<PAGE> 1
Eaton Vance Municipals Trust
For the Funds:
- - EV Classic Florida Tax Free Fund
- - EV Classic Massachusetts Tax Free Fund
- - EV Classic Mississippi Tax Free Fund
- - EV Classic New York Tax Free Fund
- - EV Classic Ohio Tax Free Fund
- - EV Classic Rhode Island Tax Free Fund
- - EV Classic West Virginia Free Fund
[Graphic of door logo]
Semi-Annual Shareholder Report
March 31, 1995
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<TABLE>
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Table of Contents
<CAPTION>
ITEM PAGE
<S> <C>
Six-month results............................................ 2
President's letter to shareholders........................... 3
Management Reports:
EV Classic Florida Tax Free Fund ................. 4
EV Classic Massachusetts Tax Free Fund............. 5
EV Classic Mississippi Tax Free Fund ............. 6
EV Classic New York Tax Free Fund ................ 7
EV Classic Ohio Tax Free Fund ..................... 8
EV Classic Rhode Island Tax Free Fund.............. 9
EV Classic West Virginia Tax Free Fund............ 10
Financial Results............................................ 11
</TABLE>
<TABLE>
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RESULTS FOR THE SIX MONTHS ENDING MARCH 31, 1995.
<CAPTION>
The
Dividends after-tax
paid by Fund's If equivalent
Fund NAV per distribution your combined yield
(During share at rate at Federal & state you would
period) 3/31/95 3/31/95 tax-rate is... need is...
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<S> <C> <C> <C> <C> <C> <C>
EV Classic Florida Tax Free Fund $0.235 $9.26 4.91% [FL MAP] 38.60% 8.00%
EV Classic Massachusetts
Tax Free Fund $0.240 $9.21 5.03% [MA MAP] 43.68% 8.93%
EV Classic Mississippi Tax Free Fund $0.223 $9.20 4.65% [MS MAP] 39.20% 7.65%
EV Classic New York Tax Free Fund $0.237 $9.31 4.91% [NY MAP] 41.04% 8.25%
EV Classic Ohio Tax Free Fund $0.230 $9.16 4.84% [OH MAP] 40.80% 8.18%
EV Classic Rhode Island
Tax Free Fund $0.230 $9.17 4.84% [RI MAP] 42.34% 8.39%
EV Classic West Virginia
Tax Free Fund $0.225 $9.24 4.69% [WV MAP] 40.16% 7.84%
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</TABLE>
2
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TO SHAREHOLDERS
During 1994 the economy remained stronger than economists and money managers
had anticipated at the start of the year. In response to this strength, and
in an attempt to keep inflation in check, the Federal Reserve raised short-term
interest rates six times in 1994 and once again in 1995. Long-term rates moved
upward as well and, as a result, the prices of municipal bonds dropped.
But the market slide was not the only concern in 1994. Many shareholders of
Eaton Vance tax free mutual funds may have wondered whether the problems that
surfaced in Orange County, California, had in any way affected their investment
in our non-California tax free funds. The answer is no, because the market
realized that this was a local problem. Eaton Vance non-California portfolios
have not been impacted.
<TABLE>
[GRAPH]
In 1994, long-term interest rates hit their highest level in 3 years.
<CAPTION>
Month-End
Month 30-year
Ended Treasuries Rate
----- ---------------
<S> <C>
3/92 7.60%
3/93 6.65%
3/94 6.89%
3/95 8.04%
Source: Barron's
</TABLE>
Despite the difficulties that beset the market in 1994, we feel optimistic
about prospects for 1995. The market now appears convinced that the Federal
Reserve is, in fact, keeping a tight watch on inflation. And, while it is
impossible to predict the outcomes of government initiatives, it appears that
proposals put forth by the new Congress to cut spending and taxes could have an
overall positive effect if enacted.
This report features some changes which we hope will help you to better
understand your investment, and how your Portfolio's holdings help provide
the means for the Federal government, as well as state and local governments,
to fund such projects as roads, bridges, hospitals and schools. Each Fund
review includes a Portfolio Overview, or snapshot, as well as comments from the
portfolio manager. In addition, we are profiling a specific bond holding of
each Portfolio.
Regardless of what lies ahead for the economy, the goal of your Fund remains
the same: to provide you with a competitive distribution of tax free income
from a portfolio of high-quality municipal bonds.+
Sincerely,
[PICTURE] /s/ Thomas J. Fetter
Thomas J. Fetter
President
May 19, 1995
+ A portion of the Portfolios' income could be subject to Federal alternative
minimum tax.
3
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EV CLASSIC FLORIDA TAX FREE FUND
The Florida economy turned in generally positive results during 1994 and
early 1995, with an improving labor market, as demonstrated by a lower
unemployment rate, and an improved housing market.
Construction activity was fairly good in 1994, with new housing starts rising
more than 12 percent during the year. Toward the end of the year, rising
interest rates slowed growth in this industry.
It is expected that higher interest rates will put a damper on the
construction industry in 1995. However, the state projects a slight overall
decline in the unemployment rate by the end of 1995.
Florida officials continue to worry about the state's important tourism
industry. In 1994, the state had its worst year for tourism since 1991. The
number of tourists arriving by air was up over 1993 figures, but the number of
visitors arriving by car declined 13 percent. In all, the state says that the
total number of tourists fell by nearly 3 percent, to just under 39.9 million.
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[FL MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................ 156
Average quality................................. AA-
Investment grade................................ 93.5%
Effective maturity (years)...................... 17.19
Largest sectors:
Utilities................................... 13.6
Escrowed.................................... 11.5
Insured-special tax revenue................. 8.7*
Housing..................................... 8.5
Healthcare (non-hospital)................... 6.4
* Private insurance does not remove the market risks associated with
this investment.
- -----------------------------------------------------------------------
For 1995, the state expects the economy to be generally stronger than in 1994,
with a projected population increase of 2 percent and personal income growth of
7.7 percent.
- --------------------------------------------------------------------------------
YOUR INVESTMENT AT WORK
ORANGE COUNTY
HOUSING FINANCE [HOUSE LOGO]
AUTHORITY BONDS
Tax-exempt housing continues to fulfill the need to provide affordable, safe
housing for Florida's low-to-moderate-income and elderly residents who are
unable to afford market-rate rents.
Although the complexion of Federal housing programs promises to change in the
future, state and local housing authorities are becoming increasingly
sophisticated in developing financing mechanisms. This should allow housing
to be delivered to eligible residents in an efficient and affordable manner.
Among the many housing bonds held by the Portfolio are more than $20 million
of the Orange County housing bonds with varying maturities.
- ------------------------------------------------------------
FROM THE PORTFOLIO MANAGER
"We have made a number of strategic moves within the Florida
Portfolio. First, we are increasing the exposure to housing
bonds, which are a high-quality, high income alternative to
general obligation securities.
"In addition, we continue to reduce the exposure to uninsured
hospitals. This change is based on our research group's view
that the rapidly changing environment for health care
institutions provides less opportunity for profitable operations
than it did in the past.
"Also, we have increased the Portfolio's exposure to securities
that our research group views as well-positioned or improving.
The Jacksonville Electric Authority and Orlando Utilities
Commission bonds held in the Portfolio are a good example of
these types of securities.
"Finally, we have sold bonds having a lower book yield and
purchased bonds with higher book yield, capturing the value of
the capital tax loss for our shareholders."
- Thomas J. Fetter, Portfolio Manager
- ------------------------------------------------------------
4
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EV CLASSIC MASSACHUSETTS TAX FREE FUND
Massachusetts has a diverse economy, and it is this diversity that helped the
Commonwealth weather the recession and recover at its current pace.
Employment rose steadily throughout 1994, and the 4.6 percent jobless rate in
March 1995 remained well below the national rate.
Manufacturing continued to register losses, but the services, trade and
construction sectors demonstrated continued strength.
However, the greatest single factor contributing to employment growth in
Massachusetts has been the strength of the financial services sector. The
Commonwealth has been a beneficiary of the nationwide boom in financial
services, particularly the mutual fund industry.
Debt levels in Massachusetts remain high, but the Commonwealth's financial
outlook has benefited from political leadership that has demonstrated
increased fiscal responsibility in recent years, sharply reducing expenditures
and rebuilding the Commonwealth's financial reserves.
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[MA MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues..................................... 101
Average quality...................................... A+
Investment grade..................................... 97.2%
Effective maturity (years)........................... 15.07
Largest sectors:
Housing.......................................... 12.4%
Water and sewer.................................. 10.6
Transportation................................... 10.4
Hospitals........................................ 8.9
Insured hospitals................................ 8.8*
* Private insurance does not remove the market risks associated with
this investment.
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YOUR INVESTMENT AT WORK
MWRA
DEER ISLAND PROJECT [PEOPLE & TREE LOGO]
WATER AND SEWER BONDS
The Massachusetts Water Resources Authority provides water and wastewater
treatment services to 61 communities in eastern Massachusetts, primarily
around Boston.
The Authority is using the proceeds of these bonds for a variety of projects
to construct and rehabilitate wastewater collection and treatment facilities
that discharge into Boston Harbor.
The largest of these projects is the construction of new facilities for
primary and secondary wastewater treatment on Deer Island in Boston Harbor,
including a new, nine-mile-long effluent tunnel.
When completed, it will be one of the largest public works projects ever
undertaken in New England and the second-largest sewage treatment plant in
the United States.
The Portfolio holds approximately $30 million of these bonds.
- --------------------------------------------------------------------------------
FROM THE PORTFOLIO MANAGER [PICTURE OF ROBERT B. MACINTOSH]
"During the period from September 1994 through February 1995, we put
a great deal of effort into selling relatively low-yield bonds and
replacing them with bonds having higher yields.
"We were able to do so without downgrading the quality of the Portfolio
because, during the year's major market sell-off, some bonds of good
quality became available at attractive prices. In the process, we
generated capital losses which will be used to offset future capital gains.
"Our largest commitment is to the Massachusetts Water Resources Authority,
which is proceeding with major wastewater treatment facilities as part
of the Commonwealth's effort to clean up Boston Harbor.
"We continue to deemphasize health care in the Portfolio, based on the
feeling that revenue pressures and competition do not bode well for that
industry."
- Robert B. MacIntosh, Portfolio Manager
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5
<PAGE> 6
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EV CLASSIC MISSISSIPPI TAX FREE FUND
Mississippi's economy finished the most recent period in strong financial
shape, helped by greater-than-expected revenues from its gambling casinos,
located on the Mississippi River and along the state's Gulf Coast. In just
two years, gaming in Mississippi has become a billion-dollar industry.
The state found itself in the enviable position of collecting gaming fees that
were twice their estimates. Rather than spending this windfall on additional
programs, Mississippi continued its cost-cutting programs and added to its
general fund balance. The state also invested in the future by placing more
than $130 million in its education enhancement fund.
Mississippi is a state whose economy has traditionally relied on cyclical
manufacturing industries, with particular emphasis on the lumber, furniture,
electronic, transportation, apparel and food industries. Job growth in 1994 was
substantial, and one-third of that growth could be attributed to the gaming
industry, including a recent increase in the state's construction industry
employment.
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[MS MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................ 43
Average quality................................. AA
Investment grade................................ 99.4%
Effective maturity (years)...................... 16.50
Largest sectors:
Insured hospitals........................... 23.0%*
Utilities................................... 11.2
Insured-general obligation.................. 10.4*
Industrial development revenue.............. 10.2
Housing..................................... 9.5
* Private insurance does not remove the market risks associated with
this investment.
- ----------------------------------------------------------------------
It is expected that growth will continue at a slower pace through the 1990s,
although the state's relatively low debt burden and conservative style of
financial management remain positives.
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YOUR INVESTMENT AT WORK
INTERNATIONAL PAPER
INDUSTRIAL DEVELOPMENT [FACTORY LOGO]
BONDS
The proceeds from these bonds, issued in 1994, refund debt originally issued in
1974. Those original bonds had been issued to finance the acquisition,
construction and installation of air and water pollution control facilities
at International Paper's Natchez Mill in Adams County, Mississippi.
The improvements made at the Natchez mill are part of the company's commitment
to pollution abatement. For a number of years, the company has been active in
decreasing or eliminating processes that harm the environment. Its goals
include the elimination of chlorine from the bleaching process and cutting
toxic emissions by 75 percent by the end of the decade.
International Paper is a major producer of lumber, plywood, paper and packaging
materials. It is a market leader across several product lines.
- ----------------------------------------------------------------------
FROM THE PORTFOLIO MANAGER [PICTURE OF CYNTHIA J. CLEMSON]
"We have focused on several sectors within this Portfolio.First, when
possible, we've added industrial revenue bonds which generally offer
attractive yields. For the same reason, we've purchased housing bonds
when they have been available.
"We've also added Mississippi general obligation bonds to the Portfolio
because of the overall strength of the state's economy, which is being
further bolstered by strong gaming revenues.
"Bond issuance in Mississippi declined during the year. The resulting
shortage of bonds caused quality spreads -- the difference in yields
between bonds of varying quality -- to narrow. Because of the narrow
spreads, we focused on upgrading the Portfolio.
"This strategy is evident in the holdings of the Portfolio. For example,
we now hold a much smaller proportion of uninsured hospital bonds and a
higher proportion of insured hospital bonds."
- Cynthia J. Clemson, Portfolio Manager
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6
<PAGE> 7
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EV CLASSIC NEW YORK TAX FREE FUND
The state of New York is at a crossroad, with its first new governor in 12
years. Gov. George Pataki was elected promoting a streamlined agenda for the
state that called for reducing the bureaucracy and taxes while fostering
economic development. It is an ambitious agenda, and it remains to be seen
whether the governor will be able to implement the tax cuts and reforms that
would truly restructure state government. Any actions will be taken against the
backdrop of a slower state economy, which is stalling under the weight of
WallStreet personnel cutbacks.
Standard & Poor's, an independent rating agency, rates the state A-. S&P has
indicated that it would consider an upgrade if a realistic budget is
presented on a timely basis. Given that the budget is almost a week late at the
time of this writing, this may be difficult for the legislature and governor to
meet. However, the municipal market appears more comfortable with the
governor's proposals than it was around election time, when state appropriation
paper was underperforming because of credit uncertainties.
- ------------------------------------------------------------
[NY MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................. 183
Average quality.................................. A+
Investment grade................................. 98.0%
Effective maturity (years)....................... 15.42
Largest sectors:
Health care.................................. 21.0%
Transportation............................... 11.9
Certificates of participation................ 11.9
Education.................................... 11.0
Special tax revenue.......................... 8.0
- ------------------------------------------------------------
With a late budget situation developing, the state could tip either way -- into
an improving or a deteriorating situation. However, we believe yields
offered by state appropriation bonds continue to compensate investors for the
risk-reward tradeoff.
- --------------------------------------------------------------------------------
YOUR INVESTMENT AT WORK
LOCAL GOVERNMENT
ASSISTANCE CORPORATION [CAPITAL LOGO]
TAX REVENUE BONDS
Bonds issued by the NYLocal Government Assistance Corporation (LGAC) have
been among the best performers in the New York market over the last few
months.
These bonds, rated A/A, once traded roughly in line with other state
appropriation paper. More recently, they have traded in line with high-grade
New York paper, such as the Tribe General Purpose bonds (A1/AA-) and New York
insured paper (Aaa/AAA).
Market dislocation in late 1994 and early 1995 allowed us to add modestly to
our LGAC position.
The bonds' security is based on 1 percent of the state's sales tax revenues,
which flows into a "locked box" available for debt service subject to
appropriation. While we cannot justify a rating on LGACs above the state's
own rating on general obligation bonds, we believe these bonds will continue
to be top performers given their limited future supply.
- ------------------------------------------------------------
FROM THE PORTFOLIO MANAGER [PICTURE OF NICOLE ANDERES]
"In the period from the election season through early 1995,
state appropriation paper underperformed the market, offering
buying opportunities. Spreads to high-grade New York bonds
have returned to tighter levels, more reflective of
historical relationships.
"The star performer in the New York market has been New York
Local Government Assistance Corporation. These bonds are
profiled on this page.
"Discount coupon bonds have also been alternately in and out
of favor, depending on the market's direction. The prolonged
market sell-off in 1994 allowed us to sell lower yielding bonds,
replacing them with bonds having higher yields. This process
generated capital losses that we will apply against shareholders'
future capital gains."
- Nicole Anderes, Portfolio Manager
- ------------------------------------------------------------
7
<PAGE> 8
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EV CLASSIC OHIO TAX FREE FUND
Ohio has been helped during the last year by its diversified economy.
Employment attributed to the manufacturing sector has declined in recent years,
particularly in such industries as defense and transportation equipment. Growth
in employment created by nonmanufacturing businesses, including those in the
service and trade sectors, has helped diversify the state's total economy.
The state emerged from the recession of the early 1990s in relatively good
condition, in part because of service sector growth and the stability of the
financial sector. While Ohio's manufacturing base remains cyclical, and thus
prone to layoffs during recessionary times, the service, trade and financial
sectors should help moderate future declines.
As might have been expected during the recession, state tax revenues lagged
behind estimates in the early 1990s. But recent state budgets have included
reasonable revenue estimates, while the state has improved its ability to
manage during tight economic times.
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[OH MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................. 151
Average quality.................................. A+
Investment grade................................. 94.1%
Effective maturity (years)....................... 15.15
Largest sectors:
Hospitals.................................... 14.0%
Insured hospitals............................ 11.7*
Transportation............................... 10.9
General Obligations.......................... 9.1
Education.................................... 8.0
* Private insurance does not remove the market risks associated
with this investment.
- ----------------------------------------------------------------
It is expected that the state will have slow but steady employment and growth
rates in coming years. Ohio's skilled labor force and its competitive tax
structure are expected to continue to make the state attractive for
businesses.
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YOUR INVESTMENT AT WORK
ECONOMIC DEVELOPMENT
REVENUE BONDS [FACTORY LOGO]
OHIO ENTERPRISE BOND FUND
The Ohio Enterprise Bond Fund Program was initiated in 1980 to grant loans to
Ohio businesses that will provide jobs and tax revenues to Ohio communities.
The program is structured with two separate pooled reserves that are available
to pay the debt service of any businesses that become delinquent on the loans.
This structure enables participating businesses to obtain interest rates on
their loans well below the rates they could get from other sources. Since the
first loans were issued under this program, 41 Ohio businesses have obtained
loans, including auto parts suppliers, food manufacturers, a distributor of
fitness equipment and a vacuum cleaner manufacturer. To date, neither of the
pooled reserves has had to be accessed.
These bonds have provided an opportunity for value for the Portfolio because
they have had attractive yields but only moderate credit risk. The Portfolio
owns 10 of these bonds.
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FROM THE PORTFOLIO MANAGER
"The supply of bonds in the Ohio market has tracked the national
bond market by decreasing substantially during the last 18 months,
which means that good quality, attractively structured bonds have
been and continue to be difficult to find.
"Health care and hospitals continue to be very important sectors
in this fund. However, because the health care industry has become
increasingly competitive, we have become highly selective in terms
of the bonds we add to the Portfolio. Through extensive research we
are able to determine the most attractive bonds.
"Discount bonds have been out of favor during this period. As value
buyers, we took advantage of this situation to buy some of these
discount coupons. "During the 12-month period ending March 31, we
sold some lower-yielding bonds and replaced them with higher
yielding bonds. This process generated capital losses that can be
applied against shareholders' future capital gains."
- Thomas J. Fetter, Portfolio Manager
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8
<PAGE> 9
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EV CLASSIC RHODE ISLAND TAX FREE FUND
Rhode Island continues its slow recovery from the 1990-91 recession, when it
was very hard hit along with the rest of New England. Unemployment rates have
moderated, although they remain above the national average. The state's
February 1995 unemployment rate was 6.1 percent, down from the same time
a year earlier, but still above the national rate of 5.4 percent.
While Rhode Island experienced some economic diversification during the
1980s, it still relies heavily on manufacturing.
Nonetheless, recent downtown development in Providence has injected some
momentum into the local economy. Proposed development projects in the city
include a large downtown shopping mall to complement Providence's recently
completed convention center and hotel.
State finances have generally improved during the 1990s, with state budgets
generally characterized as narrowly balanced. The financial stability of the
state budget
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[RI MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................. 45
Average quality.................................. AA
Investment grade................................. 99.0%
Effective maturity (years)....................... 17.08
Largest sectors:
Insured general obligations.................. 16.6%*
Insured general obligations (local).......... 13.5*
Housing ..................................... 13.2
Hospitals.................................... 10.2
Insured colleges............................. 9.9*
* Private insurance does not remove the market risks associated
with this investment.
- ----------------------------------------------------------------
process has been helped in recent years by constitutionally mandated limits on
appropriations and creation of a budget reserve fund.
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YOUR INVESTMENT AT WORK
CITY OF PROVIDENCE
TAX ALLOCATION BONDS [HOUSE LOGO]
The Portfolio is participating in the redevelopment of Rhode Island's capital
city through these tax allocation bonds, which employ a financing mechanism
infrequently used by Northeast issuers.
Under this financing arrangement, the City of Providence is using new property
tax revenues from a redevelopment project -- the former Narragansett Electric
power plant -- to finance housing programs throughout the city.
The bonds that the Portfolio owns are due in 2016 and are rated Baa/BBB-. We
expect these bonds to add tax-exempt income to the Portfolio with less
volatility than comparable bonds with 20-year maturities.
- ----------------------------------------------------------------
FROM THE PORTFOLIO MANAGER [PICTURE OF NICOLE ANDERES]
"Activity in the Rhode Island municipal market tapered off by the
end of 1994 and was very quiet in the first quarter of 1995 as well.
This period has been characterized by sporadic trading and virtually
no issuance of new bonds.
"Discount coupon bonds were out of favor in 1994. We took advantage
of this situation by buying these discount coupons to pick up yield
without sacrificing credit quality.
"We also continued to add to the Portfolio's housing bond position,
because this sector offers attractive returns with more defensive
characteristics."
- Nicole Anderes, Portfolio Manager
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9
<PAGE> 10
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EV CLASSIC WEST VIRGINIA TAX FREE FUND
West Virginia's economy improved during 1994. The state's economic results
during the year benefited from the effects of greater diversification.The state
has succeeded in obtaining major federal projects, including relocations of some
NASA projects and the Bureau of the Public Debt. These additional government
employers have helped to further diversify the state's economy.
West Virginia also has benefited from its proximity to Washington, D.C. Many
people who work in the District, faced with a high cost of living in Washington
and nearby Maryland and Virginia, have opted for a longer commute and the lower
cost of living in West Virginia.
The state is gradually moving away from its reliance on mining, with
significant growth in its tourism and service sectors. However, these jobs
tend to be lower paying than the unionized jobs that the state has lost. The
net result is that the state lags behind the national average in terms of
income growth.
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[WV MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
Number of issues................................. 41
Average quality.................................. Aa-
Investment grade................................. 98.2%
Effective maturity (years)....................... 18.25
Largest sectors:
Insured electric utilities................... 16.1%*
Electric utilities........................... 14.0
Insured water and sewer...................... 10.9*
Insured hospitals............................ 10.7*
Hospitals.................................... 10.2
* Private insurance does not remove the market risks associated
with this investment.
- -----------------------------------------------------------------
Analysts have given the state good marks for its conservative fiscal stance,
particularly actions to cut appropriations in the face of revenue shortfalls
during the recession years.
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YOUR INVESTMENT AT WORK
CHARLESTON AREA
MEDICAL CENTER [MEDICAL LOGO]
REVENUE BONDS
The proceeds of these bonds, issued in 1993, are being used to finance
additional facilities at the Medical Center, the largest hospital in West
Virginia.
The new facilities include 12 surgical suites, 18 cardiovascular intensive
care suites, 12 coronary care unit suites, a parking garage and a variety of
repairs and renovations.
The medical center, which was formed in 1972, is a teaching institution
affiliated with the University of West Virginia and the West Virginia School
of Osteopathic Medicine. It is licensed for 962 beds and handles more than
32,000 admissions a year.
Among the facilities available at the medical center are one of the largest
cardiology programs in the United States, a cancer center, a trauma
department and special medical programs for women and children.
- -----------------------------------------------------------------
FROM THE PORTFOLIO MANAGER [PICTURE OF TIMOTHY T. BROWSE]
"The West Virginia bond market might well be described as feast or
famine. There always seems to be a good, steady demand for bonds.
However, supply of West Virginia bonds remains sporadic.
"This situation has these implications: The general lack of bonds
leads to high prices overall. But when there is a surplus of bonds
from large issuers, those bonds tend to trade at a substantial
discount to market.
"This produces very wide swings in prices relative to the national
markets. The challenge for the portfolio manager is to diversify
the portfolio away from the few large issuers to help mitigate
volatility and to add stability.
"The market sell-off of 1994 helped the Portfolio add bonds that
are not normally available. From that point of view, we can say
that the Portfolio emerged from the lows of 1994 in better shape
than it entered that period."
- Timothy T. Browse, Portfolio Manager
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10
<PAGE> 11
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<TABLE>
EV Classic Tax Free Funds
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------------------------------------------
March 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
---------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS:
Investment in Portfolio --
Identified cost $6,379,329 $ 2,630,121 $2,461,969 $5,688,842
Unrealized appreciation (depreciation) (400,118) (42,630) (46,241) 62,912
---------- ----------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $5,979,211 $ 2,587,491 $2,415,728 $5,751,754
Receivable for Fund shares sold 72,324 -- -- 12,000
Receivable from the Administrator (Note 4) 19,276 6,532 7,348 17,107
Deferred organization expenses (Note 1D) 5,586 7,380 8,422 7,625
---------- ----------- ---------- ----------
Total assets $6,076,397 $ 2,601,403 $2,431,498 $5,788,486
---------- ----------- ---------- ----------
LIABILITIES:
Dividends payable $ 7,306 $ 3,214 $ 2,783 $ 7,225
Payable for Fund shares redeemed -- -- -- 3,000
Payable to affiliates --
Trustees' fees 40 -- -- 40
Custodian fee -- 84 84 84
Accrued expenses 5,971 5,701 3,748 6,365
---------- ----------- ---------- ----------
Total liabilities $ 13,317 $ 8,999 $ 6,615 $ 16,714
---------- ----------- ---------- ----------
NET ASSETS $6,063,080 $ 2,592,404 $2,424,883 $5,771,772
========== =========== ========== ==========
SOURCES OF NET ASSETS:
Paid-in capital $6,896,015 $ 2,889,693 $2,664,997 $5,917,732
Accumulated net realized loss on investment and
financial futures transactions (computed on the
basis of identified cost) (430,268) (251,495) (192,822 ) (206,094)
Accumulated distributions in excess of net investment
income (2,549) (3,164) (1,051) (2,778)
Unrealized appreciation (depreciation) of investments
and financial
futures contracts from Portfolio (computed on the
basis
of identified cost) (400,118) (42,630) (46,241) 62,912
---------- ----------- ---------- ----------
Total $6,063,080 $ 2,592,404 $2,424,883 $5,771,772
========== =========== ========== ==========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 654,445 281,558 263,679 620,247
========== =========== ========== ==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
(NOTE 6) PER SHARE (net assets / shares of beneficial
interest outstanding) $9.26 $9.21 $9.20 $9.31
===== ===== ===== =====
</TABLE>
See notes to financial statements
11
<PAGE> 12
-------
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
March 31, 1995 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
---------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investment in Portfolio --
Identified cost $2,093,205 $3,578,294 $ 1,751,488
Unrealized depreciation (98,496) (250,546) (77,893)
---------- ---------- -----------
Total investment in Portfolio, at value (Note 1A) $1,994,709 $3,327,748 $ 1,673,595
Receivable for Fund shares sold 15,009 5,000 --
Receivable from the Administrator (Note 4) 12,561 13,080 11,004
Prepaid expenses 524 433 --
Deferred organization expenses (Note 1D) 7,671 7,558 8,538
---------- ---------- -----------
Total assets $2,030,474 $3,353,819 $ 1,693,137
---------- ---------- -----------
LIABILITIES:
Dividends payable $ 2,430 $ 3,996 $ 1,955
Payable for Fund shares redeemed -- 960 3,000
Payable to affiliate --
Custodian fee 84 84 84
Accrued expenses 5,552 5,463 4,952
---------- ---------- -----------
Total liabilities $ 8,066 $ 10,503 $ 9,991
---------- ---------- -----------
NET ASSETS $2,022,408 $3,343,316 $ 1,683,146
========== ========== ===========
SOURCES OF NET ASSETS:
Paid-in capital $2,190,410 $3,743,089 $ 1,803,949
Accumulated net realized loss on investment and financial
futures transactions (computed on the basis of identified
cost) (64,999) (148,785) (43,085)
Accumulated undistributed (distributions in excess of) net
investment income (4,507) (442) 175
Unrealized depreciation of investments and financial futures
contracts
from Portfolio (computed on the basis of identified cost) (98,496) (250,546) (77,893)
---------- ---------- -----------
Total $2,022,408 $3,343,316 $ 1,683,146
========== ========== ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 220,742 364,537 182,198
========== ========== ===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
(NOTE 6) PER SHARE (net assets / shares of beneficial interest
outstanding) $9.16 $9.17 $9.24
===== ===== =====
</TABLE>
See notes to financial statements
12
<PAGE> 13
-------
<TABLE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
--------- ----------------- ------------ ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 223,801 $ 96,368 $ 80,804 $178,743
Expenses allocated from Portfolio (17,873) (7,978) (3,512) (14,435)
--------- --------- ---------- --------
Net investment income from Portfolio $ 205,928 $ 88,390 $ 77,292 $164,308
--------- --------- ---------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ 80 $ -- $ -- $ 80
Distribution costs (Note 5) 31,641 13,444 11,980 25,379
Custodian fee (Note 4) 1,210 1,501 1,296 --
Transfer and dividend disbursing agent fees 1,536 417 557 1,424
Printing and postage 9,473 -- 4,082 10,138
Legal and accounting services 5,686 3,666 3,060 4,690
Amortization of organization expense (Note 1D) 757 1,004 1,148 1,047
Registration costs 1,100 -- 937 384
Miscellaneous 70 -- 479 261
--------- --------- ---------- --------
Total expenses $ 51,553 $ 20,032 $ 23,539 $ 43,403
Deduct preliminary allocation of expenses to the
Administrator (Note 4) 19,276 6,532 7,348 17,107
--------- --------- ---------- --------
Net expenses $ 32,277 $ 13,500 $ 16,191 $ 26,296
--------- --------- ---------- --------
Net investment income $ 173,651 $ 74,890 $ 61,101 $138,012
--------- --------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $(194,215) $(151,541) $ (127,512) $(145,612)
Financial futures contracts (6,554) 514 2,203 (3,103 )
--------- --------- ---------- --------
Net realized loss on investments $(200,769) $(151,027) $ (125,309) $(148,715)
Change in unrealized appreciation of investments 300,900 152,182 184,013 317,670
--------- --------- ---------- --------
Net realized and unrealized gain on
investments $ 100,131 $ 1,155 $ 58,704 $168,955
--------- --------- ---------- --------
Net increase in net assets from operations $ 273,782 $ 76,045 $ 119,805 $306,967
========= ========= ========== ========
</TABLE>
See notes to financial statements
13
<PAGE> 14
-------
<TABLE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
--------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 63,382 $ 112,336 $ 52,733
Expenses allocated from Portfolio (5,516) (5,657) (2,483)
--------- ---------- ---------
Net investment income from Portfolio $ 57,866 $ 106,679 $ 50,250
--------- ---------- ---------
Expenses --
Distribution costs (Note 5) $ 9,251 $ 16,448 $ 7,925
Custodian fee (Note 4) 1,438 1,351 1,519
Transfer and dividend disbursing agent fees 830 2,010 820
Printing and postage 4,364 4,165 4,001
Legal and accounting services 4,524 4,195 3,658
Amortization of organization expense (Note 1D) 1,037 1,023 1,154
Registration costs 1,902 -- --
Miscellaneous 467 445 18
--------- ---------- ---------
Total expenses $ 23,813 $ 29,637 $ 19,095
Deduct preliminary allocation of expenses to the
Administrator (Note 4) 12,561 13,080 11,004
--------- ---------- ---------
Net expenses $ 11,252 $ 16,557 $ 8,091
--------- ---------- ---------
Net investment income $ 46,614 $ 90,122 $ 42,159
--------- ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $ (40,811) $ (54,923) $ (18,507)
Financial futures contracts (1,821) (8,381) (1,962)
--------- ---------- ---------
Net realized loss on investments $ (42,632) $ (63,304) $ (20,469)
Change in unrealized appreciation of investments 83,778 141,023 58,538
--------- ---------- ---------
Net realized and unrealized gain on investments $ 41,146 $ 77,719 $ 38,069
--------- ---------- ---------
Net increase in net assets from operations $ 87,760 $ 167,841 $ 80,228
========= ========== =========
</TABLE>
See notes to financial statements
14
<PAGE> 15
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
----------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 173,651 $ 74,890 $ 61,101 $ 138,012
Net realized loss on investments (200,769) (151,027) (125,309) (148,715)
Change in unrealized appreciation of investments 300,900 152,182 184,013 317,670
----------- ----------- ---------- ----------
Net increase in net assets from operations $ 273,782 $ 76,045 $ 119,805 $ 306,967
----------- ----------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income $ (173,651) $ (74,890) $ (61,101) $ (138,012)
In excess of net investment income (7,083) (3,876) (4,010) (4,309)
----------- ----------- ---------- ----------
Total distributions to shareholders $ (180,734) $ (78,766) $ (65,111) $ (142,321)
----------- ----------- ---------- ----------
Transactions in shares of beneficial interest
(Note 3) --
Proceeds from sales of shares $ 892,986 $ 328,259 $ 499,052 $1,501,941
Net asset value of shares issued to shareholders
in
payment of distributions declared 83,139 58,366 37,520 114,596
Cost of shares redeemed (3,068,969) (1,534,354) (966,090) (1,145,962)
----------- ----------- ---------- ----------
Increase (decrease) in net assets from Fund
share transactions $(2,092,844) $(1,147,729) $ (429,518) $ 470,575
----------- ----------- ---------- ----------
Net increase (decrease) in net assets $(1,999,796) $(1,150,450) $ (374,824) $ 635,221
NET ASSETS:
At beginning of period 8,062,876 3,742,854 2,799,707 5,136,551
----------- ----------- ---------- ----------
At end of period $ 6,063,080 $ 2,592,404 $2,424,883 $5,771,772
=========== =========== ========== ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END OF PERIOD $ (2,549) $ (3,164) $ (1,051) $ (2,778)
=========== =========== ========== ==========
</TABLE>
See notes to financial statements
15
<PAGE> 16
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
---------- ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 46,614 $ 90,122 $ 42,159
Net realized loss on investments (42,632) (63,304) (20,469)
Change in unrealized appreciation (depreciation) of
investments 83,778 141,023 58,538
---------- ---------- -----------
Net increase in net assets from operations $ 87,760 $ 167,841 $ 80,228
---------- ---------- -----------
Distributions to shareholders (Note 2) --
From net investment income $ (46,614) $ (90,122) $ (42,159)
In excess of net investment income (4,814) (2,323) (919)
---------- ---------- -----------
Total distributions to shareholders $ (51,428) $ (92,445) $ (43,078)
---------- ---------- -----------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 330,741 $ 218,131 $ 45,146
Net asset value of shares issued to shareholders in payment
of distributions declared 36,539 61,907 29,802
Cost of shares redeemed (491,909) (930,671) (326,243)
---------- ---------- -----------
Decrease in net assets from Fund share transactions $ (124,629) $ (650,633) $ (251,295)
---------- ---------- -----------
Net decrease in net assets $ (88,297) $ (575,237) $ (214,145)
NET ASSETS:
At beginning of period 2,110,705 3,918,553 1,897,291
---------- ---------- -----------
At end of period $2,022,408 $3,343,316 $ 1,683,146
========== ========== ===========
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END OF PERIOD $ (4,507) $ (442) $ 175
========== ========== ===========
</TABLE>
See notes to financial statements
16
<PAGE> 17
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1994*
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
----------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 268,997 $ 103,634 $ 83,964 $ 110,149
Net realized loss on investments (229,499) (100,468) (67,513) (57,379)
Change in unrealized depreciation of investments (701,018) (194,812) (230,254) (254,758)
----------- ----------- ---------- ----------
Net decrease in net assets from operations $ (661,520) $ (191,646) $ (213,803) $(201,988)
----------- ----------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income $ (268,997) $ (103,634) $ (83,964) $(110,149)
In excess of net investment income (48,427) (19,821) (14,125) (22,654)
----------- ----------- ---------- ----------
Total distributions to shareholders $ (317,424) $ (123,455) $ (98,089) $(132,803)
----------- ----------- ---------- ----------
Transactions in shares of beneficial interest
(Note 3) --
Proceeds from sales of shares $11,658,622 $ 4,628,340 $3,787,256 $6,440,708
Net asset value of shares issued to shareholders
in
payment of distributions declared 143,172 93,925 52,885 94,263
Cost of shares redeemed (2,759,974) (664,310) (728,542) (1,063,629)
----------- ----------- ---------- ----------
Increase in net assets from Fund share
transactions $ 9,041,820 $ 4,057,955 $3,111,599 $5,471,342
----------- ----------- ---------- ----------
Net increase in net assets $ 8,062,876 $ 3,742,854 $2,799,707 $5,136,551
NET ASSETS:
At beginning of period -- -- -- --
----------- ----------- ---------- ----------
At end of period $ 8,062,876 $ 3,742,854 $2,799,707 $5,136,551
=========== =========== ========== ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END OF PERIOD $ (3,902) $ (3,008) -- $ (4,017)
=========== =========== ========== ==========
<FN>
* For the Classic Florida, Classic Massachusetts, Classic Mississippi and Classic New York Funds, the Statements of Changes in
Net Assets are for the period from the start of business, December 3, 1993, December 7, 1993, December 7, 1993, and December 6,
1993, respectively, to September 30, 1994.
</TABLE>
See notes to financial statements
17
<PAGE> 18
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1994*
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
---------- ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 67,300 $ 131,218 $ 55,093
Net realized loss on investments (22,367) (85,481) (22,616)
Change in unrealized depreciation of investments (182,274) (391,569) (136,431)
---------- ---------- -----------
Net decrease in net assets from operations $ (137,341) $ (345,832) $ (103,954)
---------- ---------- -----------
Distributions to shareholders (Note 2) --
From net investment income $ (67,300) $ (131,218) $ (55,093)
In excess of net investment income (13,207) (24,131) (10,215)
---------- ---------- -----------
Total distributions to shareholders $ (80,507) $ (155,349) $ (65,308)
---------- ---------- -----------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $3,336,935 $5,314,659 $ 2,589,662
Net asset value of shares issued to shareholders in payment
of distributions declared 59,809 100,358 45,910
Cost of shares redeemed (1,068,191) (995,283) (569,019)
---------- ---------- -----------
Increase in net assets from Fund share transactions $2,328,553 $4,419,734 $ 2,066,553
---------- ---------- -----------
Net increase in net assets $2,110,705 $3,918,553 $ 1,897,291
NET ASSETS:
At beginning of period -- -- --
---------- ---------- -----------
At end of period $2,110,705 $3,918,553 $ 1,897,291
========== ========== ===========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT
INCOME INCLUDED IN NET ASSETS AT END OF PERIOD $ (1,905) $ (2,203) $ (814)
========== ========== ===========
<FN>
* For the Classic Ohio, Classic Rhode Island and Classic West Virginia Funds, the Statements of Changes in Net Assets are
for the period from the start of business December 7, 1993, December 7, 1993, and December 13, 1993, respectively, to
September 30, 1994.
</TABLE>
See notes to financial statements
18
<PAGE> 19
<TABLE>
-------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
---------------------- ---------------------- ---------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER MARCH 31, SEPTEMBER MARCH 31, SEPTEMBER MARCH 31, SEPTEMBER
1995 30, 1995 30, 1995 30, 1995 30,
(UNAUDITED) 1994* (UNAUDITED) 1994* (UNAUDITED) 1994* (UNAUDITED) 1994*
----------- --------- ----------- --------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of
period $ 8.970 $10.000 $ 9.000 $10.000 $ 8.920 $10.000 $ 9.060 $10.000
------- ------- ------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.226 $ 0.351 $ 0.228 $ 0.350 $ 0.209 $ 0.338 0.230 $ 0.344
Net realized and unrealized gain
(loss) on investments 0.299 (0.967) 0.222 (0.933) 0.294 (1.024) 0.257 (0.869)
------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
operations $ 0.525 $(0.616) $ 0.450 $(0.583) $ 0.503 $(0.686) 0.487 $(0.525)
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.226) $(0.351) $(0.228) $(0.350) $(0.209) $(0.338) (0.230) $(0.344)
In excess of net investment
income (0.009) (0.063) (0.012) (0.067) (0.014) (0.056) (0.007) (0.071)
------- ------- ------- ------- ------- ------- ------- -------
Total distributions $(0.235) $(0.414) $(0.240) $(0.417) $(0.223) $(0.394) (0.237) $(0.415)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of period $ 9.260 $ 8.970 $ 9.210 $ 9.000 $ 9.200 $ 8.920 $ 9.310 $ 9.060
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 6.02% (6.36%) 5.17% (6.02%) 5.80% (6.96%) 5.55% (5.45%)
RATIOS/SUPPLEMENTAL DATA**:
Net assets, end of period (000
omitted) $ 6,063 $ 8,063 $ 2,592 $ 3,743 $ 2,425 $ 2,800 $ 5,772 $ 5,137
Ratio of net expenses to average
daily net assets(1) 1.51%+ 1.63%+ 1.52%+ 1.61%+ 1.56%+ 1.24%+ 1.52%+ 1.64%+
Ratio of net investment income
to average daily net assets 5.22%+ 4.51%+ 5.30%+ 4.55%+ 4.85%+ 4.42%+ 5.16%+ 4.41%+
<FN>
** For the six months ended March 31, 1995 and for the period from the start of business, December 3, 1993, December 7, 1993,
December 7, 1993 and December 6, 1993, respectively, to September 30, 1994, the operating expenses of the Funds and the
Portfolios may reflect a reduction of expenses by the Administrator or Investment Adviser. Had such actions not been taken, net
investment income per share and the ratios would have been as follows:
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME PER SHARE $0.201 $0.331 $0.208 $0.260 $0.184 $0.246 $0.201 $0.293
====== ====== ====== ====== ====== ====== ====== ======
RATIOS (As a percentage of
average daily net assets):
Expenses(1) 2.09%+ 1.88%+ 1.98%+ 2.78%+ 2.15%+ 2.45%+ 2.16%+ 2.29%+
Net investment income 4.64%+ 4.26%+ 4.84%+ 3.38%+ 4.26%+ 3.21%+ 4.52%+ 3.76%+
<FN>
+ Computed on an annualized basis.
(1) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at
the net asset value on the payable date.
* For the Classic Florida, Classic Massachusetts, Classic Mississippi and Classic New York Funds, the Financial
Highlights are for the period from the start of business, December 3, 1993, December 7, 1993, December 7, 1993, and
December 6, 1993, respectively, to September 30, 1994.
</TABLE>
See notes to financial statements
19
<PAGE> 20
<TABLE>
-------
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
---------------------- ---------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MARCH 31, SEPTEMBER MARCH 31, SEPTEMBER MARCH 31, SEPTEMBER
1995 30, 1995 30, 1995 30,
(UNAUDITED) 1994* (UNAUDITED) 1994* (UNAUDITED) 1994*
----------- --------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 8.940 $10.000 $ 8.890 $10.000 $ 8.980 $10.000
------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.208 $ 0.348 $ 0.224 $ 0.347 $ 0.220 $ 0.326
Net realized and unrealized gain (loss) on investments 0.242 (0.992) 0.286 (1.046) 0.265 (0.959)
------- ------- ------- ------- ------- -------
Total income (loss) from operations $ 0.450 $(0.644) $ 0.510 $(0.699) $ 0.485 $(0.633)
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.208) $(0.348) $(0.224) $(0.347) $(0.220) $(0.326)
In excess of net investment income (0.022) (0.068) (0.006) (0.064) (0.005) (0.061)
------- ------- ------- ------- ------- -------
Total distributions $(0.230) $(0.416) $(0.230) $(0.411) $(0.225) $(0.387)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of period $ 9.160 $ 8.940 $ 9.170 $ 8.890 $ 9.240 $ 8.980
======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 5.19% (6.75%) 5.91% (7.29%) 5.57% (6.53%)
RATIOS/SUPPLEMENTAL DATA**:
Net assets, end of period (000 omitted) $ 2,022 $ 2,111 $ 3,343 $ 3,919 $ 1,683 $ 1,897
Ratio of net expenses to average daily net assets(1) 1.72%+ 1.60%+ 1.28%+ 1.23%+ 1.27%+ 1.28%+
Ratio of net investment income to average daily
net assets 4.79%+ 4.42%+ 5.21%+ 4.50%+ 5.06%+ 4.53%+
<FN>
** For the six months ended March 31, 1995 and for the period from the start of business, December 7, 1993, December 7, 1993, and
December 13, 1993, respectively, to September 30, 1994, the operating expenses of the Funds and the Portfolios may reflect a
reduction of expenses by the Administrator or Investment Adviser. Had such actions not been taken, net investment income per
share and the ratios would have been as follows:
NET INVESTMENT INCOME PER SHARE $0.152 $0.241 $0.187 $0.299 $0.157 $0.204
====== ====== ====== ====== ====== ======
RATIOS (As a percentage of average daily net assets):
Expenses(1) 2.79%+ 2.96%+ 2.17%+ 1.85%+ 2.71%+ 2.66%+
Net investment income 3.72%+ 3.06%+ 4.32%+ 3.88%+ 3.62%+ 3.15%+
+ Computed on an annualized basis.
(1) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at
the net asset value on the payable date.
* For the Classic Ohio, Classic Rhode Island and Classic West Virginia Funds, the Financial Highlights are for the
period from the start of business, December 7, 1993, December 7, 1993 and December 13, 1993, respectively, to
September 30, 1994.
</TABLE>
See notes to financial statements
20
<PAGE> 21
-------
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly known
as a Massachusetts business trust and is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Trust
presently consists of sixty-three Funds, seven of which are included in these
financial statements. They include EV Classic Florida Tax Free Fund, ("Classic
Florida Fund"), EV Classic Massachusetts Tax Free Fund ("Classic Massachusetts
Fund") EV Classic Mississippi Tax Free Fund ("Classic Mississippi Fund"), EV
Classic New York Tax Free Fund ("Classic New York Fund"), EV Classic Ohio Tax
Free Fund ("Classic Ohio Fund"), EV Classic Rhode Island Tax Free Fund ("Classic
Rhode Island Fund"), and EV Classic West Virginia Tax Free Fund ("Classic West
Virginia Fund"). Each Fund invests all of its investable assets in interests in
a separate corresponding open-end management investment company (a "Portfolio"),
a New York Trust, having the same investment objective as its corresponding
Fund. The Classic Florida Fund invests its assets in the Florida Tax Free
Portfolio, the Classic Massachusetts Fund invests its assets in the
Massachusetts Tax Free Portfolio, the Classic Mississippi Fund invests its
assets in the Mississippi Tax Free Portfolio, the Classic New York Fund invests
its assets in the New York Tax Free Portfolio, the Classic Ohio Fund invests its
assets in the Ohio Tax Free Portfolio, the Classic Rhode Island Fund invests its
assets in the Rhode Island Tax Free Portfolio, and the Classic West Virginia
Fund invests its assets in the West Virginia Tax Free Portfolio. The value of
each Fund's investment in its corresponding Portfolio reflects the Fund's
proportionate interest in the net assets of that Portfolio (0.8%, 0.9%, 7.8%,
0.9%, 0.6%, 8.1%, and 4.1% at March 31, 1995 for the Classic Florida Fund,
Classic Massachusetts Fund, Classic Mississippi Fund, Classic New York Fund,
Classic Ohio Fund, Classic Rhode Island Fund and Classic West Virginia Fund,
respectively). The performance of each Fund is directly affected by the
performance of its corresponding Portfolio. The financial statements of each
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with each Fund's financial
statements. The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATION--Valuation of securities by
the Portfolios is discussed in Note 1 of the Portfolios'
Notes to Financial Statements which are included elsewhere
in this report.
B. INCOME--Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with generally
accepted accounting principles.
C. FEDERAL TAXES--Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt income,
including any net realized gain on investments. Accordingly, no provision for
federal income or excise tax is necessary. At September 30, 1994, the Fund's for
federal income tax purposes had capital loss carryovers of $166,878, $85,630,
$65,533, $46,131, $15,583, $85,233 and $20,474, respectively, which will reduce
the taxable income arising from future net realized gain on investments, if any,
to the extent permitted by the Internal Revenue Code, and thus will reduce the
amount of the distributions to shareholders which would otherwise be necessary
to relieve the Funds of any liability for federal income or excise tax. Such
capital loss carryovers will expire on September 30, 2002. Dividends paid by
each Fund from net interest on tax-exempt municipal bonds allocated from its
corresponding Portfolio are not includable by shareholders as gross income for
federal income tax purposes because each Fund and Portfolio intend to meet
certain requirements of the Internal Revenue Code applicable to regulated
investment companies which will enable the Funds to pay exempt-interest
dividends. The portion of such interest, if any, earned on private activity
bonds issued after August 7, 1986, may be considered a tax preference item to
shareholders.
D. DEFERRED ORGANIZATION EXPENSES--Costs incurred by each Fund in connection
with its organization, including registration costs, are being amortized on the
straight-line basis over five years beginning on the date each Fund commenced
operations.
E. DISTRIBUTION COSTS--For book purposes, commissions paid on the sale of Fund
shares and other distribution costs are charged to operations. For tax purposes,
commissions paid were charged to paid-in capital prior to November 23, 1994 and
subsequently charged to operations. The change in the tax accounting practice
was prompted by a recent Internal Revenue ruling and has no effect on either
the funds current yield or total return (Notes 2 and 5).
F. OTHER--Investment transactions are accounted for on a trade date basis.
G. INTERIM FINANCIAL INFORMATION--The interim financial statements relating to
March 31, 1995 and for the six month period then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
21
<PAGE> 22
-------
- --------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net income of a Fund is determined daily and substantially all of the net
income so determined is declared as a dividend to shareholders of record at the
time of declaration. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest capital gain distributions in additional shares of a Fund at the net
asset value as of the ex-dividend date. Distributions are paid in the form of
additional shares or, at the election of the shareholder, in cash. The Funds
distinguish between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles require that only distributions
in excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in temporary over distributions for financial statements
purposes are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital. During
the period from October 1, 1994 to November 22, 1994, $8,436, $3,720, $2,959,
$5,548, $2,212, $4,084 and $1,908 was reclassified from distributions in excess
of net investment income to paid in capital, due to permanent differences
between book and tax accounting for distribution costs for the Classic Florida
Fund, Classic Massachusetts Fund, Classic Mississippi Fund, Classic New York
Fund, Classic Ohio Fund, Classic Rhode Island Fund and Classic West Virginia
Fund, respectively. Net investment income, net realized gains and net assets
were not affected by these reclassifications.
- --------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
<TABLE>
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND NEW YORK FUND
-------------------------- -------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31 SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
1995* 1994 1995* 1994 1995* 1994 1995* 1994
---------- -------------- ---------- -------------- ---------- -------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 100,177 1,181,103 36,514 475,720 58,210 387,168 170,479 669,316
Issued to
shareholders
electing to
receive payments
of distributions
in Fund shares 9,524 15,396 6,692 10,132 4,303 5,724 12,950 10,092
Redemptions (353,881) (297,874) (177,580) (69,920) (112,548) (79,178) (129,850) (112,740)
-------- --------- -------- ------- -------- ------- -------- --------
Net increase
(decrease) (244,180) 898,625 (134,374) 415,932 (50,035) 313,714 53,579 566,668
======== ========= ======== ======= ======== ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
-------------------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
1995* 1994 1995* 1994 1995* 1994
---------- -------------- ---------- -------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Sales 38,041 341,950 25,087 536,962 5,045 267,099
Issued to
shareholders
electing to
receive payments
of distributions
in Fund shares 4,196 6,461 7,139 10,899 3,402 4,960
Redemptions (57,619) (112,287) (108,660) (106,890) (37,552) (60,756)
------- -------- -------- -------- ------- -------
Net increase
(decrease) (15,382) 236,124 (76,434) 440,971 (29,105) 211,303
======= ======== ======== ======== ======= =======
<FN>
* Unaudited.
</TABLE>
22
<PAGE> 23
-------
- --------------------------------------------------------------------------------
(4) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the administrator of each Fund, but
receives no compensation. The Portfolios have engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services. See
Note 2 of the Portfolios' Notes to Financial Statements which are included
elsewhere in this report. To enhance the net income of the Funds, $19,276,
$6,532, $7,348, $17,107, $12,561, $13,080 and $11,004 of expenses related to the
operation of the Classic Florida Fund, Classic Massachusetts Fund, Classic
Mississippi Fund, Classic New York Fund, Classic Ohio Fund, Classic Rhode Island
Fund and Classic West Virginia Fund, respectively, were allocated, on a
preliminary basis, to EVM. Except as to Trustees of the Funds and the Portfolios
who are not members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their services to each Fund out of such investment
adviser fee. Investors Bank & Trust Company (IBT), an affiliate of EVM, serves
as custodian to the Funds and the Portfolios. Pursuant to the respective
custodian agreements, IBT receives a fee reduced by credits which are determined
based on the average cash balances the Funds or the Portfolios maintain with
IBT. Certain of the officers and Trustees of the Funds and Portfolios are
officers and directors/trustees of the above organizations (Note 5).
- --------------------------------------------------------------------------------
(5) DISTRIBUTION PLAN
Each Fund has adopted a distribution plan (the Plans) pursuant to Rule 12b-1
under the Investment Company Act of 1940. Effective January 30, 1995, the
Trustees of the Funds adopted an Amended Distribution Plan. The Plans require
the Funds to pay the principal underwriter, Eaton Vance Distributors, Inc.
(EVD), amounts equal to 1/365 of 0.75% of each Funds daily net assets, for
providing ongoing distribution services and facilities to the respective Fund. A
Fund will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent to
the sum of (i) 6.25% of the aggregate amount received by the Fund for shares
sold plus (ii) distribution fees calculated by applying the rate of 1% over the
prevailing prime rate to the outstanding balance of Uncovered Distribution
Charges of EVD, reduced by the aggregate amount of contingent deferred sales
charges (see Note 6) and amounts theretofore paid to EVD. The amount payable to
EVD with respect to each day is accrued on such day as a liability of each Fund
and, accordingly, reduces the Fund's net assets. For the six months ended March
31, 1995, Classic Florida Fund, Classic Massachusetts Fund, Classic Mississippi
Fund, Classic New York Fund, Classic Ohio Fund, Classic Rhode Island Fund,and
Classic West Virginia Fund, paid or accrued $24,980, $10,614, $9,458, $20,036,
$7,303, $12,985 and $6,256, respectively, to or payable to EVD representing
0.75% (annualized) of average daily net assets. At March 31, 1995, the amount of
Uncovered Distribution Charges of EVD calculated under the Plans for Classic
Florida Fund, Classic Massachusetts Fund, Classic Mississippi Fund, Classic New
York Fund, Classic Ohio Fund, Classic Rhode Island Fund, and Classic West
Virginia Fund were approximately $699,000, $275,000, $261,000, $438,000,
$225,000, $330,000 and $163,000, respectively.
In addition, the Plans permit the Funds to make monthly payments of service fees
to the Principal Underwriter, in amounts not exceeding 0.25% of each Fund's
average daily net assets for any fiscal year. The Trustees have initially
implemented the Plans by authorizing the Funds to make monthly service fee
payments to the Principal Underwriter in amounts not expected to exceed 0.20% of
each Fund's average daily net assets for each fiscal year. For the six months
ended March 31, 1995, Classic Florida Fund, Classic Massachusetts Fund, Classic
Mississippi Fund, Classic New York Fund, Classic Ohio Fund, Classic Rhode Island
Fund and Classic West Virginia Fund paid or accrued service fees to or payable
to EVD in the amount of $6,661, $2,830, $2,522, $5,343, $1,948, $3,463 and
$1,669, respectively. Pursuant to the Amended Distribution Plan, on sales made
prior to January 30, 1995, EVD makes monthly service fee payments to Authorized
Firms in amounts anticipated to be equivalent to 0.20%, annualized, of the
assets maintained in each Fund by their customers. On sales of shares made on
January 30, 1995 and thereafter, EVD currently expects to pay to an Authorized
Firm a service fee at the time of sale equal to 0.20% of the purchase price of
the shares sold by such Firm and monthly payments of service fees in amounts not
expected to exceed 0.20% per annum of the Funds' average daily net assets based
on the value of Fund shares sold by such Firm and remaining outstanding for at
least one year. During the first year after a purchase of Fund shares, EVD will
retain the service fee as reimbursement for the service fee payment made to the
Authorized Firm at the time of sale. Service fee payments are made for personal
services and/or maintenance of shareholder accounts. Service fees paid to EVD
and Authorized Firms are separate and distinct from the sales commissions and
distribution fees payable by a Fund to EVD, and as such are not subject to
automatic discontinuance when there are no outstanding Uncovered Distribution
Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or directors of
EVD.
23
<PAGE> 24
-------
- --------------------------------------------------------------------------------
(6) CONTINGENT DEFERRED SALES CHARGES
For shares purchased on or after January 30, 1995, a contingent deferred sales
charge (CDSC) of 1% is imposed on any redemption of Fund shares made within one
year of purchase. Generally, the CDSC is based upon the lower of the net asset
value at date of redemption or date of purchase. No charge is levied on shares
acquired by reinvestment of dividends or capital gains distributions. No CDSC is
levied on shares which have been sold to EVD or its affiliates or to their
respective employees or clients. CDSC charges are paid to EVD to reduce the
amount of Uncovered Distribution Charges calculated under the Funds'
Distribution Plans. CDSC received when no Uncovered Distribution Charges exist
will be credited to the Funds. For the six months ended March 31, 1995, EVD
received approximately $9 of CDSC paid by shareholders for the Classic Ohio
Fund.
- --------------------------------------------------------------------------------
(7) INVESTMENT TRANSACTIONS
<TABLE>
Increases and decreases in each Fund's investment in its corresponding Portfolio
for the six months ended to March 31, 1995 were as follows:
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
FUND FUND FUND FUND
---------- ------------- ----------- ----------
<S> <C> <C> <C> <C>
Increases $ 875,136 $ 378,048 $ 566,564 $2,118,553
Decreases 3,345,890 1,603,277 1,041,286 1,242,036
</TABLE>
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC
OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND
---------- ------------- -------------
<S> <C> <C> <C>
Increases $ 352,383 $ 276,145 $ 71,944
Decreases 541,989 1,075,896 377,631
</TABLE>
- --------------------------------------------------------------------------------
24
<PAGE> 25
-------
<TABLE>
Florida Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION - 2.9%
Baa3 BBB- $ 7,275 Martin County, Indian Town
Project, (AMT), 7.875%,
12/15/25 $ 7,782,286
NR NR 4,000 Palm Beach County,
Okeelanta Power L.P.
Project (AMT), 6.85%,
2/15/21 3,822,760
NR NR 7,250 Palm Beach County, Osceola
Power L.P. Project (AMT),
6.95%, 1/1/22 7,010,098
NR NR 3,100 Palm Beach County, Osceola
Power L.P. Project (AMT),
6.85%, 1/1/14 2,995,034
-------------
$ 21,610,178
-------------
EDUCATION - 0.8%
NR AAA $ 5,500 Volusia County Educational
Facilities, Embry-Riddle
Aeronautical University
Project (CLEE), 6.625%,
4/15/22 $ 5,714,170
-------------
ESCROWED - 11.5%
Aaa AAA $ 500 City of Boynton Beach
Water & Sewer Utility
(AMBAC), 7.40%, 11/1/15 $ 565,255
NR A+ 2,100 Charlotte County, St.
Joseph's Hospital, 8.25%,
8/15/18 2,352,126
Aaa AAA 9,225 Dade County, Baptist
Hospital of Miami Project,
5.75%, 5/1/21 9,101,939
NR BBB 6,000 Escambia County, Baptist
Hospital, Inc. Project,
8.70%, 10/1/14 6,645,960
Aaa AAA 7,750 Florida Municipal Power
Agency All-Requirements
Power Supply Project
(AMBAC), 6.25%, 10/1/21 8,404,875
Aaa AAA 5,000 Florida Municipal Power
Agency Stanton II Project
(AMBAC), Variable, 10/1/20
(1) 5,993,600
Aaa AAA 975 Florida Department of
Transportation (FGIC),
6.35%, 7/1/22 1,054,628
Aaa NR 2,500 Jacksonville Health
Facilities Finance
Authority, Daughters of
Charity National Health
System, Inc., 7.50%,
11/1/15 2,838,275
Aaa AAA 1,185 Jacksonville
Transportation Authority,
7.375%, 7/1/20 1,331,359
NR NR 3,250 Leesburg Hospital Medical
Project, 7.50%, 7/1/21 3,740,328
NR NR 1,675 Mid-Bay Bridge Authority,
6.875%, 10/1/22 1,883,387
Aaa AA- 14,485 Orlando Utilities
Commission Water and
Electric, 6.50%, 10/1/20 15,843,403
Aaa AAA 2,000 Orlando & Orange County
Expressway Authority
(FGIC), 8.25%, 7/1/14 2,544,080
Aaa AAA 10,000 Palm Bay Utility
Corporation Project
(MBIA), 6.20%, 10/1/17 10,781,800
NR AAA 2,355 Pinellas County Health
Facilities Finance
Authority, Sun Coast
Health System, Series A,
8.50%, 3/1/20 2,742,727
Baa1 AAA 315 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 347,225
NR AAA 680 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 755,636
AAA A+ 2,000 Tampa Health Facilities
Finance Authority,
Allegany Health System,
St. Joseph's Hospital,
7.125%, 12/1/05 2,214,800
NR BBB+ 1,035 Volusia County Health
Facilities Finance
Authority, Memorial Health
Systems, 8.125%, 6/1/08 1,189,577
NR BBB+ 3,850 Volusia County Health
Facilities Finance
Authority, Memorial Health
Systems, 8.25%, 6/1/20 4,446,519
-------------
$ 84,777,499
-------------
GENERAL OBLIGATION - 5.8%
Aa AA $ 1,000 Florida Board of
Education, 6.75%, 6/1/09 $ 1,066,160
Aa AA 16,100 Florida Board of
Education, 6.70%, 6/1/22 17,080,651
Aa AA 8,000 Florida Board of General
Services, 6.60%, 7/1/17 8,413,360
NR BBB 4,675 Guam Government, 5.40%,
11/15/18 4,038,125
</TABLE>
25
<PAGE> 26
-------
<TABLE>
FLORIDA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
GENERAL OBLIGATION -
(CONTINUED)
A A 7,255 Hillsborough County,
Museum of Science &
Industry, 6.45%, 1/1/22 7,293,306
Baa1 A 2,000 Puerto Rico, 6.50%, 7/1/23 2,044,520
Baa1 A 3,235 Puerto Rico Public
Building Authority, 5.50%,
7/1/21 2,916,029
-------------
$ 42,852,151
-------------
HEALTH CARE - 6.4%
NR AAA $ 5,075 Dade County Industrial
Development Authority,
Gramercy Park Nursing Care
Center, 6.60%, 8/1/23 $ 5,176,551
NR AAA 4,285 Dade County Industrial
Development Authority,
Florida Club Care Center
(GNMA), 6.60%, 1/20/18 4,301,326
NR BBB+ 3,350 Escambia County Health
Facilities Authority,
Baptist Hospital, Inc. and
The Baptist Manor, Inc.,
6.75%, 10/1/14 3,349,933
NR BBB+ 8,995 Escambia County Health
Facilities Authority,
Baptist Hospital, Inc.,
6.00%, 10/1/14 8,251,383
Baa1 NR 3,750 Jacksonville Health
Facilities Authority,
National Benevolent
Association, Cypress
Village Florida Project,
7.00%, 12/1/22 3,704,363
A NR 14,000 City of Venice Health
Facilities, 6.00%, 12/1/14 13,498,380
A NR 9,810 City of Venice Health
Facilities, 5.75%, 12/1/24 8,858,822
-------------
$ 47,140,758
-------------
HOSPITAL REVENUE - 1.3%
NR AA+ $ 4,750 Jacksonville Health
Facilities Finance
Authority, St. Luke's
Hospital Association
Project, 6.75%, 11/15/13 $ 4,973,345
A BBB+ 5,000 St. John's County
Industrial Development
Authority, Flagler
Hospital Project, 6.00%,
8/1/22 4,730,550
-------------
$ 9,703,895
-------------
HOUSING - 8.5%
NR AAA $ 630 Broward County HFA SFMR
(GNMA), (AMT), 7.35%,
3/1/23 $ 655,918
NR AAA 1,300 Clay County HFA MFMR
(GNMA), 7.40%, 12/1/25 1,386,528
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa NR 2,750 Clay County HFA SFMR
(GNMA), (AMT), 6.55%,
3/1/28 2,763,283
Aaa NR 290 Dade County HFA SFMR
(GNMA), 7.10%, 3/1/17 302,815
Aaa NR 1,260 Dade County HFA SFMR
(GNMA), (AMT), 7.75%,
9/1/22 1,330,069
Aaa NR 1,160 Dade County HFA SFMR
(GNMA), (AMT), 7.25%,
9/1/23 1,205,008
Aaa NR 75 Dade County HFA SFMR
(GNMA), 7.00%, 3/1/24 77,468
Aaa NR 2,540 Escambia County HFA SFMR
(GNMA), (AMT), 7.40%,
10/1/23 2,651,684
Aaa NR 7,500 Escambia County HFA SFMR
(GNMA), (AMT), 6.85%,
10/1/17 7,622,400
Aaa NR 5,000 Escambia County HFA SFMR
(GNMA), (AMT), 6.90%,
10/1/21 5,122,800
Aaa NR 6,250 Escambia County HFA SFMR
(GNMA), (AMT), 6.95%,
10/1/27 6,418,688
NR AAA 1,125 Florida HFA (FHA), 6.35%,
6/1/14 1,134,923
Aaa NR 1,005 Hillsborough County HFA
SFMR (GNMA), (AMT),
7.875%, 5/1/23 1,076,546
NR NR 3,475 City of North Miami Health
Care Facilities, The
Imperial Club Project,
9.25%, 1/1/13 3,642,043
NR AAA 1,695 Orange County HFA SFMR
(GNMA), (AMT), 7.375%,
9/1/24 1,792,700
Aaa NR 12,000 Orange County HFA SFMR
(GNMA), (AMT), 6.85%,
10/1/27 12,335,880
NR AAA 8,000 Orange County HFA SFMR
(GNMA), (AMT), 6.60%,
4/1/28 7,989,120
Aaa NR 845 Palm Beach County HFA SFMR
(GNMA), 7.60%, 3/1/23 893,723
Aaa NR 1,455 Polk County HFA SFMR
(GNMA), 7.15%, 9/1/23 1,514,393
Baa BBB 1,400 Puerto Rico Urban Renewal
& Housing Corp, 7.875%,
10/1/04 1,557,192
Aaa AAA 915 Puerto Rico Housing
Finance Corp SFMR (GNMA),
7.65%, 10/15/22 971,801
-------------
$ 62,444,982
-------------
</TABLE>
26
<PAGE> 27
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT
REVENUE/POLLUTION
CONTROL REVENUE - 2.2%
Baa1 BBB $ 8,000 Escambia County, Champion
International Corporation
Project (AMT), 5.875%,
6/1/22 $ 7,206,240
B3 BB- 9,200 Polk County Industrial
Development Authority
(AMT), 7.525%, 1/1/15 9,354,100
-------------
$ 16,560,340
-------------
INSURED HEALTHCARE - 0.3%
Aaa AAA $ 500 Alachua County Health
Facility, Mental Health
Services Project (CGIC),
7.75%, 7/1/10 $ 558,990
Aaa AAA 2,050 Hillsborough County IDA,
Allegany Health Systems,
J. Knox Village (MBIA),
5.75%, 12/1/21 1,958,488
-------------
$ 2,517,478
-------------
INSURED HOSPITALS - 5.3%
Aaa AAA $ 8,000 Charlotte County Health
Care, Bon-Secours Health
System Project (FSA),
Variable, 8/30/27 (1) $ 7,918,640
Aaa AAA 23,355 Jacksonville FL Health
Authority, Daughters of
Charity, 5.00%, 11/15/15 20,362,991
Aaa AAA 2,000 Lee County, Memorial
Hospital (MBIA), Variable,
4/1/20 (1) 2,146,500
Aaa AAA 5,305 Orange County Health
Facilities Finance
Authority, Pooled Hospital
Loan Program - Orlando
Regional Medical Center &
Indian River Memorial
Hospital (FGIC), 7.875%,
12/1/25 5,642,133
Aaa AAA 3,000 Orange County Health
Facilities Authority
(MBIA), Variable, 10/1/21
(1) 3,135,960
-------------
$ 39,206,224
-------------
INSURED HOUSING - 2.2%
Aaa AAA $ 1,575 Brevard County HFA SFMR
(FSA), 7.00%, 3/1/13 $ 1,637,606
Aaa AAA 1,720 Duval County HFA SFMR
(FGIC), 7.35%, 7/1/24 1,816,010
Aaa AAA 6,530 FL HEFA, Maitland Club
Apartment Project (AMBAC)
(AMT), 6.875%, 8/1/26 6,728,969
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 3,000 FL HFA, Brittany of
Rosemont Project (AMBAC)
(AMT), 6.875%, 8/1/26 3,091,410
Aaa AAA 2,675 Lee County SCA MFMR (FSA)
(AMT), 7.05%, 1/1/30 2,754,234
-------------
$ 16,028,229
-------------
INSURED POLLUTION
CONTROL REVENUE - 0.3%
Aaa AAA $ 1,000 Citrus County (MBIA),
6.35%, 2/1/22 $ 1,021,730
Aaa AAA 1,000 Escambia County, Gulf
Power Project (MBIA),
5.80%, 6/1/23 961,080
-------------
$ 1,982,810
-------------
INSURED MISCELLANEOUS -
1.3%
Aaa AAA $ 2,000 Escambia County (MBIA),
7.20%, 1/1/15 $ 2,124,840
Aaa AAA 5,855 Lee County (MBIA), 7.30%,
10/1/07 6,434,001
Aaa AAA 799 Osceola County IDA
Community Provider Pooled
Loan Program, (CGIC),
7.75%, 7/1/10 836,114
-------------
$ 9,394,955
-------------
INSURED SOLID WASTE - 0.2%
Aaa AAA $ 1,500 St. John's County Solid
Waste Disposal (FGIC),
7.25%, 11/1/10 $ 1,654,875
-------------
INSURED SPECIAL TAX
REVENUE - 8.7%
Aaa AAA $10,770 FL Department of
Environmental Protection
(AMBAC), 4.60%, 7/1/05 $ 9,922,940
Aaa AAA 11,130 FL Department of
Environmental Protection
(AMBAC), 4.75%, 7/1/06 10,243,273
Aaa AAA 100 FL Department of
Environmental Protection
(AMBAC), 4.75%, 7/1/07 91,128
Aaa AAA 14,250 FL Department of
Environmental Protection
(MBIA), 4.75%, 7/1/09 12,799,493
Aaa AAA 9,875 FL Department of
Environmental Protection
(MBIA), 4.75%, 7/1/10 8,779,566
Aaa AAA 10,000 FL Department of
Environmental Protection
(MBIA), 4.90%, 7/1/13 8,789,600
Aaa AAA 1,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/10 393,220
Aaa AAA 1,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/11 367,270
</TABLE>
27
<PAGE> 28
-------
<TABLE>
FLORIDA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED SPECIAL TAX
REVENUE - (CONTINUED)
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/12 685,400
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/13 638,920
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/14 600,660
Aaa AAA 1,500 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/15 419,340
Aaa AAA 1,185 City of Opa-Locka (FGIC),
7.00%, 1/1/14 1,298,168
Aaa AAA 5,000 St. Petersburg Excise Tax
(FGIC), 5.00%, 10/1/16 4,411,600
Aaa AAA 2,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/10 804,380
Aaa AAA 1,760 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/12 618,693
Aaa AAA 2,840 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/14 877,475
Aaa AAA 4,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/15 1,152,080
Aaa AAA 4,140 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/16 1,122,106
Aaa AAA 2,525 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/17 644,024
-------------
$ 64,659,336
-------------
INSURED TRANSPORTATION - 5.2%
Aaa AAA $ 4,000 Dade County Aviation
Facilities (MBIA) (AMT),
6.55%, 10/1/13 $ 4,148,480
Aaa AAA 4,000 FL State Turnpike
Authority (FGIC),
Variable, 7/1/22 (1) 4,194,400
Aaa AAA 5,500 FL State Turnpike
Authority (FGIC), 5.00%,
7/1/19 4,788,960
Aaa AAA 8,600 Greater Orlando Aviation
Authority, Orlando Airport
Facilities (FGIC), (AMT),
6.375%, 10/1/21 (2) 8,688,150
Aaa AAA 7,000 Orlando & Orange County
Expressway Authority
(FGIC), Variable, 7/1/04
(1) 6,655,670
Aaa AAA 10,920 Orlando & Orange County
Expressway Authority
(FGIC), 5.125%, 7/1/20 9,671,735
-------------
$ 38,147,395
-------------
INSURED UTILITIES - 6.1%
Aaa AAA $41,465 FL Municipal Power Agency
Stanton II Project
(AMBAC), 4.50%, 10/1/27 $ 32,180,572
Aaa AAA 7,770 FL Municipal Power Agency
Stanton II Project
(AMBAC), 4.50%, 10/1/16 6,364,718
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 2,000 Fort Pierce Utilities
Authority (AMBAC), 5.25%,
10/1/16 1,813,460
Aaa AAA 1,540 Manatee County Public
Utility (FGIC), 0%,
10/1/12 538,600
Aaa AAA 1,750 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/02 (1) 1,805,983
Aaa AAA 2,200 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 2,294,951
-------------
$ 44,998,284
-------------
INSURED WATER & SEWER - 6.1%
Aaa AAA $11,450 Broward County Water &
Sewer (AMBAC), 5.125%,
10/1/15 $ 10,240,308
Aaa AAA 9,500 Dade County Water and
Sewer System (FGIC),
5.00%, 10/1/13 8,476,660
Aaa AAA 2,000 City of Fort Myers Utility
(FGIC), 5.00%, 10/1/19 1,755,860
Aaa AAA 2,000 City of Fort Myers Utility
(FGIC), 5.00%, 10/1/16 1,728,960
Aaa AAA 9,840 Reedy Creek Improvement
District (Orange and
Osceola Counties) (MBIA)
5.00%, 10/1/19 8,551,550
Aaa AAA 4,000 Sanford Water and Sewer
(AMBAC), 4.50%, 10/1/21 3,182,120
Aaa AAA 1,700 St. John's County Water &
Sewer (MBIA), 0%, 6/1/16 470,186
Aaa AAA 3,550 St. John's County Water &
Sewer (MBIA), 0%, 6/1/17 923,958
Aaa AAA 5,600 St. Lucie County Utility
System (FGIC), 6.00%.
10/1/20 5,636,400
Aaa AAA 4,000 City of Tampa Water and
Sewer System (FGIC),
6.00%, 10/1/17 4,024,640
-------------
$ 44,990,642
-------------
LIFE CARE - 1.0%
NR NR $ 6,895 Atlantic Beach, Fleet
Landing Project, 8.00%,
10/1/24 $ 7,058,825
-------------
LEASE/CERTIFICATES OF
PARTICIPATION - 1.3%
A1 A $ 2,280 Florida State Department
of General Services,
7.00%, 9/1/20 $ 2,420,038
Baa1 A 7,350 PR PBA Educational &
Health Facilities, 5.70%,
7/1/09 7,106,054
-------------
$ 9,526,091
-------------
</TABLE>
28
<PAGE> 29
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
NURSING HOMES - 1.1%
NR NR $ 300 Broward County Industrial
Development Authority,
Beverly Enterprises -
Florida, Inc. Project,
9.80%, 11/1/10 $ 333,390
NR NR 500 Charlotte County
Industrial Development
Authority, Beverly
Enterprises, 10.00%,
6/1/11 566,945
NR NR 4,000 Citrus County Industrial
Development Authority,
Beverly Enterprises,
7.25%, 4/1/03 3,931,240
NR NR 725 Highlands County
Industrial Development
Authority, Beverly
Enterprises - Florida,
Inc. Project, 9.25%,
7/1/07 796,268
NR NR 435 Okaloosa County, Beverly
Enterprises, 10.75%,
10/1/03 478,704
NR NR 720 Orange County Industrial
Development Authority,
Beverly Enterprises,
9.25%, 8/1/10 791,302
NR NR 1,000 Winter Garden, Beverly
Enterprises, 8.75%, 7/1/12 1,079,100
-------------
$ 7,976,949
-------------
SOLID WASTE - 0.6%
A A $ 3,870 Broward County Waste
Energy Company, L.P. North
Project, 7.95%, 12/1/08 $ 4,197,363
-------------
SPECIAL TAX
REVENUE - 1.6%
A1 A+ $ 9,500 Orange County, 5.375%,
1/1/24 $ 8,523,590
A1 NR 3,000 City of Orlando, 6.00%,
10/1/22 2,940,630
-------------
$ 11,464,220
-------------
TRANSPORTATION - 5.4%
NR NR $10,140 Mid-Bay Bridge Authority,
6.125%, 10/1/22 $ 9,108,863
Baa1 A 10,135 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 8,440,225
Baa1 A 2,500 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/17 2,273,300
Baa1 A 4,750 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/19 4,302,265
Baa1 A 17,650 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/21 15,304,668
-------------
$ 39,429,322
-------------
UTILITIES - 13.6%
NR BBB $ 3,850 Guam Power Authority,
6.30%, 10/1/22 $ 3,680,831
NR BBB 32,325 Guam Power Authority,
5.25%, 10/1/23 26,225,273
Aa1 AA 30,000 Jacksonville Electric
Authority, Bulk Power
Supply System, Scherer 4
Project, 5.25%, 10/1/21 26,960,100
Aa1 AA 3,000 Jacksonville Electric
Authority St. John's River
Park System, 6.50%,
10/1/14 3,094,140
Aa AA- 2,500 Orlando Utilities
Commission Water and
Electric, 5.00%, 10/1/23 2,154,575
Aa AA- 10,000 Orlando Utilities
Commission Water and
Electric, 5.25%, 10/1/23 8,944,500
Aa1 AA 2,850 Orlando Utilities
Commission Water and
Electric, 5.125%, 10/1/19 2,515,467
Aa1 AA 11,395 Orlando Utilities
Commission Water and
Electric, 5.00%, 10/1/23 9,779,303
Aa AA 1,750 Orlando Utilities
Commission Water and
Electric, 5.25%, 10/1/23 1,560,930
Baa1 A- 185 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 195,739
Baa1 A- 10,000 Puerto Rico Electric Power
Authority, 7.00%, 7/1/21 10,693,900
A2 A+ 2,515 St. Lucie County Solid
Waste Disposal, Florida
Power & Light Company
(AMT), 6.70%, 5/1/27 2,574,807
NR NR 2,000 Virgin Island Water &
Power Authority, 7.40%,
7/1/11 2,106,180
-------------
$ 100,485,744
-------------
WATER & SEWER - 0.3%
Baa1 BBB+ $ 2,500 Hillsborough County
Utility, 6.625%, 8/1/11 $ 2,569,575
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $710,252,094) $ 737,092,290
=============
</TABLE>
29
<PAGE> 30
-------
FLORIDA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
(1) The above designated securities have been issued as inverse floater bonds.
(2) At March 31, 1995, the market value of securities segregated to cover margin
requirements for open financial futures contracts amounted to $8,688,150.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1995, 35.7% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 10.5% to 14.7% of total investments.
See notes to financial statements
30
<PAGE> 31
-------
<TABLE>
Massachusetts Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 6.0%
Aa1 AA+ $ 1,625 Massachusetts Health and
Educational Facilities
Authority, Amherst
College, 6.80%, 11/1/21 $ 1,708,769
A1 A+ 250 Massachusetts Health and
Educational Facilities
Authority, Tufts
University, 7.75%, 8/1/13 270,910
NR BBB- 3,800 Massachusetts Health and
Educational Facilities
Authority, Merrimack
College, 7.125%, 7/1/12 3,930,454
NR AAA 2,900 Massachusetts Health and
Educational Facilities
Authority, Wentworth
Institute, (Connie Lee),
5.50%, 10/1/23 2,594,630
NR BBB- 2,250 Massachusetts Health and
Educational Facilities
Authority, Smith College,
5.75%, 7/1/24 2,139,998
Aa1 AA 3,000 Massachusetts Industrial
Finance Agency, Phillips
Academy, 5.375%, 9/1/23 2,715,420
NR NR 2,000 The New England Education
Loan Marketing
Corporation, 6.90%,
11/1/09 2,134,880
NR BBB- 1,300 Puerto Rico Industrial,
Tourist, Educational,
Medical and Environmental
Control Authority,
Polytechnic University,
5.50%, 8/1/24 1,094,938
NR BBB- 1,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and Environmental
Control Authority,
Polytechnic University,
6.50%, 8/1/24 973,090
A A 250 University of
Massachusetts Building
Authority Refunding
Revenue Bonds, Series
1991-A, 7.20%, 5/1/04 279,854
-------------
$ 17,842,943
-------------
ESCROWED - 0.1%
Baa BBB $ 225 Massachusetts Health and
Educational Facilities
Authority Holyoke
Hospital, 9.50% 7/1/15 $ 232,283
-------------
GENERAL OBLIGATIONS - 4.9%
Baa1 NR $ 1,000 City of Lowell, 6.375%,
8/15/01 $ 1,044,130
A1 A+ 3,900 Commonwealth of
Massachusetts, 5.00%,
1/1/12 3,479,970
A1 A+ 1,775 Commonwealth of
Massachusetts, 5.00%,
1/1/14 1,553,196
A NR 3,375 Town of Nantucket, 6.80%,
12/1/11 3,601,665
Baa1 A 3,000 Commonwealth of Puerto
Rico, 6.50%, 7/1/23 3,066,780
Baa1 A 100 Puerto Rico Public
Buildings Authority,
5.50%, 7/1/21 90,140
Baa1 A 1,900 Puerto Rico Aqueduct and
Sewer Authority, 7.00%,
7/1/19 1,967,659
-------------
$ 14,803,540
-------------
HEALTH CARE - 1.7%
NR AA $ 1,495 Massachusetts Health and
Educational Facilities
Authority, Deutsches
Altenheim, Incorporated,
7.70%,
11/1/31 (2) $ 1,598,514
NR NR 9,000 Massachusetts Industrial
Finance Agency,
Massachusetts Biomedical
Research Corporation, 0%,
8/1/19 3,566,970
-------------
$ 5,165,484
-------------
HOSPITALS - 8.9%
A1 A $ 3,000 Massachusetts Health and
Educational Facilities
Authority, Beth Israel
Hospital, 7.00%, 7/1/14 $ 3,139,440
A A- 3,000 Massachusetts Health and
Educational Facilities
Authority, Charlton
Memorial Hospital, 7.25%,
7/1/13 3,154,920
A1 A 530 Massachusetts Health and
Educational Facilities
Authority, Spaulding
Rehabilitation Hospital,
7.625%, 7/1/21 563,973
Baa1 BBB+ 2,000 Massachusetts Health and
Educational Facilities
Authority, New England
Baptist Hospital, 7.35%,
7/1/17 2,030,440
Aa NR 3,100 Massachusetts Health and
Educational Facilities
Authority, Daughters of
Charity Health System,
6.10%, 7/1/14 3,048,013
A1 A+ 1,000 Massachusetts Health and
Educational Facilities
Authority, Dana-Farber
Cancer Institute, 6.65%,
12/1/15 1,019,890
A A 4,250 Massachusetts Health and
Educational Facilities
Authority, The Medical
Center of Central
Massachusetts, 7.10%,
7/1/21 4,443,035
Baa BBB 1,825 Massachusetts Health and
Educational Facilities
Authority, Sisters of
Providence Health System,
6.50%, 11/15/08 1,798,957
NR A- 1,470 Massachusetts Health and
Educational Facilities
Authority, Jordan Hospital
Series C, 6.875%, 10/1/22 1,475,542
</TABLE>
31
<PAGE> 32
-------
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOSPITALS - (CONTINUED)
NR AAA 2,625 Massachusetts Health and
Educational Facilities
Authority, Winchester
Hospital, (Connie Lee),
5.75%, 7/1/14 2,484,589
NR AAA 3,650 Massachusetts Health and
Educational Facilities
Authority, Winchester
Hospital, (Connie Lee),
5.75%, 7/1/24 3,369,242
-------------
$ 26,528,041
-------------
HOUSING - 12.4%
NR AAA $ 2,750 Framingham Housing
Authority, (GNMA), 6.65%,
2/20/32 $ 2,767,215
A1 A+ 6,000 Massachusetts Housing
Finance Agency, 6.375%,
4/1/21 5,958,480
Aa A+ 400 Massachusetts Housing
Finance Agency, 7.35%,
12/1/16 426,668
Aa A+ 160 Massachusetts Housing
Finance Agency, 6.30%,
6/1/25 155,774
Aaa AAA 2,750 Massachusetts Housing
Finance Agency, (FNMA),
6.90%, 11/15/21 2,858,900
Aaa AAA 1,000 Massachusetts Housing
Finance Agency, (FNMA),
6.875%, 11/15/11 1,049,180
Aa A+ 2,795 Massachusetts Housing
Finance Agency, (AMT),
7.125%, 6/1/25 2,894,250
Aa A+ 1,500 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 12/1/21 1,582,395
Aa A+ 2,330 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 6/1/20 2,447,995
Aa A+ 7,250 Massachusetts Housing
Finance Agency, (AMT),
6.60%, 12/1/26 7,249,130
Aa A+ 6,400 Massachusetts Housing
Finance Agency, (AMT),
6.60%, 12/1/26 6,399,232
Aaa AAA 3,150 Puerto Rico Housing
Finance Corporation,
"RIBS", (AMT), (GNMA),
Variable, 8/4/25 (1) 3,260,250
-------------
$ 37,049,469
-------------
INDUSTRIAL
DEVELOPMENT/POLLUTION
CONTROL - 8.2%
Baa1 BBB $14,185 City of Boston Harbor
Electric Energy Company
Project, (AMT), 7.375%,
5/15/15 $ 14,892,405
Baa2 BBB 8,500 Massachusetts Industrial
Finance Agency, Eastern
Edison Company, 5.875%,
8/1/08 7,994,420
Aa3 AA 1,550 Puerto Rico Industrial,
Medical and Environmental
Pollution Control
Authority, The Upjohn
Company, 7.50%, 12/1/23 1,693,019
-------------
$ 24,579,844
-------------
INSURED EDUCATION - 3.1%
Aaa AAA $ 345 Massachusetts Educational
Finance Authority, (MBIA),
(AMT), 7.25%, 1/1/09 $ 362,833
Aaa AAA 2,000 Massachusetts Educational
Finance Authority,
(AMBAC), (AMT), 7.30%,
1/1/12 2,142,680
Aaa AAA 250 Massachusetts Health and
Educational Facilities
Authority, Northeastern
University, (AMBAC),
7.50%, 10/1/08 271,448
Aaa AAA 400 Massachusetts Health and
Educational Facilities
Authority, Boston
University "RIBS", (MBIA),
Variable, 10/1/31 (1) 432,576
Aaa AAA 3,000 Massachusetts Health and
Educational Facilities
Authority, Tufts
University, (FGIC), 5.95%,
8/15/18 2,966,160
Aaa AAA 3,500 Southeastern Massachusetts
University Building
Authority, (AMBAC), 5.75%,
5/1/16 3,371,655
-------------
$ 9,547,352
-------------
INSURED GENERAL
OBLIGATION - 1.9%
Aaa AAA $ 1,795 City of Boston, (FSA),
4.875%, 9/1/09 $ 1,586,152
Aaa AAA 1,000 Commonwealth of Puerto
Rico "RIBS", (AMBAC),
Variable, 7/1/15 (1) 959,310
Aaa AAA 300 Commonwealth of Puerto
Rico, (MBIA), 5.25%,
7/1/18 271,617
Aaa AAA 2,500 Commonwealth of Puerto
Rico, (MBIA), 5.00%,
7/1/21 2,153,800
Aaa AAA 600 Town of Tyngsborough,
(AMBAC), 6.90%, 5/15/08 656,268
-------------
$ 5,627,147
-------------
INSURED HOSPITALS - 8.8%
Aaa AAA $ 300 Massachusetts Health and
Educational Facilities
Authority, Berkshire
Health Systems, (MBIA),
7.60%, 10/1/14 $ 323,595
Aaa AAA 1,250 Massachusetts Health and
Educational Facilities
Authority, Beth Israel
Hospital, Inverse
Floaters, (AMBAC),
Variable, 7/1/25 (1) 1,213,950
</TABLE>
32
<PAGE> 33
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS - (CONTINUED)
Aaa AAA 1,500 Massachusetts Health and
Educational Facilities
Authority, Capital Asset
Program, (MBIA), 7.20%,
7/1/09 1,597,695
AAA AAA 2,050 Massachusetts Health and
Educational Facilities
Authority, Fallon
Healthcare System (CGIC),
6.75%, 6/1/20 (2) 2,130,360
AAA AAA 4,500 Massachusetts Health and
Educational Facilities
Authority, Fallon
Healthcare System (CGIC),
6.875%, 6/1/11 4,804,155
Aaa AAA 2,040 Massachusetts Health and
Educational Facilities
Authority, Beverly
Hospital, (MBIA), 7.30%,
7/1/13 2,182,780
Aaa AAA 1,000 Massachusetts Health and
Educational Facilities
Authority, Baystate
Medical Center, (FGIC),
5.00%, 7/1/20 845,570
Aaa AAA 3,000 Massachusetts Health and
Educational Facilities
Authority, The Medical
Center of Central
Massachusetts, (AMBAC),
"CARS", Variable,
6/23/22 (1) 3,298,470
Aaa AAA 2,000 Massachusetts Health and
Educational Facilities
Authority, St. Elizabeth
Hospital Issue, "LEVRRS",
(FSA), Variable, 8/15/21
(1) 2,175,480
Aaa AAA 2,600 Massachusetts Health and
Educational Facilities
Authority, Saint Luke's
Hospital, "Yield Curve
Notes", (MBIA), Variable,
8/15/13 (1) 2,434,848
Aaa AAA 1,200 Massachusetts Health and
Educational Facilities
Authority, University
Hospital, (MBIA), 7.25%,
7/1/19 1,283,976
Aaa AAA 4,430 Massachusetts Health and
Educational Facilities
Authority, Lahey Clinic,
(MBIA), 5.375%, 7/1/23 3,994,044
-------------
$ 26,284,923
-------------
INSURED HOUSING - 0.7%
Aaa AAA $ 2,000 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 6.65%, 7/1/19 $ 2,020,200
-------------
INSURED TRANSPORTATION - 3.1%
Aaa AAA $ 5,860 Massachusetts Port
Authority, (AMT), (FGIC),
7.50%, 7/1/20 $ 6,324,053
Aaa AAA 3,060 Massachusetts Bay
Transportation Authority,
(MBIA), 5.50%, 3/1/22 2,833,774
-------------
$ 9,157,827
-------------
INSURED UTILITIES - 1.9%
Aaa AAA $ 6,000 Massachusetts Municipal
Wholesale Electric
Company, (AMBAC), 4.70%,
7/1/02 $ 5,688,720
-------------
CERTIFICATE OF PARTICIPATION - 2.7%
NR A $ 7,800 Plymouth County,
Massachusetts Correctional
Facility Project, 7.00%,
4/1/22 $ 8,061,534
SOLID WASTE - 3.5%
Baa1 BBB $ 8,970 Massachusetts Industrial
Finance Agency,
Massachusetts Refusetech,
Inc. Project, 6.30%,
7/1/05 $ 9,087,776
NR NR 1,340 City of Pittsfield, Vicon
Recovery Associates
Project, 7.95%, 11/1/14 1,386,096
-------------
$ 10,473,872
-------------
SPECIAL TAX - 5.0%
A1 A+ $ 9,700 Commonwealth of
Massachusetts, Special
Obligation Revenue Bonds,
6.00%, 6/1/13 $ 9,726,966
A1 A+ 4,060 Commonwealth of
Massachusetts, Special
Obligation Revenue Bonds,
5.80%, 6/1/14 3,967,919
NR NR 1,350 Virgin Islands Public
Finance Authority, 7.25%,
10/1/18 1,401,462
-------------
$ 15,096,347
-------------
TRANSPORTATION - 10.4%
NR BBB $ 5,850 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 5,813,087
A1 A+ 3,250 Massachusetts Bay
Transportation Authority,
5.50%, 3/1/21 2,981,745
A A+ 2,500 Massachusetts Bay
Transportation Authority,
Inverse Floaters,
Variable, 3/1/23 (1) 2,398,500
A1 A+ 3,500 Massachusetts Bay
Transportation Authority,
5.90%, 3/1/12 3,448,305
Aa AA- 7,300 Massachusetts Port
Authority, 6.00%, 7/1/23 7,191,741
Aa AA- 575 Massachusetts Port
Authority, (AMT), 7.75%,
7/1/18 590,514
A1 A+ 7,585 Massachusetts Turnpike
Authority, 5.00%, 1/1/20 6,551,847
</TABLE>
33
<PAGE> 34
-------
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION -
(CONTINUED)
Baa1 A 2,000 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 2,057,400
-------------
$ 31,033,139
-------------
UTILITIES - 6.1%
NR BBB $ 4,265 Guam Power Authority,
5.25%, 10/1/23 $ 3,460,195
A BBB+ 3,500 Massachusetts Municipal
Wholesale Electric
Company, 6.75%, 7/1/11 3,655,855
A BBB+ 2,610 Massachusetts Municipal
Wholesale Electric
Company, 6.00%, 7/1/18 2,542,740
A BBB+ 5,560 Massachusetts Municipal
Wholesale Electric
Company, 6.625%, 7/1/18 5,739,310
Baa1 A- 1,000 Puerto Rico Electric Power
Authority, 7.00%, 7/1/07 1,056,900
Baa1 A- 150 Puerto Rico Electric Power
Authority, 5.50%, 7/1/20 135,441
BR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,579,635
-------------
$ 18,170,076
-------------
WATER AND SEWER - 10.6%
A A $ 2,500 Massachusetts Water
Resources Authority,
5.25%, 3/1/13 $ 2,308,925
A A 5,300 Massachusetts Water
Resources Authority,
5.00%, 3/1/22 4,472,352
A A 18,500 Massachusetts Water
Resources Authority,
4.75%, 12/1/23 14,861,420
A A 3,915 Massachusetts Water
Resources Authority,
5.25%, 12/1/15 3,514,182
A A 1,500 Massachusetts Water
Resources Authority,
5.25%, 3/1/13 1,353,105
A A 3,650 Massachusetts Water
Resources Authority,
5.25%, 12/1/20 3,194,503
NR NR 2,000 Virgin Islands Water and
Power Authority, 7.60%,
1/1/12 2,135,900
-------------
$ 31,840,387
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $285,245,169) $ 299,203,128
===============
<FN>
(1) The above security has been issued as an inverse floater bond.
(2) At March 31, 1995, the market value of securities segregated to cover margin
requirements on open financial futures contracts amounted to $3,728,874.
</TABLE>
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1995, 19.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 3.4% to 6.6% of total investments.
See notes to financial statements
34
<PAGE> 35
-------
<TABLE>
Mississippi Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 0.3%
Baa NR $ 100 Mississippi State
Educational Facilities
Authority, Tougaloo
College, 6.50%, 6/01/18 $ 100,062
------------
ESCROWED - 1.3%
Aaa NR $1,500 Mississippi Housing Finance
Corporation, SFMR, (AMT),
(ETM), 0%, 6/01/15 $ 409,335
------------
GENERAL OBLIGATION - 6.8%
Aa AA- $ 500 Mississippi State, 5.75%,
6/01/14 $ 494,240
Aa AA- 1,000 Mississippi State, 5.20%,
8/01/12 929,730
Aa AA- 200 Mississippi State, 5.10%,
11/15/12 183,636
Aa AA- 500 Mississippi State, 6.75%,
12/01/14 534,675
------------
$ 2,142,281
------------
HOSPITALS - 2.8%
A NR $1,000 Mississippi Hospital
Equipment & Facilities
Authority, Rankin Medical
Center Project, 5.60%,
3/01/19 $ 882,680
------------
HOUSING - 9.5%
Aa NR $ 500 Hinds County Urban Renewal,
Woodridge Apartments,
(FHA), 6.25%, 11/01/27 $ 489,085
NR NR 200 City of Ridgeland Urban
Renewal, The Orchard, LTD.,
7.75%, 12/01/15 191,460
Aaa NR 300 Vicksburg Leased Housing
Corporation, MFMR, Magnolia
Manor Apartments, (FHA),
5.80%, 8/15/13 287,244
Aaa NR 300 Vicksburg Leased Housing
Corporation, MFMR, Magnolia
Manor Apartments, (FHA),
5.95%, 8/15/22 286,734
Aaa NR 1,060 Mississippi Home
Corporation, SFMR, Access
Program, (AMT), 8.125%,
12/01/24 1,178,921
Aaa NR 500 Mississippi Home
Corporation, SFMR, Access
Program, (AMT), 8.10%,
12/01/24 555,860
------------
$ 2,989,304
------------
INDUSTRIAL DEVELOPMENT
REVENUE - 10.2%
A3 A- $ 500 Adams County, International
Paper Company Project,
5.50%, 12/01/05 $ 483,925
NR A- 600 Jackson County,
International Paper Company
Project, (AMT), 5.55%,
10/01/17 537,666
A2 A 1,000 Lowndes County,
Weyerhaeuser Company
Project, 6.80%, 4/01/22 1,065,810
A3 A- 600 Warren County,
International Paper Company
Project, (AMT), 6.60%,
3/01/19 600,924
NR AA 500 Port of Gulfport, E.I. du
Pont de Nemours and Company
Project, (AMT), 7.15%,
5/01/16 528,985
------------
$ 3,217,310
------------
INSURED EDUCATION - 3.3%
Aaa AAA $1,000 Mississippi Educational
Facilities Authority,
Milsaps College Project,
(MBIA) 6.50%, 11/01/19 $ 1,026,110
------------
INSURED GENERAL
OBLIGATION - 10.4%
Aaa AAA $ 500 Hinds County, (MBIA) 6.25%,
3/01/11 $ 518,380
Aaa AAA 1,000 Desoto County School
District, (MBIA) 4.75%,
2/01/13 844,840
Aaa AAA 1,000 Madison County School
District, (AMBAC) 5.00%,
12/01/13 893,750
Aaa AAA 1,000 Rankin County School
District, (MBIA) 5.75%,
2/01/10 1,003,020
------------
$ 3,259,990
------------
INSURED HOSPITALS - 23.0%
Aaa AAA $1,000 Gulfport Mississippi
Hospital Facilities
Authority, Memorial
Hospital of Gulfport,
(MBIA) 6.20%, 7/01/18 $ 1,004,700
Aaa AAA 1,275 Hinds County, Mississippi
Methodist Hospital and
Rehabilitation Center,
(AMBAC) 5.60%, 5/01/12 1,228,832
Aaa AAA 1,250 Mississippi Hospital
Equipment and Facilities
Authority, Methodist Health
Systems, (MBIA) 5.50%,
8/15/13 1,170,363
Aaa AAA 600 Mississippi Hospital
Equipment and Facilities
Authority, North
Mississippi Health
Services, (AMBAC) 5.50%,
5/15/09 572,772
Aaa AAA 750 Mississippi Hospital
Equipment and Facilities
Authority, North
Mississippi Health Services
(AMBAC) 5.25%, 5/15/13 682,178
</TABLE>
35
<PAGE> 36
-------
<TABLE>
MISSISSIPPI TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS - (CONTINUED)
Aaa AAA 1,750 Mississippi Hospital
Equipment and Facilities
Authority, Singing River
Hospital System, (FSA)
5.50%, 3/01/23 1,590,417
Aaa AAA 1,000 Mississippi Hospital
Equipment and Facilities
Authority, Mississippi
Baptist Medical Center,
(MBIA) 6.00%, 5/01/13, (2) 983,720
------------
$ 7,232,982
------------
INSURED CERTIFICATE OF
PARTICIPATION - 4.6%
Aaa AAA $1,500 Medical Center Building
Corporation, University of
Mississippi Medical Center
Project, (MBIA) 5.80%,
12/01/14 $ 1,437,150
------------
INSURED UTILITIES - 6.2%
Aaa AAA $1,600 Jackson County, Gautier
Utility District, (MBIA)
6.375%, 3/01/13 $ 1,641,888
Aaa AAA 300 Puerto Rico Electric Power
Authority, (FSA), Variable,
7/01/03 (1) 312,948
------------
$ 1,954,836
------------
INSURED WATER & SEWER - 4.6%
Aaa AAA $1,000 Jackson County, Water and
Sewer Bonds, (MBIA) 5.40%,
9/01/09 $ 962,190
Aaa AAA 500 City of Natchez, Combined
Water and Sewer System,
(MBIA) 5.70%, 8/01/17 474,570
------------
$ 1,436,760
------------
TRANSPORTATION - 5.8%
Baa1 A $ 500 Puerto Rico Highway and
Transportation Authority,
6.375%, 7/01/08 $ 517,740
Baa1 A 500 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/01/20 434,600
Baa1 A 1,000 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/01/21 867,120
------------
$ 1,819,460
------------
UTILITIES - 11.2%
NR BBB $ 300 Guam Power Authority,
5.25%, 10/01/13 $ 257,109
NR BBB 810 Guam Power Authority,
6.625%, 10/01/14 811,596
Aa3 A+ 1,310 Lamar County, South
Mississippi Electric Power
Association Project, 4.85%,
12/01/06 1,190,030
Baa1 A- 250 Puerto Rico Electric Power
Authority, 6.375%, 7/01/24 251,063
Baa3 NR 1,000 Warren County, Mississippi
Power & Light Company
Project, 7.00%, 4/01/22 1,013,730
------------
$ 3,523,528
------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $31,192,694) $ 31,431,788
============
<FN>
(1) The above designated securities have been issued as inverse floater bonds.
(2) At March 31, 1995, the market value of securities segregated to cover margin
requirements for open financial futures contracts amounted to $983,720.
</TABLE>
The Portfolio invests primarily in debt securities issued by Mississippi
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1995, 52.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 5.2% to 30.0% of total investments.
See notes to financial statements
36
<PAGE> 37
-------
<TABLE>
New York Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
-----------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 11.0%
A1 NR $ 6,295 Monroe County IDA,
University of Rochester,
7.25%, 12/1/16 $ 6,672,385
NR BBB- 1,660 City of New Rochelle IDA
Civic Facilities, College
of New Rochelle, 6.75%,
7/1/22 1,674,492
Baa1 BBB+ 1,300 Dormitory Authority, State
University Educational
Facilities, 7.50%, 5/15/11 1,471,925
Baa1 BBB+ 5,000 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/13 4,417,700
Baa1 BBB+ 6,895 Dormitory Authority, State
University Educational
Facilities, 4.75%, 7/1/14 5,975,345
Baa1 BBB+ 7,600 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/15 6,665,352
Baa1 BBB+ 7,505 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/19 6,484,170
Baa1 BBB+ 6,805 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/21 5,863,936
NR AA 1,300 Dormitory Authority, State
University Educational
Facilities, Medical
College, (Asset Guaranty),
6.875%, 7/1/21 1,363,609
A1 A+ 950 Dormitory Authority,
University of Rochester,
5.625%, 7/1/12 903,156
Baa1 BBB+ 28,250 Dormitory Authority, State
University Educational
Facilities, 5.50%, 5/15/13 25,855,813
Baa1 BBB+ 2,500 Dormitory Authority, State
University Educational
Facilities, 5.75%, 5/15/24 2,304,975
Baa1 BBB+ 1900 Dormitory Authority, State
University Educational
Facilities, 5.50%, 5/15/08 1,778,476
-------------
$ 71,431,334
-------------
ELECTRIC UTILITIES - 2.7%
NR BBB $ 4,000 Guam Power Authority
Revenue Bonds, 6.75%,
10/1/24 $ 4,015,760
A1 A 2,500 New York State Energy
Resource & Development
Authority, Brooklyn Union
Gas (RIBS) (AMT),
Variable, 7/1/26 (1) 2,759,750
Aa3 A+ 500 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.75%,
1/1/24 527,290
Aa3 A+ 2,365 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
7/1/25 2,490,463
Aa3 A+ 1,000 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
1/1/26 1,051,170
Aa AA- 500 Power Authority of the
State of New York, 8.00%,
1/1/17 544,945
Baa1 A- 11,500 Puerto Rico Electric Power
Authority, 0%, 7/1/17 2,821,755
NR NR 3,000 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 3,159,270
-------------
$ 17,370,403
-------------
ESCROWED - 5.9%
Aaa AAA $ 725 Albany Municipal Water
(MBIA), 7.50%, 12/1/17 $ 803,242
Aaa BBB 1,000 Dormitory Authority, City
University, 7.625%, 7/1/20 1,137,370
Aaa BBB+ 1,530 Dormitory Authority, State
University Educational
Facilities, 7.70%, 5/15/12 1,741,492
NR BBB 1,000 Dormitory Authority, City
University, 8.125%, 7/1/08 1,114,570
Baa1 BBB- 2,250 Dormitory Authority,
Upstate Community College,
7.20%, 7/1/21 2,532,218
Baa1 NR 2,000 Dormitory Authority,
Upstate Community College,
7.30%, 7/1/21 2,261,420
Aaa AAA 500 Erie County Water
Authority, Water Works
System, 6.00%, 12/1/08 512,615
Aaa AAA 500 Metropolitan
Transportation Authority
Commuter Facilities Bonds,
7.50%, 7/1/19 563,900
Aaa AAA 1,000 New York Local Government
Assistance Corporation
(LGAC), 7.00%, 4/1/16 1,117,200
Aaa AAA 7,500 New York Local Government
Assistance Corporation,
6.75%, 4/1/21 8,348,250
Aaa BBB 1,000 New York State Housing
Finance Agency Service
Contracts, 7.80%, 9/15/11 1,157,210
Aaa AAA 1,775 New York State Housing
Finance Agency Service
Contracts, 7.375%, 9/15/21 2,039,085
</TABLE>
37
<PAGE> 38
-------
<TABLE>
NEW YORK TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED - (CONTINUED)
Aaa BBB+ 90 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.75%, 8/15/10 102,170
Aaa AAA 450 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.875%, 8/15/08 518,144
Aaa AAA 3,320 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.50%, 2/15/21 3,786,260
Aaa NR 8,100 New York State Urban
Development Corporation
Correctional Facilities,
6.50%, 1/1/21 8,698,347
NR A 1,760 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/18 1,955,764
-------------
$ 38,389,257
-------------
GENERAL OBLIGATIONS - 4.8%
Baa NR $ 725 Jamestown, 7.00%, 3/15/07 $ 778,447
Baa NR 600 Jamestown, 7.00%, 3/15/08 641,142
Baa NR 700 Jamestown, 7.10%, 3/15/09 756,140
Baa NR 700 Jamestown, 7.10%, 3/15/10 755,069
Baa NR 700 Jamestown, 7.10%, 3/15/11 757,246
Baa NR 675 Jamestown, 7.10%, 3/15/12 728,494
Baa NR 675 Jamestown, 7.10%, 3/15/13 730,222
Baa NR 515 Jamestown, 7.10%, 3/15/14 558,368
Baa1 A- 2,500 New York City, 7.50%,
8/15/09 2,603,125
Baa1 A- 2,425 New York City, 7.50%,
2/1/09 2,553,889
Baa1 A- 1,200 New York City, 7.50%,
2/1/16 1,259,712
Baa1 A- 120 New York City, 8.25%,
5/15/16 131,352
Baa1 A- 4,000 New York City, 7.50%,
2/1/18 4,199,040
A A- 3,000 State of New York, 5.60%,
3/1/12 2,891,940
Aa AA 1,700 Onondaga County, 5.875%,
2/15/11 1,716,473
Aa AA 1,600 Onondaga County, 5.875%,
2/15/12 1,607,520
Baa1 A 4,425 Puerto Rico Public
Building Authority, Public
Education and Health
Facilities, 5.75%, 7/1/15 4,186,935
Baa1 A 3,750 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 4,081,125
-------------
$ 30,936,239
-------------
HEALTH CARE - 21.0%
Aa AAA $ 1,500 Dormitory Authority, Long
Island Jewish Medical
Center (FHA), 7.75%,
8/15/27 $ 1,608,240
NR AAA 1,000 Dormitory Authority, St.
Francis Hospital (FHA),
7.65%, 8/1/30 1,116,750
NR AAA 6,705 Dormitory Authority,
United Health Services,
FHA Insured Mortgage,
7.35%, 8/1/29 7,152,692
Aa AAA 4,785 New York State Medical
Care Facilities Finance
Agency (MCFFA), Hospital
Insured Mortgage (FHA),
5.25%, 8/15/14 4,326,214
Aa AA 750 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.35%, 2/15/29 799,515
NR AAA 3,855 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.125%, 2/15/14 3,970,187
NR AAA 3,620 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA)
(Secondary MBIA), 5.75%,
8/15/19 3,442,439
NR AA 9,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.70%, 8/15/23 9,347,220
Aa AA 6,600 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.25%, 2/15/31 7,066,026
Aa AA 1,500 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.95%, 2/15/32 1,565,235
Aa AA 2,190 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.00%, 8/15/32 2,290,587
Aa AA 3,800 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.65%, 8/15/32 3,881,776
Baa1 BBB+ 20,525 New York State MCFFA,
Mental Health Services
Facilities, 5.375%,
2/15/14 (3) 18,258,630
Baa1 BBB+ 1,610 New York State MCFFA,
Mental Health Services
Facilities, 7.625%,
8/15/17 1,745,353
</TABLE>
38
<PAGE> 39
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - (CONTINUED)
Baa1 BBB+ 10,205 New York State MCFFA,
Mental Health Services
Facilities, 5.25%, 2/15/19 8,734,051
Baa1 BBB+ 11,500 New York State MCFFA,
Mental Health Services
Facilities, 5.25%, 8/15/23 9,752,460
Baa1 BBB+ 145 New York State MCFFA,
Mental Health Services
Facilities, 7.75%, 8/15/10 157,392
Baa1 BBB+ 495 New York State MCFFA,
Mental Health Services
Facilities, 7.875%,
8/15/08 541,748
Baa1 BBB+ 1,230 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 1,326,469
Aa AA 3,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/14 3,525,165
Aa AA 2,425 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 2/15/10 2,435,064
Aa AA 2,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.50%, 2/15/35 2,510,175
Aa AA 8,445 New York State MCFFA,
Insured Mortgage Project
(FHA), 5.90%, 8/15/33 8,027,648
Baa1 BBB+ 6,625 New York State MCFFA,
Mental Health Services
Facilities, Series 1994 A,
5.25%, 8/15/23 5,603,094
Aa AA 950 New York State MCFFA,
Insured Mortgage Project
(FHA), 7.45%, 8/15/31 1,023,340
Baa BBB 5,540 New York State MCFFA,
Secured Hospital, 7.35%,
8/15/11 5,774,065
Baa BBB 19,700 New York State MCFFA,
Secured Hospital
(Brookdale), 6.80%,
8/15/12 19,729,353
-------------
$ 135,710,888
-------------
HOSPITALS - 1.2%
A1 A+ $ 5,200 Dormitory Authority,
University of Rochester,
Strong Memorial Hospital,
5.50%, 7/1/21 $ 4,928,612
Baa1 BBB+ 1,800 Syracuse Industrial
Development Agency (IDA),
St. Joseph's Hospital
Health Center, 7.50%,
6/1/18 1,883,322
-------------
$ 6,811,934
-------------
HOUSING - 5.7%
NR NR $ 4,783 New York City Housing
Development Corporation
(HDC), Allerville Project,
6.50%, 11/15/18 $ 4,811,649
NR NR 2,097 New York City HDC, Dayton
Project, 6.50%, 11/15/18 2,109,899
NR AAA 2,550 New York City HDC,
Multi-Unit Management,
7.35%, 6/1/19 2,693,387
Baa A 4,750 New York City HDC, General
Housing, 6.50%, 5/1/22 4,765,913
Aa NR 750 New York State Mortgage
Agency, 7.70%, 10/1/12 722,682
Aa NR 250 New York State Mortgage
Agency, 6.90%, 4/1/03 262,600
Aa NR 8,750 New York State Mortgage
Agency, 6.90%, 4/1/15 9,087,575
Aa NR 1,000 New York State Mortgage
Agency, 7.50%, 4/1/15 1,067,160
Aa NR 1,000 New York State Mortgage
Agency (AMT), 7.95%,
10/1/21 1,078,400
Aa NR 6,350 New York State Mortgage
Agency (AMT), 6.40%,
10/1/20 6,271,324
Aa NR 1,000 New York State Mortgage
Agency (AMT), 6.375%,
10/1/14 1,003,450
NR NR 1,970 Village of North Syracuse
Housing Authority, (AJM
Senior Housing, Inc. Janus
Park Project), 8.00%,
6/1/24 1,849,968
Baa BBB 350 Puerto Rico Commonwealth
Urban Renewal & Housing
Corporation, 7.875%,
10/1/04 389,298
Aaa AAA 420 Puerto Rico Housing
Financial Corporation
Single-Family (GNMA),
7.65%, 10/15/22 446,074
-------------
$ 36,559,379
-------------
</TABLE>
39
<PAGE> 40
-------
<TABLE>
NEW YORK TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
-----------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL
DEVELOPMENT/POLLUTION
CONTROL - 0.4%
Baa3 BB $ 2,800 Port Authority of New York
and New Jersey, Delta
Airlines, LaGuardia
Airport, 6.95%, 6/1/08 $ 2,841,216
-------------
INSURED COLLEGE &
UNIVERSITY - 1.7%
Aaa AAA $ 6,950 Dormitory Authority,
Marist College (MBIA),
6.00%, 7/1/22 $ 6,857,426
Aaa AAA 5,000 Dormitory Authority, New
York University (MBIA),
5.00%, 7/1/11 4,509,400
-------------
$ 11,366,826
-------------
INSURED GENERAL
OBLIGATIONS - 2.5%
Aaa AAA $ 1,650 Dutchess County Resource
Recovery Solid Waste
(FGIC), 7.50%, 1/1/09 $ 1,796,767
Aaa AAA 1,035 Erie County Water
Authority (AMBAC), 0%,
12/1/17 203,978
Aaa AAA 6,795 Islip Resource Recovery
Agency (MBIA), 6.50%,
7/1/09 (2) 6,750,561
Aaa AAA 1,000 Montgomery, Otesgo,
Schoharie Solid Waste
Management Authority
(MBIA), 5.25%, 1/1/14 918,300
Aaa AAA 3,900 New York City Trust for
Cultural Resources, Museum
of Modern Art (AMBAC),
5.40%, 1/1/12 3,646,812
Aaa AAA 2,480 New York State
Environmental Facilities
Corporation (EFC), Jamaica
Water Supply Company (AMT)
(AMBAC), 7.625%, 4/1/29 2,664,636
-------------
$ 15,981,054
-------------
INSURED GENERAL
OBLIGATIONS LOCAL - 0.8%
Aaa AAA $ 465 Chautauqua County
Unlimited Tax (FGIC),
7.30%, 4/1/07 $ 536,852
Aaa AAA 520 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/08 560,425
Aaa AAA 770 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/09 828,820
Aaa AAA 2,000 New York City (AMBAC),
7.00%, 8/1/17 2,167,180
Aaa AAA 500 Oyster Bay (FGIC), 6.60%,
2/15/12 527,480
Aaa AAA 450 Oyster Bay (FGIC), 6.60%,
2/15/13 474,732
-------------
$ 5,095,489
-------------
INSURED GENERAL
OBLIGATIONS SCHOOL
DISTRICT - 0.2%
Aaa AAA $ 700 Bethlehem Central School
District (AMBAC), 7.10%,
11/1/08 $ 800,982
Aaa AAA 700 Bethlehem Central School
District (AMBAC), 7.10%,
11/1/09 798,308
-------------
$ 1,599,290
-------------
INSURED GENERAL
OBLIGATIONS TERRITORY -
0.7%
Aaa AAA $ 4,500 Commonwealth of Puerto
Rico Public Improvement
Residual Interest Tax
Exempt Securities (FSA),
Variable, 7/1/22 (1) $ 4,441,995
-------------
INSURED HEALTH CARE - 2.0%
Aaa AAA $ 1,500 New York State MCFFA, Long
Term Health Care (CGIC),
6.80%, 11/1/14 $ 1,573,275
Aaa AAA 800 New York State MCFFA, New
York Hospital FHA Insured
Mortgage (AMBAC), 6.60%,
2/15/11 847,896
Aaa AAA 3,900 New York State MCFFA, New
York Hospital FHA Insured
Mortgage (AMBAC), 6.75%,
8/15/14 4,131,621
Aaa AAA 6,415 New York State MCFFA, New
York Hospital FHA Insured
Mortgage (Albany Medical)
(AMBAC), 6.125%, 8/15/14 6,410,702
-------------
$ 12,963,494
-------------
INSURED MISCELLANEOUS -
0.1%
Aaa AAA $ 500 New York City IDA, (USTA
National Tennis Center
Incorporated Project)
(FSA), 6.375%, 11/15/14 $ 515,475
-------------
INSURED TOLL & TURNPIKE - 1.0%
Aaa AAA $ 3,000 Triborough Bridge & Tunnel
Authority Residual
Interest Tax Exempt
Securities (MBIA),
Variable, 1/1/12 (1) $ 3,152,040
</TABLE>
40
<PAGE> 41
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
-----------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED TOLL & TURNPIKE -
(CONTINUED)
Aaa AAA 3,000 Triborough Bridge & Tunnel
Authority Residual
Interest Tax Exempt
Securities (MBIA),
Variable, 1/1/19 (1) 3,021,300
-------------
$ 6,173,340
-------------
INSURED WATER & SEWER - 0.0%
Aaa AAA $ 275 Albany Municipal Water
Financial Authority
(MBIA), 7.50%, 12/1/17 $ 293,208
-------------
CERTIFICATE OF
PARTICIPATION - 11.9%
Baa1 BBB $ 5,100 Dormitory Authority, City
University, 7.00%, 7/1/09 $ 5,466,384
Baa1 BBB 9,325 Dormitory Authority, City
University, 7.50%, 7/1/10 10,458,267
Baa1 BBB 8,050 Dormitory Authority, City
University, 5.00%, 7/1/20 6,638,755
Baa1 BBB 17,815 Dormitory Authority, City
University, 5.75%, 7/1/13 16,686,242
Baa1 BBB 250 Dormitory Authority, City
University, 6.375%, 7/1/08 251,788
Baa1 BBB 6,125 New York State HFA Service
Contract, 5.375%, 9/15/11 5,497,739
NR BBB 5,865 New York State Thruway
Authority, 0%, 1/1/01 4,211,656
A1 A 1,500 New York State Thruway
Authority, 5.75%, 1/1/12 1,477,680
Baa1 BBB 5,775 New York State Urban
Development Corporation
(UDC) Correctional
Facilities, 5.50%, 1/1/14 5,205,931
Baa1 BBB 500 New York State UDC, Alfred
Technology, 7.875%, 1/1/20 539,180
Baa1 BBB 750 New York State UDC,
Clarkson Center for
Advanced Materials, 7.80%,
1/1/20 806,498
Baa1 BBB 750 New York State UDC,
Clarkson Center for
Advanced Materials, 8.00%,
1/1/20 820,957
Baa1 BBB 8,000 New York State UDC
Correctional Facilities,
5.25%, 1/1/13 6,985,920
Baa1 BBB 5,000 New York State UDC
Correctional Facilities,
5.25%, 1/1/21 4,256,350
Baa1 BBB 5,350 New York State UDC,
Onondaga Co. Convention
Center, 7.875% 1/1/10 5,862,316
A1 A 1,825 Syracuse - Hancock
International Airport
Certificates of
Participation, 6.625%,
1/1/12 1,903,949
-------------
$ 77,069,612
-------------
MISCELLANEOUS - 1.2%
NR NR $ 1,300 New York City IDA, (YMCA
of Greater New York),
8.00%, 8/1/16 $ 1,378,013
Aaa AAA 7,000 VRDC-IVRC Trust, Variable
Rate, 6/26/02 (1) 6,513,500
-------------
$ 7,891,513
-------------
SOLID WASTE - 2.2%
Baa1 A- $ 2,665 Hempstead IDA Resource
Recovery, American
Refunding Fuel Co., 7.40%,
12/1/10 $ 2,779,808
Baa NR 9,530 New York State EFC
Resource Recovery,
Huntington Project, 7.50%,
10/1/12 9,781,783
Baa BBB 1,825 Oneida-Herkimer Solid
Waste Management Authority
Solid Waste System, 6.75%,
4/1/14 1,844,747
-------------
$ 14,406,338
-------------
SPECIAL TAX REVENUE - 8.0%
A1 AA $ 2,160 Battery Park City
Authority, 4.75%, 11/1/19 $ 1,726,013
A A 12,160 New York State LGAC,
5.00%, 4/1/21 10,274,106
A A 4,500 New York State LGAC,
5.375%, 4/1/16 4,087,035
A A 4,750 New York State LGAC,
5.25%, 4/1/16 4,244,648
A A 2,500 New York State LGAC,
5.25%, 4/1/19 2,202,625
A A 5,225 New York State LGAC,
5.50%, 4/1/17 4,812,591
A A 2,220 New York State LGAC,
5.50%, 4/1/18 2,028,392
A A 7,500 New York State LGAC,
6.00%, 4/1/24 7,269,750
Aa AA- 200 City of New York Municipal
Assistance Corporation,
7.50%, 7/1/08 215,960
Aa AA- 485 City of New York Municipal
Assistance Corporation,
7.625%, 7/1/08 525,478
Aa AA- 635 City of New York Municipal
Assistance Corporation,
7.625%, 7/1/08 699,154
</TABLE>
41
<PAGE> 42
-------
<TABLE>
NEW YORK TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
-----------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
SPECIAL TAX REVENUE - (CONTINUED)
NR BBB+ 2,630 New York State Municipal
Bond Bank Agency, 6.875%,
3/15/06 2,838,480
Baa1 BBB 4,750 New York State Thruway
Authority Contract, Local
& Highway Building, 7.25%,
1/1/10 (4) 5,058,085
Baa1 BBB 3,100 New York State Thruway
Authority Contract, Local
& Highway Building, 5.25%,
4/1/13 2,743,500
Baa1 BBB 3,335 Triborough Bridge & Tunnel
Authority, Convention
Center, 6.00%, 1/1/11 3,242,120
-------------
$ 51,967,937
-------------
TRANSPORTATION - 11.9%
Baa1 BBB $ 1,460 Metropolitan
Transportation Authority
(MTA) Commuter Facilities,
5.20%, 7/1/04 $ 1,370,093
Baa1 BBB 2,500 MTA Transit Facilities
Service Contract, 5.30%,
7/1/05 2,334,700
Baa1 BBB 4,025 MTA Transit Facilities
Service Contract, 4.75%,
7/1/19 3,154,554
Baa1 BBB 725 MTA Transit Facilities
Service Contract, 5.75%,
7/1/13 683,544
Baa1 BBB 3,670 MTA Transit Facilities
Service Contract, 4.75%,
7/1/19 2,895,006
Baa1 BBB 1,250 MTA Transit Facilities
Service Contract, 6.00%,
7/1/19 1,187,225
Baa1 BBB 2,055 MTA Transit Facilities
Service Contract, 5.625%,
7/1/16 1,862,385
NR BBB 2,350 New York State Thruway
Authority, Cross
Westchester Expressway
Project, 0%, 1/1/03 1,492,179
Baa1 A 4,840 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 4,978,908
Baa1 A 2,000 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 1,848,280
Baa1 A 2,500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 2,310,350
A1 AA- 1,500 Port Authority of New York
and New Jersey (AMT),
Variable, 1/15/27 (1) 1,512,840
Aa A+ 5,600 Triborough Bridge and
Tunnel Authority (TBTA)
General Purpose, 4.75%,
1/1/14 4,823,952
Aa A+ 19,875 TBTA General Purpose,
4.75%, 1/1/19 16,553,093
Aa A+ 8,000 TBTA General Purpose,
5.20%, 1/1/20 7,142,000
Aa A+ 10,330 TBTA General Purpose,
5.00%, 1/1/12 9,308,156
Aa A+ 11,580 TBTA General Purpose,
5.50%, 1/1/17 10,961,396
Aa A+ 2,500 TBTA General Purpose,
6.125%, 1/1/21 2,560,300
-------------
$ 76,978,961
-------------
WATER & SEWER REVENUE - 3.1%
Aa A $11,050 New York State EFC, State
Water Pollution Control,
6.875%, 6/15/10 $ 11,806,925
Aa A+ 4,545 New York State EFC, State
Water Pollution Control,
7.20%, 3/15/11 4,893,329
Aa A 2,750 New York State EFC, State
Water Pollution Control,
7.00%, 6/15/12 2,950,393
Aa A 150 New York State EFC, State
Water Pollution Control,
7.50%, 6/15/12 164,553
-------------
$ 19,815,200
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $624,512,710) $ 646,610,382
=============
<FN>
(1) The above security has been issued as an inverse floater bond.
(2) When issued security.
(3) At March 31, 1995, the market value of securities segregated to cover when
issued securities amounted to $18,258,630.
(4) At March 31, 1995, the market value of securities segregated to cover margin
requirements on open financial futures contracts amounted to $5,058,085.
</TABLE>
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1995, 9.0% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 0.7% to 4.0% of total investments.
See notes to financial statements
42
<PAGE> 43
-------
<TABLE>
Ohio Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 8.0%
A A+ $ 1,000 University of Cincinnati,
6.50%, 12/1/11 $ 1,024,230
A1 AA- 650 University of Cincinnati,
6.50%, 6/1/11 675,734
Aa AA- 550 Ohio State Higher
Educational Facilities,
Case Western University,
6.50%, 10/1/20 (2) 593,973
NR AA 1,000 Ohio State Higher
Educational Facilities,
Oberlin College, 5.375%,
10/1/15 910,410
NR AAA 2,100 Ohio Higher Educational
Facilities, Ohio Northern
University (CLEE), 5.60%,
5/1/13 2,023,685
NR AAA 3,000 Ohio Higher Educational
Facilities, Ohio Northern
University (CLEE), 5.65%,
5/1/18 2,858,820
A1 A+ 1,300 Ohio State Higher
Educational Facilities,
Public Facilities, 5.50%,
12/1/07 1,266,408
A1 NR 7,000 Ohio State Student Loan
Funding Corp (AMT),
6.10%, 8/1/07 7,026,390
A1 NR 7,000 Ohio State Student Loan
Funding Corp (AMT),
6.10%, 8/1/08 6,974,030
A1 AA- 2,500 Ohio State University
Revenue, 5.75%, 12/1/09 2,453,725
-------------
$ 25,807,405
-------------
ESCROWED - 2.9%
NR AAA $ 1,450 Carroll County, Timken
Mercy Medical Center,
6.75%, 12/1/19 $ 1,608,456
NR NR 1,500 Cuyahoga County, Ohio
Jail Facilities, 7.00%,
10/1/13 1,672,875
NR AAA 1,000 Franklin County,
Riverside United
Methodist, 7.50%, 5/15/08 1,126,890
NR AAA 1,100 Hamilton County, Sewer
System Improvement,
6.70%, 12/1/13 1,211,023
NR NR 465 Marion County, United
Church Homes, Inc.,
8.875%, 12/1/12 549,332
NR AA 1,500 Montgomery County,
Various Purpose, 6.75%,
9/1/11 1,629,345
NR AAA 800 Puerto Rico Public
Improvement, 6.80%,
7/1/21 897,408
Baa1 AAA 640 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 705,472
-------------
$ 9,400,801
-------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GENERAL OBLIGATIONS - 9.1%
NR NR $ 3,035 Belmont County, 7.30%,
12/1/17 $ 3,156,734
A NR 600 City of Brunswick,
Various Purpose, 6.30%,
12/1/12 609,468
Aa1 AA+ 1,035 City of Columbus, 5.50%,
11/1/12 992,223
A1 NR 1,360 Copley-Fairlawn City
School District, 6.25%,
12/1/15 1,383,120
Aaa AAA 1,250 Franklin County, 5.375%,
12/1/20 1,155,938
A1 NR 500 Gahanna, 7.00%, 6/1/12 555,500
NR BBB 3,500 Guam Government, 5.375%,
11/15/13 3,081,645
A1 NR 3,340 Hilliard City School
District, 6.30%, 12/1/14 3,422,364
A1 NR 500 Huber Heights, 6.75%,
12/1/11 524,870
A1 NR 1,000 Lakota Local School
District, 5.35%, 12/1/12 926,660
A NR 1,200 Mansfield Waterworks
Improvement, 5.60%,
12/1/13 1,136,160
A NR 725 City of Medina, Fire
Station Improvement,
3.00%, 12/1/10 507,348
Aa AA 1,500 Ohio State Infrastructure
Improvement, 0%, 8/1/11 587,310
Baa1 A 1,000 Puerto Rico, 5.00%,
7/1/21 843,090
Baa1 NR 1,000 Scioto County, Ohio Human
Services Building, 7.15%,
8/1/11 1,113,830
NR NR 1,000 Tuscarawas Public Library
Improvement, 6.90%,
12/1/11 1,044,170
Baa NR 1,000 Youngstown, 7.55%,
12/1/11 1,072,830
NR NR 6,855 Youngstown, 7.35%,
6/15/05 7,284,534
-------------
$ 29,397,794
-------------
HEALTH CARE - 3.8%
NR AAA $ 1,000 Allen County, LIMA
Convalescent Home
Foundation (GNMA), 6.40%,
1/1/21 $ 1,001,860
NR NR 500 Cuyahoga County
Continuing Care
Facilities, The
Renaissance Project,
9.375%, 2/1/20 532,550
A1 A 2,100 Cuyahoga County, Fairview
General Hospital, 6.25%,
8/15/10 2,101,302
A1 A 2,370 Cuyahoga County, Meridia
Health System, 7.00%,
8/15/23 2,462,217
</TABLE>
43
<PAGE> 44
-------
<TABLE>
OHIO TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - (CONTINUED)
Aa2 NR 1,600 Hamilton County,
Episcopal Retirement
Homes, 6.80%, 1/1/08 1,715,456
NR BBB- 1,800 Marion County, United
Church Homes, 6.30%,
11/15/15 1,593,846
Baa BBB 2,925 Puerto Rico Urban Renewal
& Housing Corporation,
0%, 10/1/99 2,263,599
Aa2 NR 600 Warren County, Otterbein
Home Project, 7.20%,
7/1/11 654,708
-------------
$ 12,325,538
-------------
HOSPITALS - 14.0%
Baa BBB- $ 1,000 Butler County, Hamilton-
Hughe Hospital, 7.50%,
1/1/10 $ 1,019,000
NR BBB 1,000 Cambridge, Guernsey
Memorial Hospital, 8.00%,
12/1/11 1,057,950
A1 A 2,000 Cuyahoga County, Meridia
Health System, 6.50%,
8/15/12 2,020,460
Aa AA 750 Cuyahoga County,
University Hospitals
Health System, 6.50%,
1/15/19 770,055
Aa AA 4,450 Cuyahoga County,
University Hospitals
Health System, 6.00%,
1/15/22 4,339,596
NR BBB 4,500 Defiance Hospital, Inc.,
7.625%, 11/1/03 4,635,000
Baa BBB- 665 East Liverpool City
Hospital - Series A,
8.00%, 10/1/21 683,899
Baa BBB- 1,000 East Liverpool City
Hospital - Series B,
8.00%, 10/1/21 1,028,420
A A- 4,000 Erie County, Firelands
Community Hospital,
6.75%, 1/1/08 (2) 4,168,000
Aa NR 3,000 Franklin County,
Children's Hospital,
6.60%, 5/1/13 3,098,550
Aa NR 1,900 Franklin County,
Riverside United
Methodist Hospital,
5.75%, 5/15/20 1,766,677
A A 1,015 City of Garfield Heights,
Marymount Hospital,
6.65%, 11/15/11 1,028,550
A A 1,000 City of Garfield Heights,
Marymount Hospital,
6.70%, 11/15/15 1,019,030
Aa2 NR 1,000 Hamilton County, Wesley
Hall Project, 6.50%,
3/1/15 999,910
A1 A 4,000 Hamilton County, Bethesda
Hospital, Inc., 6.25%,
1/1/12 3,962,680
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
A1 A+ 1,095 Lorain County, Humility
of Mary Health Care
Corp., 7.125%, 12/15/06 1,178,549
A1 A+ 5,900 Lorain County, Humility
of Mary Health Care
Corp., 5.90%, 12/15/08 5,861,119
A1 A+ 1,000 Lorain County, Humility
of Mary Health Care
Corp., 7.20%, 12/15/11 1,064,200
NR A+ 1,750 Lorain County, Lakeland
Community Hospital, Inc.,
6.50%, 11/15/12 1,772,260
NR BBB+ 1,000 Lucas County, Flowers
Hospital, 6.125%, 12/1/13 904,720
A A 2,760 City of Middleburg
Heights, Southwest
General Hospital Project,
6.75%, 8/15/21 2,828,641
-------------
$ 45,207,266
-------------
HOUSING - 6.9%
Aa NR $ 1,300 City of Clermont, Laurels
Project (FHA), 6.00%,
9/1/20 $ 1,253,993
Aa NR 1,000 Franklin County, Hamilton
Creek Apartments (FHA),
(AMT), 5.80%, 7/1/14 936,140
Aa NR 3,660 Franklin County, Hamilton
Creek Apartments (FHA),
(AMT), 5.55%, 7/1/24 3,215,713
NR AAA 3,500 Ohio HFA, (GNMA), (AMT),
6.375%, 3/1/25 3,465,105
NR AAA 4,750 Ohio HFA, (GNMA), (AMT),
6.70%, 3/1/25 4,859,773
NR AAA 855 Ohio HFA, SFMR (GNMA),
7.60%, 9/1/16 894,680
NR AAA 1,250 Ohio HFA, MFMR-Asbury
Woods (FHA), 7.00%,
10/1/24 1,304,050
Aa NR 2,850 Ohio HFA, Oakleaf Village
Project, (FHA), 5.70%,
9/1/26 2,624,337
Aa NR 1,000 Ohio HFA, Aristocrat
South Board & Care
Project (FHA), (AMT),
7.30%, 8/1/31 1,052,260
Aaa AAA 1,085 Ohio HFA SFMR, (GNMA)
(AMT), Variable, 3/31/31
(1) 1,157,955
NR BBB+ 1,020 Ohio Economic
Development, KMART Corp.,
6.75%, 5/15/07 1,022,193
A1 A+ 500 Ohio Building Authority
Juvenile Correctional
Building, 5.80%, 10/1/07 503,315
-------------
$ 22,289,514
-------------
</TABLE>
44
<PAGE> 45
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL
REVENUES - 7.4%
NR BBB+ $ 520 Madison County, KMART
Corp., 6.75%, 9/15/06 $ 520,328
Baa1 NR 3,750 Ohio Air Quality
Development Authority,
Ashland Oil Inc, 6.85%,
4/1/10 3,901,613
NR A+ 170 Ohio, Enterprise Bond
Fund, Speco Corp. (AMT),
6.25%, 6/1/00 171,467
NR A+ 1,800 Ohio, Enterprise Bond
Fund, Speco Corp., (AMT),
6.60%, 6/1/04 1,829,466
NR A- 750 Ohio, Enterprise Bond
Fund, Luigino's Inc.
(AMT), 6.85%, 6/1/01 773,880
NR A- 325 Ohio, Enterprise Bond
Fund, Cheryl & Co.,
(AMT), 5.50%, 12/1/04 312,049
NR A- 530 Ohio, Enterprise Bond
Fund, Cheryl & Co.,
(AMT), 5.90%, 12/1/09 509,860
NR A- 605 Ohio, Enterprise Bond
Fund, Burrows Paper Corp.
(AMT), 7.625%, 6/1/11 660,666
NR A- 1,815 Ohio, Enterprise Bond
Fund, Consolidated
Biscuit, (AMT), 7.00%,
12/1/09 1,959,038
NR A- 1,000 Ohio, Enterprise Bond
Fund, Progress Plastic
Products, (AMT), 6.80%,
12/1/01 1,065,190
NR A- 1,525 Ohio, Enterprise Bond
Fund, Progress Plastic
Products, (AMT), 7.80%,
12/1/09 1,730,097
NR A- 880 Ohio, Enterprise Bond
Fund, VSM Corp., (AMT),
7.375%, 12/1/11 953,285
NR A- 680 Ohio, Enterprise Bond
Fund, Royal Appliance
Manufacturing Co., Series
1991 #9 (AMT), 7.625%,
12/1/11 745,817
NR A- 1,000 Ohio, Enterprise Bond
Fund, Royal Appliance
Manufacturing Co., Series
1991 #5 (AMT), 7.625%,
12/1/11 1,096,790
NR AA- 1,000 Ohio Pollution Control,
Standard Oil Company,
6.75%, 12/1/15 1,115,970
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa2 BBB 4,065 Ohio Water Development
Authority, Union Carbide
Corp. Project, 5.50%,
1/15/07 3,787,482
Ba2 NR 1,500 Portage County, Kroger
Corporation, 7.25%,
7/1/99 1,577,550
Ba2 NR 1,000 Summit County, Kroger
Corporation, 6.85%,
7/1/99 1,039,170
-------------
$ 23,749,720
-------------
INSURED EDUCATION - 0.4%
Aaa AAA $ 1,000 Ohio Higher Education,
University of Dayton
Project (FGIC), 5.80%,
12/1/14 $ 986,080
-------------
INSURED GENERAL
OBLIGATIONS - 1.4%
Aaa AAA $ 1,700 Puerto Rico (AMBAC),
Variable, 7/1/15 (1) $ 1,630,827
Aaa AAA 3,000 Puerto Rico (FSA),
Variable, 7/1/22 (1) 2,961,330
-------------
$ 4,592,157
-------------
INSURED HEALTHCARE - 2.2%
Aaa AAA $ 1,945 Hamilton County, Sisters
of Charity Health Care
System (MBIA), 5.25%,
5/15/13 $ 1,759,214
Aa AA- 5,925 Montgomery County,
Sisters of Charity Health
Care System (MBIA),
5.25%, 5/15/11 5,452,540
-------------
$ 7,211,754
-------------
INSURED HOSPITALS - 11.7%
Aaa AAA $ 2,500 Akron, Bath and Copley
Townships Children's
Hospital Medical Center
of Akron, (AMBAC), 5.25%,
11/15/20 $ 2,232,175
Aaa AAA 1,000 Clermont County, Mercy
Health System (AMBAC),
Variable, 10/5/21 (1) 1,086,590
Aaa AAA 1,500 Cuyahoga County, Fairview
Hospital, (MBIA), 5.50%,
8/15/19 1,363,545
Aaa AAA 9,635 Franklin County,
Riverside United
Methodist (AMBAC), 5.75%,
5/15/12 9,269,352
Aaa AAA 10,500 Franklin County,
Riverside United
Methodist (AMBAC), 5.75%,
5/15/20 9,825,795
Aaa AAA 1,455 Hamilton County, The
Christ Hospital (FGIC),
5.50%, 1/1/08 1,415,933
Aaa AAA 1,500 Hamilton County,
Children's Hospital
Medical Center, (FGIC),
5.00%, 5/15/13 1,346,310
</TABLE>
45
<PAGE> 46
-------
<TABLE>
OHIO TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS -
(CONTINUED)
Aaa AAA 2,750 Mansfield General
Hospital (AMBAC), 6.70%,
12/1/09 2,941,262
Aaa AAA 1,000 Montgomery County, Ohio
Miami Valley Hospital,
(AMBAC), 6.25%, 11/15/16 1,016,510
Aaa AAA 3,875 Portage County, Robinson
Memorial Hospital,
(MBIA), 5.625%, 11/15/07 3,866,088
Aaa AAA 3,850 Stark County, Timken
Mercy Medical, (MBIA),
5.00%, 12/1/19 3,416,144
-------------
$ 37,779,704
-------------
INSURED HOUSING - 0.6%
Aaa AAA $ 990 Ohio Capital Corporation
FHA Insured Mortgage
Loans, (MBIA), 7.25%,
7/1/24 $ 1,030,491
Aaa AAA 750 Ohio Capital Corporation
FHA Insured Mortgage
Loans, (MBIA), 6.50%,
1/1/25 760,740
-------------
$ 1,791,231
-------------
INSURED INDUSTRIAL
DEVELOPMENT REVENUE BONDS
-2.2%
Aaa AAA $ 7,000 Ohio Air Quality
Development Authority,
JMG Funding, L.P.
Project, (AMBAC), (AMT),
6.375%, 1/1/29 $ 7,048,020
-------------
INSURED LEASE - 3.2%
Aaa AAA $ 500 Ohio Higher Education,
University of Dayton,
(FGIC), 0%, 12/1/05 $ 280,550
Aaa AAA 1,000 Ohio Higher Education,
University of Dayton,
(FGIC), 0%, 12/1/06 525,480
Aaa AAA 2,400 Ohio State Public
Facilities Commission,
(AMBAC), 4.70%, 6/1/02 2,306,760
Aaa AAA 7,600 Ohio State Public
Facilities Commission,
(AMBAC), 4.70%, 6/1/03 7,228,360
-------------
$ 10,341,150
-------------
INSURED TAX REVENUES - 3.3%
NR NR $ 2,000 City of Cleveland,
(AMBAC), 5.00%, 9/1/03 $ 1,946,420
NR NR 4,400 City of Cleveland,
(AMBAC), 5.10%, 9/1/04 4,287,624
Aaa AAA 2,090 Hudson Local School
District, (FGIC), 0%,
12/15/05 1,178,780
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 2,110 Hudson Local School
District, (FGIC), 0%,
12/15/09 908,461
Aaa AAA 2,115 Hudson Local School
District, (FGIC), 0%,
12/15/10 853,297
Aaa AAA 1,000 Mount Vernon City School
District, (FGIC), 5.85%,
12/1/19 987,060
Aaa AAA 1,400 Pickerington Local School
District, (AMBAC), 0%,
12/1/11 534,282
-------------
$ 10,695,924
-------------
INSURED UTILITIES - 1.9%
Aaa AAA $ 1,000 Hamilton County Electric
System, (FGIC), 6.00%,
10/15/23 $ 989,200
Aaa AAA 1,000 Hamilton County Electric
System, (FGIC), 6.30%,
10/15/25 1,015,700
Aaa AAA 2,300 Puerto Rico Electric
Power Authority, (FSA),
Variable, 7/1/02 (1) 2,373,577
Aaa AAA 1,650 Cleveland Public Power
System, (MBIA), 7.00%,
11/15/17 1,798,863
-------------
$ 6,177,340
-------------
LEASE/CERTIFICATES OF
PARTICIPATION - 0.3%
A NR $ 1,000 University of Akron, West
Campus Parking Deck,
5.50%, 1/1/14 $ 941,950
-------------
LIFE CARE - 0.6%
Aa NR $ 2,000 Franklin County,
Kensington Place Project,
6.75%, 1/1/34 (2) $ 2,033,920
-------------
MISCELLANEOUS - 1.2%
Aaa AAA $ 4,450 Ohio State Building
Authority, William Green
Building, Variable,
4/1/04 (1) $ 3,838,748
-------------
TRANSPORTATION - 10.9%
NR BBB $ 2,750 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 2,732,648
A1 AA- 10,330 Ohio Turnpike Commission,
5.75%, 2/15/24 9,895,004
Baa1 A 1,500 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/15 1,386,210
Baa1 A 4,015 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 3,343,611
Baa1 A 7,000 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/21 6,069,840
</TABLE>
46
<PAGE> 47
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION -
(CONTINUED)
Baa1 A 8,000 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/29 6,953,600
Baa1 A 2,000 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/17 1,818,640
Baa1 A 3,000 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/12 3,086,100
-------------
$ 35,285,653
-------------
UTILITIES - 7.1%
NR BBB $ 5,500 Guam Power Authority,
5.25%, 10/1/13 $ 4,713,665
NR BBB 1,275 Guam Power Authority,
6.30%, 10/1/22 1,218,977
NR BBB 5,000 Guam Power Authority,
5.25%, 10/1/23 4,056,500
Baa1 A- 3,000 Puerto Rico Electric
Power Authority, 5.00%,
7/1/12 2,616,030
Baa1 A- 360 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 380,898
Baa1 A- 4,000 Puerto Rico Electric
Power Authority, 6.00%,
7/1/14 3,901,600
Baa1 A- 20,165 Puerto Rico Electric
Power Authority, 0%,
7/1/17 4,947,886
NR NR 1,000 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,053,090
-------------
$ 22,888,646
-------------
WATER & SEWER REVENUE - 0.9%
NR NR $ 800 The Mahoning Valley
Sanitary District, 7.00%,
12/15/08 $ 838,887
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR 950 The Mahoning Valley
Sanitary District, 7.00%,
12/15/09 993,045
NR NR 1,000 City of Vermilion, Water
System, 7.25%, 8/15/15 1,050,080
-------------
$ 2,882,012
-------------
TOTAL TAX-EXEMPT
INVESTMENTS
(IDENTIFIED COST,
$316,077,550) $ 322,672,327
=============
<FN>
(1) The above designated securities have been issued as inverse floater bonds.
(2) At March 31, 1995 the market value of securities segregated to cover margin
requirements for open financial futures amounted to $6,795,893.
</TABLE>
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1995, 26.9% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 3.3% to 15.9% of total investments.
See notes to financial statements.
47
<PAGE> 48
-------
<TABLE>
Rhode Island Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT SECURITIES - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 5.1%
Aa AA $1,500 Rhode Island Health and
Educational Building
Corporation, Brown
University, 5.375%, 9/1/23 $ 1,363,335
A NR 750 Rhode Island Student Loan
Authority, 5.60%, 12/1/12 691,478
------------
$ 2,054,813
------------
ELECTRIC UTILITY - 1.5%
Baa1 A- $ 710 Puerto Rico Electric Power
Authority, 5.00%, 7/1/12 $ 619,127
------------
GENERAL OBLIGATION - 4.8%
Ba NR $ 405 West Warwick, 6.80%,
7/15/98 $ 408,592
Baa1 A 500 Puerto Rico Public
Improvement, 5.50%, 7/1/13 466,170
Baa1 A 500 Puerto Rico Public Building
Authority, 5.75%, 7/1/15 473,100
NR BBB 750 Government of Guam, 5.40%,
11/15/18 647,828
------------
$ 1,995,690
------------
HOSPITALS - 10.2%
NR AA $1,500 Rhode Island Health and
Educational Building
Corporation, Landmark
Medical Center, 5.875%,
10/1/19 $ 1,391,040
NR A 1,015 Rhode Island Health and
Educational Building
Corporation, Butler
Hospital, 5.125%, 1/1/08 920,615
Baa BBB+ 1,980 Rhode Island Health and
Educational Building
Corporation, Westerly
Hospital, 6.00%, 7/1/14 1,743,726
------------
$ 4,055,381
------------
HOUSING - 13.2%
Aa AA+ $1,000 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 7.10%,
10/1/23 $ 1,028,800
Aa AA+ 875 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 6.80%,
10/1/25 (2) 887,381
Baa BBB 1,025 Puerto Rico Housing Bank
and Finance Agency, 5.125%,
12/1/05 933,970
NR A 2,000 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 7.55%,
10/1/14 2,186,080
Aa AA 270 Rhode Island Housing and
Mortgage Finance
Corporation, 6.70%, 10/1/14 277,387
------------
$ 5,313,618
------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED COLLEGES - 9.9%
Aaa AAA $1,000 Rhode Island Health and
Educational Building,
Providence College Issue
(MBIA), 5.60%, 11/1/15 $ 932,940
Aaa AAA 730 Rhode Island Health and
Educational Building,
Providence College Issue
(MBIA), 5.60%, 11/1/22 667,957
Aaa AAA 500 Rhode Island Health and
Educational Building,
University of Rhode (MBIA),
5.50%, 9/15/13 464,945
Aaa AAA 2,200 Rhode Island Health and
Educational Building,
University of Rhode (MBIA),
5.25%, 9/15/23 1,916,904
------------
$ 3,982,746
------------
INSURED GENERAL OBLIGATIONS - 16.6%
Aaa AAA $1,500 Kent County Water Authority
General Revenue Bonds, 1994
Series A (MBIA), 6.35%,
7/15/14 $ 1,527,615
Aaa AAA 2000 Rhode Island Clean Water
Finance Agency, Water
Pollution Control (MBIA),
5.875%, 10/1/15 1,952,300
Aaa AAA 750 Rhode Island Depositors
Economic Protection
Corporation (MBIA), 5.25%,
8/1/21 653,685
Aaa AAA 1,980 Rhode Island Port Authority
and Economic Development
Corporation Airport, (FSA),
5.25%, 7/1/23 1,690,920
Aaa AAA 900 Rhode Island Public
Buildings Authority
(AMBAC), 5.25%, 2/1/10 834,264
------------
$ 6,658,784
------------
INSURED GENERAL OBLIGATIONS
(LOCAL) - 13.5%
Aaa AAA $1,000 Burrellville, (MBIA),
5.75%, 10/15/17 $ 969,310
Aaa AAA 350 Lincoln, (MBIA), 5.50%,
8/15/10 335,958
Aaa AAA 1,000 Town of Narragansett,
(MBIA), 5.30%, 9/15/09 946,830
Aaa AAA 795 City of Pawtucket, (FGIC),
5.75%, 4/15/14 782,733
Aaa AAA 800 Pawtucket Public Building
Authority (Water System)
(CGIC), 5.75%, 3/15/14 778,384
Aaa AAA 500 West Warwick, (MBIA),
5.90%, 1/1/05 515,770
</TABLE>
48
<PAGE> 49
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT SECURITIES (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL OBLIGATIONS
(LOCAL) - (CONTINUED)
Aaa AAA 645 Westerly, School Bonds
(AMBAC), 6.00%, 9/15/13 652,443
Aaa AAA 480 Woonsocket, Water Bonds
(MBIA), 5.125%, 3/1/13 436,714
------------
$ 5,418,142
------------
INSURED GENERAL OBLIGATIONS
(STATE) - 4.6%
Aaa AAA $1,900 State of Rhode Island and
Providence Plantations,
Consolidated Capital
Development (AMBAC), 0%,
6/15/08 $ 894,976
Aaa AAA 1,000 State of Rhode Island and
Providence Plantations,
Consolidated Capital
Development (FGIC), 5.50%,
7/15/12 951,740
------------
$ 1,846,716
------------
INSURED GENERAL OBLIGATIONS
(TERRITORY) - 0.7%
Aaa AAA $ 250 Puerto Rico, Public
Improvement Bonds of 1992,
Yield Curve Notes (AMBAC),
Variable, 10/1/15 (1) $ 239,828
------------
INSURED HOUSING - 7.7%
Aaa AAA $ 910 Providence Housing
Development Corporation
Mortgage, (Barbara Jordan
Apartments) (MBIA), 6.50%,
7/1/09 $ 931,740
Aaa AAA 500 Rhode Island Housing and
Mortgage Finance
Corporation (FGIC), 6.30%,
7/1/05 502,415
Aaa AAA 1,075 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA), 6.75%,
1/1/19 1,096,038
Aaa AAA 500 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA), 6.85%,
1/1/24 511,725
------------
$ 3,041,918
------------
INSURED CERTIFICATE OF
PARTICIPATION - 2.3%
Aaa AAA $1,000 Rhode Island Convention
Center Authority (MBIA),
5.00%, 5/15/05 $ 943,790
------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED WATER & SEWER - 3.2%
Aaa AAA $ 500 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.85%, 10/1/09 $ 489,490
Aaa AAA 750 Rhode Island Clean Water,
Safe Drinking Water (MBIA),
6.70%, 1/1/15 789,150
------------
$ 1,278,640
------------
SPECIAL TAX - 5.1%
Baa BBB- $1,500 City of Providence, 7.65%,
6/1/16 $ 1,558,770
Baa1 A- 500 Rhode Island Depositors
Economic Protection
Corporation, 5.75%, 8/1/21 459,435
------------
$ 2,018,205
------------
TRANSPORTATION - 1.6%
Baa1 A $ 750 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/17 $ 681,990
------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $40,919,123) $ 40,149,388
============
<FN>
(1) The above security has been issued as an inverse floater bond.
(2) At March 31, 1995, the market value of securities segregated to cover margin
requirements for open financial futures contracts amounted to $887,381.
</TABLE>
The Portfolio invests primarily in debt securities issued by Rhode Island
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments , at March 31, 1995, 58.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 5.6% to 35.8% of total investments.
See notes to financial statements
49
<PAGE> 50
-------
<TABLE>
West Virginia Tax Free Portfolio
Portfolio of Investments - March 31, 1995
(Unaudited)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 3.1%
NR BBB- $1,490 Puerto Rico IM&E
(Polytechnic University of
Puerto Rico), 5.50%, 8/1/24 $ 1,254,967
------------
ELECTRIC UTILITIES - 14.0%
NR BBB $ 750 Guam Power Authority,
5.25%, 10/1/13 $ 642,773
NR BBB 500 Guam Power Authority,
5.25%, 10/1/23 405,650
NR BBB 450 Guam Power Authority,
6.625%, 10/1/14 450,887
A1 A 730 Harrison County Solid Waste
(West Penn Power Company
Harrison Station), 6.30%,
5/1/23 699,442
A1 A 2,000 Harrison County Solid Waste
(Monongahela Power Company
Harrison Station), 6.75%,
8/1/24 2,013,880
A3 BBB+ 1,000 Mason County PCR
(Appalachian Power Co.),
6.85%, 6/1/22 1,026,510
Baa1 A- 445 Puerto Rico Electric Power
Authority, 5.00%, 7/1/12 388,044
------------
$ 5,627,186
------------
ESCROWED - 1.6%
Aaa AAA $2,500 Kanawha-Putnam County
Single Family Mortgage
(AMBAC), 0%, 12/1/16 $ 625,875
------------
GENERAL OBLIGATION - 1.1%
Baa1 A $ 500 Puerto Rico Commonwealth,
5.00%, 7/1/21 $ 421,545
------------
HEALTH CARE - 1.8%
NR NR $ 745 Kanawha County IDR (Beverly
Enterprises), 7.25%,
11/1/04 $ 730,398
------------
HOSPITALS - 10.2%
NR A- $2,050 Berkeley County Building
Commission (City Hospital),
6.50%, 11/1/22 $ 1,951,744
A1 NR 1,000 West Virginia HFA
(Charleston Area Medical
Center), 6.50%, 9/1/23 1,006,310
A1 NR 1,125 West Virginia HFA
(Charleston Area Medical
Center), 6.50%, 9/1/16 1,135,338
------------
$ 4,093,392
------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - 6.7%
Aa1 AA+ $1,000 West Virginia Housing
Development Finance (AMT),
5.75%, 11/1/28 $ 909,360
Aa1 AA+ 1,000 West Virginia Housing
Development Finance, 5.45%,
11/1/21 883,980
Aa1 AA+ 1,000 West Virginia Housing
Development Finance, 5.55%,
5/1/17 904,580
------------
$ 2,697,920
------------
INDUSTRIAL DEVELOPMENT
REVENUE/POLLUTION CONTROL
REVENUE - 7.5%
NR A- $1,375 Jefferson County (Royal
Venders, Incorporated),
(AMT) 5.90%, 8/1/04 $ 1,371,934
Baa2 BBB 300 Kanawha County (Union
Carbide Chemicals and
Plastics Company), (AMT)
8.00%, 8/1/20 324,747
A2 NR 1,500 Puerto Rico IM&E (American
Home Products Corporation),
5.10%, 12/1/18 1,311,645
------------
$ 3,008,326
------------
INSURED EDUCATION - 4.5%
Aaa AAA $1,150 West Virginia State College
System (AMBAC), 6.00%,
4/1/12 (2) $ 1,152,542
Aaa AAA 650 West Virginia State
University System (AMBAC),
6.00%, 4/1/12 650,955
------------
$ 1,803,497
------------
INSURED ELECTRIC UTILITIES - 16.1%
Aaa AAA $1,000 Harrison County Solid Waste
(Potomac Edison Company)
(AMBAC), 6.25%, 5/1/23 $ 977,950
Aaa AAA 3,000 Marshall County PCR (Ohio
Power Kammer Plant) (MBIA),
5.45%, 7/1/14 2,816,160
Aaa AAA 1,000 Mason County PCR (Ohio
Power Company) (AMBAC),
5.45%, 12/1/16 933,730
Aaa AAA 250 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 260,790
Aaa AAA 1,575 Putnam County PCR
(Appalachian Power Company)
(AMBAC), 5.45%, 6/1/19 1,451,945
------------
$ 6,440,575
------------
</TABLE>
50
<PAGE> 51
-------
<TABLE>
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL OBLIGATION - 5.1%
Aaa AAA $1,000 West Virginia School
Building Authority (MBIA),
6.00%, 7/1/12 $ 1,051,740
Aaa AAA 1,000 West Virginia School
Building Authority (MBIA),
6.75%, 7/1/10 1,004,540
------------
$ 2,056,280
------------
INSURED HOSPITAL - 10.7%
Aaa AAA $ 200 West Virginia HFA
(University Hospital)
(MBIA), 5.00%, 6/1/13 $ 179,478
Aaa AAA 2,000 West Virginia HFA
(University Hospital)
(MBIA), 5.00%, 6/1/16 1,766,340
West Virginia HFA (Cabell
Huntington Hospital)
(AMBAC), 6.25%, 1/1/19 2,323,000
2,300
------------
$ 4,268,818
------------
INSURED TRANSPORTATION - 2.3%
Aaa AAA $1,500 West Virginia Parkways
Economic Development and
Tourism Authority (FGIC),
0%, 5/15/04 $ 906,345
------------
INSURED WATER & SEWER - 10.9%
Aaa AAA $1,500 Huntington City Sewerage
System (FSA), 5.375%,
11/1/23 $ 1,384,050
Aaa AAA 1,000 Parkersburg City Waterworks
(MBIA), 6.375%, 9/1/19 1,020,630
Aaa AAA 500 West Virginia Water
Development (Loan Program
II) (FSA), 5.75%, 11/1/19 474,795
Aaa AAA 810 West Virginia Water
Development (Loan Program
II) (FSA), 5.50%, 11/1/23 744,601
Aaa AAA 750 West Virginia Water
Development (Loan Program
II) (FSA), 6.00%, 11/1/14 748,245
------------
$ 4,372,321
------------
TRANSPORTATION - 4.4%
Baa1 A $ 500 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/20 $ 434,600
Baa1 A 500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 462,070
Baa3 BB+ 925 Puerto Rico Port Authority-
American Airlines, (AMT)
6.30%, 6/1/23 870,536
------------
$ 1,767,206
------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $41,327,322) $ 40,074,651
============
<FN>
(1) The above designated securities have been issued as inverse floater bonds.
(2) At, March 31, 1995, the market value of securities segregated to cover
margin requirements for open financial futures contracts amounted to
$1,152,542.
</TABLE>
The Portfolio invests primarily in debt securities issued by West Virginia
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 30, 1995, 49.6% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged 0.1% to 20.3% of total investments.
See notes to financial statements
51
<PAGE> 52
-------
<TABLE>
Tax Free Portfolios
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
- ---------------------------------------------------------------------------------------------------------------------
March 31, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments -
Identified cost $710,252,094 $285,245,169 $31,192,694 $624,512,710
Unrealized appreciation 26,840,196 13,957,959 239,094 22,097,672
------------ ------------ ----------- ------------
Total investments, at value (Note 1A) $737,092,290 $299,203,128 $31,431,788 $646,610,382
Cash 300 2,414,141 130,468 328
Receivable for investments sold 7,899,562 -- -- 28,308,431
Interest receivable 16,279,083 5,398,767 533,335 10,347,247
Deferred organization expenses (Note 1D) 25,523 15,044 2,063 18,068
------------ ------------ ----------- ------------
Total assets $761,296,758 $307,031,080 $32,097,654 $685,284,456
------------ ------------ ----------- ------------
LIABILITIES:
Demand note payable (Note 5) $ 9,325,000 $ -- $ -- $ 5,437,000
Payable for investments purchased -- 3,972,100 990,910 14,464,769
Payable for when-issued securities (Note 1F) -- -- -- 6,795,000
Payable for daily variation margin on open
financial futures contracts (Note 1E) -- -- -- 8,500
Payable to affiliates -
Trustees' fees 5,538 4,105 398 5,061
Custodian fee -- 3,045 692 --
Accrued expenses 6,417 3,964 3,575 6,841
------------ ------------ ----------- ------------
Total liabilities $ 9,336,955 $ 3,983,214 $ 995,575 $ 26,717,171
------------ ------------ ----------- ------------
NET ASSETS applicable to investors' interest in
Portfolio $751,959,803 $303,047,866 $31,102,079 $658,567,285
============ ============ =========== ============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $726,748,812 $289,385,057 $30,952,051 $637,167,844
Unrealized appreciation of investments and
financial futures contracts (computed on the
basis of identified cost) 25,210,991 13,662,809 150,028 21,399,441
------------ ------------- ----------- ------------
Total $751,959,803 $303,047,866 $31,102,079 $658,567,285
============ ============ =========== ============
</TABLE>
See notes to financial statements
52
<PAGE> 53
-------
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
March 31, 1995 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments -
Identified cost $316,077,550 $40,919,123 $41,327,322
Unrealized appreciation (depreciation) 6,594,777 (769,735) (1,252,671)
------------ ----------- -----------
Total investments, at value (Note 1A) $322,672,327 $40,149,388 $40,074,651
Cash 33 316,648 190
Receivable for investments sold 6,009,473 -- 550,618
Interest receivable 5,585,915 690,731 742,602
Deferred organization expenses (Note 1D) 11,301 2,060 2,054
------------ ----------- -----------
Total assets $334,279,049 $41,158,827 $41,370,115
------------ ------------ ------------
LIABILITIES:
Demand note payable (Note 5) $ 9,776,000 $ -- $ 292,000
Payable for investments purchased 167,585 -- --
Payable to affiliates -
Trustees' fees 4,105 398 398
Custodian fee 3,570 831 163
Accrued expenses 6,620 3,265 3,299
------------ ----------- -----------
Total liabilities $ 9,957,880 $ 4,494 $ 295,860
------------ ----------- -----------
NET ASSETS applicable to investors' interest in Portfolio $324,321,169 $41,154,333 $41,074,255
============ =========== ===========
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $318,231,196 $41,981,447 $42,395,102
Unrealized appreciation (depreciation) of investments and
financial futures (computed on the basis of identified
cost) 6,089,973 (827,114) (1,320,847)
------------ ----------- -----------
Total $324,321,169 $41,154,333 $41,074,255
============ =========== ===========
</TABLE>
See notes to financial statements
53
<PAGE> 54
-------
<TABLE>
STATEMENTS OF OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income (Note 1B) $ 24,460,554 $ 9,893,926 $ 920,253 $ 21,241,218
------------ ------------ ---------- ------------
Expenses -
Investment adviser fee (Note 2) $ 1,746,663 $ 690,340 $ 33,404 $ 1,512,146
Compensation of Trustees not members of
the Investment Adviser's organization 11,073 8,207 796 10,218
Custodian fee (Note 2) 8,085 25,625 3,698 --
Interest expense (Note 5) 128,080 48,989 2,659 136,382
Legal and accounting services 34,935 28,343 14,485 34,912
Bond pricing 11,798 7,106 3,016 13,591
Amortization of organization expense (Note 1D) 4,402 2,597 309 3,131
Miscellaneous 5,944 2,559 382 4,515
------------ ------------ ---------- ------------
Total expenses $ 1,950,980 $ 813,766 $ 58,749 $ 1,714,895
------------ ------------ ---------- ------------
Deduct preliminary reduction of investment
adviser fee (Note 2) -- -- 20,427 --
------------ ------------ ---------- ------------
Net expenses $ 1,950,980 $ 813,766 $ 38,322 $ 1,714,895
------------ ------------ ---------- ------------
Net investment income $ 22,509,574 $ 9,080,160 $ 881,931 $ 19,526,323
------------ ------------ ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) -
Investment transactions (identified cost basis) $(21,904,398) $(14,098,913 ) $(1,402,107) $(17,513,388)
Financial futures contracts (822,442) (144,826 ) 23,449 (355,435)
------------ ------------ ---------- ------------
Net realized loss on investments $(22,726,840) $(14,243,739 ) $(1,378,658) $(17,868,823)
------------ ------------ ---------- ------------
Change in unrealized appreciation (depreciation) -
Investments $ 47,452,859 $ 20,904,253 $2,368,397 $ 33,936,258
Financial futures contracts (1,629,205) (673,925 ) (110,415 ) (833,375)
------------ ------------ ---------- ------------
Net unrealized appreciation of investments $ 45,823,654 $ 20,230,328 $2,257,982 $ 33,102,883
------------ ------------ ---------- ------------
Net realized and unrealized gain on
investments $ 23,096,814 $ 5,986,589 $ 879,324 $ 15,234,060
------------ ------------ ---------- ------------
Net increase in net assets from
operations $ 45,606,388 $ 15,066,749 $1,761,255 $ 34,760,383
============ ============ ========== ============
</TABLE>
See notes to financial statements
54
<PAGE> 55
-------
<TABLE>
STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Investment income (Note 1B) $ 10,246,957 $ 1,237,567 $ 1,239,713
------------ ----------- -----------
Expenses -
Investment adviser fee (Note 2) $ 730,136 $ 46,919 $ 48,020
Compensation of Trustees not members of
the Investment Adviser's organization 11,207 796 796
Custodian fee (Note 2) 46,672 8,282 7,891
Interest expense (Note 5) 55,638 7,456 3,495
Legal and accounting services 28,338 18,265 18,487
Bond pricing 12,344 3,491 2,640
Amortization of organization expense (Note 1D) 1,975 317 315
Miscellaneous 5,380 238 438
------------ ----------- -----------
Total expenses $ 891,690 $ 85,764 $ 82,082
Deduct preliminary reduction of investment adviser fee
(Note 2) -- 23,752 24,036
------------ ----------- -----------
Net expenses $ 891,690 $ 62,012 $ 58,046
------------ ----------- -----------
Net investment income $ 9,355,267 $ 1,175,555 $ 1,181,667
------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) -
Investment transactions (identified cost basis) $ (6,791,430) $ (634,135) $ (430,448)
Financial futures contracts (300,011) (101,448) (54,761)
------------ ----------- -----------
Net realized loss on investments $ (7,091,441) $ (735,583) $ (485,209)
------------ ----------- -----------
Changes in unrealized appreciation (depreciation) -
Investments $ 15,566,520 $ 2,091,016 $ 1,777,862
Financial futures contracts (504,804) (57,379) (113,231)
------------ ----------- -----------
Net unrealized appreciation of investments $ 15,061,716 $ 2,033,637 $ 1,664,631
------------ ----------- -----------
Net realized and unrealized gain on investments $ 7,970,275 $ 1,298,054 $ 1,179,422
------------ ----------- -----------
Net increase in net assets from operations $ 17,325,542 $ 2,473,609 $ 2,361,089
============ =========== ===========
</TABLE>
See notes to financial statements
55
<PAGE> 56
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 22,509,574 $ 9,080,160 $ 881,931 $ 19,526,323
Net realized loss on investments (22,726,840) (14,243,739) (1,378,658) (17,868,823)
Change in unrealized appreciation of
investments 45,823,654 20,230,328 2,257,982 33,102,883
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 45,606,388 $ 15,066,749 $ 1,761,255 $ 34,760,383
------------ ------------ ------------ ------------
Capital transactions -
Contributions $ 45,345,069 $ 14,914,251 $ 3,703,477 $ 36,582,842
Withdrawals (111,114,807) (35,472,914) (3,839,304) (68,422,716)
------------ ------------ ------------ ------------
Decrease in net assets resulting from capital
transactions $(65,769,738) $(20,558,663) $ (135,827) $(31,839,874)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets $(20,163,350) $ (5,491,914) $ 1,625,428 $ 2,920,509
NET ASSETS:
At beginning of period 772,123,153 308,539,780 29,476,651 655,646,776
------------ ------------ ------------ ------------
At end of period $751,959,803 $303,047,866 $ 31,102,079 $658,567,285
============ ============ ============ ============
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------
For the Six Months Ended March 31, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 9,355,267 $ 1,175,555 $ 1,181,667
Net realized loss on investments (7,091,441) (735,583) (485,209)
Change in unrealized appreciation of investments 15,061,716 2,033,637 1,664,631
------------ ----------- -----------
Net increase in net assets from operations $ 17,325,542 $ 2,473,609 $ 2,361,089
------------ ----------- -----------
Capital transactions -
Contributions $ 15,730,126 $ 5,712,696 $ 1,842,697
Withdrawals (33,146,052) (5,151,890) (3,602,841)
------------ ----------- -----------
Increase (decrease) in net assets resulting from
capital transactions $(17,415,926) $ 560,806 $(1,760,144)
------------ ----------- -----------
Total increase (decrease) in net assets $ (90,384) $ 3,034,415 $ 600,945
NET ASSETS:
At beginning of period 324,411,553 38,119,918 40,473,310
------------ ----------- -----------
At end of period $324,321,169 $41,154,333 $41,074,255
============ =========== ===========
</TABLE>
See notes to financial statements
56
<PAGE> 57
-------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1994
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA MASSACHUSETTS MISSISSIPPI NEW YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 45,081,235 $ 17,598,654 $ 1,360,681 $ 38,006,256
Net realized loss on investments (5,816,054) (5,575,616) (648,050) (2,555,481)
Change in unrealized depreciation of
investments (84,917,438) (26,955,377) (2,341,025) (67,884,728)
------------- ------------ ------------ ------------
Net decrease in net assets from operations $ (45,652,257) $(14,932,339) $ (1,628,394) $(32,433,953)
------------- ------------ ------------ ------------
Capital transactions -
Contributions $ 174,248,758 $ 73,999,994 $ 22,605,600 $135,102,754
Withdrawals (128,894,901) (41,140,572) (2,733,129) (95,828,619)
------------- ------------ ------------ ------------
Increase in net assets resulting from
capital transactions $ 45,353,857 $ 32,859,422 $ 19,872,471 $ 39,274,135
------------- ------------ ------------ ------------
Total increase (decrease) in net assets $ (298,400) $ 17,927,083 $ 18,244,077 $ 6,840,182
NET ASSETS:
At beginning of year 772,421,553 290,612,697 11,232,574 648,806,594
------------- ------------ ------------ ------------
At end of year $ 772,123,153 $308,539,780 $ 29,476,651 $655,646,776
============== ============ ============ ============
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1994
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 18,012,641 $1,702,520 $ 1,998,183
Net realized loss on investments (413,084) (572,496) (467,540)
Change in unrealized depreciation of investments (32,855,282) (3,287,877) (3,500,185)
------------ ---------- -----------
Net decrease in net assets from operations $(15,255,725) $(2,157,853) $(1,969,542)
------------ ---------- -----------
Capital transactions -
Contributions $ 78,699,031 $26,648,655 $21,082,434
Withdrawals (37,123,714) (3,352,183) (3,399,808)
------------ ---------- -----------
Increase in net assets resulting from capital
transactions $ 41,575,317 $23,296,472 $17,682,626
------------ ---------- -----------
Total increase in net assets $ 26,319,592 $21,138,619 $15,713,084
NET ASSETS:
At beginning of year 298,091,961 16,981,299 24,760,226
------------ ---------- -----------
At end of year $324,411,553 $38,119,918 $40,473,310
============ =========== ===========
</TABLE>
See notes to financial statements
57
<PAGE> 58
-------
<TABLE>
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO
------------------------------ -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH SEPTEMBER 30, ENDED MARCH SEPTEMBER 30,
31, 1995 ---------------- 31, 1995 ---------------
(UNAUDITED) 1994 1993* (UNAUDITED) 1994 1993*
----------- ----- ------ ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average
daily net basis):
Net expenses 0.53%+ 0.48% 0.47% + 0.55%+ 0.51% 0.49%+
Net investment income 6.11%+ 5.65% 5.53% + 6.18%+ 5.74% 5.72%+
PORTFOLIO TURNOVER 35% 57% 55% 57% 53% 38%
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO NEW YORK PORTFOLIO
------------------------------ -------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH SEPTEMBER 30, ENDED MARCH SEPTEMBER 30,
31, 1995 ---------------- 31, 1995 ---------------
(UNAUDITED) 1994 1993** (UNAUDITED) 1994 1993*
----------- ----- ------ ----------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average
daily net basis)++:
Net expenses 0.26%+ 0.05% 0.00% + 0.54%+ 0.48% 0.48%+
Net investment income 6.09%+ 5.67% 4.49% + 6.19%+ 5.70% 5.64%+
PORTFOLIO TURNOVER 33% 38% 11% 33% 47% 37%
<FN>
++The operating expenses of the Portfolios may reflect a reduction of the
investment adviser fee and an allocation of expenses to the Investment
Adviser. Had such actions not been taken, the ratios would have been as
follows:
RATIOS (As a percentage of average
daily net basis):
Expenses 0.41%+ 0.32% 0.25%+
Net investment income 5.94%+ 5.40% 4.24%+
+ Computed on an annualized basis.
* For the period from the start of business, February 1, 1993, to September 30, 1993.
** For the period from the start of business, June 11, 1993, to September 30, 1993.
</TABLE>
See notes to financial statements
58
<PAGE> 59
-------
<TABLE>
SUPPLEMENTARY DATA
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO RHODE ISLAND PORTFOLIO
----------------------------- --------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED MARCH SEPTEMBER 30, ENDED MARCH SEPTEMBER 30,
31, 1995 --------------- 31, 1995 ----------------
(UNAUDITED) 1994 1993* (UNAUDITED) 1994 1993**
----------- ----- ----- ----------- ----- ------
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average
daily net assets)++:
Net expenses 0.57%+ 0.51% 0.49%+ 0.32%+ 0.12% 0.00%+
Net investment income 5.98%+ 5.61% 5.61%+ 6.15%+ 5.64% 4.86%+
PORTFOLIO TURNOVER 32% 31% 24% 20% 42% 23%
<FN>
++The operating expenses of the Portfolios may reflect a reduction of the
investment adviser fee and an allocation of expenses to the Investment
Adviser. Had such actions not been taken, the ratios would have been as
follows:
RATIOS (As a percentage of average
daily net assets):
Expenses 0.45%+ 0.33% 0.26%+
Net investment income 6.02%+ 5.43% 4.60%+
</TABLE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
--------------------------------
SIX MONTHS
ENDED MARCH SEPTEMBER 30,
31, 1995 ----------------
(UNAUDITED) 1994 1993**
----------- ----- ------
<S> <C> <C> <C>
RATIOS (As a percentage of average
daily net assets)++:
Net expenses 0.30%+ 0.10% 0.00%+
Net investment income 6.04%+ 5.52% 4.50%+
PORTFOLIO TURNOVER 8% 39% 19%
<FN>
++The operating expenses of the Portfolios reflect a reduction of the investment
adviser fee. Had such action not been taken, the ratios would have been as
follows:
RATIOS (As a percentage of average
daily net assets):
Expenses 0.42%+ 0.33% 0.21% +
Net investment income 5.92%+ 5.29% 4.30% +
+ Computed on an annualized basis.
* For the period from the start of business, February 1, 1993, to September 30, 1993.
** For the period from the start of business, June 11, 1993, to September 30, 1993.
</TABLE>
See notes to financial statements
59
<PAGE> 60
-------
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Florida Tax Free Portfolio (Florida Portfolio), Massachusetts Tax Free Portfolio
(Massachusetts Portfolio), Mississippi Tax Free Portfolio (Mississippi
Portfolio), New York Tax Free Portfolio (New York Portfolio), Ohio Tax Free
Portfolio (Ohio Portfolio), Rhode Island Tax Free Portfolio (Rhode Island
Portfolio) and West Virginia Tax Free Portfolio (West Virginia Portfolio),
collectively the Portfolios, are registered under the Investment Company Act of
1940 as non-diversified open-end management investment companies which were
organized as trusts under the laws of the State of New York on May 1, 1992. The
Declarations of Trust permit the Trustees to issue interests in the Portfolios.
The following is a summary of significant accounting policies of the Portfolios.
The policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on commodity
exchanges are valued at closing settlement prices. Short-term obligations,
maturing in sixty days or less, are valued at amortized cost, which approximates
value. Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B. INCOME--Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C. INCOME TAXES--The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes on
any taxable income of the Portfolios because each investor in the Portfolios is
ultimately responsible for the payment of any taxes. Since some of the
Portfolios' investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolios, the Portfolios normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for their respective investors to
satisfy them. The Portfolios will allocate at least annually among their
respective investors each investor's distributive share of the Portfolios' net
taxable (if any) and tax-exempt investment income, net realized capital gains,
and any other items of income, gain, loss, deductions or credit. Interest income
received by the Portfolios on investments in municipal bonds, which is
excludable from gross income under the Internal Revenue Code, will retain its
status as income exempt from federal income tax when allocated to each
Portfolio's investors. The portion of such interest, if any, earned on private
activity bonds issued after August 7, 1986, may be considered a tax preference
item for investors.
D. DEFERRED ORGANIZATIONAL EXPENSES--Costs incurred by a Portfolio in connection
with its organization are being amortized on the straight-line basis over five
years beginning on the date each Portfolio commenced operations.
E. FINANCIAL FUTURES CONTRACTS--Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio ("margin maintenance") each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for book
purposes as unrealized gains or losses by a Portfolio. A Portfolio's investment
in financial futures contracts is designed only to hedge against anticipated
future changes in interest rates. Should interest rates move unexpectedly, the
Portfolios may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS-- The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record when-issued
securities on trade date and maintain security positions such that sufficient
liquid assets will be available to make payment for the securities purchased.
Securities purchased on a when-issued or delayed delivery basis are marked to
market daily and begin accruing interest on settlement date.
G. OTHER -- Investment transactions are accounted for on a trade date basis.
H. INTERIM FINANCIAL INFORMATION--The interim financial statements relating to
March 31, 1995 and for the six month period then ended have not been audited by
independent certified public accountants, but in the opinion of the Portfolio's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
60
<PAGE> 61
-------
- --------------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to each Portfolio. The fee
is based upon a percentage of average daily net assets plus a percentage of
gross income (i.e., income other than gains from the sale of securities). For
the six months ended March 31, 1995, each Portfolio paid advisory fees as
follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
- --------- ------ ---------------
<S> <C> <C>
Florida $1,746,663 0.47%
Massachusetts $ 690,340 0.47%
Mississippi $ 33,404 0.23%
New York $1,512,146 0.48%
Ohio $ 730,136 0.47%
Rhode Island $ 46,919 0.25%
West Virginia $ 48,020 0.25%
<FN>
* Advisory fees paid as a percentage of average daily net assets (annualized).
</TABLE>
To enhance the net income of the Mississippi Portfolio, Rhode Island Portfolio
and West Virginia Portfolio, BMR made a preliminary reduction of its fee in the
amount of $20,427, $23,752 and $24,036, respectively, for the six months ended
March 31, 1995.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services to
the Portfolios out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolios. Pursuant to the custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances each
Portfolio maintains with IBT. Certain of the officers and Trustees of the
Portfolios are officers and directors/trustees of the above organizations.
Trustees of the Portfolios that are not affiliated with the Investment Adviser
may elect to defer receipt of all or a portion of their annual fees in
accordance with the terms of the Trustees Deferred Compensation Plan. For the
six months ended March 31, 1995, no significant amounts have been deferred.
- --------------------------------------------------------------------------------
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six months ended March 31, 1995, were as
follows:
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO NEW YORK PORTFOLIO
----------------- ----------------------- ---------------------- -----------------------
<S> <C> <C> <C> <C>
Purchases $254,358,524 $165,571,563 $11,156,471 $208,041,594
Sale 288,926,110 172,376,591 9,507,285 231,034,269
<CAPTION>
OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
----------------------- ---------------------- -----------------------
<S> <C> <C> <C>
Purchases $100,967,185 $9,079,137 $3,142,734
Sale 115,355,119 7,600,433 4,505,396
</TABLE>
61
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- --------------------------------------------------------------------------------
<TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized depreciation/appreciation in value of the investments
owned by each Portfolio at March 31, 1995, as computed on a federal income tax
basis, are as follows:
<CAPTION>
NEW
FLORIDA MASSACHUSETTS MISSISSIPPI YORK
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Aggregate Cost $710,252,094 $285,245,169 $31,192,694 $624,512,710
============ ============ =========== ============
Gross unrealized appreciation $ 35,175,864 $ 15,164,325 $ 781,429 $ 28,254,851
Gross unrealized depreciation 8,335,668 1,206,366 542,335 6,157,179
------------ ------------ ----------- ------------
Net unrealized appreciation $ 26,840,196 $ 13,957,959 $ 239,094 $ 22,097,672
============ ============ =========== ============
<CAPTION>
WEST
OHIO RHODE ISLAND VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- -----------
<S> <C> <C> <C>
Aggregate Cost $316,077,550 $40,919,123 $41,327,322
============ ============ ===========
Gross unrealized appreciation $ 10,467,684 $ 689,163 $ 327,272
Gross unrealized depreciation 3,872,907 1,458,898 1,579,943
------------ ------------ -----------
Net unrealized appreciation (depreciation) $ 6,594,777 $ (769,735) $(1,252,671)
============ ============ ===========
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Portfolios participate with other portfolios and funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. Borrowings will be made by the Portfolios solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the bank's adjusted certificate of deposit
rate, a variable adjusted certificate of deposit rate, or a federal funds
effective rate. In addition, a fee computed at an annual rate of 1/4 of 1% on
the $20 million committed facility is allocated among the participating funds
and portfolios at the end of each quarter. At March 31, 1995, the Florida
Portfolio, New York Portfolio, Ohio Portfolio and West Virginia Portfolio had
balances outstanding pursuant to this line of credit of $9,325,000, $5,437,000,
$9,776,000 and $292,000, respectively. For the six months ended March 31, 1995,
the average daily balance outstanding pursuant to this line of credit, the
average interest rate and the maximum outstanding month end balance during the
period were as follows:
<CAPTION>
MAXIMUM
AVERAGE AVERAGE MONTH END
PORTFOLIO DAILY BALANCE INTEREST RATE BALANCE
- --------- ------------- ------------- -----------
<S> <C> <C> <C>
Florida $2,655,000 7.15% $20,318,000
Massachusetts 969,000 7.15% 11,261,000
Mississippi 314,000 7.15% 809,000
New York 6,963,000 7.15% 17,359,000
Ohio 1,355,000 7.10% 9,776,000
Rhode Island 593,000 8.39% 2,852,000
West Virginia 457,000 6.61% 742,000
</TABLE>
62
<PAGE> 63
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- --------------------------------------------------------------------------------
(6) FINANCIAL INSTRUMENTS
The Portfolios regularly trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options and futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
<TABLE>
A summary of obligations under these financial instruments at March 31, 1995, is
as follows:
<CAPTION>
FUTURES
CONTRACTS NET UNREALIZED
PORTFOLIO EXPIRATION DATE CONTRACTS POSITION DEPRECIATION
- --------- ---------------- --------- -------- --------------
<S> <C> <C> <C> <C>
Florida 6/95 1,058 U.S. Treasury Bonds Short $1,629,205
Massachusetts 6/95 360 U.S. Treasury Bonds Short 295,150
Mississippi 6/95 50 U.S. Treasury Bonds Short 89,066
New York 6/95 543 U.S. Treasury Bonds Short 698,231
Ohio 6/95 320 U.S. Treasury Bonds Short 504,804
Rhode Island 6/95 50 U.S. Treasury Bonds Short 57,379
West Virginia 6/95 60 U.S. Treasury Bonds Short 68,176
</TABLE>
At March 31, 1995 each Portfolio had sufficient cash and/or securities to cover
margin requirements on open futures contracts.
63
<PAGE> 64
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Investment Management
- --------------------------------------------------------------------------------
FUNDS OFFICERS INDEPENDENT TRUSTEES
THOMAS J. FETTER DONALD R. DWIGHT
President Chairman, Newspaper of New England, Inc.
President, Dwight Partners, Inc.
JAMES B. HAWKES
Vice President, Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
ROBERT MACINTOSH Banking, Harvard University
Vice President Graduate School of
Business Administration
JAMES L. O'CONNOR
Treasurer NORTON H. REAMER
President and Director,
THOMAS OTIS United Asset Management Corporation
Secretary
JOHN L. THORNDIKE
BARBARA E. CAMPBELL Director,
Assistant Treasurer Fiduciary Company Incorporated
JACK L. TREYNOR
DOUGLAS C. MILLER Investment Adviser
Assistant Treasurer and Consultant
JANET E. SANDERS
Assistant Treasurer and
Assistant Secretary
A. JOHN MURPHY
Assistant Secretary
- ---------------------------------------------------------------------------
PORTFOLIOS OFFICERS TIMOTHY T. BROWSE, West Virginia Tax
Free Portfolio
THOMAS J. FETTER
President and Portfolio CYNTHIA J. CLEMSON, Mississippi
Manager of the Florida and Tax Free Portfolio
Ohio Tax Free Portfolios
JAMES B. HAWKES INDEPENDENT TRUSTEES
Vice President, Trustee
DONALD R. DWIGHT
ROBERT MACINTOSH President, Dwight Partners, Inc.
Vice President and Portfolio Chairman, Newspaper of New England, Inc.
Manager of the Massachusetts
Tax Free Portfolio SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
JAMES L. O'CONNOR Banking, Harvard University
Treasurer Graduate School of
Business Administration
THOMAS OTIS
Secretary NORTON H. REAMER
President and Director,
BARBARA E. CAMPBELL United Asset Management Corporation
Assistant Treasurer
JOHN L. THORNDIKE
DOUGLAS C. MILLER Director,
Assistant Treasurer Fiduciary Company Incorporated
JANET E. SANDERS JACK L. TREYNOR
Assistant Treasurer and Investment Adviser
Assistant Secretary and Consultant
PORTFOLIO MANAGERS
NICOLE ANDERES, New York
and Rhode Island Tax Free
Portfolio
64
<PAGE> 65
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- --------------------------------------------------------------------------------
PORTFOLIO INVESTMENT ADVISER
Boston Management and Research
24 Federal Street
Boston, MA 02110
FUND ADMINISTRATOR
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
65
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<PAGE> 67
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
EATON VANCE
MUNICIPALS TRUST
24 FEDERAL STREET
BOSTON, MA 02110
C-7TFCSRC
