
investment policies which may be changed by the Trust with
respect to the Fund without approval by the Fund's
shareholders or by the Portfolio with respect to the
Portfolio without approval by the Fund or its other
investors. As a matter of nonfundamental policy, the Fund
and the Portfolio will not: (a) engage in options, futures
or forward transactions if more than 5% of its net assets,
as measured by the aggregate of the premiums paid by the
Fund or the Portfolio, would be so invested; (b) make short
sales of securities or maintain a short position, unless at
all times when a short position is open it owns an equal
amount of such securities or securities convertible into or
exchangeable, without payment of any further consideration,
for securities of the same issue as, and equal in amount to,
the securities sold short, and unless not more than 25% of
the Fund's net assets (taken at current value) is held as
collateral for such sales at any one time. (The Fund will
make such sales only for the purpose of deferring
realization of gain or loss for federal income tax
purposes); (c) invest more than 15% of net assets in
investments which are not readily marketable, including
restricted securities and repurchase agreements maturing in
more than seven days. Restricted securities for the
purposes of this limitation do not include securities
eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 and commercial paper issued pursuant
to Section 4(2) of said Act that the Board of Trustees of
the Trust or the Portfolio, or its delegate, determines to
be liquid; (d) purchase or retain in its portfolio any
securities issued by an issuer any of whose officers,
directors, trustees or security holders is an officer or
Trustee of the Trust or the Portfolio or is a member,
officer, director or trustee of any investment adviser of
the Trust or the Portfolio, if after the purchase of the
securities of such issuer by the Fund or the Portfolio one
or more of such persons owns beneficially more than 1/2 of
1% of the shares or securities or both (all taken at market
value) of such issuer and such persons owning more than 1/2
of 1% of such shares or securities together own beneficially
more than 5% of such shares or securities or both (all taken
at market value); or (e) purchase oil, gas or other mineral
leases or purchase partnership interests in oil, gas or
other mineral exploration or development programs.
For purposes of the Portfolio's investment
restrictions, the determination of the "issuer" of a
municipal obligation which is not a general obligation bond
will be made by the Portfolio's Investment Adviser on the
basis of the characteristics of the obligation and other
relevant factors, the most significant of which is the
source of funds committed to meeting interest and principal
payments of such obligations.
In order to permit the sale of shares of the Fund in
certain states, the Fund may make commitments more
restrictive than the policies described above. Should the
Fund determine that any such commitment is no longer in the
best interest of the Fund and its shareholders, it will
revoke the commitment by terminating sales of its shares in
the state(s) involved.
December 11, 1995 - 2 - C-CASAIS
EV MARATHON CALIFORNIA MUNICIPALS FUND
Supplement to Prospectus dated February 1, 1995
1. Effective immediately, the Portfolio may invest without
limit in municipal obligations the interest on which is a tax
preference item under the federal alternative minimum tax. In
connection with this change, the Portfolio has changed its name
to "California Municipals Portfolio." This change will also
permit the Fund and the Portfolio to invest in municipal
obligations of the governments of Puerto Rico, Guam and the U.S.
Virgin Islands. The first sentence of the first paragraph under
"How the Fund and the Portfolio Invest their Assets" is replaced
with the following:
The Fund seeks to achieve its investment objective by
investing either directly or indirectly through another
open-end management investment company primarily (i.e., at
least 80% of its net assets during periods of normal market
conditions) in municipal obligations the interest on which
is exempt from regular federal income tax and from the State
taxes that, in accordance with its investment objective, the
Fund seeks to avoid.
2. Effective immediately, the diversification status of
the Fund and the Portfolio has changed from diversified to non-
diversified. In connection with this change (which shareholders
have approved), "Diversified Status" under "How the Fund and
Portfolio Invest their Assets" is replaced with the following:
Non-Diversified Status. The Portfolio's classification
under the Investment Company Act of 1940 (the "1940 Act") as
a "non-diversified" investment company allows it to invest,
with respect to 50% of its assets, more than 5% (but not
more than 25%) of its assets in the securities of any
issuer. The Portfolio is likely to invest a greater
percentage of its assets in the securities of a single
issuer than would a diversified fund. Therefore, the
Portfolio would be more susceptible to any single adverse
economic or political occurrence or development affecting
issuers of California municipal obligations.
December 11, 1995 M-CAPS2
EV MARATHON CALIFORNIA MUNICIPALS FUND
Supplement to Statement of Additional Information
dated February 1, 1995
1. Effective immediately, the Portfolio has changed its
name to "California Municipals Portfolio."
2. Set forth below are revised fundamental and
nonfundamental investment restrictions, which shareholders have
approved. The following replaces "Investment Restrictions" in
the Statement of Additional Information:
INVESTMENT RESTRICTIONS
Certain investment restrictions of the Fund are
designated as fundamental policies and as such cannot be
changed without the approval of the holders of a majority of
the Fund's outstanding voting securities, which as used in
this Statement of Additional Information means the lesser of
(a) 67% of the shares of the Fund present or represented by
proxy at a meeting if the holders of more than 50% of the
shares are present or represented at the meeting or (b) more
than 50% of the shares of the Fund. Accordingly, the Fund
may not:
(1) Borrow money or issue senior securities except as
permitted by the Investment Company Act of 1940;
(2) Purchase securities on margin (but the Fund may
obtain such short-term credits as may be necessary for the
clearance of purchases and sales of securities). The
deposit or payment by the Fund of initial or maintenance
margin in connection with futures contracts or related
options transactions is not considered the purchase of a
security on margin;
(3) Underwrite or participate in the marketing of
securities of others, except insofar as it may technically
be deemed to be an underwriter in selling a portfolio
security under circumstances which may require the
registration of the same under the Securities Act of 1933;
(4) Purchase or sell real estate (including limited
partnership interests in real estate but excluding readily
marketable interests in real estate investment trusts or
readily marketable securities of companies which invest or
deal in real estate or securities which are secured by real
estate);
(5) Purchase or sell physical commodities or contracts
for the purchase or sale of physical commodities; or
(6) Make loans to any person except by (a) the
acquisition of debt instruments and making portfolio
investments, (b) entering into repurchase agreements and (c)
lending portfolio securities.
Notwithstanding the investment policies and
restrictions of the Fund, the Fund may invest all of its
investable assets in an open-end management investment
company with substantially the same investment objective,
policies and restrictions as the Fund.
The Portfolio has adopted substantially the same
fundamental investment restrictions as the investment
restrictions adopted by the Fund; such restrictions cannot
be changed without the approval of a "majority of the
outstanding voting securities" of the Portfolio, which as
used in this Statement of Additional Information means the
lesser of (a) 67% of the outstanding voting securities of
the Portfolio present or represented by proxy at a meeting
if the holders of more than 50% of the outstanding voting
securities of the Portfolio are present or represented at
the meeting or (b) more than 50% of the outstanding voting
securities of the Portfolio. The term "voting securities"
as used in this paragraph has the same meaning as in the
Investment Company Act of 1940 (the "1940 Act"). Whenever
the Trust is requested to vote on a change in the
fundamental investment restrictions of the Portfolio (or the
Portfolio's 80% investment policy with respect to State
obligations described in the Fund's current Prospectus), the
Trust will hold a meeting of Fund shareholders and will cast
its vote as instructed by the shareholders.
The Fund and the Portfolio have adopted the following
investment policies which may be changed by the Trust with
respect to the Fund without approval by the Fund's
shareholders or by the Portfolio with respect to the
Portfolio without approval by the Fund or its other
investors. As a matter of nonfundamental policy, the Fund
and the Portfolio will not: (a) engage in options, futures
or forward transactions if more than 5% of its net assets,
as measured by the aggregate of the premiums paid by the
Fund or the Portfolio, would be so invested; (b) make short
sales of securities or maintain a short position, unless at
all times when a short position is open it owns an equal
amount of such securities or securities convertible into or
exchangeable, without payment of any further consideration,
for securities of the same issue as, and equal in amount to,
the securities sold short, and unless not more than 25% of
the Fund's net assets (taken at current value) is held as
collateral for such sales at any one time. (The Fund will
make such sales only for the purpose of deferring
realization of gain or loss for federal income tax
purposes); (c) invest more than 15% of net assets in
investments which are not readily marketable, including
restricted securities and repurchase agreements maturing in
more than seven days. Restricted securities for the
purposes of this limitation do not include securities
eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 and commercial paper issued pursuant
to Section 4(2) of said Act that the Board of Trustees of
the Trust or the Portfolio, or its delegate, determines to
be liquid; (d) purchase or retain in its portfolio any
securities issued by an issuer any of whose officers,
directors, trustees or security holders is an officer or
Trustee of the Trust or the Portfolio or is a member,
officer, director or trustee of any investment adviser of
the Trust or the Portfolio, if after the purchase of the
securities of such issuer by the Fund or the Portfolio one
or more of such persons owns beneficially more than 1/2 of
1% of the shares or securities or both (all taken at market
value) of such issuer and such persons owning more than 1/2
of 1% of such shares or securities together own beneficially
more than 5% of such shares or securities or both (all taken
at market value); or (e) purchase oil, gas or other mineral
leases or purchase partnership interests in oil, gas or
other mineral exploration or development programs.
For purposes of the Portfolio's investment
restrictions, the determination of the "issuer" of a
municipal obligation which is not a general obligation bond
will be made by the Portfolio's Investment Adviser on the
basis of the characteristics of the obligation and other
relevant factors, the most significant of which is the
source of funds committed to meeting interest and principal
payments of such obligations.
In order to permit the sale of shares of the Fund in
certain states, the Fund may make commitments more
restrictive than the policies described above. Should the
Fund determine that any such commitment is no longer in the
best interest of the Fund and its shareholders, it will
revoke the commitment by terminating sales of its shares in
the state(s) involved.
December 11, 1995 - 2 - M-CASAIS
EV TRADITIONAL CALIFORNIA MUNICIPALS FUND
Supplement to Prospectus dated November 25, 1994
1. Effective immediately, the Portfolio may invest without
limit in municipal obligations the interest on which is a tax
preference item under the federal alternative minimum tax. In
connection with this change, the Portfolio has changed its name
to "California Municipals Portfolio." This change will also
permit the Fund and the Portfolio to invest in municipal
obligations of the governments of Puerto Rico, Guam and the U.S.
Virgin Islands. The first sentence of the first paragraph under
"How the Fund and the Portfolio Invest their Assets" is replaced
with the following:
The Fund seeks to achieve its investment objective by
investing either directly or indirectly through another
open-end management investment company primarily (i.e., at
least 80% of its net assets during periods of normal market
conditions) in municipal obligations the interest on which
is exempt from regular federal income tax and from the State
taxes that, in accordance with its investment objective, the
Fund seeks to avoid.
2. Effective immediately, the diversification status of
the Fund and the Portfolio has changed from diversified to non-
diversified. In connection with this change (which shareholders
have approved), "Diversified Status" under "How the Fund and
Portfolio Invest their Assets" is replaced with the following:
Non-Diversified Status. The Portfolio's classification
under the Investment Company Act of 1940 (the "1940 Act") as
a "non-diversified" investment company allows it to invest,
with respect to 50% of its assets, more than 5% (but not
more than 25%) of its assets in the securities of any
issuer. The Portfolio is likely to invest a greater
percentage of its assets in the securities of a single
issuer than would a diversified fund. Therefore, the
Portfolio would be more susceptible to any single adverse
economic or political occurrence or development affecting
issuers of California municipal obligations.
December 11, 1995 T-CAPS
EV TRADITIONAL CALIFORNIA MUNICIPALS FUND
Supplement to Statement of Additional Information
dated November 25, 1994
1. Effective immediately, the Portfolio has changed its
name to "California Municipals Portfolio."
2. Set forth below are revised fundamental and
nonfundamental investment restrictions, which shareholders have
approved. The following replaces "Investment Restrictions" in
the Statement of Additional Information:
INVESTMENT RESTRICTIONS
Certain investment restrictions of the Fund are
designated as fundamental policies and as such cannot be
changed without the approval of the holders of a majority of
the Fund's outstanding voting securities, which as used in
this Statement of Additional Information means the lesser of
(a) 67% of the shares of the Fund present or represented by
proxy at a meeting if the holders of more than 50% of the
shares are present or represented at the meeting or (b) more
than 50% of the shares of the Fund. Accordingly, the Fund
may not:
(1) Borrow money or issue senior securities except as
permitted by the Investment Company Act of 1940;
(2) Purchase securities on margin (but the Fund may
obtain such short-term credits as may be necessary for the
clearance of purchases and sales of securities). The
deposit or payment by the Fund of initial or maintenance
margin in connection with futures contracts or related
options transactions is not considered the purchase of a
security on margin;
(3) Underwrite or participate in the marketing of
securities of others, except insofar as it may technically
be deemed to be an underwriter in selling a portfolio
security under circumstances which may require the
registration of the same under the Securities Act of 1933;
(4) Purchase or sell real estate (including limited
partnership interests in real estate but excluding readily
marketable interests in real estate investment trusts or
readily marketable securities of companies which invest or
deal in real estate or securities which are secured by real
estate);
(5) Purchase or sell physical commodities or contracts
for the purchase or sale of physical commodities; or
(6) Make loans to any person except by (a) the
acquisition of debt instruments and making portfolio
investments, (b) entering into repurchase agreements and (c)
lending portfolio securities.
Notwithstanding the investment policies and
restrictions of the Fund, the Fund may invest all of its
investable assets in an open-end management investment
company with substantially the same investment objective,
policies and restrictions as the Fund.
The Portfolio has adopted substantially the same
fundamental investment restrictions as the investment
restrictions adopted by the Fund; such restrictions cannot
be changed without the approval of a "majority of the
outstanding voting securities" of the Portfolio, which as
used in this Statement of Additional Information means the
lesser of (a) 67% of the outstanding voting securities of
the Portfolio present or represented by proxy at a meeting
if the holders of more than 50% of the outstanding voting
securities of the Portfolio are present or represented at
the meeting or (b) more than 50% of the outstanding voting
securities of the Portfolio. The term "voting securities"
as used in this paragraph has the same meaning as in the
Investment Company Act of 1940 (the "1940 Act"). Whenever
the Trust is requested to vote on a change in the
fundamental investment restrictions of the Portfolio (or the
Portfolio's 80% investment policy with respect to State
obligations described in the Fund's current Prospectus), the
Trust will hold a meeting of Fund shareholders and will cast
its vote as instructed by the shareholders.
The Fund and the Portfolio have adopted the following
investment policies which may be changed by the Trust with
respect to the Fund without approval by the Fund's
shareholders or by the Portfolio with respect to the
Portfolio without approval by the Fund or its other
investors. As a matter of nonfundamental policy, the Fund
and the Portfolio will not: (a) engage in options, futures
or forward transactions if more than 5% of its net assets,
as measured by the aggregate of the premiums paid by the
Fund or the Portfolio, would be so invested; (b) make short
sales of securities or maintain a short position, unless at
all times when a short position is open it owns an equal
amount of such securities or securities convertible into or
exchangeable, without payment of any further consideration,
for securities of the same issue as, and equal in amount to,
the securities sold short, and unless not more than 25% of
the Fund's net assets (taken at current value) is held as
collateral for such sales at any one time. (The Fund will
make such sales only for the purpose of deferring
realization of gain or loss for federal income tax
purposes); (c) invest more than 15% of net assets in
investments which are not readily marketable, including
restricted securities and repurchase agreements maturing in
more than seven days. Restricted securities for the
purposes of this limitation do not include securities
eligible for resale pursuant to Rule 144A under the
Securities Act of 1933 and commercial paper issued pursuant
to Section 4(2) of said Act that the Board of Trustees of
the Trust or the Portfolio, or its delegate, determines to
be liquid; (d) purchase or retain in its portfolio any
securities issued by an issuer any of whose officers,
directors, trustees or security holders is an officer or
Trustee of the Trust or the Portfolio or is a member,
officer, director or trustee of any investment adviser of
the Trust or the Portfolio, if after the purchase of the
securities of such issuer by the Fund or the Portfolio one
or more of such persons owns beneficially more than 1/2 of
1% of the shares or securities or both (all taken at market
value) of such issuer and such persons owning more than 1/2
of 1% of such shares or securities together own beneficially
more than 5% of such shares or securities or both (all taken
at market value); or (e) purchase oil, gas or other mineral
leases or purchase partnership interests in oil, gas or
other mineral exploration or development programs.
For purposes of the Portfolio's investment
restrictions, the determination of the "issuer" of a
municipal obligation which is not a general obligation bond
will be made by the Portfolio's Investment Adviser on the
basis of the characteristics of the obligation and other
relevant factors, the most significant of which is the
source of funds committed to meeting interest and principal
payments of such obligations.
In order to permit the sale of shares of the Fund in
certain states, the Fund may make commitments more
restrictive than the policies described above. Should the
Fund determine that any such commitment is no longer in the
best interest of the Fund and its shareholders, it will
revoke the commitment by terminating sales of its shares in
the state(s) involved.
December 11, 1995 - 2 - T-CASAIS
