<PAGE> 1
EATON VANCE MUNICIPALS TRUST
FOR THE FUNDS:
- EV Classic California Municipals Fund
- 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 Tax Free Fund
- --------------------------------------------------------------------------------
[GRAPHIC OF A DOOR]
- --------------------------------------------------------------------------------
ANNUAL SHAREHOLDER REPORT
SEPTEMBER 30, 1995
<PAGE> 2
Table of Contents
<TABLE>
<CAPTION>
ITEM PAGE
<S> <C>
Year-end results, listed by state ...................................... 2
President's letter to shareholders ..................................... 3
Management Reports:
EV Classic California Municipals Fund ........................... 4
EV Classic Florida Tax Free Fund ................................. 5
EV Classic Massachusetts Tax Free Fund ........................... 6
EV Classic Mississippi Tax Free Fund ............................. 7
EV Classic New York Tax Free Fund ................................ 8
EV Classic Ohio Tax Free Fund .................................... 9
EV Classic Rhode Island Tax Free Fund ............................ 10
EV Classic West Virginia Tax Free Fund ........................... 11
Financial Results ............................................... 12
</TABLE>
INFORMATION ABOUT YOUR MUTUAL FUND INVESTMENT
<TABLE>
<CAPTION>
FINANCIAL DATA: TAX DATA:
- ------------------------------------------------------------------------------------------------------------------------------------
RESULTS FOR THE YEAR Fund's The after-tax
ENDING SEPTEMBER 30, 1995 Dividends paid Fund's NAV distribution If your combined equivalent Federal
by Fund per share rate at Federal & State yield you income tax
during period at 9/30/95 9/30/95 tax rate is... would need is information*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EV Classic California $0.472 $9.32 4.95% [GRAPHIC OF 43.04% 8.64% 98.75
Municipals Fund CALIFORNIA]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic Florida $0.464 $9.35 4.87% [GRAPHIC OF 38.63% 7.88% 98.34
Tax Free Fund FLORIDA]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic Massachusetts $0.473 $9.26 5.00% [GRAPHIC OF 43.68% 8.83% 98.86
Tax Free Fund MASSACHUSETTS]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic Mississippi $0.438 $9.30 4.60% [GRAPHIC OF 39.20% 7.52% 98.50
Tax Free Fund MISSISSIPPI]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic New York $0.468 $9.42 4.85% [GRAPHIC OF 40.96% 8.16% 98.70
Tax Free Fund NEW YORK]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic Ohio $0.453 $9.32 4.75% [GRAPHIC OF 40.80% 8.01% 99.35
Tax Free Fund OHIO]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic Rhode Island $0.454 $9.21 4.82% [GRAPHIC OF 42.34% 8.34% 99.35
Tax Free Fund RHODE ISLAND]
- ------------------------------------------------------------------------------------------------------------------------------------
EV Classic West Virginia $0.443 $9.35 4.63% [GRAPHIC OF 40.16% 7.74% 99.66
Tax Free Fund VIRGINIA]
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
* Percentages represent the amounts of the total dividends paid by the Funds from net investment income during the year ended
September 30, 1995, that have been designated as exempt-interest dividends. Tax legislation eliminated the exception to market
discount rules applicable to tax-exempt obligations. As a result, certain tax-exempt obligations acquired by the Portfolio
subsequent to April 30, 1993, at market discounts may generate a small amount of ordinary taxable income.
</TABLE>
2
<PAGE> 3
TO SHAREHOLDERS
The global economy continues to demonstrate a pattern of slow growth with low
inflation. The U.S. economy is no exception, as Gross Domestic Product should
grow only modestly during 1995 at between 2% and 3%, with inflation of less than
3%. These characteristics bode well for all capital markets and particularly
fixed-income markets, including municipal bonds.
Indeed, municipal bonds performed well during the first half of 1995 by
realizing strong capital appreciation as a result of this favorable investment
environment. However, during this period, the municipal market underperformed
the taxable market because of concern about the potential passage of major tax
reform (e.g., flat tax, value added tax or consumption tax) legislation.
Were major tax reform to become law, municipal bonds would probably be
underperformers relative to taxable bonds because the current tax-advantaged
status of municipal bonds likely would be eliminated.
DESPITE TAX POLICY UNCERTAINTIES, TAX-EXEMPT BONDS YIELD MORE THAN 89% OF
TREASURY YIELDS
<TABLE>
<CAPTION>
<S> <C>
30-YR. AA GENERAL OBLIGATION (GO) BONDS* 5.90%
TAXABLE EQUIVALENT YIELD OF INVESTMENT
FOR COUPLE IN 36% TAX BRACKET 9.21%
30-YR TREASURY BONDS 6.50%
<FN>
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
* GO yield is a compilation of a representative variety of general obligation
bonds and is not necessarily represented by the Fund's yield.
Statistics as of September 30, 1995.
Past Performance is no guarantee of future results.
Source: Bloomberg, L.P.
</TABLE>
However, for many reasons, we at Eaton Vance believe there is little chance of
major tax reform legislation being enacted. For example, the inherent
regressivity of the various flat tax proposals will provoke much opposition, as
will proposals to eliminate such tax breaks as deductions for mortgage interest
and state and local taxes. Also, such proposals could seriously depress entire
sectors of the U.S. economy.
Accordingly, we view this recent underperformance by municipal bonds (because of
fears of tax reform) as a potential buying opportunity. Municipal bonds could
represent an attractive asset class at these current relative trading
relationships, with the potential for future outperformance for those investors
willing to adopt a patient, long-term investment horizon.
In addition, proposals are now circulating in both Congress and the White House
to reduce the nation's budget deficit by severely cutting expenditures over the
next decade. If enacted, such a concept would drastically reduce the federal
government's borrowing needs and, as a result, would exert a meaningful downward
influence on interest rates across the entire yield curve. All fixed-income
instruments, including municipal bonds, would benefit.
We will continue to monitor changes in economic and political conditions and to
pursue the goal of your Fund: to provide you with a competitive distribution of
tax-free income from a portfolio of quality municipal bonds.+
Sincerely,
/s/ Thomas J. Fetter
--------------------
Thomas J. Fetter
President
November 3, 1995
+ A portion of the Portfolios' income could be subject to Federal alternative
minimum tax.
Included on the pages that follow are performance charts that compare your
Fund's total return with that of a broad-based securities market index. The
lines on the chart represent the total returns of $10,000 hypothetical
investments in your Fund and the unmanaged Lehman Brothers Municipal Bond Index.
The solid line on the chart represents the Fund's performance. The Fund's total
return figure reflects fund expenses and portfolio transaction costs, and
assumes the reinvestment of income dividends and capital gain distributions. The
dotted line represents the performance of the Lehman Brothers Municipal Bond
Index, a broad-based, widely recognized unmanaged index of municipal bonds.
Whereas the Fund's portfolio comprises bonds principally from your individual
state, the Index is composed of bonds from all 50 states and many jurisdictions.
The Index's total return does not reflect any commissions or expenses that would
be incurred if an investor individually purchased or sold the securities
represented in the Index.
3
<PAGE> 4
EV Classic California Municipals Fund
YOUR INVESTMENT AT WORK
Sacramento Cogeneration Authority
Cogeneration Project Bonds
These bonds are being used to build a gas-fired cogeneration plant that will
produce electricity for the Sacramento Municipal Utility District. The plant
also will produce steam for a nearby Procter & Gamble manufacturing facility. It
is located on a 10-acre parcel next to the Procter & Gamble property.
The project is part of the Municipal Utility District's plan to reduce its
purchases of electrical power from local electric utilities. It is scheduled to
begin operation in 1996 and will be the second of up to four cogeneration plants
to be constructed in the Sacramento area.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues.................................. 110
Average quality................................... A+
Investment grade.................................. 88.3
Effective maturity................................ 14.67 yrs.
Largest sectors:
Lease revenues/Certificates of
participation.................................. 22.6%
Escrowed to maturity........................... 16.2
Tax allocation................................. 9.0
Insured utilities.............................. 8.8*
Housing........................................ 8.6
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: California
California's economy is improving slowly. Gains in the northern part of the
state - in San Francisco and the Silicon Valley, for example - have been
partially offset by continued poor economic conditions in Orange and Los Angeles
Counties.
The Los Angeles County economy continues to lag, and the Orange County
government has been in bankruptcy since December, 1994, when losses in the
derivatives market drained nearly $1.7 billion from its investment pool. Both
counties are finding it necessary to cut back on government services; those
cutbacks have the effect of further dampening local economic activity.
While California's long-term economic outlook is positive, its current problems
are not likely to end soon, in part because of the magnitude of its outstanding
financial issues. The state, home to much import and export business with
Pacific Rim countries, has also been hurt by the depressed Japanese economy. It
could expect to recover more quickly if the Japanese economy were to improve.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC CALIFORNIA
MUNICIPALS FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 7.3% 1.5%
Without CDSC 8.3% 1.5%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.CALIFORNIA LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10159 10114
2/94 9920 9852
3/94 9494 9451
4/94 9498 9531
5/94 9544 9614
6/94 9444 9558
7/94 9612 9730
8/94 9648 9764
9/94 9497 9621
10/94 9294 9450
11/94 9054 9279
12/94 9207 9483
1/95 9548 9754
2/95 9856 10038
3/95 9958 10153
4/95 9949 10165
5/95 10279 10490
6/95 10082 10398
7/95 10126 10496
8/95 10211 10630
9/95 10287 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/3/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"California is such a large state that we have been able to choose credits for
the Portfolio very selectively. In general, we have avoided Los Angeles County
debt, though we do hold two relatively secure specialized bonds from the area
for yield purposes.
"Similarly, our holdings in Orange County are disproportionately low because of
the county's continuing financial problems. Over time, we have been able to
assess the full effect of those problems and can say with assurance that the
Portfolio's five credits located in the county have not been affected by the
county's financial problems."
- Robert B. MacIntosh
4
<PAGE> 5
EV Classic Florida Tax Free Fund
YOUR INVESTMENT AT WORK
Martin County Industrial
Development Authority
Indiantown Cogeneration Project
The proceeds of this $125 million bond issue were used to refund bonds issued in
1992 used to build a portion of this cogeneration project.
The power plant will burn coal and supply electricity to Florida Power & Light
Company and steam to Caulkins Indiantown Citrus Company. Construction began in
1992 and is expected to be completed next year.
The 1992 bond proceeds financed the costs of acquiring, building and equipping
facilities for treatment of solid wastes associated with operating the
coal-fired cogeneration plant.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues............................... 138
Average quality................................ AA-
Investment grade............................... 92.4%
Effective maturity............................. 16.83 yrs.
Largest sectors:
Utilities................................... 12.5%
Housing..................................... 10.6
Insured utilities........................... 8.5*
Insured special tax revenue................. 7.9*
General obligations......................... 7.5
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: Florida
The Florida economy is relatively strong, helped by solid gains in the business
services sector, which is growing at a double-digit rate. Meanwhile, the
construction sector has been hampered by slower income and household growth.
State agencies project that Florida's population will grow at an annual rate of
nearly 2%, not as strong as the state had estimated earlier.
Tourism continues to be a cornerstone of the Florida economy. Tourism levels in
1995 have slightly exceeded the state's expectations.
It is estimated that Florida's unemployment rate through 1995 will be 6.1%, a
significant drop from 8.2% at the peak of the recession in 1992.
The 1995 legislative session ended with approval of budget appropriations which,
adjusted for inflation, represent the smallest increase in state spending in
more than 10 years. Despite the need for substantial expenditures to accommodate
continuing growth, Florida's level of debt is considered moderate and its
economy stable.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC FLORIDA TAX
FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.7% 1.5%
Without CDSC 9.7% 1.5%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.FLORIDA LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10148 10114
2/94 9848 9852
3/94 9332 9451
4/94 9375 9531
5/94 9410 9614
6/94 9329 9558
7/94 9516 9730
8/94 9520 9764
9/94 9326 9621
10/94 9081 9450
11/94 8853 9279
12/94 9144 9483
1/95 9461 9754
2/95 9819 10038
3/95 9888 10153
4/95 9888 10165
5/95 10162 10490
6/95 9977 10398
7/95 10031 10496
8/95 10125 10630
9/95 10233 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/3/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"The Florida health care market has been somewhat in disarray because of health
care reform. As a result, we have exercised caution when looking at health care
or hospital bonds. Through our proprietary research, we have been able to buy
high-quality hospital bonds at very attractive prices.
"We have employed a two-pronged approach to the Portfolio, with an emphasis on
quality and also bonds that allow us to add to yield.
"We are still very constructive on the Florida economy, and we continue to look
for discount coupon bonds that add attractive characteristics to the Portfolio."
- Thomas J. Fetter
5
<PAGE> 6
EV Classic Massachusetts Tax Free Fund
YOUR INVESTMENT AT WORK
Plymouth County
Correctional Facility
These bonds were used to construct a new 1,140-bed prison to house federal,
state and county inmates in Plymouth. In addition to expanded housing
facilities, the project includes a modern medical facility.
The project was designed to provide partial relief for the Commonwealth's
correctional system, which has become seriously overcrowded in the past decade.
As a state-of-the-art, "direct supervision" facility, the project aims to
provide a more successful correctional environment while reducing costs. The new
facility is operated by the Plymouth County Sheriff's Department.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues............................... 95
Average quality................................ A+
Investment grade............................... 96.3%
Effective maturity (years)..................... 15.47
Largest sectors:
General obligations......................... 13.7%
Insured hospitals........................... 11.8*
Housing..................................... 11.4
Water and sewer............................. 9.8
Education................................... 9.8
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: Massachusetts
Massachusetts' employment levels have climbed significantly in recent years,
recovering roughly 60% of the jobs lost in the last recession. Recent jobless
rates have remained at or below the national rate, and personal income growth
continues to accelerate. Growth has been especially impressive in the high
technology and financial sectors.
The Commonwealth has greatly improved its financial position. Debt levels, while
still too high, have nonetheless been reduced, while reserve levels have
increased to 3% of revenues. As a result, Massachusetts now enjoys enhanced
liquidity and more leeway with respect to operations, and should record a modest
surplus in the current fiscal year. As a reflection of the progress the
Commonwealth has made in recent years, its debt ratings have been upgraded to A1
and A+, considerably higher than they were at their lowest point in early 1991.
Looking ahead, the economy should continue to post modest growth. On the fiscal
front, the administration has recently initiated efforts to control social
spending. While opening a thorny political issue, the move could result in
further fiscal improvements in the future.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC
MASSACHUSETTS TAX FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 7.4% 1.1%
Without CDSC 8.4% 1.1%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.MASS. LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10070 10114
2/94 9841 9852
3/94 9357 9451
4/94 9331 9531
5/94 9418 9614
6/94 9328 9558
7/94 9496 9730
8/94 9532 9764
9/94 9360 9621
10/94 9116 9450
11/94 8837 9279
12/94 9108 9483
1/95 9447 9754
2/95 9764 10038
3/95 9844 10153
4/95 9835 10165
5/95 10077 10490
6/95 9892 10398
7/95 9947 10496
8/95 10075 10630
9/95 10151 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/7/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"The Portfolio's exposure to the hospital sector remains quite low. Health care
institutions around the country are under increasing pressure from competition.
This condition is especially true in Massachusetts, where there are too many
hospital beds for the commonwealth's population.
"As a result, we do extensive research before adding any hospital bonds to the
Portfolio, to ensure that the hospitals we choose will be among the survivors in
this increasingly competitive environment.
"In structuring the Portfolio, we've employed a two-pronged strategy in the
Portfolio, emphasizing quality on one hand and prudent yield enhancement on the
other."
- Robert B. MacIntosh
6
<PAGE> 7
EV Classic Mississippi Tax Free Fund
YOUR INVESTMENT AT WORK
Mississippi State University
Renovation Project
Bond proceeds were used to renovate and equip two buildings on the Mississippi
State University campus. The renovations included the conversion of former
dormitory buildings into classroom and office space.
The funds were also used to extend a chilled water loop on the campus in order
to improve the university's heating and cooling system.
The bonds were issued in 1995, with a maturity of 2015. The cost of the project
is estimated to be $3 million.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues....................... 36
Average quality........................ AA
Investment grade....................... 98.7%
Effective maturity..................... 15.55 yrs.
Largest sectors:
Insured hospitals................... 19.2%*
Utilities........................... 10.9
Industrial development revenue...... 10.0
Housing............................. 9.4
General obligations................. 7.8
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: Mississippi
Mississippi's economy, traditionally reliant on cyclical manufacturing, has
shown significant growth in recent years.Expansion in the manufacturing and
service sectors allowed the state's unemployment rate to remain roughly the same
in 1994 as in 1993.
Much of the state's recent job growth came from gaming-related employment in the
early 1990s. It is estimated that some 50,000 jobs were created either directly
or indirectly by this industry. However, with more than 30 casinos now open in
the state, Mississippi is saturated with gambling. In addition, the industry now
faces strong competition from neighboring Louisiana, which is opening gambling
in New Orleans.
Although Mississippi's economy should continue to grow during the next few
years, expected changes in the gaming industry, combined with a slowdown in
other sectors, are likely to cause the pace of that growth to be slower than it
has been in recent years.
A positive for the state is its very conservative fiscal management.
Mississippi's debt level is one of the lowest in the country.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC MISSISSIPPI
TAX FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.5% 1.0%
Without CDSC 9.5% 1.0%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.MISSISSIPPI LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10109 10114
2/94 9798 9852
3/94 9180 9451
4/94 9253 9531
5/94 9336 9614
6/94 9254 9558
7/94 9428 9730
8/94 9430 9764
9/94 9256 9621
10/94 9030 9450
11/94 8790 9279
12/94 9016 9483
1/95 9361 9754
2/95 9715 10038
3/95 9793 10153
4/95 9770 10165
5/95 10061 10490
6/95 9907 10398
7/95 9969 10496
8/95 10071 10630
9/95 10132 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/7/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"Mississippi is now in a period of economic strength. We have tried to take
advantage of that fact by moving the Portfolio into more state-backed general
obligation bonds.
"At the same time, we have somewhat reduced our exposure to the insured sector
because insured bonds are plentiful and are not as attractive as some other
Mississippi bonds.
"We continue to look to add industrial development bonds to the Portfolio, as
they offer an attractive combination of yield and security."
- Cynthia J. Clemson
7
<PAGE> 8
EV Classic New York Tax Free Fund
YOUR INVESTMENT AT WORK
New York State Power Authority
Historically, three of the top issuer names in New York have been "Ports" (Port
Authorities of New York and New Jersey), "Powers" (New York State Power
Authority) and "Tribes" (Triborough Bridge and Tunnel Authority). Bonds of these
three issuers are among the highest rated in the market.
Of the three, we see the most value in Power Authority bonds, especially as a
place to weather any coming storm in BBB-rated New York State-appropriated
bonds. The Triborough Bridge and Tunnel Authority will likely be under credit
pressure as it begins borrowing plans for the MTA subway system.Port Authority
bonds typically do not offer the attractive coupon structure available on some
Power Authority bonds.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues............................ 179
Average quality............................. A+
Investment grade............................ 98.0%
Effective maturity (years).................. 14.47
Largest sectors:
Health care.............................. 19.1%
Education................................ 12.7
Special tax revenue...................... 12.5
Lease/Certificate of
participation............................ 8.7
Escrowed................................. 7.6
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: New York
New York is at a crossroads, with its first new governor in 12 years. Governor
George Pataki's first real chance to make his mark comes with next year's
budget. The impact of his proposed income tax cuts will be felt much more deeply
in the budget for fiscal year 1996-97; it will garner much attention because tax
cuts must be accompanied by spending cuts. It has the potential to be Pataki's
first big step toward streamlining state government and fulfilling his election
promises.
Given the potential for next year's budget process to be especially contentious
and given that this year's budget was passed late, as often occurs, the Governor
plans an earlier unveiling of the fiscal 1996-97 budget. The goal of matching
spending commitments to ongoing revenue resources is positive for the state's
long-term credit standing but may produce near-term turmoil.
Of more immediate interest to New York tax-exempt investors is the November
voter referendum on state debt reform. New Yorkers will vote on whether to end
the state's entrenched process of "backdoor borrowing." If debt reform passes,
the state will revamp its borrowing process. Consequently, it currently plans to
issue an unusually heavy calendar of state-supported appropriation debt between
now and year-end.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC NEW YORK TAX
FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.5% 1.9%
Without CDSC 9.5% 1.9%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.NEW YORK LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10131 10114
2/94 9852 9852
3/94 9368 9451
4/94 9413 9531
5/94 9508 9614
6/94 9399 9558
7/94 9565 9730
8/94 9621 9764
9/94 9398 9621
10/94 9165 9450
11/94 8854 9279
12/94 9166 9483
1/95 9483 9754
2/95 9819 10038
3/95 9920 10153
4/95 9910 10165
5/95 10204 10490
6/95 10030 10398
7/95 10106 10496
8/95 10233 10630
9/95 10286 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/6/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"Anticipating that state-appropriated debt will underperform in the face of a
heavy new issuance calendar, we have been reducing the Portfolio's exposure to
State appropriation debt and swapping into high-grade debt. Once this wave of
debt has come to market, state-appropriated debt should be attractively priced
and once again represent a buying opportunity.
"This past summer, during the second leg of the 1995 rally, discount coupon
bonds returned to favor. This was an opportunity to sell deep discounts in the
New York Portfolio and trade into more moderate discount coupon bonds that
should perform comparably to deep discounts in an up market and much better in a
down market."
- Nicole Anderes
8
<PAGE> 9
EV Classic Ohio Tax Free Fund
YOUR INVESTMENT AT WORK
Higher Educational Facility Comm.
University of Dayton
The proceeds of these bonds are being used for a variety of projects, the
largest of which is acquisition of land for the University of Dayton Law School.
The money also is being used to construct and equip the Law School and Library,
to complete the Phillips Center for the Humanities, to acquire and renovate
student residences, rebuild campus roads and to renovate a variety of other
buildings on campus.
The Law School and Library building will have floor space of more than 120,000
square feet and will be completely computer accessible. The university has more
than 10,000 students.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues....................... 139
Average quality........................ A+
Investment grade....................... 90.5%
Effective maturity..................... 13.42 yrs.
Largest sectors:
Hospitals........................... 19.3%
Insured hospitals................... 11.7*
General obligations................. 9.1
Industrial development/ Pollution
control revenue..................... 8.8
Education........................... 7.9
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: Ohio
The Ohio economy continues to be diverse and strong. Overall, the state has
moved from heavy reliance on manufacturing jobs to a more balanced economy.
Ohio's financial position has improved during the last 12 months, allowing the
state to begin restoring its financial reserves.
The state's service sector has been a source of job growth during the past
several years.While the manufacturing sector grew during the second half of
1994, it is expected to recede somewhat during the last half of 1995.
Unemployment rates at the end of 1994 were considerably lower than the national
average.
The recent robust economic activity in Ohio has helped the state's balance
sheet. Tax receipts were greater than expected in the 1994 fiscal year and into
1995. For the same reason, Medicaid expenditures were somewhat lower than
anticipated.
Ohio benefits from relatively conservative management and a debt burden that is
low relative to that of other industrialized states.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC OHIO TAX
FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.6% 1.2%
Without CDSC 9.6% 1.2%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.OHIO LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10080 10114
2/94 9770 9852
3/94 9223 9451
4/94 9256 9531
5/94 9361 9614
6/94 9270 9558
7/94 9467 9730
8/94 9480 9764
9/94 9267 9621
10/94 9041 9450
11/94 8791 9279
12/94 9060 9483
1/95 9408 9754
2/95 9722 10038
3/95 9780 10153
4/95 9779 10165
5/95 10073 10490
6/95 9941 10398
7/95 10004 10496
8/95 10130 10630
9/95 10193 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/7/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"The past year has proved to be volatile for the bond market, with a sharp
decline during most of 1994 and the strong bond market rally of 1995.
"In the Ohio Portfolio, the levels of new bond issuance have decreased
significantly. This creates a supply-and-demand situation that bodes well for
the inherent value of bonds.
"We remain highly selective in terms of the health care and hospital bonds that
we add to the Portfolio. This sector is extremely competitive nationwide, and it
is important to use thorough research to determine the most attractive
candidates for the Portfolio. These are often medical facilities that have
strengthened themselves through mergers or alliances with other facilities or
HMOs."
- Thomas J. Fetter
9
<PAGE> 10
EV Classic Rhode Island Tax Free Fund
YOUR INVESTMENT AT WORK
Rhode Island State Industrial
Facilities Corporation
Marine Terminal Bonds
The proceeds of these bonds were used to build the main Rhode Island terminal
and distribution facilities for Mobil Oil Refining in the mid-1980s. The company
transports oil in tanker ships through Narragansett Bay and distributes it to
the Rhode Island area through these facilities, which are located inEast
Providence.
These bonds carry the senior corporate debt ratings of Mobil Corp., Aa2/AA.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues........................ 48
Average quality......................... AA
Investment grade........................ 99.2%
Effective maturity...................... 17.10yrs.
Largest sectors:
Housing.............................. 16.7
Insured water and sewer.............. 16.6*
Insured college and university....... 9.8*
Special tax.......................... 6.7
Insured housing...................... 6.1*
<FN>
* Private insurance does not remove the risk of loss of principal due to changes in market
conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: Rhode Island
Rhode Island's economy is softening after barely showing signs of recovery from
the recession of the late 1980s. Employment numbers for 1995 are running below
those of 1994; the state recently had to revise revenues down slightly to
reflect the weaker economy. Even the state's outlook for a "continued recovery
at a sluggish pace" may be too optimistic and the 1.2% annual employment growth
projected may have to be revised downward.
As sobering as this news is, our diversified portfolio of Rhode Island bonds
should not be directly affected by the state's budget and economic problems. For
example, portfolio holdings include tax-exempt debt backed by single-family
mortgage pools, by high-grade corporations and by the state's leading
universities and colleges.
Also, Providence appears to be a bright spot in the state's economic landscape
and may be more of a stabilizing influence than it has been historically.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC RHODE ISLAND
TAX FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.0% 0.6%
Without CDSC 9.0% 0.6%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C.RHODE ISLAND LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10138 10114
2/94 9757 9852
3/94 9140 9451
4/94 9223 9531
5/94 9338 9614
6/94 9237 9558
7/94 9444 9730
8/94 9457 9764
9/94 9243 9621
10/94 8976 9450
11/94 8737 9279
12/94 9028 9483
1/95 9386 9754
2/95 9700 10038
3/95 9790 10153
4/95 9757 10165
5/95 9997 10490
6/95 9779 10398
7/95 9865 10496
8/95 10001 10630
9/95 10075 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/7/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"Over the past year, the goal has been to restructure the Rhode Island Portfolio
to balance long discount holdings with more defensive, higher yielding bonds.
The relatively small Portfolio size makes rebalancing tricky; seemingly small
changes can have a large impact on performance.
"Housing bonds have offered the best opportunity to add yield and a defensive
sector to the Portfolio; holdings in this sector were increased from nearly 12%
in September 1994 to 17% by September 1995.Since housing bonds typically carry
AA or AAA ratings, added exposure to this sector has allowed us to take
advantage of our strong research capabilities by prudently adding higher
yielding BBBcredits while maintaining overall credit quality at an average AA
rating."
- Nicole Anderes
10
<PAGE> 11
EV Classic West Virginia Tax Free Fund
YOUR INVESTMENT AT WORK
Upshur County
TJ International Project
The proceeds of these bonds are being used to build a sewage and solid waste
disposal system for a lumber production plant in Upshur County. The facility
manufactures engineered lumber in the form of wood joists and related lumber
products.
The factory is owned by Trus Joist MacMillan.
The bonds were issued in 1995 and will mature in 2025.
The total cost of construction is estimated at about $22 million.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
<TABLE>
<S> <C>
Number of issues............................ 39
Average quality............................. AA-
Investment grade............................ 95.6%
Effective maturity.......................... 16.42 yrs.
Largest sectors:
Insured hospitals........................ 15.7*
Insured electric utilities............... 13.5%*
Industrial development/pollution
control revenue.......................... 12.5
Electric utilities....................... 11.8
Insured water & sewer.................... 11.1*
<FN>
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
</TABLE>
- --------------------------------------------------------------------------------
THE STATE OF THE STATE: West Virginia
West Virginia's economy suffers from a heavy reliance on the coal mining
industry and on employment in older metal and chemical factories.
The state economy recovered well in 1994 from the recession of the early 1990s,
in large part because of the end of the coal strike. That event brought a needed
boost to the state's employment and retail sales.
In 1995, the state's economy has continued to grow, though at a much slower pace
than in 1994. In fact, West Virginia has the slowest rate of growth of the
southeastern states and its unemployment levels still exceed the national
average. During the last year, however, the state experienced significant gains
in the construction, transportation and communications sectors. Increases in
tourism have helped the state's economy slightly, as has growth in Federal
employment.
The state's prospects for economic expansion are enhanced somewhat by the fact
that its population is now increasing.
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC WEST
VIRGINIA TAX FREE FUND (INCLUDING SALES CHARGE) AND THE LEHMAN BROTHERS
MUNICIPAL BOND INDEX
From December 31, 1993, through September 30, 1995
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURN 1 Life
Year of Fund*
<S> <C> <C>
With CDSC 8.4% 1.2%
Without CDSC 9.4% 1.2%
</TABLE>
<TABLE>
[LINE CHART USING THE FOLLOWING FIGURES AS PLOT POINTS]
<CAPTION>
DATE C. WEST VIRGINIA LEHMAN BROS.
<S> <C> <C>
12/93+ 10000 10000
1/94 10139 10114
2/94 9857 9852
3/94 9291 9451
4/94 9283 9531
5/94 9387 9614
6/94 9254 9558
7/94 9470 9730
8/94 9493 9764
9/94 9309 9621
10/94 9074 9450
11/94 8803 9279
12/94 9060 9483
1/95 9385 9754
2/95 9728 10038
3/95 9827 10153
4/95 9815 10165
5/95 10118 10490
6/95 9932 10398
7/95 9994 10496
8/95 10140 10630
9/95 10180 10697
<FN>
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
*Investment operations commenced 12/13/93. +Index information is available only
at month-end; therefore, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
</TABLE>
FROM THE PORTFOLIO MANAGER:
"The West Virginia bond market is extremely sensitive to movements of supply and
demand. The challenge for a portfolio manager is to stay abreast of those
movements.
"We try to purchase issues when they are trading cheaply in the secondary market
and wait for supply to diminish, at which time we can offer them at a
significant profit.
"Our principal focus is on maintaining a 'barbell' structure in the Portfolio
that provides good performance in both up and down markets. We want to maintain
both yield and diversification, and to that end are committing a great deal of
effort to researching non-rated private placement issues to gain yield."
- Timothy T. Browse
11
<PAGE> 12
-------
EV Classic Tax Free Funds
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
FUND FUND FUND FUND
---------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investment in Portfolio --
Identified cost $2,681,678 $5,310,943 $ 2,700,769 $2,237,833
Unrealized appreciation (depreciation) 36,002 (71,742) 47,677 74,290
---------- ---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $2,717,680 $5,239,201 $ 2,748,446 $2,312,123
Receivable for Fund shares sold 158 -- -- --
Receivable from the Administrator (Note 4) 39,199 24,340 13,833 14,260
Deferred organization expenses (Note 1D) 8,988 4,825 6,375 7,274
---------- ---------- ---------- ----------
Total assets $2,766,025 $5,268,366 $ 2,768,654 $2,333,657
---------- ---------- ---------- ----------
LIABILITIES:
Dividends payable $ 2,993 $ 5,606 $ 3,045 $ 2,349
Payable to affiliates --
Trustees' fees -- 43 -- --
Custodian fee 584 584 584 584
Accrued expenses 2,349 1,518 1,099 962
---------- ---------- ---------- ----------
Total liabilities $ 5,926 $ 7,751 $ 4,728 $ 3,895
---------- ---------- ---------- ----------
NET ASSETS $2,760,099 $5,260,615 $ 2,763,926 $2,329,762
========== ========== ========== ==========
SOURCES OF NET ASSETS:
Paid-in capital $2,921,227 $6,014,862 $ 3,034,389 $2,535,528
Accumulated net realized loss on investment and
financial futures transactions (computed on the basis
of identified cost) (204,111) (690,559) (318,562) (286,435)
Accumulated undistributed net investment income 6,981 8,054 422 6,379
Unrealized appreciation (depreciation) of investments
and financial futures contracts from Portfolio
(computed on the basis of identified cost) 36,002 (71,742) 47,677 74,290
---------- ---------- ---------- ----------
Total $2,760,099 $5,260,615 $ 2,763,926 $2,329,762
========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 296,153 562,364 298,594 250,630
========== ========== ========== ==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE (NOTE
6) PER SHARE (net assets / shares of beneficial interest
outstanding) $9.32 $9.35 $9.26 $9.30
========== ========== ========== ==========
</TABLE>
See notes to financial statements
12
<PAGE> 13
-------
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
---------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investment in Portfolio --
Identified cost $5,285,125 $2,120,821 $3,143,159 $ 1,061,963
Unrealized appreciation (depreciation) 126,845 (20,561) (130,245) (36,491)
---------- ---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $5,411,970 $2,100,260 $3,012,914 $ 1,025,472
Receivable for Fund shares sold 15,100 43,688 -- --
Receivable from the Administrator (Note 4) 24,385 20,605 20,429 16,838
Deferred organization expenses (Note 1D) 6,573 7,150 6,530 7,378
---------- ---------- ---------- ----------
Total assets $5,458,028 $2,171,703 $3,039,873 $ 1,049,688
---------- ---------- ---------- ----------
LIABILITIES:
Dividends payable $ 5,926 $ 2,278 $ 3,225 $ 1,063
Payable for Fund shares redeemed 470 -- 1,007 15,101
Payable to affiliates --
Trustees' fees 43 -- -- --
Custodian fee 584 584 151 559
Accrued expenses 1,623 927 1,206 677
---------- ---------- ---------- ----------
Total liabilities $ 8,646 $ 3,789 $ 5,589 $ 17,400
---------- ---------- ---------- ----------
NET ASSETS $5,449,382 $2,167,914 $3,034,284 $ 1,032,288
========== ========== ========== ==========
SOURCES OF NET ASSETS:
Paid-in capital $5,512,810 $2,295,498 $3,415,734 $ 1,133,678
Accumulated net realized loss on investment and
financial futures transactions (computed on the basis
of identified cost) (199,204) (106,999) (257,942) (67,904)
Accumulated undistributed (distributions in excess of)
net investment income 8,931 (24) 6,737 3,005
Unrealized appreciation (depreciation) of investments
and financial futures contracts from Portfolio
(computed on the basis of identified cost) 126,845 (20,561) (130,245) (36,491)
---------- ---------- ---------- ----------
Total $5,449,382 $2,167,914 $3,034,284 $ 1,032,288
========== ========== ========== ==========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 578,363 232,722 329,629 110,431
========== ========== ========== ==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE (NOTE
6) PER SHARE (net assets / shares of beneficial interest
outstanding) $9.42 $9.32 $9.21 $9.35
========== ========== ========== ==========
</TABLE>
See notes to financial statements
13
<PAGE> 14
-------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
FUND FUND FUND FUND
---------- --------- ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 188,661 $ 397,958 $ 186,481 $ 153,412
Expenses allocated from Portfolio (16,129) (32,077) (15,317) (5,882)
--------- --------- --------- ---------
Net investment income from Portfolio $ 172,532 $ 365,881 $ 171,164 $ 147,530
--------- --------- --------- ---------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ -- $ 122 $ -- $ --
Distribution costs (Note 5) 27,957 57,947 27,026 23,394
Custodian fee (Note 4) 3,526 3,886 3,543 3,130
Transfer and dividend disbursing agent fees 2,470 3,502 2,390 1,828
Printing and postage 17,250 10,554 -- 5,607
Legal and accounting services 6,265 6,650 5,006 5,615
Registration costs -- 1,112 1,049 941
Amortization of organization expenses (Note 1D) 2,967 1,518 2,009 2,296
Miscellaneous 9,043 2,052 493 1,025
--------- --------- --------- ---------
Total expenses $ 69,478 $ 87,343 $ 41,516 $ 43,836
--------- --------- --------- ---------
Deduct allocation of expenses to the Administrator
(Note 4) $ 39,199 $ 24,340 $ 13,833 $ 14,260
Deduct reduction of custodian fee (Note 4) -- 1,183 -- --
--------- --------- --------- ---------
Total $ 39,199 $ 25,523 $ 13,833 $ 14,260
--------- --------- --------- ---------
Net expenses $ 30,279 $ 61,820 $ 27,683 $ 29,576
--------- --------- --------- ---------
Net investment income $ 142,253 $ 304,061 $ 143,481 $ 117,954
--------- --------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from Portfolio --
Investment transactions (identified cost basis) $(113,634) $(363,457) $(186,609) $(188,597)
Financial futures contracts (24,662) (97,603) (31,485) (30,325)
--------- --------- --------- ---------
Net realized loss on investments $(138,296) $(461,060) $(218,094) $(218,922)
Change in unrealized appreciation (depreciation) of
investments 203,944 629,276 242,489 304,544
--------- --------- --------- ---------
Net realized and unrealized gain $ 65,648 $ 168,216 $ 24,395 $ 85,622
--------- --------- --------- ---------
Net increase in net assets from operations $ 207,901 $ 472,277 $ 167,876 $ 203,576
========= ========= ========= =========
</TABLE>
See notes to financial statements
14
<PAGE> 15
-------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
---------- -------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 357,605 $127,727 $ 209,585 $ 90,067
Expenses allocated from Portfolio (28,168) (11,069) (8,578) (4,286)
---------- -------- --------- --------
Net investment income from Portfolio $ 329,437 $116,658 $ 201,007 $ 85,781
---------- -------- --------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ 165 $ -- $ -- $ --
Distribution costs (Note 5) 52,724 19,276 31,974 13,957
Custodian fee (Note 4) 3,321 3,387 3,503 3,416
Transfer and dividend disbursing agent fees 3,458 1,888 3,085 1,471
Printing and postage 12,238 4,834 7,024 5,359
Legal and accounting services 6,021 5,864 4,860 4,611
Registration costs 380 1,156 -- --
Amortization of organization expenses (Note 1D) 2,099 2,081 2,051 2,314
Miscellaneous 1,059 2,280 1,427 965
---------- -------- --------- --------
Total expenses $ 81,465 $ 40,766 $ 53,924 $ 32,093
---------- -------- --------- --------
Deduct allocation of expenses to the Administrator
(Note 4) $ 24,385 $ 20,605 $ 20,429 $ 16,838
Deduct reduction of custodian fee (Note 4) 2,868 -- 561 --
---------- -------- --------- --------
Total $ 27,253 $ 20,605 $ 20,990 $ 16,838
---------- -------- --------- --------
Net expenses $ 54,212 $ 20,161 $ 32,934 $ 15,255
---------- -------- --------- --------
Net investment income $ 275,225 $ 96,497 $ 168,073 $ 70,526
---------- -------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from Portfolio --
Investment transactions (identified cost basis) $ (78,176) $(67,704) $ (115,559) $ (26,782)
Financial futures contracts (63,649) (16,928) (56,902) (18,506)
---------- -------- --------- --------
Net realized loss on investments $(141,825) $(84,632) $ (172,461) $ (45,288)
Change in unrealized appreciation (depreciation) of
investments 381,603 161,713 261,324 99,940
---------- -------- --------- --------
Net realized and unrealized gain $ 239,778 $ 77,081 $ 88,863 $ 54,652
---------- -------- --------- --------
Net increase in net assets from operations $ 515,003 $173,578 $ 256,936 $ 125,178
========== ======== ========= ========
</TABLE>
See notes to financial statements
15
<PAGE> 16
-------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
FUND FUND FUND FUND
----------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 142,253 $ 304,061 $ 143,481 $ 117,954
Net realized loss on investments (138,296) (461,060) (218,094) (218,922)
Change in unrealized appreciation (depreciation)
of investments 203,944 629,276 242,489 304,544
----------- ----------- ------------- -----------
Net increase in net assets from operations $ 207,901 $ 472,277 $ 167,876 $ 203,576
----------- ----------- ------------- -----------
Distributions to shareholders (Note 2) --
From net investment income $ (142,253) $ (304,061) $ (143,481) $ (117,954)
In excess of net investment income (3,147) (13,024) (7,184) (3,078)
In excess of net realized gain on investments (5,291) -- -- --
----------- ----------- ------------- -----------
Total distributions to shareholders $ (150,691) $ (317,085) $ (150,665) $ (121,032)
----------- ----------- ------------- -----------
Transactions in shares of beneficial interest (Note
3) --
Proceeds from sales of shares $ 785,921 $ 899,398 $ 938,555 $ 747,475
Net asset value of shares issued to shareholders
in
payment of distributions declared 56,477 139,236 109,243 76,392
Cost of shares redeemed (1,032,948) (3,996,087) (2,043,937) (1,376,356)
----------- ----------- ------------- -----------
Decrease in net assets from Fund share
transactions $ (190,550) $(2,957,453) $ (996,139) $ (552,489)
----------- ----------- ------------- -----------
Net decrease in net assets $ (133,340) $(2,802,261) $ (978,928) $ (469,945)
NET ASSETS:
At beginning of year 2,893,439 8,062,876 3,742,854 2,799,707
----------- ----------- ------------- -----------
At end of year $ 2,760,099 $ 5,260,615 $ 2,763,926 $2,329,762
============ ============ ================ ===========
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF YEAR $ 6,981 $ 8,054 $ 422 $ 6,379
============ ============ ================ ===========
</TABLE>
See notes to financial statements
16
<PAGE> 17
-------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
---------- ---------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 275,225 $ 96,497 $ 168,073 $ 70,526
Net realized loss on investments (141,825) (84,632) (172,461) (45,288)
Change in unrealized appreciation
(depreciation)
of investments 381,603 161,713 261,324 99,940
---------- ---------- ---------- ----------
Net increase in net assets from operations $ 515,003 $ 173,578 $ 256,936 $ 125,178
---------- ---------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income $ (275,225) $ (96,497) $ (168,073) $ (70,526)
In excess of net investment income (7,088) (5,422) (4,045) (2,437)
---------- ---------- ---------- ----------
Total distributions to shareholders $(282,313) $ (101,919) $ (172,118) $ (72,963)
---------- ---------- ---------- ----------
Transactions in shares of beneficial interest
(Note 3) --
Proceeds from sales of shares $2,176,868 $ 522,879 $ 315,949 $ 48,967
Net asset value of shares issued to
shareholders in payment of distributions
declared 229,427 70,373 114,621 49,748
Cost of shares redeemed (2,326,154) (607,702) (1,399,657) (1,015,933)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from Fund
share transactions $ 80,141 $ (14,450) $ (969,087) $ (917,218)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets $ 312,831 $ 57,209 $ (884,269) $ (865,003)
NET ASSETS:
At beginning of year 5,136,551 2,110,705 3,918,553 1,897,291
---------- ---------- ---------- ----------
At end of year $5,449,382 $2,167,914 $3,034,284 $ 1,032,288
========== ========== ========== ==========
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS
OF) NET INVESTMENT INCOME INCLUDED IN NET ASSETS
AT END OF YEAR $ 8,931 $ (24) $ 6,737 $ 3,005
========== ========== ========== ==========
</TABLE>
See notes to financial statements
17
<PAGE> 18
-------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CALIFORNIA FUND CLASSIC CLASSIC CLASSIC
-------------------------- FLORIDA MASSACHUSETTS MISSISSIPPI
YEAR ENDED YEAR ENDED FUND FUND FUND
SEPTEMBER 30, MARCH 31, ----------- ------------- -----------
1994** 1994* YEAR ENDED SEPTEMBER 30, 1994***
-------------- ---------- ----------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 61,773 $ 21,091 $ 268,997 $ 103,634 $ 83,964
Net realized gain (loss) on investments (62,402) 1,878 (229,499) (100,468) (67,513)
Change in unrealized depreciation of
investments (842) (167,100) (701,018) (194,812) (230,254)
---------- ---------- ---------- ---------- ----------
Net decrease in net assets from
operations $ (1,471) $(144,131) $ (661,520) $ (191,646) $ (213,803)
---------- ---------- ---------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income $ (61,773) $ (21,091) $ (268,997) $ (103,634) $ (83,964)
In excess of net investment income (9,885) (3,747) (48,427) (19,821) (14,125)
---------- ---------- ---------- ---------- ----------
Total distributions to shareholders $ (71,658) $ (24,838) $ (317,424) $ (123,455) $ (98,089)
---------- ---------- ---------- ---------- ----------
Transactions in shares of beneficial interest
(Note 3) --
Proceeds from sales of shares $1,431,747 $3,317,122 $11,658,622 $ 4,628,340 $3,787,256
Net asset value of shares issued to
shareholders in payment of distributions
declared 37,372 9,644 143,172 93,925 52,885
Cost of shares redeemed (597,281) (1,063,067) (2,759,974) (664,310) (728,542)
---------- ---------- ---------- ---------- ----------
Increase in net assets from Fund share
transactions $ 871,838 $2,263,699 $ 9,041,820 $ 4,057,955 $3,111,599
---------- ---------- ---------- ---------- ----------
Net increase in net assets $ 798,709 $2,094,730 $ 8,062,876 $ 3,742,854 $2,799,707
NET ASSETS:
At beginning of year 2,094,730 -- -- -- --
---------- ---------- ---------- ---------- ----------
At end of year $2,893,439 $2,094,730 $ 8,062,876 $ 3,742,854 $2,799,707
========== ========== ========== ========== ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET ASSETS AT
END OF YEAR $ (357) $ -- $ (3,902) $ (3,008) $ --
========== ========== ========== ========== ==========
</TABLE>
* For the period from the start of business, December 3, 1993 to March 31,
1994.
** For the six months ended September 30, 1994 (Note 8).
*** For the Classic Florida, Classic Massachusetts and Classic Mississippi
Funds, the Statements of Changes in Net Assets are for the period from the
start of business, December 3, 1993, December 7, 1993 and December 7, 1993,
respectively, to September 30, 1994.
See notes to financial statements
18
<PAGE> 19
-------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended September 30, 1994*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
----------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 110,149 $ 67,300 $ 131,218 $ 55,093
Net realized loss on investments (57,379) (22,367) (85,481) (22,616)
Change in unrealized depreciation of
investments (254,758) (182,274) (391,569) (136,431)
---------- ---------- ---------- ----------
Net decrease in net assets from operations $ (201,988) $ (137,341) $ (345,832) $ (103,954)
---------- ---------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income $ (110,149) $ (67,300) $ (131,218) $ (55,093)
In excess of net investment income (22,654) (13,207) (24,131) (10,215)
---------- ---------- ---------- ----------
Total distributions to shareholders $ (132,803) $ (80,507) $ (155,349) $ (65,308)
---------- ---------- ---------- ----------
Transactions in shares of beneficial interest
(Note 3) --
Proceeds from sales of shares $6,440,708 $ 3,336,935 $5,314,659 $ 2,589,662
Net asset value of shares issued to
shareholders in payment of distributions
declared 94,263 59,809 100,358 45,910
Cost of shares redeemed (1,063,629) (1,068,191) (995,283) (569,019)
---------- ---------- ---------- ----------
Increase in net assets from Fund share
transactions $5,471,342 $ 2,328,553 $4,419,734 $ 2,066,553
---------- ---------- ---------- ----------
Net increase in net assets $5,136,551 $ 2,110,705 $3,918,553 $ 1,897,291
NET ASSETS:
At beginning of year -- -- -- --
---------- ---------- ---------- ----------
At end of year $5,136,551 $ 2,110,705 $3,918,553 $ 1,897,291
========== ========== ========== ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET ASSETS AT END
OF YEAR $ (4,017) $ (1,905) $ (2,203) $ (814)
========== ========== ========== ==========
</TABLE>
* For the Classic New York, 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 6, 1993, December 7, 1993, December 7,
1993, and December 13, 1993, respectively, to September 30, 1994.
See notes to financial statements
19
<PAGE> 20
-------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
FUND FUND FUND FUND
----------------------------- ----------------- ----------------- -----------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
----------------- --------- ----------------- ----------------- -----------------
1995 1994++ 1994*** 1995 1994* 1995 1994* 1995 1994*
------- ------- --------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of year $ 9.080 $ 9.340 $10.000 $ 8.970 $10.000 $ 9.000 $10.000 $ 8.920 $10.000
------- ------- ------- ------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.460 $ 0.227 $ 0.140 $ 0.444 $ 0.351 $ 0.449 $ 0.350 $ 0.426 $ 0.338
Net realized and unrealized gain
(loss) on investments 0.267 (0.224) (0.635) 0.399 (0.967) 0.283 (0.933) 0.391 (1.024)
------- ------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from
operations $ 0.727 $ 0.003 $(0.495) $ 0.843 $(0.616) $ 0.732 $(0.583) $ 0.817 $(0.686)
------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.460) $(0.227) $(0.140) $(0.444) $(0.351) $(0.449) $(0.350) $(0.426) $(0.338)
In excess of net investment income (0.010) (0.036) (0.025) (0.019) (0.063) (0.023) (0.067) (0.011) (0.056)
In excess of net realized gain on
investments (0.017) -- -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions $(0.487) $(0.263) $(0.165) $(0.463) $(0.414) $(0.472) $(0.417) $(0.437) $(0.394)
------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of year $ 9.320 $ 9.080 $ 9.340 $ 9.350 $ 8.970 $ 9.260 $ 9.000 $ 9.300 $ 8.920
======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN (2) 8.32% 0.03% (5.16%) 9.72% (6.36%) 8.45% (6.02%) 9.47% (6.96%)
RATIOS/SUPPLEMENTAL DATA**:
Net assets, end of year (000
omitted) $ 2,761 $ 2,893 $ 2,095 $ 5,261 $ 8,063 $ 2,764 $ 3,743 $ 2,330 $ 2,800
Ratio of net expenses to average
daily net assets (1) 1.67% 1.73%+ 1.64%+ 1.59% 1.63%+ 1.53% 1.61%+ 1.48% 1.24%+
Ratio of net investment income to
average daily net assets 5.11% 4.89%+ 4.17%+ 4.99% 4.51%+ 5.05% 4.55%+ 4.79% 4.42%+
</TABLE>
** For the period from the start of business, December 3, 1993, to March 31,
1994, for the six months ended September 30, 1994, and for the year ended
September 30, 1995 (for Classic California Fund) and for the period from the
start of business, December 3, 1993, December 7, 1993 and December 7, 1993,
respectively, to September 30, 1994 and for the year ended September 30, 1995
(for Classic Florida, Classic Massachusetts and Classic Mississippi Funds,
respectively), 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>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME PER SHARE $0.335 $0.120 $0.123 $0.408 $0.331 $0.405 $0.260 $0.364 $0.246
====== ====== ====== ====== ====== ====== ====== ====== ======
RATIOS (As a percentage of average
daily net
assets):
Expenses (1) 3.07% 4.03%+ 2.15%+ 1.99% 1.88%+ 2.02% 2.78%+ 2.18% 2.45%+
Net investment income 3.71% 2.59%+ 3.66%+ 4.59% 4.26%+ 4.56% 3.38%+ 4.09% 3.21%+
+ Annualized.
++ For the six months ended September 30, 1994 (Note 8).
(1) Includes each 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. Total return is computed on a non-annualized basis.
* For the Classic Florida, Classic Massachusetts and Classic Mississippi Funds, the Financial Highlights are for the
period from the start of business, December 3, 1993, December 7, 1993 and December 7, 1993, respectively, to
September 30, 1994.
*** For the period from the start of business, December 3, 1993, to March 31, 1994.
</TABLE>
See notes to financial statements
20
<PAGE> 21
-------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
----------------- ----------------- ----------------- -----------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
----------------- ----------------- ----------------- -----------------
1995 1994* 1995 1994* 1995 1994* 1995 1994*
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of year $ 9.060 $10.000 $ 8.940 $10.000 $ 8.890 $10.000 $ 8.980 $10.000
------- ------- ------- ------- ------- ------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.454 $ 0.344 $ 0.428 $ 0.348 $ 0.442 $ 0.347 $ 0.427 $ 0.326
Net realized and unrealized gain (loss) on
investments 0.372 (0.869) 0.404 (0.992) 0.331 (1.046) 0.385 (0.959)
------- ------- ------- ------- ------- ------- ------- -------
Total income (loss) from operations $ 0.826 $(0.525) $ 0.832 $(0.644) $ 0.773 $(0.699) $ 0.812 $(0.633)
------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.454) $(0.344) $(0.428) $(0.348) $(0.442) $(0.347) $(0.427) $(0.326)
In excess of net investment income (0.012) (0.071) (0.024) (0.068) (0.011) (0.064) (0.015) (0.061)
------- ------- ------- ------- ------- ------- ------- -------
Total distributions $(0.466) $(0.415) $(0.452) $(0.416) $(0.453) $(0.411) $(0.442) $(0.387)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, end of year $ 9.420 $ 9.060 $ 9.320 $ 8.940 $ 9.210 $ 8.890 $ 9.350 $ 8.980
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN (2) 9.45% (5.45%) 9.64% (6.75%) 9.00% (7.29%) 9.35% (6.53%)
RATIOS/SUPPLEMENTAL DATA**:
Net assets, end of year (000 omitted) $ 5,449 $ 5,137 $ 2,168 $ 2,111 $ 3,034 $ 3,919 $ 1,032 $ 1,897
Ratio of net expenses to average daily net
assets (1) 1.57% 1.64%+ 1.56% 1.60%+ 1.29% 1.23%+ 1.35% 1.28%+
Ratio of net investment income to average
daily net assets 4.96% 4.41%+ 4.76% 4.42%+ 5.00% 4.50%+ 4.81% 4.53%+
</TABLE>
** For the period from the start of business, December 6, 1993, December 7,
1993, December 7, 1993 and December 13, 1993, respectively, to September 30,
1994, and for the year ended September 30, 1995 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>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME PER SHARE $0.414 $0.293 $0.336 $0.241 $0.377 $0.299 $0.318 $0.204
====== ====== ====== ====== ====== ====== ====== ======
RATIOS (As a percentage of average daily net
assets):
Expenses (1) 2.01% 2.29%+ 2.58% 2.96%+ 2.03% 1.85%+ 2.58% 2.66%+
Net investment income 4.52% 3.76%+ 3.74% 3.06%+ 4.26% 3.88%+ 3.58% 3.15%+
+ Annualized.
(1) Includes each 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. Total return is computed on a non-annualized basis.
* For the Classic New York, Classic Ohio, Classic Rhode Island and Classic West Virginia Funds, the Financial
Highlights are for the period from the start of business, December 6, 1993, December 7, 1993, December 7, 1993 and
December 13, 1993, respectively, to September 30, 1994.
</TABLE>
See notes to financial statements
21
<PAGE> 22
-------
Notes to Financial Statements
- --------------------------------------------------------------------------------
(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 (1940 Act), as amended, as an open-end management investment
company. The Trust presently consists of sixty-six Funds, eight of which are
included in these financial statements. They include EV Classic California
Municipals Fund ("Classic California Fund") (formerly a series of Eaton Vance
Investment Trust), which is registered under the 1940 Act as a diversified
management investment company, 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 of which is registered under the 1940 Act as a
non-diversified management investment company. 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 California Fund invests its
assets in the California Tax Free Portfolio, 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
(0.7%, 0.7%, 0.9%, 8.0%, 0.8%, 0.7%, 0.7%, and 2.5% at September 30, 1995 for
the Classic California Fund, 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, 1995, the Funds, for
federal income tax purposes, had capital loss carryovers, which will reduce
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 which would otherwise be necessary to relieve the
Funds of any liability for federal income or excise tax.
The amounts and expiration dates of the capital loss carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
- ------------------------------------------------------
<S> <C> <C>
Classic California Fund $ 4,833 September 30, 2003
59,053 September 30, 2002
Classic Florida Fund 19,484 September 30, 2003
166,878 September 30, 2002
Classic Massachusetts
Fund 14,863 September 30, 2003
85,630 September 30, 2002
Classic Mississippi
Fund 20,891 September 30, 2003
65,533 September 30, 2002
Classic New York Fund 16,076 September 30, 2003
46,131 September 30, 2002
Classic Ohio Fund 4,540 September 30, 2003
15,584 September 30, 2002
Classic Rhode Island
Fund 85,223 September 30, 2002
Classic West Virginia
Fund 4,513 September 30, 2003
20,474 September 30, 2002
</TABLE>
Additionally, at September 30, 1995, net capital losses of $141,249, $360,526,
$203,067, $203,526, $122,759, $73,189, $168,377 and $42,901 for the Classic
California Fund, 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, attributable to security
transactions incurred after October 31, 1994, are treated as arising on the
first day of the Fund's next taxable year.
Dividends paid by each Fund from net tax-exempt interest on 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
22
<PAGE> 23
-------
- --------------------------------------------------------------------------------
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.
E. DISTRIBUTION COSTS--For book purposes, commissions paid on the sale of Fund
shares and other distribution costs are charged to operations. As a result of a
recent Internal Revenue Ruling, the Funds changed their tax accounting for
commissions paid from charging the expense to paid-in capital to charging the
expense to operations. The change had 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.
- --------------------------------------------------------------------------------
(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 statement
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 year ended September 30, 1995, $10,485, $24,980, $10,614, $9,457, $20,036,
$7,303, $12,985 and $6,256 were 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 California Fund,
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.
23
<PAGE> 24
-------
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
(3) SHARES OF BENEFICIAL INTEREST
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:
<TABLE>
<CAPTION>
CLASSIC CLASSIC
CLASSIC CLASSIC MASSACHUSETTS MISSISSIPPI
CALIFORNIA FUND FLORIDA FUND FUND FUND
------------------------------ --------------- -------------- -------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
----------------- MARCH 31, --------------- -------------- --------------
1995 1994*** 1994** 1995 1994* 1995 1994* 1995 1994*
------- ------- ---------- ------ ------ ---- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 86,883 155,065 333,899 100,863 1,181,103 103,012 475,720 85,045 387,168
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 6,267 4,043 990 15,557 15,396 12,218 10,132 8,505 5,724
Redemptions (115,522) (64,922) (110,549) (452,681) (297,874) (232,568) (69,920) (156,634) (79,178)
-------- -------- -------- -------- -------- -------- ------- -------- -------
Net increase (decrease) (22,372) 94,186 224,340 (336,261) 898,625 (117,338) 415,932 (63,084) 313,714
======== ======== ======== ======== ========= ======== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
------------------- ----------------- ------------------ ------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------------- ----------------- ------------------ ------------------
1995 1994* 1995 1994* 1995 1994* 1995 1994*
-------- -------- ------- ------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 242,369 669,316 58,811 341,950 35,648 536,962 5,454 267,099
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 25,207 10,092 7,852 6,461 12,896 10,899 5,559 4,960
Redemptions (255,881) (112,740) (70,065) (112,287) (159,886) (106,890) (111,885) (60,756)
-------- -------- ------- -------- -------- -------- -------- -------
Net increase (decrease) 11,695 566,668 (3,402) 236,124 (111,342) 440,971 (100,872) 11,303
======== ======== ======= ======== ======= ======== ======== =======
</TABLE>
* For the Classic Florida, Classic Massachusetts, Classic Mississippi, Classic
New York, Classic Ohio, Classic Rhode Island and Classic West Virginia
Funds, the transactions in Fund shares are for the period from the start of
business, December 3, 1993, December 7, 1993, December 7, 1993, December 6,
1993, December 7, 1993, December 7, 1993 and December 13, 1993,
respectively, to September 30, 1994.
** For the Classic California Fund, the transactions in Fund shares are for the
period from the start of business, December 3, 1993, to March 31, 1994.
*** For the Classic California Fund, the transactions in Fund shares are for the
six months ended September 30, 1994 (Note 8).
24
<PAGE> 25
-------
- --------------------------------------------------------------------------------
(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, $39,199,
$24,340, $13,833, $14,260, $24,385, $20,605, $20,429 and $16,838 of expenses
related to the operation of the Classic California Fund, 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 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. All significant credit balances are reported as a reduction
of expenses in the statement of operations. 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 year ended September
30, 1995, Classic California Fund, 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
$20,968, $45,748, $21,336, $18,469, $41,624, $15,218, $25,243 and $11,019,
respectively, to or payable to EVD representing 0.75% (annualized) of average
daily net assets. At September 30, 1995, the amount of Uncovered Distribution
Charges of EVD calculated under the Plans for Classic California Fund, 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 $331,000, $713,000, $310,000, $281,000,
$467,000, $240,000, $340,000 and $166,000, 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%
(0.25% for the Classic California Fund) of each Fund's average daily net assets
for each fiscal year. For the year ended September 30, 1995, Classic California
Fund, 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 $6,989, $12,199, $5,690, $4,925, $11,100, $4,058, $6,731 and
$2,938, 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% (0.25% for the Classic
California Fund) 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% (0.25%
for the Classic California Fund) 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.
25
<PAGE> 26
-------
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
(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 year ended September 30, 1995, EVD
received $400, $917, $1,445, $59, $97, $19 and $186, respectively of CDSC paid
by shareholders for the Classic California Fund, Classic Florida Fund, Classic
Massachusetts Fund, Classic Mississippi Fund, Classic New York Fund, Classic
Ohio Fund, and Classic Rhode Island Fund. EVD did not receive any CDSC from
shareholders of the Classic West Virginia Fund during the year ended September
30, 1995.
- --------------------------------------------------------------------------------
(7) INVESTMENT TRANSACTIONS
Increases and decreases in each Fund's
investment in its corresponding
Portfolio for the year ended September
30, 1995 were as follows:
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
FUND FUND FUND FUND
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Increases $ 873,828 $ 989,913 $ 998,839 $ 827,116
Decreases 1,235,100 4,428,717 2,169,128 1,502,599
</TABLE>
<TABLE>
<CAPTION>
CLASSIC CLASSIC CLASSIC CLASSIC
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
FUND FUND FUND FUND
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Increases $2,820,843 $ 524,994 $ 416,499 $ 80,818
Decreases 2,520,062 703,777 1,636,556 1,086,744
</TABLE>
- --------------------------------------------------------------------------------
(8) CHANGE IN FISCAL YEAR
The Classic California Fund changed its fiscal year end from March 31, to
September 30, effective September 30, 1994.
26
<PAGE> 27
-------
Independent Auditors' Report
- --------------------------------------------------------------------------------
TO THE TRUSTEES AND SHAREHOLDERS OF
EATON VANCE MUNICIPALS TRUST:
We have audited the accompanying statements of assets and liabilities of EV
Classic California Municipals Fund, 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 and EV Classic West Virginia Tax Free Fund (the Funds) (certain of
the series constituting Eaton Vance Municipals Trust) as of September 30, 1995,
the related statements of operations for the year then ended, and the statements
of changes in net assets and the financial highlights for each of the years in
the two-year period ended September 30, 1995 and for the EV Classic California
Municipals Fund for the period from the start of business, December 3, 1993 to
March 31, 1994. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned Funds of Eaton Vance Municipals Trust at September 30,
1995, the results of their operations, the changes in their net assets and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
BOSTON, MASSACHUSETTS
OCTOBER 27, 1995
27
<PAGE> 28
-------
California Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION - 3.4%
NR BBB- $ 2,985 Central Valley Financing
Authority, Carson Ice-Gen
Project, 6.20%, 7/1/20 $ 2,914,584
NR BBB- 10,900 Sacramento Cogeneration
Authority, Procter &
Gamble Project, 6.50%,
7/1/21 10,987,636
-------------
$ 13,902,220
-------------
ESCROWED TO MATURITY - 16.2%
NR NR $ 130 City of Commerce Joint
Powers Financing
Authority, 8.00%, 3/1/22 $ 153,456
NR BBB 2,000 City of Rancho Mirage
Joint Powers Financing
Authority, Civic Center,
7.50%, 4/1/17 2,320,380
Aaa AAA 8,000 County of Sacramento,
SFMRB (GNMA), (AMT),
8.125%, 7/1/16 (2) 9,771,840
Aaa AAA 6,000 County of Sacramento,
SFMRB (GNMA), (AMT),
8.25%, 1/1/21 (2) 7,790,400
Aaa AAA 14,285 County of Sacramento,
SFMRB (GNMA), (AMT),
8.50%, 11/1/16 (2) 18,319,941
Aaa AAA 3,000 City and County of San
Francisco Sewer System
Secondary "RITES,"
(AMBAC), Variable, 10/1/21
(1) 3,604,680
Baa1 A- 2,375 City of San Luis Obispo,
Capital Improvement Board,
8.25%, 6/1/06 2,489,523
NR BBB 1,575 Fontana Public Financing
Authority, North Fontana
Redevelopment Project,
7.75%, 12/1/20 1,871,462
Aaa AAA 6,400 Port of Oakland, (BIGI),
0%, 11/1/05 3,784,960
NR NR 3,200 Oceanside California
Community Development
Commission, 8.40%, 6/1/18 3,357,408
NR NR 3,000 Poway Redevelopment
Agency, Paguay
Redevelopment Project,
7.75%, 12/15/21 3,567,420
NR BBB+ 1,000 City of Upland, Police
Building Construction,
8.20%, 8/1/16 1,054,870
NR NR 4,000 Huntington Beach Public
Financing Authority,
Huntington Beach
Redevelopment Projects,
8.375%, 5/1/18 4,472,080
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR 2,975 Sacramento - Yolo Port
District Port Facilities,
8.30%, 12/1/03 3,286,125
-------------
$ 65,844,545
-------------
GENERAL OBLIGATIONS - 1.9%
Baa1 A $ 3,000 Puerto Rico, 6.50%, 7/1/23 $ 3,131,640
AA Aa 5,000 East Bay Municipal
Utilities District,
Wastewater System, 5.00%,
4/1/15 4,435,100
-------------
$ 7,566,740
-------------
HOSPITALS - 1.1%
NR BBB+ $ 2,700 City of Stockton, Dameron
Hospital Association,
8.30%, 12/1/14 $ 2,854,818
NR A 1,500 Woodland, Memorial
Hospital, 8.20%, 8/1/15 1,610,175
-------------
$ 4,464,993
-------------
HOUSING - 8.6%
Aa AA- $ 3,770 California Housing Finance
Agency (HFA), (AMT),
7.375%, 8/1/11 $ 3,923,288
Aa AA- 800 California HFA, 7.375%,
8/1/17 855,792
Aa AA- 5,000 California HFA, (AMT),
7.40%, 8/1/26 5,381,050
Aa AA- 3,875 California HFA, (AMT),
(FHA) 7.50%, 8/1/25 4,150,513
Aa AA- 8,185 California HFA, (AMT),
(FHA) 7.65%, 8/1/23 8,549,724
Aa AA- 2,500 California HFA, 8.10%,
8/1/16 2,571,800
Aa AA- 2,500 California HFA, 8.20%,
8/1/17 2,596,875
Aa AA- 1,325 California HFA, (AMT),
8.60%, 8/1/19 1,394,165
Aa3 NR 60 California HFA, 9.875%,
8/1/10 61,343
A NR 845 The Housing Authority of
the County of Los Angeles,
7.875%, 8/1/16 874,541
NR NR 2,000 The Housing Authority of
the County of Los Angeles,
10.50%, 12/1/29 2,061,700
NR A+ 2,050 City of Oakland, HFA,
7.10%, 1/1/10 2,086,716
NR AAA 495 County of Riverside,
California HFA (GNMA),
(AMT), 6.85%, 10/1/16 526,452
-------------
$ 35,033,959
-------------
</TABLE>
28
<PAGE> 29
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED EDUCATION - 1.0%
Aaa AAA $ 3,330 Regents of the University
of California, (MBIA),
4.75%, 9/1/21 $ 2,770,826
Aaa AAA 1,500 Regents of the University
of California, (AMBAC),
4.875%, 9/1/19 1,280,340
-------------
$ 4,051,166
-------------
INSURED GENERAL OBLIGATION - 0.3%
Aaa AAA $ 4,700 Roseville Unified High
School District, (FGIC),
0%, 6/1/20 $ 1,032,919
-------------
INSURED HOUSING - 0.2%
Aaa AAA $ 720 California HFA, (MBIA),
(AMT), 7.00%, 8/1/23 $ 752,177
-------------
INSURED HOSPITALS - 1.1%
Aaa AAA $ 5,250 Anaheim Memorial Hospital,
(AMBAC), 5.125%, 5/15/20 $ 4,547,813
-------------
INSURED LEASE
REVENUE/CERTIFICATE OF
PARTICIPATION - 4.3%
Aaa AAA $ 3,300 California Statewide
Communities Development
Authority, Motion Picture
and Television Fund,
(AMBAC), 5.68%, 1/1/24 $ 3,052,401
Aaa AAA 7,700 Moulton Niguel Water
District, (AMBAC), 4.80%,
9/1/17 6,548,003
Aaa AAA 4,350 Stockton, California
Wastewater Treatment
Plant, (FGIC), 6.80%,
9/1/24 4,701,350
Aaa AAA 13,985 Visalia Unified School
District, (MBIA), 0%,
12/1/17 3,206,201
-------------
$ 17,507,955
-------------
INSURED TAX
ALLOCATION - 1.0%
Aaa AAA $ 4,850 City of San Jose
Redevelopment Agency,
(MBIA), 4.75%, 8/1/24 $ 4,000,086
-------------
INSURED TRANSPORTATION - 3.1%
Aaa AAA $10,000 Port of Oakland, (AMT),
(BIGI), 0%, 11/1/19 $ 1,734,500
Aaa AAA 10,000 Airports Commission City
and County of San
Francisco, San Francisco
International Airport,
(MBIA), 6.75%, 5/1/13 10,807,200
-------------
$ 12,541,700
-------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED UTILITIES - 8.8%
Aaa AAA $ 5,700 Anaheim Public Financing
Authority, Anaheim
Electric Utility, (FGIC),
5.75%, 10/1/22 $ 5,444,754
Aaa AAA 8,000 Northern California Power
Agency "RIBS," (MBIA),
Variable, 9/2/25 (1) 8,640,960
Aaa AAA 3,500 Sacramento Municipal
Utilities District,
(MBIA), 6.375%, 8/15/22 3,627,820
Aaa AAA 4,000 Southern California Public
Power Authority, (FGIC),
Variable, 7/1/12 4,000,000
Aaa AAA 6,915 Southern California Public
Power Authority, (MBIA),
5.00%, 1/1/20 6,044,747
Aaa AAA 2,750 Southern California Public
Power Authority, (MBIA),
5.50%, 7/1/20 2,576,970
Aaa AAA 5,750 Southern California Public
Power Authority, (MBIA),
5.75%, 7/1/21 5,569,393
-------------
$ 35,904,644
-------------
INSURED WATER & SEWER - 2.7%
Aaa AAA $ 5,000 East Bay Municipal Utility
District "Yield Curve
Notes," (MBIA), Variable,
6/1/08 (1) $ 4,799,800
Aaa AAA 3,430 San Buenaventura Water
District, (AMBAC), 4.75%,
10/1/13 2,965,441
Aaa AAA 3,000 San Diego County Water
Authority, "RITES,"
(FGIC), Variable, 4/22/09
(1) 3,074,790
-------------
$ 10,840,031
-------------
LEASE REVENUE/CERTIFICATES
OF PARTICIPATION - 22.6%
A1 AA- $ 2,945 City of Beverly Hills,
6.75%, 6/1/19 $ 3,026,606
A1 A- 3,140 California State Public
Works Board, Various
Community College
Projects, 5.00%, 6/1/23 2,879,694
A1 A- 7,485 California State Public
Works Board, Various
University of California
Projects, 5.625%, 12/1/18 6,209,107
A1 A- 3,000 California State Public
Works Board, Various
University of California
Projects, 5.50%, 6/1/10 2,866,080
</TABLE>
29
<PAGE> 30
-------
CALIFORNIA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
LEASE REVENUE/CERTIFICATES
OF PARTICIPATION - (CONTINUED)
A1 A- 8,000 California State Public
Works Board, Various
University of California
Projects, 5.50%, 6/1/14 7,376,800
A A- 2,800 California State Public
Works
Board, California State Prison -
Susanville, 5.375%, 6/1/12 2,586,500
A A- 3,500 California State Public
Works
Board, California State Prison -
Susanville, 5.375%, 6/1/18 3,107,965
A1 A- 5,000 California State Public
Works Board, Various
University of California
Projects, 5.25%, 6/1/20 4,369,250
A1 A- 14,025 California State Public
Works Board, Various
University of California
Projects, 5.50%, 6/1/19 12,717,029
NR A 4,150 California Statewide
Community Development
Authority, Eskaton Health
Facilities, 5.875%, 5/1/20 3,862,322
A BBB 2,750 City of Inglewood,
California, Civic Center
Improvement Project,
7.00%, 8/1/19 2,841,438
A A- 5,115 County of Los Angeles,
Disney Parking Project,
0%, 3/1/16 1,217,114
A A- 1,925 County of Los Angeles,
Disney Parking Project,
0%, 3/1/17 426,927
A A- 5,370 County of Los Angeles,
Disney Parking Project,
0%, 3/1/18 1,110,086
A A- 3,100 County of Los Angeles,
Disney Parking Project,
0%, 3/1/20 550,188
A A- 5,000 County of Los Angeles,
Disney Parking Project,
0%, 9/1/17 1,070,600
A A- 1,000 County of Los Angeles,
Disney Parking Project,
6.50%, 3/1/23 992,330
NR NR 14,000 County of Los Angeles,
Capital Asset Leasing
Corporation, Marina del
Rey, 6.50%, 7/1/08 13,725,460
Aa AA 4,305 County of Orange Water
District, 5.00%, 8/15/18 3,668,376
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
A1 A+ 4,000 Pasadena Parking Facility
Project, 6.25%, 1/1/18 4,111,480
NR A- 2,360 Richmond Joint Powers
Financing Authority,
7.00%, 5/15/07 2,532,091
Aa A+ 4,000 City of Sacramento
Financing Authority,
5.40%, 11/1/20 3,666,440
Aa NR 6,000 University of California
at Los Angeles
Chiller/Cogeneration
Project, 5.60%, 11/1/20 5,537,460
NR BBB 1,000 Watsonville Mammoth Lakes,
7.875%, 6/1/11 1,072,130
-------------
$ 91,523,473
-------------
NURSING HOMES - 0.8%
NR NR $ 3,250 Banning, San Georgonio
Pass Convalescent
Hospital, (AMT), 9.50%,
12/1/11 $ 3,381,365
-------------
SOLID WASTE - 0.6%
Baa1 NR $ 2,350 Mojave Desert and Mountain
Solid Waste Joint Powers
Authority, (AMT), 7.875%,
6/1/20 $ 2,569,396
-------------
SPECIAL TAX - 4.9%
NR NR $ 2,100 City of Fairfield, Green
Valley Road - Mangels
Boulevard Extension
Assessment District,
7.375%, 9/2/18 $ 2,147,880
NR NR 970 City of Fairfield, Green
Valley Road - Mangels
Boulevard Extension
Assessment District,
8.00%, 9/2/11 999,876
NR NR 3,000 Lincoln Unified School
District, 7.625%, 9/1/21 3,128,730
Baa NR 10,800 Pleasanton Joint Powers
Financing Authority,
6.15%, 9/2/12 10,654,200
NR NR 3,000 County of Riverside
Community Facilities
District, 7.55%, 9/1/17 3,053,790
-------------
$ 19,984,476
-------------
TAX ALLOCATION - 9.0%
NR NR $ 2,945 City of Commerce Joint
Powers Financing
Authority, 8.00%, 3/1/22 $ 3,110,951
NR BBB 5,000 County of Contra Costa
Public Financing
Authority, 7.10%, 8/1/22 5,134,300
</TABLE>
30
<PAGE> 31
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX ALLOCATION - (CONTINUED)
NR BBB 3,910 Fontana Public Financing
Authority, Downtown
Redevelopment Project
7.00%, 9/1/21 3,952,111
NR BBB 8,220 Fontana Redevelopment
Agency, Jurupa Hills
Redevelopment Project
Area, 7.00%, 10/1/14 8,351,191
NR BBB 2,500 City of Pittsburg
Redevelopment Agency,
7.40%, 8/15/20 2,614,900
NR BBB 600 City of Rancho Mirage
Joint Powers Financing
Authority, 7.50%, 4/1/17 632,592
NR BBB 2,500 County of Riverside
Redevelopment Agency,
7.50%, 10/1/26 2,619,025
NR BBB 5,605 San Carlos Redevelopment
Agency, 7.10%, 9/1/17 5,777,185
NR NR 1,400 City of Simi Valley
Community Development
Agency, 8.20%, 9/1/12 1,419,852
Baa1 BBB+ 3,000 Westminster Redevelopment
Agency, 7.30%, 8/1/21 3,107,820
-------------
$ 36,719,927
-------------
TRANSPORTATION - 5.8%
NR BBB $ 3,050 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 3,056,558
Aa AA- 2,000 City of Long Beach Harbor
Revenue Bonds, (AMT),
7.25%, 5/15/19 2,154,720
A1 A- 1,400 County of Orange,
California Airport Revenue
Bonds, 8.125%, 7/1/16 1,449,294
NR NR 12,000 San Joaquin Hills
Transportation Corridor
Agency, Toll Road Revenue
Bonds, (Fitch: rated BBB),
0%, 1/1/14 3,481,440
NR NR 5,765 San Joaquin Hills
Transportation Corridor
Agency, Toll Road Revenue
Bonds, (Fitch: rated BBB),
0%, 1/1/26 721,778
NR NR 35,975 San Joaquin Hills
Transportation Corridor
Agency, Toll Road Revenue
Bonds, (Fitch: rated BBB),
0%, 1/1/27 4,205,117
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR 4,940 San Joaquin Hills
Transportation Corridor
Agency, Toll Road Revenue
Bonds, (Fitch: rated BBB),
7.00%, 1/1/30 5,074,368
Baa1 BBB 1,500 Stockton Port District,
7.95%, 1/1/05 1,598,940
Baa1 BBB 1,500 Stockton Port District,
8.10%, 1/1/14 1,611,510
-------------
$ 23,353,725
-------------
UTILITIES - 1.7%
Aa AA- $ 7,070 Southern California Public
Power Authority, 0%,
7/1/15 $ 2,109,829
Aa AA- 3,425 Southern California Public
Power Authority, 5.50%,
7/1/20 3,176,277
Aa AA 1,490 Southern California Public
Power Authority, 6.875%,
7/1/15 1,530,170
-------------
$ 6,816,276
-------------
WATER AND SEWER - 0.9%
NR BBB $ 3,190 Orange Cove Irrigation
District, 6.625%, 2/1/17 $ 3,232,904
Aa AA- 515 City of Pasadena, Water
Revenue Bonds, 5.00%,
7/1/18 449,760
-------------
$ 3,682,664
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $381,719,158) $ 406,022,251
=============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
The Portfolio invests primarily in debt securities issued by California
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 September 30, 1995, 35.2% 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 range from 0.1% to 13.0% of total investments.
See notes to financial statements
31
<PAGE> 32
-------
Florida Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION - 3.5%
Baa3 BBB- $ 7,275 Martin County, Indian Town
Project, (AMT), 7.875%,
12/15/25 $ 7,985,840
NR NR 4,000 Palm Beach County,
Okeelanta Power L.P.
Project (AMT), 6.85%,
2/15/21 3,942,760
NR NR 9,250 Palm Beach County, Osceola
Power L.P. Project (AMT),
6.95%, 1/1/22 9,226,413
NR NR 3,100 Palm Beach County, Osceola
Power L.P. Project (AMT),
6.85%, 1/1/14 3,077,246
-------------
$ 24,232,259
-------------
EDUCATION - 0.8%
NR AAA $ 5,500 Volusia County Educational
Facilities, Embry-Riddle
Aeronautical University
Project (CLEE), 6.625%,
10/15/22 $ 5,863,055
-------------
ESCROWED - 3.8%
NR A+ $ 2,100 Charlotte County, St.
Joseph's Hospital, 8.25%,
8/15/18 $ 2,359,497
Aaa AAA 9,225 Dade County, Baptist
Hospital of Miami Project,
5.75%, 5/1/21 9,163,377
Aaa AAA 5,000 Florida Municipal Power
Agency Stanton II Project
(AMBAC), Variable, 10/1/20
(1) 6,306,250
Aaa AAA 1,185 Jacksonville
Transportation Authority,
7.375%, 7/1/20 1,353,554
NR NR 1,675 Mid-Bay Bridge Authority,
6.875%, 10/1/22 1,881,879
Aaa AAA 2,000 Orlando & Orange County
Expressway Authority
(FGIC), 8.25%, 7/1/14 2,585,120
NR AAA 2,355 Pinellas County Health
Facilities Finance
Authority, Sun Coast
Health System, Series A,
8.50%, 3/1/20 2,773,695
-------------
$ 26,423,372
-------------
GENERAL OBLIGATIONS - 7.5%
Aa AA $ 1,000 Florida Board of
Education, 6.75%, 6/1/09 $ 1,113,690
Aa AA 16,100 Florida Board of
Education, 6.70%, 6/1/22 17,056,823
Aa AA 1,500 Florida Board of
Education, 5.20%, 6/1/23 1,351,890
Aa AA 8,000 Florida Board of General
Services, 6.60%, 7/1/17 8,454,960
NR BBB 4,675 Guam Government, 5.40%,
11/15/18 4,068,840
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
A A 7,255 Hillsborough County,
Museum of Science &
Industry, 6.45%, 1/1/22 7,410,692
Baa1 A 2,000 Puerto Rico, 6.50%, 7/1/23 2,087,760
Baa1 A 3,235 Puerto Rico Public
Building Authority, 5.50%,
7/1/21 2,988,137
Baa1 A 7,350 Puerto Rico Public
Building Authority, 5.70%,
7/1/09 7,335,374
-------------
$ 51,868,165
-------------
HEALTH CARE - 7.4%
NR AAA $ 5,075 Dade County Industrial
Development Authority,
Gramercy Park Nursing Care
Center, 6.60%, 8/1/23 $ 5,298,351
NR AAA 4,285 Dade County Industrial
Development Authority,
Florida Club Care Center
(GNMA), 6.60%, 1/20/18 4,333,849
NR BBB+ 3,600 Escambia County Health
Facilities Authority,
Baptist Hospital, Inc. and
The Baptist Manor, Inc.,
6.75%, 10/1/14 3,686,580
NR BBB+ 8,995 Escambia County Health
Facilities Authority,
Baptist Hospital, Inc.,
6.00%, 10/1/14 8,564,769
Baa1 NR 3,750 Jacksonville Health
Facilities Authority,
National Benevolent
Association, Cypress
Village Florida Project,
7.00%, 12/1/22 3,805,125
A NR 14,000 City of Venice Health
Facilities, 6.00%, 12/1/14 15,304,100
A NR 9,810 City of Venice Health
Facilities, 5.75%, 12/1/24 10,544,573
-------------
$ 51,537,347
-------------
HOSPITAL REVENUE - 1.4%
NR AA+ $ 4,750 Jacksonville Health
Facilities Finance
Authority, St. Luke's
Hospital Association
Project, 6.75%, 11/15/13 $ 5,070,008
A BBB+ 5,000 St. John's County
Industrial Development
Authority, Flagler
Hospital Project, 6.00%,
8/1/22 4,794,000
-------------
$ 9,864,008
-------------
HOUSING - 10.6%
NR AAA $ 630 Broward County HFA SFMR
(GNMA), (AMT), 7.35%,
3/1/23 $ 654,665
NR AAA 1,300 Clay County HFA MFMR
(GNMA), 7.40%, 12/1/25 1,382,043
</TABLE>
32
<PAGE> 33
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - (CONTINUED)
Aaa NR 2,750 Clay County HFA SFMR
(GNMA), (AMT), 6.55%,
3/1/28 2,785,035
Aaa NR 290 Dade County HFA SFMR
(GNMA), 7.10%, 3/1/17 304,068
Aaa NR 1,220 Dade County HFA SFMR
(GNMA), (AMT), 7.75%,
9/1/22 1,284,306
Aaa NR 1,160 Dade County HFA SFMR
(GNMA), (AMT), 7.25%,
9/1/23 1,209,718
Aaa NR 75 Dade County HFA SFMR
(GNMA), 7.00%, 3/1/24 77,795
NR AAA 5,100 Dade County HFA SFMR
(GNMA), (AMT), 6.55%,
10/1/27 5,149,113
NR AAA 5,850 Dade County HFA SFMR
(GNMA), (AMT), 6.70%,
4/1/28 6,019,943
Aaa NR 2,540 Escambia County HFA SFMR
(GNMA), (AMT), 7.40%,
10/1/23 2,646,401
Aaa NR 7,500 Escambia County HFA SFMR
(GNMA), (AMT), 6.85%,
10/1/17 7,655,325
Aaa NR 5,000 Escambia County HFA SFMR
(GNMA), (AMT), 6.90%,
10/1/21 5,143,800
Aaa NR 6,250 Escambia County HFA SFMR
(GNMA), (AMT), 6.95%,
10/1/27 6,444,500
NR AAA 1,125 Florida HFA (FHA), 6.35%,
6/1/14 1,142,719
Aaa NR 960 Hillsborough County HFA
SFMR (GNMA), (AMT),
7.875%, 5/1/23 1,025,040
NR NR 3,475 City of North Miami Health
Care Facilities, The
Imperial Club Project,
9.25%, 1/1/13 3,712,065
NR AAA 1,695 Orange County HFA SFMR
(GNMA), (AMT), 7.375%,
9/1/24 1,788,632
Aaa NR 12,000 Orange County HFA SFMR
(GNMA), (AMT), 6.85%,
10/1/27 (3) 12,421,440
NR AAA 8,000 Orange County HFA SFMR
(GNMA), (AMT), 6.60%,
4/1/28 8,057,520
Aaa NR 845 Palm Beach County HFA SFMR
(GNMA), 7.60%, 3/1/23 891,551
Aaa NR 1,455 Polk County HFA SFMR
(GNMA), 7.15%, 9/1/23 1,520,199
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa BBB 1,400 Puerto Rico Urban Renewal
& Housing Corp, 7.875%,
10/1/04 1,582,770
Aaa AAA 860 Puerto Rico Housing
Finance Corp SFMR (GNMA),
7.65%, 10/15/22 910,602
-------------
$ 73,809,250
-------------
INDUSTRIAL DEVELOPMENT
/POLLUTION CONTROL REVENUE
-2.3%
B1 BB+ $15,200 Polk County Industrial
Development Authority
(AMT), 7.525%, 1/1/15 $ 15,952,552
-------------
INSURED HEALTH CARE - 0.4%
Aaa AAA $ 500 Alachua County Health
Facility, Mental Health
Services Project (CGIC),
7.75%, 7/1/10 $ 565,260
Aaa AAA 2,050 Hillsborough County IDA,
Allegany Health Systems,
J. Knox Village (MBIA),
5.75%, 12/1/21 2,022,510
-------------
$ 2,587,770
-------------
INSURED HOSPITALS - 5.7%
Aaa AAA $ 8,000 Charlotte County Health
Care, Bon-Secours Health
System Project (FSA),
Variable, 8/30/27 (1) $ 8,026,880
Aaa AAA 23,355 Jacksonville FL Health
Authority, Daughters of
Charity (MBIA), 5.00%,
11/15/15 20,846,439
Aaa AAA 2,000 Lee County, Memorial
Hospital (MBIA), Variable,
4/1/20 (1) 2,161,080
Aaa AAA 5,290 Orange County Health
Facilities Finance
Authority, (FGIC), 7.875%,
12/1/25 5,614,753
Aaa AAA 3,000 Orange County Health
Facilities Authority
(MBIA), Variable, 10/29/21
(1) 3,199,950
-------------
$ 39,849,102
-------------
INSURED HOUSING - 2.3%
Aaa AAA $ 1,430 Brevard County HFA SFMR
(FSA), 7.00%, 3/1/13 $ 1,493,292
Aaa AAA 1,720 Duval County HFA SFMR
(FGIC), 7.35%, 7/1/24 1,811,900
Aaa AAA 6,530 FL HEFA, Maitland Club
Apartment Project (AMBAC)
(AMT), 6.875%, 8/1/26 6,776,377
</TABLE>
33
<PAGE> 34
-------
FLORIDA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOUSING -
(CONTINUED)
Aaa AAA 3,000 FL HFA, Brittany of
Rosemont Project (AMBAC)
(AMT), 6.875%, 8/1/26 3,113,190
Aaa AAA 2,675 Lee County SCA MFMR (FSA)
(AMT), 7.05%, 1/1/30 2,773,387
-------------
$ 15,968,146
-------------
INSURED INDUSTRIAL
DEVELOPMENT/POLLUTION
CONTROL REVENUE - 1.2%
Aaa AAA $ 8,200 Citrus County PCR (MBIA),
6.35%, 2/1/22 $ 8,558,996
-------------
INSURED MISCELLANEOUS - 0.4%
Aaa AAA $ 2,000 Escambia County (MBIA),
7.20%, 1/1/15 $ 2,150,300
Aaa AAA 799 Osceola County IDA
Community Provider Pooled
Loan Program, (CGIC),
7.75%, 7/1/10 854,251
-------------
$ 3,004,551
-------------
INSURED SOLID WASTE - 0.3%
Aaa AAA $ 1,500 St. John's County Solid
Waste Disposal (FGIC),
7.25%, 11/1/10 $ 1,685,850
-------------
INSURED SPECIAL TAX
REVENUE - 7.9%
Aaa AAA $ 5,630 FL Department of
Environmental Protection
(AMBAC), 4.75%, 7/1/06 $ 5,527,421
Aaa AAA 14,250 FL Department of
Environmental Protection
(MBIA), 4.75%, 7/1/09 13,318,905
Aaa AAA 9,675 FL Department of
Environmental Protection
(MBIA), 4.75%, 7/1/10 8,920,157
Aaa AAA 3,000 City of Jacksonville-River
City Renaissance Project
(FGIC), 5.375%, 10/1/18 2,799,570
Aaa AAA 1,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/10 426,230
Aaa AAA 1,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/11 396,450
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/12 739,720
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/13 691,600
Aaa AAA 2,000 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/14 645,980
Aaa AAA 1,500 City of Jacksonville
(FGIC) (AMT), 0%, 10/1/15 452,085
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 1,185 City of Opa-Locka (FGIC),
7.00%, 1/1/14 1,327,449
Aaa AAA 2,500 Puerto Rico Highway &
Transportation Authority
(FSA), 5.50%, 7/1/17 2,389,900
Aaa AAA 7,650 Puerto Rico Highway &
Transportation Authority
(FSA), 5.25%, 7/1/21 7,032,951
Aaa AAA 5,000 St. Petersburg Excise Tax
(FGIC), 5.00%, 10/1/16 4,517,950
Aaa AAA 2,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/10 871,300
Aaa AAA 1,760 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/12 667,286
Aaa AAA 2,840 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/14 943,022
Aaa AAA 4,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/15 1,241,200
Aaa AAA 4,140 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/16 1,211,571
Aaa AAA 2,525 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/17 696,925
-------------
$ 54,817,672
-------------
INSURED TRANSPORTATION - 7.0%
Aaa AAA $ 4,000 Dade County Aviation
Facilities (MBIA) (AMT),
6.55%, 10/1/13 $ 4,219,320
Aaa AAA 8,455 FL State Turnpike
Authority (FGIC), 6.35%,
7/1/22 8,788,803
Aaa AAA 3,000 FL State Turnpike
Authority (FGIC), 5.00%,
7/1/19 2,667,660
Aaa AAA 8,600 Greater Orlando Aviation
Authority, Orlando Airport
Facilities (FGIC), (AMT),
6.375%, 10/1/21 8,869,696
Aaa AAA 14,000 Orlando & Orange County
Expressway Authority
(FGIC), Variable, 7/1/04
(1) 14,218,120
Aaa AAA 10,920 Orlando & Orange County
Expressway Authority
(FGIC), 5.125%, 7/1/20 9,798,734
-------------
$ 48,562,333
-------------
INSURED UTILITIES - 8.5%
Aaa AAA $41,465 FL Municipal Power Agency
Stanton II Project
(AMBAC), 4.50%, 10/1/27
(3) $ 33,007,384
Aaa AAA 7,770 FL Municipal Power Agency
Stanton II Project
(AMBAC), 4.50%, 10/1/16 6,511,338
Aaa AAA 8,000 FL Municipal Power Agency
Stanton II Project
(AMBAC), 5.10%, 10/1/25 7,064,080
Aaa AAA 4,000 Lakeland Electric & Water
(FGIC), 6.00%, 10/1/13 (2) 4,026,280
</TABLE>
34
<PAGE> 35
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED UTILITIES - (CONTINUED)
Aaa AAA 1,540 Manatee County Public
Utility (FGIC), 0%,
10/1/12 580,980
Aaa AAA 1,750 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/02 (1) 1,939,315
Aaa AAA 2,200 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 2,462,284
Aaa AAA 3,500 Vero Beach Electric
(MBIA), 5.375%, 12/1/21 3,265,115
-------------
$ 58,856,776
-------------
INSURED WATER & SEWER - 5.4%
Aaa AAA $11,450 Broward County Water &
Sewer (AMBAC), 5.125%,
10/1/15 $ 10,529,535
Aaa AAA 9,500 Dade County Water and
Sewer System (FGIC),
5.00%, 10/1/13 8,717,580
Aaa AAA 2,000 City of Fort Myers Utility
(FGIC), 5.00%, 10/1/16 1,800,460
Aaa AAA 6,900 Palm Bay Utility Corp
Project (MBIA), 5.00%,
10/1/22 6,024,597
Aaa AAA 4,000 Sanford Water and Sewer
(AMBAC), 4.50%, 10/1/21 3,255,640
Aaa AAA 1,700 St. John's County Water &
Sewer (MBIA), 0%, 6/1/16 507,314
Aaa AAA 3,550 St. John's County Water &
Sewer (MBIA), 0%, 6/1/17 999,148
Aaa AAA 5,600 St. Lucie County Utility
System (FGIC), 6.00%,
10/1/20 5,672,632
-------------
$ 37,506,906
-------------
LIFE CARE - 1.0%
NR NR $ 6,895 Atlantic Beach, Fleet
Landing Project, 8.00%,
10/1/24 $ 7,208,860
-------------
LEASE/CERTIFICATES OF
PARTICIPATION - 0.4%
A1 A+ $ 2,280 Florida State Department
of General Services,
7.00%, 9/1/20 $ 2,465,273
-------------
NURSING HOMES - 1.1%
NR NR $ 300 Broward County Industrial
Development Authority,
Beverly Enterprises -
Florida, Inc. Project,
9.80%, 11/1/10 $ 335,520
NR NR 475 Charlotte County
Industrial Development
Authority, Beverly
Enterprises, 10.00%,
6/1/11 542,279
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR 4,000 Citrus County Industrial
Development Authority,
Beverly Enterprises,
7.25%, 4/1/03 4,012,040
NR NR 700 Highlands County
Industrial Development
Authority, Beverly
Enterprises - Florida,
Inc. Project, 9.25%,
7/1/07 775,817
NR NR 410 Okaloosa County, Beverly
Enterprises, 10.75%,
10/1/03 448,200
NR NR 700 Orange County Industrial
Development Authority,
Beverly Enterprises,
9.25%, 8/1/10 776,475
NR NR 1,000 Winter Garden, Beverly
Enterprises, 8.75%, 7/1/12 1,092,750
-------------
$ 7,983,081
-------------
SOLID WASTE - 0.6%
A A $ 3,870 Broward County Waste
Energy Company, L.P. North
Project, 7.95%, 12/1/08 $ 4,296,590
-------------
SPECIAL TAX REVENUE - 6.2%
A1 A+ $10,620 Orange County, 5.375%,
1/1/24 $ 9,654,111
A1 NR 3,000 City of Orlando, 6.00%,
10/1/22 2,941,050
Baa1 A 7,410 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/19 6,908,047
Baa1 A 6,310 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/20 5,636,281
Baa1 A 10,135 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 8,684,682
Baa1 A 10,560 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/21 9,413,290
-------------
$ 43,237,461
-------------
TRANSPORTATION - 1.4%
NR NR $10,140 Mid-Bay Bridge Authority,
6.125%, 10/1/22 $ 9,634,318
-------------
UTILITIES - 12.5%
NR BBB $32,325 Guam Power Authority,
5.25%, 10/1/23 $ 27,848,634
Aa1 AA 42,005 Jacksonville Electric
Authority, Bulk Power
Supply System, Scherer 4
Project, 5.25%, 10/1/21
(3) 38,294,278
Aa1 AA 2,850 Orlando Utilities
Commission Water and
Electric, 5.125%, 10/1/19 2,554,940
</TABLE>
35
<PAGE> 36
-------
FLORIDA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - (CONTINUED)
Aa AA 1,750 Orlando Utilities
Commission Water and
Electric, 5.25%, 10/1/23 1,588,400
Baa1 A- 185 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 201,743
Baa1 A- 10,000 Puerto Rico Electric Power
Authority, 7.00%, 7/1/21 11,379,200
A2 A+ 2,515 St. Lucie County Solid
Waste Disposal, Florida
Power & Light Company
(AMT), 6.70%, 5/1/27 2,631,520
NR NR 2,000 Virgin Islands Water &
Power Authority, 7.40%,
7/1/11 2,100,420
-------------
$ 86,599,134
-------------
WATER & SEWER - 0.4%
Baa1 BBB+ $ 2,500 Hillsborough County
Utility, 6.625%, 8/1/11 $ 2,637,625
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $661,202,447) $ 695,010,453
=============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) When-issued security.
(3) Security has been segregated to cover open when-issued securities.
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 September 30, 1995, 50.8% of the securities in the portfolio of
investments are backed by bond insurance of various financial guaranty assurance
agencies. The aggregate percentage by financial institution ranges from 0.2% to
12.8% of total investments.
See notes to financial statements
36
<PAGE> 37
-------
Massachusetts Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 9.8%
Aa1 AA+ $ 1,625 Massachusetts Health and
Educational Facilities
Authority, (HEFA) Amherst
College, 6.80%, 11/1/21 $ 1,740,440
A1 A+ 250 Massachusetts HEFA, Tufts
University, 7.75%, 8/1/13 271,052
NR BBB- 3,700 Massachusetts HEFA,
Merrimack College, 7.125%,
7/1/12 3,882,003
NR AAA 2,900 Massachusetts HEFA,
Wentworth Institute,
(Connie Lee), 5.50%,
10/1/23 2,675,047
NR BBB- 6,855 Massachusetts HEFA, Smith
College, 5.75%, 7/1/24 6,694,182
Aaa AAA 5,180 Massachusetts HEFA,
Harvard University,
5.625%, 11/1/28 5,114,577
Aa1 AA 4,690 Massachusetts Industrial
Finance Agency, Phillips
Academy, 5.375%, 9/1/23 4,385,056
A1 NR 2,000 The New England Education
Loan Marketing
Corporation, (AMT), 6.90%,
11/1/09 2,157,440
NR BBB- 1,300 Puerto Rico Industrial,
Tourist, Educational,
Medical and Environmental
Control Authority,
Polytechnic University,
5.50%, 8/1/24 1,128,491
NR BBB- 1,000 Puerto Rico Industrial,
Tourist, Educational,
Medical and Environmental
Control Authority,
Polytechnic University,
6.50%, 8/1/24 990,870
-------------
$ 29,039,158
-------------
GENERAL OBLIGATIONS -13.7%
Baa1 NR $ 1,000 City of Lowell, 6.375%,
8/15/01 $ 1,067,490
A1 A+ 3,900 Commonwealth of
Massachusetts, 5.00%,
1/1/12 3,609,060
A1 A+ 875 Commonwealth of
Massachusetts, 5.00%,
1/1/14 795,839
A1 A+ 4,750 Massachusetts Bay
Transportation Authority
(MBTA), 5.50%, 3/1/21 4,525,135
A1 A+ 2,500 MBTA, 5.75%, 3/1/18 2,465,775
A1 A+ 14,000 MBTA, 5.75%, 3/1/25 13,593,440
A1 A+ 1,000 MBTA, 5.90%, 3/1/12 1,014,690
NR BBB 1,175 Government of Guam, 5.40%,
11/15/18 1,022,650
A NR 3,375 Town of Nantucket, 6.80%,
12/1/11 3,634,875
Baa1 A 100 Puerto Rico Public
Buildings Authority,
5.50%, 7/1/21 92,369
Baa1 A 1,900 Puerto Rico Aqueduct and
Sewer Authority, 7.00%,
7/1/19 2,037,313
<CAPTION>
RATINGS (UNAUDITED)
- -------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A A 2,500 University of
Massachusetts Building
Authority, 6.875%, 5/1/14 2,839,950
A A 250 University of
Massachusetts Building
Authority, 7.20%, 5/1/04 287,396
NR NR 3,350 Virgin Islands Public
Finance Authority, 7.25%,
10/1/18 3,528,321
-------------
$ 40,514,303
-------------
HOSPITALS - 8.4%
A A- $ 3,000 Massachusetts HEFA,
Charlton Memorial
Hospital, 7.25%, 7/1/13 $ 3,147,750
A1 A 530 Massachusetts HEFA,
Spaulding Rehabilitation
Hospital, 7.625%, 7/1/21 568,632
Baa1 BBB+ 2,000 Massachusetts HEFA, New
England Baptist Hospital,
7.35%, 7/1/17 2,067,480
Aa NR 3,100 Massachusetts HEFA,
Daughters of Charity
Health System, 6.10%,
7/1/14 3,143,524
A1 A+ 1,000 Massachusetts HEFA, Dana-
Farber Cancer Institute,
6.65%, 12/1/15 1,020,340
A A 4,250 Massachusetts HEFA, The
Medical Center of Central
Massachusetts, 7.10%,
7/1/21 4,394,755
Baa BBB 1,825 Massachusetts HEFA,
Sisters of Providence
Health System, 6.50%,
11/15/08 1,877,870
NR A- 1,470 Massachusetts HEFA, Jordan
Hospital, 6.875%, 10/1/15 1,052,722
NR A- 1,470 Massachusetts HEFA, Jordan
Hospital, 6.875%, 10/1/22 1,507,073
NR AAA 2,625 Massachusetts HEFA,
Winchester Hospital
(Connie Lee), 5.75% 7/1/14 2,557,223
NR AAA 3,650 Massachusetts HEFA,
Winchester Hospital
(Connie Lee), 5.75% 7/1/24 3,486,917
-------------
$ 24,824,286
-------------
HOUSING - 11.4%
NR AAA $ 2,750 Framingham Housing
Authority, (GNMA), 6.65%,
2/20/32 $ 2,783,275
A1 A+ 6,000 Massachusetts Housing
Finance Agency (HFA),
6.375%, 4/1/21 5,973,720
Aa A+ 7,250 Massachusetts HFA, (AMT),
6.60%, 12/1/26 7,328,952
Aa A+ 6,400 Massachusetts HFA, (AMT),
6.60%, 12/1/26 6,469,696
Aaa AAA 1,000 Massachusetts HFA, (FNMA),
6.875%, 11/15/11 1,063,630
</TABLE>
37
<PAGE> 38
-------
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- -----------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - (CONTINUED)
Aaa AAA 2,750 Massachusetts HFA, (FNMA),
6.90%, 11/15/21 2,882,330
Aa A+ 2,795 Massachusetts HFA, (AMT),
7.125%, 6/1/25 2,908,924
Aa A+ 400 Massachusetts HFA, 7.35%,
12/1/16 425,408
Aa A+ 2,265 Massachusetts HFA, (AMT),
8.10%, 6/1/20 2,369,734
Aa A+ 1,500 Massachusetts HFA, (AMT),
8.10%, 12/1/21 1,576,035
-------------
$ 33,781,704
-------------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL - 7.0%
Baa1 BBB $14,185 City of Boston Harbor
Electric Energy Company
Project, (AMT), 7.30%,
5/15/15 $ 15,178,942
NR NR 9,000 Massachusetts Industrial
Finance Agency,
Massachusetts Biomedical
Research Corporation, 0%,
8/1/19 3,817,800
Aa3 AA 1,550 Puerto Rico Industrial,
Medical and Environmental
Pollution Control
Authority, The Upjohn
Company, 7.50%, 12/1/23 1,697,235
-------------
$ 20,693,977
-------------
INSURED EDUCATION - 2.1%
Aaa AAA $ 335 Massachusetts Educational
Finance Authority, (MBIA),
(AMT), 7.25%, 1/1/09 $ 350,460
Aaa AAA 2,000 Massachusetts Educational
Finance Authority,
(AMBAC), (AMT), 7.30%,
1/1/12 2,096,840
Aaa AAA 250 Massachusetts HEFA,
Northeastern University,
(AMBAC), 7.50%, 10/1/08 273,820
Aaa AAA 400 Massachusetts HEFA, Boston
University "RIBS", (MBIA),
Variable, 10/1/31 (1) 439,464
Aaa AAA 3,000 Massachusetts HEFA, Tufts
University, (FGIC), 5.95%,
8/15/18 3,032,640
-------------
$ 6,193,224
-------------
INSURED GENERAL OBLIGATION - 1.7%
Aaa AAA $ 1,795 City of Boston, (FSA),
4.875%, 9/1/09 $ 1,686,833
Aaa AAA 1,000 Commonwealth of Puerto
Rico "RIBS", (AMBAC),
Variable, 7/1/15 (1) 1,009,940
Aaa AAA 600 Town of Tyngsborough,
(AMBAC), 6.90%, 5/15/08 663,798
Aaa AAA 1,770 MBTA, (MBIA), 5.50%,
3/1/21 1,663,995
-------------
$ 5,024,566
-------------
<CAPTION>
RATINGS (UNAUDITED)
- -----------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS - 11.8%
Aaa AAA $ 300 Massachusetts HEFA,
Berkshire Health Systems,
(MBIA), 7.60%, 10/1/14 $ 332,346
Aaa AAA 1,250 Massachusetts HEFA, Beth
Israel Hospital, Inverse
Floaters, (AMBAC),
Variable, 7/1/25 (1) 1,253,675
Aaa AAA 1,500 Massachusetts HEFA,
Capital Asset Program,
(MBIA), 7.20%, 7/1/09 1,649,085
AAA AAA 2,050 Massachusetts HEFA, Fallon
Healthcare System (CGIG),
6.75%, 6/1/20 (2) 2,171,442
AAA AAA 4,500 Massachusetts HEFA, Fallon
Healthcare System (CGIG),
6.875%, 6/1/11 4,881,465
Aaa AAA 2,040 Massachusetts HEFA,
Beverly Hospital, (MBIA),
7.30%, 7/1/13 2,219,581
Aaa AAA 1,000 Massachusetts HEFA,
Baystate Medical Center,
(FGIC), 5.00%, 7/1/20 883,550
Aaa AAA 3,000 Massachusetts HEFA, The
Medical Center of Central
Massachusetts, (AMBAC),
"CARS", Variable, 6/23/22
(1) 3,330,090
Aaa AAA 2,000 Massachusetts HEFA, St.
Elizabeth Hospital Issue,
"LEVRRS", (FSA), Variable,
8/15/21 (1) 2,196,960
Aaa AAA 2,600 Massachusetts HEFA, Saint
Luke's Hospital, "Yield
Curve Notes", (MBIA),
Variable, 8/15/13 (1) 2,556,970
Aaa AAA 1,200 Massachusetts HEFA,
University Hospital,
(MBIA), 7.25%, 7/1/19 1,323,552
Aaa AAA 6,950 Massachusetts HEFA, Lahey
Clinic, (MBIA), 5.375%,
7/1/23 6,454,118
Aaa AAA 5,000 Massachusetts HEFA, New
England Medical Center,
(MBIA), 5.375%, 7/1/24 4,664,350
Aaa AAA 1,000 Massachusetts HEFA, New
England Medical Center,
(FGIC), 6.50%, 7/1/12 1,052,960
-------------
$ 34,970,144
-------------
INSURED HOUSING - 0.7%
Aaa AAA $ 2,000 Massachusetts Housing
Finance Agency, (AMBAC),
6.45%, 1/1/36 $ 2,027,680
-------------
</TABLE>
38
<PAGE> 39
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- -----------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED TRANSPORTATION - 2.2%
Aaa AAA $ 5,860 Massachusetts Port
Authority, (AMT), (FGIC),
7.50%, 7/1/20 $ 6,490,243
-------------
LEASE/CERTIFICATE OF
PARTICIPATION - 2.9%
NR A $ 7,800 Plymouth County,
Massachusetts Correctional
Facility Project, 7.00%,
4/1/22 $ 8,363,862
-------------
NURSING HOMES - 0.5%
NR AA $ 1,495 Massachusetts HEFA,
Deutches Altenheim,
Incorporated, (FHA),
7.70%, 11/1/31(2) $ 1,613,195
-------------
SOLID WASTE - 2.6%
Baa1 BBB $ 5,970 Massachusetts Industrial
Finance Agency,
Massachusetts Refusetech,
Inc. Project, 6.30%,
7/1/05 $ 6,242,531
NR NR 1,340 City of Pittsfield, Vicon
Recovery Associates
Project, 7.95%, 11/1/04 1,409,425
-------------
$ 7,651,956
-------------
SPECIAL TAX - 4.2%
A1 A+ $ 5,695 Commonwealth of
Massachusetts, Special
Obligation Revenue Bonds,
6.00%, 6/1/13 $ 5,747,223
A1 A+ 4,560 Commonwealth of
Massachusetts, Special
Obligation Revenue Bonds,
5.80%, 6/1/14 4,518,550
Baa1 A 2,000 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 2,099,080
-------------
$ 12,364,853
-------------
TRANSPORTATION - 5.2%
NR BBB $ 7,950 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 7,967,093
Aa AA- 7,300 Massachusetts Port
Authority, 6.00%, 7/1/23 7,260,069
-------------
$ 15,227,162
-------------
UTILITY - 6.0%
NR BBB $ 2,765 Guam Power Authority,
5.25%, 10/1/23 $ 2,382,103
A BBB+ 2,610 Massachusetts Municipal
Wholesale Electric
Company, 6.00%, 7/1/18 2,555,843
A BBB+ 5,560 Massachusetts Municipal
Wholesale Electric
Company, 6.625%, 7/1/18 5,747,205
<CAPTION>
RATINGS (UNAUDITED)
- -----------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A BBB+ 3,500 Massachusetts Municipal
Wholesale Electric
Company, 6.75%, 7/1/11 3,664,010
Baa1 A- 1,850 Puerto Rico Electric Power
Authority, 5.50%, 7/1/13 1,755,447
Baa1 A- 150 Puerto Rico Electric Power
Authority, 5.50%, 7/1/20 138,746
NR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,575,314
-------------
$ 17,818,668
-------------
WATER & SEWER - 9.8%
NR NR $ 2,075 Massachusetts Industrial
Finance Authority,
American Hingham Water,
6.60%, 12/1/15 $ 2,095,480
A A 18,620 Massachusetts Water
Resources Authority
(MWRA), 4.75%, 12/1/23 15,364,479
A A 5,000 MWRA, 5.00%, 3/1/22 4,323,500
A A 1,500 MWRA, 5.25%, 3/1/13 1,390,095
A A 3,915 MWRA, 5.25%, 12/1/15 3,608,260
NR NR 2,000 Virgin Islands Water and
Power Authority, 7.60%,
1/1/12 2,122,760
-------------
$ 28,904,574
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $277,979,560) $ 295,503,555
=============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
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 September 30, 1995, 21.2% 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 0.5% to 7.3% of total investments.
See notes to financial statements
39
<PAGE> 40
-------
Mississippi Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED - 1.6%
Aaa NR $1,500 Mississippi Housing Finance
Corporation, SFMR, (AMT),
(ETM), 0%, 6/1/15 $ 447,360
------------
GENERAL OBLIGATIONS - 7.8%
NR A- $1,000 Mississippi Development
Bank, Golden Triangle Solid
Waste, 6.00%, 7/1/15 $ 972,850
Aa AA- 200 Mississippi State, 5.10%,
11/15/12 188,648
Aa AA- 500 Mississippi State, 5.75%,
6/1/14 500,965
Aa AA- 500 Mississippi State, 6.75%,
12/1/14 536,265
------------
$ 2,198,728
------------
HOSPITAL REVENUE - 3.2%
A NR $1,000 Mississippi Hospital
Equipment & Facilities
Authority, Rankin Medical
Center Project, 5.60%,
3/1/19 $ 919,410
------------
HOUSING - 9.4%
Aa NR $ 500 Hinds County Urban Renewal,
Woodridge Apartments,
(FHA), 6.25%, 11/1/27 $ 495,860
NR NR 200 City of Ridgeland Urban
Renewal, The Orchard, LTD.,
7.75%, 12/1/15 197,958
Aaa NR 300 Vicksburg Leased Housing
Corporation, MFMR, Magnolia
Manor Apartments, (FHA),
5.95%, 8/15/22 294,063
Aaa NR 500 Mississippi Home
Corporation, SFMR, Access
Program, (AMT), 8.10%,
12/1/24 554,725
Aaa NR 1,020 Mississippi Home
Corporation, SFMR, Access
Program, (AMT), 8.125%,
12/1/24 1,131,914
------------
$ 2,674,520
------------
INDUSTRIAL DEVELOPMENT
REVENUE - 10.0%
NR A- $ 600 Jackson County,
International Paper Company
Project, (AMT), 5.55%,
10/1/17 $ 564,468
A2 A 1,000 Lowndes County,
Weyerhaeuser Company
Project, 6.80%, 4/1/22 1,106,900
A3 A- 600 Warren County,
International Paper Company
Project, (AMT), 6.60%,
3/1/19 608,592
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR AA 500 Port of Gulfport, E.I. du
Pont de Nemours and Company
Project, (AMT), 7.15%,
5/1/16 (2) 544,390
------------
$ 2,824,350
------------
INSURED EDUCATION - 3.7%
Aaa AAA $1,000 Mississippi Educational
Facilities Authority,
Milsaps College Project,
(MBIA) 6.50%, 11/1/19 $ 1,041,610
------------
INSURED GENERAL OBLIGATION - 5.0%
Aaa AAA $ 500 Hinds County, (MBIA) 6.25%,
3/1/11 $ 535,360
Aaa AAA 1,000 Desoto County School
District, (MBIA) 4.75%,
2/1/13 883,120
------------
$ 1,418,480
------------
INSURED HOSPITALS - 19.2%
Aaa AAA $1,000 Alcorn County, Magnolia
Regional Health Center,
(AMBAC) 5.75%, 10/1/13 $ 967,370
Aaa AAA 1,000 Gulfport Mississippi
Hospital Facilities
Authority, Memorial
Hospital of Gulfport,
(MBIA) 6.20%, 7/1/18 1,020,310
Aaa AAA 1,275 Hinds County, Mississippi
Methodist Hospital and
Rehabilitation Center,
(AMBAC) 5.60%, 5/1/12 1,256,003
Aaa AAA 1,250 Mississippi Hospital
Equipment and Facilities
Authority, Methodist Health
Systems, (MBIA) 5.50%,
8/15/13 1,189,850
Aaa AAA 1,000 Mississippi Hospital
Equipment and Facilities
Authority, Mississippi
Baptist Medical Center,
(MBIA) 6.00%, 5/1/13 1,009,080
------------
$ 5,442,613
------------
INSURED HOUSING - 1.8%
Aaa NR $ 500 Mississippi Home
Corporation, SFMR, (GNMA),
(AMT), 6.625%, 4/1/27 $ 511,910
------------
INSURED LEASE/CERTIFICATE
OF PARTICIPATION - 5.2%
Aaa AAA $1,500 Medical Center Building
Corporation, University of
Mississippi Medical Center
Project, (MBIA) 5.80%,
12/1/14 $ 1,476,015
------------
</TABLE>
40
<PAGE> 41
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED UTILITIES - 7.0%
Aaa AAA $1,600 Jackson County, Gautier
Utility District, (MBIA)
6.375%, 3/1/12 $ 1,661,504
Aaa AAA 300 Puerto Rico Electric Power
Authority, (FSA), Variable,
7/1/03 (1) 335,766
------------
$ 1,997,270
------------
INSURED WATER & SEWER - 5.2%
Aaa AAA $1,000 Jackson County, Water and
Sewer Bonds, (MBIA) 5.40%,
9/1/09 $ 980,790
Aaa AAA 500 City of Natchez, Combined
Water and Sewer System,
(MBIA) 5.70%, 8/1/17 485,380
------------
$ 1,466,170
------------
NURSING HOMES - 1.7%
NR NR $ 500 Mississippi Business
Finance Corporation,
Magnolia Healthcare, 7.99%,
7/1/25 (2) $ 472,415
------------
LEASE/CERTIFICATE OF
PARTICIPATION - 3.6%
A NR $1,000 Mississippi University
Educational Building Corp.,
Facilities Renovation,
6.15%, 6/15/15 $ 1,009,330
------------
SPECIAL TAX - 4.7%
Baa1 A $ 500 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/20 $ 446,615
Baa1 A 1,000 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/21 891,410
------------
$ 1,338,025
------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UTILITIES - 10.9%
NR BBB $ 810 Guam Power Authority,
6.625%, 10/1/14 $ 829,999
Aa3 A+ 1,310 Lamar County, South
Mississippi Electric Power
Association Project, 4.85%,
12/1/06 1,237,505
Baa3 NR 1,000 Warren County, Mississippi
Power & Light Company
Project, 7.00%, 4/1/22 1,038,360
------------
$ 3,105,864
------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $27,181,386) $ 28,344,069
============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
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 September 30, 1995, 49.9% 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 1.2% to 36.3% of total investments.
See notes to financial statements
41
<PAGE> 42
-------
New York Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSISTED LIVING - 0.3%
NR NR $ 1,970 Village of North Syracuse
Housing Authority, (AJM
Senior Housing, Inc. Janus
Park Project), 8.00%,
6/1/24 $ 1,922,168
-------------
EDUCATION - 12.7%
A NR $ 1,000 Dutchess County IDA, Bard
College, 7.00%, 11/1/17 $ 1,084,310
A1 NR 6,295 Monroe County IDA,
University of Rochester,
7.25%, 12/1/16 6,646,324
NR BBB- 1,660 City of New Rochelle IDA
Civic Facilities, College
of New Rochelle, 6.75%,
7/1/22 1,704,920
Baa1 BBB+ 6,895 Dormitory Authority, State
University Educational
Facilities, 4.75%, 7/1/14 6,124,208
Baa1 BBB+ 2,500 Dormitory Authority, State
University Educational
Facilities, 5.00%, 5/15/18 2,118,800
Baa1 BBB+ 11,500 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/13 10,464,310
Baa1 BBB+ 7,600 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/15 6,850,260
Baa1 BBB+ 7,605 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/19 6,714,759
Baa1 BBB+ 6,805 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/21 6,043,657
Baa1 BBB+ 3,130 Dormitory Authority, State
University Educational
Facilities, 5.50%, 5/15/08 3,041,139
Baa1 BBB+ 28,250 Dormitory Authority, State
University Educational
Facilities, 5.50%, 5/15/13 26,375,613
Baa1 BBB+ 415 Dormitory Authority, State
University Educational
Facilities, 7.375%,
5/15/14 450,279
Baa1 BBB+ 1,300 Dormitory Authority, State
University Educational
Facilities, 7.50%, 5/15/11 1,497,184
NR AA 1,300 Dormitory Authority, New
York Medical College
(Asset Guaranty), 6.875%,
7/1/21 1,391,845
A1 A+ 950 Dormitory Authority,
University of Rochester,
5.625%, 7/1/12 927,276
-------------
$ 81,434,884
-------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ELECTRIC UTILITIES - 4.9%
A1 A $ 2,500 New York State Energy
Resource & Development
Authority, Brooklyn Union
Gas (RIBS)(AMT), Variable,
7/1/26 (1) $ 2,918,350
Aa3 A+ 500 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.75%,
1/1/24 538,345
Aa3 A+ 2,365 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
7/1/25 2,563,684
Aa3 A+ 1,000 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
1/1/26 1,098,470
Aa AA- 18,000 Power Authority of the
State of New York, 5.25%,
1/1/18 16,447,500
Baa1 A- 11,500 Puerto Rico Electric Power
Authority, 0%, 7/1/17 3,023,350
Baa1 A- 2,250 Puerto Rico Electric Power
Authority, 5.50%, 7/1/20 2,081,183
NR NR 3,000 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 3,150,630
-------------
$ 31,821,512
-------------
ESCROWED - 7.6%
Aaa AAA $ 725 Albany Municipal Water
(MBIA), 7.50%, 12/1/17 $ 806,592
Aaa BBB 1,000 Dormitory Authority, City
University, 7.625%, 7/1/20 1,152,840
Aaa BBB+ 1,530 Dormitory Authority, State
University Educational
Facilities, 7.70%, 5/15/12 1,763,677
NR BBB 1,000 Dormitory Authority, City
University, 8.125%, 7/1/08 1,116,170
Baa1 BBB- 2,250 Dormitory Authority,
Upstate Community College,
7.20%, 7/1/21 2,582,842
Baa1 NR 2,000 Dormitory Authority,
Upstate Community College,
7.30%, 7/1/21 2,305,860
Aaa AAA 500 Erie County Water
Authority, Water Works
System, 6.00%, 12/1/08 528,920
Aaa AAA 500 Metropolitan
Transportation Authority
Commuter Facilities Bonds,
7.50%, 7/1/19 571,735
Aaa AAA 1,000 New York Local Government
Assistance Corporation
(LGAC), 7.00%, 4/1/16 1,136,100
</TABLE>
42
<PAGE> 43
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED - (CONTINUED)
Aaa AAA 5,500 New York LGAC, 6.75%,
4/1/21 6,238,980
Aaa BBB 1,000 New York State Housing
Finance Agency Service
Contracts, 7.80%, 9/15/11 1,173,510
Aaa AAA 1,775 New York State Housing
Finance Agency Service
Contracts, 7.375%, 9/15/21 2,073,520
Aaa BBB+ 90 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.75%, 8/15/10 103,334
Aaa AAA 450 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.875%, 8/15/08 525,047
Aaa AAA 3,320 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.50%, 2/15/21 3,842,004
Aaa NR 8,100 New York State Urban
Development Corporation
Correctional Facilities,
6.50%, 1/1/21 8,848,197
Baa1 BBB 4,750 New York State Thruway
Authority, Local Highway
and Bridge Service
Contract Bonds, 7.25%,
1/1/10 (2) 5,404,740
Baa1 BBB 5,350 New York State UDC,
Onondaga Co. Convention
Center, 7.875% 1/1/10 6,241,577
NR AA- 500 Power Authority of the
State of New York, 8.00%,
1/1/17 548,960
NR A 1,760 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/18 1,989,310
-------------
$ 48,953,915
-------------
GENERAL OBLIGATIONS - 1.6%
Baa1 A- $ 120 New York City, 8.25%,
11/15/16 $ 136,942
Baa1 A- 4,000 New York City, 7.50%,
2/1/18 4,399,280
Aa AA 1,700 Onondaga County, 5.875%,
2/15/11 1,758,259
Aa AA 1,600 Onondaga County, 5.875%,
2/15/12 1,641,424
Baa1 A 2,175 Puerto Rico Public
Building Authority, Public
Education and Health
Facilities, 5.75%, 7/1/15 2,102,594
-------------
$ 10,038,499
-------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - 19.1%
NR AAA $ 6,705 Dormitory Authority,
United Health Services
(FHA), 7.35%, 8/1/29 $ 7,225,509
Aa AAA 4,785 New York State Medical
Care Facilities Finance
Agency (MCFFA), Hospital
Insured Mortgage (FHA),
5.25%, 8/15/14 4,443,782
NR AA 2,670 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.10%, 8/15/15 2,663,645
NR AAA 3,710 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.125%, 2/15/14 3,902,994
Aa AA 1,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.55%, 8/15/12 1,043,570
Aa AA 3,800 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.65%, 8/15/32 3,946,338
NR AA 9,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.70%, 8/15/23 9,446,220
Aa AA 1,050 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.75%, 2/15/12 1,107,446
Aa AA 1,500 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
6.95%, 2/15/32 1,586,430
Aa AA 2,190 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.00%, 8/15/32 2,326,262
Aa AA 6,600 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.25%, 2/15/31 7,124,634
Aa AA 750 New York State MCFFA,
Hospital and Nursing
Insured Mortgage (FHA),
7.35%, 2/15/29 819,128
Aa AA 2,425 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 2/15/10 2,484,607
Aa AA 3,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/14 3,591,490
</TABLE>
43
<PAGE> 44
-------
NEW YORK TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE - (CONTINUED)
Aa AA 5,625 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/15 5,723,775
Aa AA 6,550 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.25%, 8/15/15 6,661,285
Aa AA 2,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.50%, 2/15/35 2,552,300
Aa AA 950 New York State MCFFA,
Insured Mortgage Project
(FHA), 7.45%, 8/15/31 1,030,095
Baa1 BBB+ 10,205 New York State MCFFA,
Mental Health Services
Facilities, 5.25%, 2/15/19 9,320,737
Baa1 BBB+ 11,500 New York State MCFFA,
Mental Health Services
Facilities, 5.25%, 8/15/23 9,895,865
Baa1 BBB+ 6,625 New York State MCFFA,
Mental Health Services
Facilities, Series 1994 A,
5.25%, 8/15/23 5,700,879
Baa1 BBB+ 1,230 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 1,372,754
Baa1 BBB+ 1,610 New York State MCFFA,
Mental Health Services
Facilities, 7.625%,
8/15/17 1,777,150
Baa1 BBB+ 145 New York State MCFFA,
Mental Health Services
Facilities, 7.75%, 8/15/10 161,153
Baa1 BBB+ 495 New York State MCFFA,
Mental Health Services
Facilities, 7.875%,
8/15/08 558,469
Baa BBB 19,700 New York State MCFFA,
Secured Hospital
(Brookdale), 6.80%,
8/15/12 20,263,223
Baa BBB 5,540 New York State MCFFA,
Secured Hospital, 7.35%,
8/15/11 5,881,652
-------------
$ 122,611,392
-------------
HOSPITALS - 0.7%
Aa AAA $ 1,500 Dormitory Authority, Long
Island Jewish Medical
Center (FHA), 7.75%,
8/15/27 $ 1,629,735
NR AAA 1,000 Dormitory Authority,
St. Francis Hospital
(FHA), 7.65%, 8/1/30 1,119,780
Baa1 BBB+ 1,800 Syracuse Industrial
Development Agency (IDA),
St. Joseph's Hospital
Health Center, 7.50%,
6/1/18 1,914,804
-------------
$ 4,664,319
-------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - 5.5%
NR NR $ 4,744 New York City Housing
Development Corporation
(HDC), Allerville Project,
6.50%, 11/15/18 $ 4,772,297
Baa A 4,750 New York City HDC, General
Housing, 6.50%, 5/1/22 4,797,690
NR NR 2,080 New York City HDC, Dayton
Project, 6.50% 11/15/18 2,092,643
NR AAA 2,550 New York City HDC, Multi-
Unit Management, 7.35%,
6/1/19 2,702,439
Aa A+ 235 New York State Housing
Finance Agency, Baytown,
7.10%, 8/15/35 248,280
Aa NR 250 New York State Mortgage
Agency, 6.90%, 4/1/03 263,523
Aa NR 8,750 New York State Mortgage
Agency, 6.90%, 4/1/15 9,220,313
Aa NR 1,000 New York State Mortgage
Agency, 7.50%, 4/1/15 1,082,280
Aa NR 295 New York State Mortgage
Agency, 7.65%, 4/1/19 311,963
Aa NR 625 New York State Mortgage
Agency, 7.70%, 10/1/12 676,644
Aa NR 270 New York State Mortgage
Agency, 8.00%, 10/1/17 287,312
Aa NR 6,350 New York State Mortgage
Agency (AMT), 6.40%,
10/1/20 6,318,568
Aa NR 1,600 New York State Mortgage
Agency (AMT), 7.95%,
10/1/21 1,727,808
Baa BBB 350 Puerto Rico Commonwealth
Urban Renewal & Housing
Corporation, 7.875%,
10/1/04 395,693
Aaa AAA 410 Puerto Rico Housing
Financial Corporation
Single-Family (GNMA),
7.65%, 10/15/22 434,124
-------------
$ 35,331,577
-------------
INSURED COLLEGE &
UNIVERSITY - 1.8%
Aaa AAA $ 6,950 Dormitory Authority,
Marist College (MBIA),
6.00%, 7/1/22 $ 6,958,549
Aaa AAA 5,000 Dormitory Authority, New
York University (MBIA),
5.00%, 7/1/11 4,698,350
-------------
$ 11,656,899
-------------
</TABLE>
44
<PAGE> 45
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL
OBLIGATIONS - 1.0%
Aaa AAA $ 1,035 Erie County Water
Authority (AMBAC), 0%,
12/1/17 $ 211,295
Aaa AAA 3,900 New York City Trust for
Cultural Resources, Museum
of Modern Art (AMBAC),
5.40%, 1/1/12 3,764,748
Aaa AAA 2,480 New York State
Environmental Facilities
Corporation (EFC), Jamaica
Water Supply Company (AMT)
(AMBAC), 7.625%, 4/1/29 2,677,334
-------------
$ 6,653,377
-------------
INSURED GENERAL
OBLIGATIONS LOCAL - 1.8%
Aaa AAA $ 520 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/08 $ 574,621
Aaa AAA 770 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/09 847,123
Aaa AAA 465 Chautauqua County
Unlimited Tax (FGIC),
7.30%, 4/1/07 547,793
Aaa AAA 725 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/07 838,521
Aaa AAA 600 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/08 693,852
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/13 789,278
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/09 814,891
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/10 816,739
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/11 817,929
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/12 789,271
Aaa AAA 515 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/14 601,808
Aaa AAA 2,000 New York City (AMBAC),
7.00%, 8/1/17 2,201,300
Aaa AAA 500 Oyster Bay (FGIC), 6.60%,
2/15/12 533,400
Aaa AAA 450 Oyster Bay (FGIC), 6.60%,
2/15/13 480,060
-------------
$ 11,346,586
-------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL
OBLIGATIONS SCHOOL
DISTRICT - 0.2%
Aaa AAA $ 700 Bethlehem Central School
District (AMBAC), 7.10%,
11/1/08 $ 819,903
Aaa AAA 700 Bethlehem Central School
District (AMBAC), 7.10%,
11/1/09 814,716
-------------
$ 1,634,619
-------------
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) $ 4,616,865
-------------
INSURED HEALTH CARE - 4.4%
Aaa AAA $ 1,500 New York State MCFFA, Long
Term Health Care (CGIC),
6.80%, 11/1/14 $ 1,588,695
Aaa AAA 1,300 New York State MCFFA, New
York Hospital (FHA)
(AMBAC), 6.60%, 2/15/11 1,409,226
Aaa AAA 5,400 New York State MCFFA, New
York Hospital (FHA)
(AMBAC), 6.75%, 8/15/14 5,794,146
Aaa AAA 20,525 New York State MCFFA,
Mental Health Services
Facilities (MBIA), 5.375%,
2/15/14 19,280,980
-------------
$ 28,073,047
-------------
INSURED HOUSING - 0.1%
Aaa AAA $ 500 New York City HDC, Charter
Oaks (MBIA), 7.375% 4/1/17 $ 524,525
-------------
INSURED MISCELLANEOUS - 0.1%
Aaa AAA $ 500 New York City IDA, (USTA
National Tennis Center
Incorporated Project)
(FSA), 6.375%, 11/15/14 $ 522,020
-------------
</TABLE>
45
<PAGE> 46
-------
NEW YORK TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED SOLID WASTE - 1.6%
Aaa AAA $ 1,650 Dutchess County Resource
Recovery Solid Waste
(FGIC), 7.50%, 1/1/09 $ 1,814,505
Aaa AAA 6,795 Islip Resource Recovery
Agency (MBIA), 6.50%,
7/1/09 7,272,960
Aaa AAA 1,000 Montgomery, Otesgo,
Schoharie Solid Waste
Management Authority
(MBIA), 5.25%, 1/1/14 936,350
-------------
$ 10,023,815
-------------
INSURED TOLL & TURNPIKE - 1.0%
Aaa AAA $ 3,000 Triborough Bridge & Tunnel
Authority Residual
Interest Securities
(MBIA), Variable, 1/1/19
(1) $ 3,033,030
Aaa AAA 3,000 Triborough Bridge & Tunnel
Authority Residual
Interest Securities
(MBIA), Variable, 1/1/12
(1) 3,229,230
-------------
$ 6,262,260
-------------
INSURED WATER & SEWER - 0.1%
Aaa AAA $ 275 Albany Municipal Water
Financial Authority
(MBIA), 7.50%, 12/1/17 $ 298,944
-------------
LEASE/CERTIFICATE OF
PARTICIPATION - 8.7%
Baa1 BBB $ 1,955 Dormitory Authority, City
University, 5.75%, 7/1/13 $ 1,869,000
Baa1 BBB 17,815 Dormitory Authority, City
University, 5.75%, 7/1/13 17,031,318
Baa1 BBB 250 Dormitory Authority, City
University, 6.375%, 7/1/08 256,618
Baa1 BBB 5,100 Dormitory Authority, City
University, 7.00%, 7/1/09 5,653,044
Baa1 BBB 4,325 Dormitory Authority, City
University, 7.50%, 7/1/10 4,967,133
Baa1 BBB 6,125 New York State HFA Service
Contract, 5.375%, 9/15/11 5,635,000
NR BBB 5,865 New York State Thruway
Authority, 0%, 1/1/01 4,438,046
Baa1 BBB 5,775 New York State Urban
Development Corporation
(UDC) Correctional
Facilities, 5.50%, 1/1/14 5,342,337
Baa1 BBB 7,670 New York State UDC
Correctional Facilities,
5.25%, 1/1/13 6,896,557
Baa1 BBB 500 New York State UDC, Alfred
Technology, 7.875%, 1/1/20 549,070
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa1 BBB 750 New York State UDC,
Clarkson Center for
Advanced Materials, 7.80%,
1/1/20 821,512
Baa1 BBB 750 New York State UDC,
Clarkson Center for
Advanced Materials, 8.00%,
1/1/20 839,737
Baa1 A 1,825 Syracuse-Hancock
International Airport
Certificates of
Participation, 6.625%,
1/1/12 1,921,105
-------------
$ 56,220,477
-------------
MISCELLANEOUS - 1.6%
Aa AA- $ 200 City of New York Municipal
Assistance Corporation,
7.50%, 7/1/08 $ 218,888
Aa AA- 485 City of New York Municipal
Assistance Corporation,
7.625%, 7/1/08 530,896
Aa AA- 635 City of New York Municipal
Assistance Corporation,
7.625%, 7/1/08 714,724
NR NR 1,300 New York City IDA,
(YMCA of Greater New
York), 8.00%, 8/1/16 1,394,536
Aaa AAA 7,000 VRDC-IVRC Trust, Variable
Rate, 6/26/02 (1) 7,214,340
-------------
$ 10,073,384
-------------
SOLID WASTE - 2.0%
Baa1 A- $ 2,665 Hempstead IDA Resource
Recovery, American
Refunding Fuel Co., 7.40%,
12/1/10 $ 2,782,473
Baa NR 9,530 New York State EFC
Resource Recovery,
Huntington Project, 7.50%,
10/1/12 10,056,056
-------------
$ 12,838,529
-------------
SPECIAL TAX REVENUE - 12.5%
A A $12,160 New York State LGAC,
5.00%, 4/1/21 $ 10,582,240
A A 5,000 New York State LGAC,
5.00%, 4/1/21 4,368,900
A A 8,750 New York State LGAC,
5.00%, 4/1/23 7,526,313
A A 4,750 New York State LGAC,
5.25%, 4/1/16 4,406,908
A A 2,500 New York State LGAC,
5.25%, 4/1/19 2,265,400
A A 4,500 New York State LGAC,
5.375%, 4/1/16 4,221,180
A A 5,225 New York State LGAC,
5.50%, 4/1/17 4,960,040
</TABLE>
46
<PAGE> 47
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SPECIAL TAX REVENUE - (CONTINUED)
A A 12,420 New York State LGAC,
5.50%, 4/1/18 11,731,808
A A 13,000 New York State LGAC,
5.50%, 4/1/21 12,140,570
NR BBB+ 2,630 New York State Municipal
Bond Bank Agency, 6.875%,
3/15/06 2,866,095
Baa1 BBB 3,100 New York State Thruway
Authority Contract, Local
& Highway Building, 5.25%,
4/1/13 2,800,478
Baa1 A 2,000 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 1,902,740
Baa1 A 2,500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 2,378,425
Baa1 A 4,840 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 5,079,774
Baa1 BBB 3,335 Triborough Bridge & Tunnel
Authority, Convention
Center, 6.00%, 1/1/11 3,318,158
-------------
$ 80,549,029
-------------
TRANSPORTATION - 6.2%
Baa1 BBB $ 4,025 MTA Transit Facilities
Service Contract, 4.75%,
7/1/19 $ 3,261,417
Baa1 BBB 3,670 MTA Transit Facilities
Service Contract, 4.75%,
7/1/19 2,973,764
Baa1 BBB 2,000 MTA Transit Facilities
Service Contract, 5.75%,
7/1/13 1,928,740
Baa1 BBB 725 MTA Transit Facilities
Service Contract, 5.75%,
7/1/13 699,168
NR BBB 2,350 New York State Thruway
Authority, Cross
Westchester Expressway
Project, 0%, 1/1/03 1,587,566
Ba1 BB 6,500 Port Authority of New York
and New Jersey, 5.75%,
6/15/30 6,254,170
Ba1 BB 2,800 Port Authority of New York
and New Jersey, Delta
Airlines LaGuardia
Airport, 6.95%, 6/1/08 2,969,512
A1 AA- 1,500 Port Authority of New York
and New Jersey (AMT),
Variable, 1/15/27 (1) 1,553,730
<CAPTION>
RATINGS (UNAUDITED)
- ------------------- PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aa A+ 5,330 Triborough Bridge and
Tunnel Authority (TBTA)
General Purpose, 5.00%,
1/1/12 4,869,062
Aa A+ 11,580 TBTA General Purpose,
5.50%, 1/1/17 11,048,941
Aa A+ 2,500 TBTA General Purpose,
6.125%, 1/1/21 2,583,100
-------------
$ 39,729,170
-------------
WATER & SEWER REVENUE - 3.8%
Aa A $11,050 New York State EFC, State
Water Pollution Control,
6.875%, 6/15/10 $ 12,110,568
Aa A+ 4,545 New York State EFC, State
Water Pollution Control,
7.20%, 3/15/11 5,052,540
Aa A 2,750 New York State EFC, State
Water Pollution Control,
7.00%, 6/15/12 3,053,738
Aa A 150 New York State EFC, State
Water Pollution Control,
7.50%, 6/15/12 169,304
Baa1 A 3,750 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 4,160,625
-------------
$ 24,546,775
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $610,645,613) $ 642,348,587
=============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
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 September 30, 1995, 23.7% 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 0.1% to 11.0% of total investment.
See notes to financial statements
47
<PAGE> 48
-------
Ohio Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 7.9%
A A+ $ 1,000 University of Cincinnati,
6.50%, 12/1/11 $ 1,035,190
A1 AA- 650 University of Cincinnati,
6.50%, 6/1/11 684,314
Aa AA- 550 Ohio State Higher
Educational Facilities,
Case Western University,
6.50%, 10/1/20 604,335
NR AA 1,000 Ohio State Higher
Educational Facilities,
Oberlin College, 5.375%,
10/1/15 942,190
NR AAA 2,100 Ohio Higher Educational
Facilities, Ohio Northern
University (CLEE), 5.60%,
5/1/13 2,069,886
NR AAA 2,750 Ohio Higher Educational
Facilities, Ohio Northern
University (CLEE), 5.65%,
5/1/18 2,688,153
A1 A+ 1,300 Ohio State Higher
Educational Facilities,
Public Facilities, 5.50%,
12/1/07 1,319,513
A1 NR 7,000 Ohio State Student Loan
Funding Corp (AMT),
6.10%, 8/1/07 7,165,200
A1 NR 7,000 Ohio State Student Loan
Funding Corp (AMT),
6.10%, 8/1/08 7,121,100
A1 AA- 1,500 Ohio State University
Revenue, 5.75%, 12/1/09 1,523,325
-------------
$ 25,153,206
-------------
ESCROWED - 0.2%
A1 NR $ 500 Gahanna, Ohio General
Obligation, 7.00%, 6/1/12 $ 566,875
-------------
GENERAL OBLIGATIONS -
9.1%
NR NR $ 3,035 Belmont County, 7.30%,
12/1/17 $ 3,190,392
A NR 600 City of Brunswick,
Various Purpose, 6.30%,
12/1/12 617,586
NR NR 2,450 Cleveland City School
District, 7.25%, 6/15/98 2,498,069
Aaa AAA 1,035 City of Columbus, 5.50%,
11/1/12 1,025,902
A1 NR 1,360 Copley-Fairlawn City
School District, 6.25%,
12/1/15 1,403,180
NR BBB 3,500 Guam Government, 5.375%,
11/15/13 3,104,535
A1 NR 3,340 Hilliard City School
District, 6.30%, 12/1/14 3,462,344
A1 NR 500 Huber Heights, Ohio,
6.75%, 12/1/11 534,185
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A NR 1,200 Mansfield Ohio Waterworks
Improvement, 5.60%,
12/1/13 1,162,692
A1 NR 725 City of Medina, Ohio Fire
Station Improvement,
3.00%, 12/1/10 527,445
Aa AA 1,500 Ohio State Infrastructure
Improvement, 0%, 8/1/11 632,685
Baa1 NR 1,000 Scioto County, Ohio Human
Services Building, 7.15%,
8/1/11 1,136,590
NR NR 1,000 Tuscarawas Public Library
Improvement, 6.90%,
12/1/11 1,055,300
Baa NR 1,000 Youngstown, Ohio, 7.55%,
12/1/11 1,080,240
NR NR 6,855 Youngstown, Ohio, 7.35%,
6/15/05 7,413,614
-------------
$ 28,844,759
-------------
HEALTH CARE - 2.4%
NR AAA $ 1,000 Allen County Ohio, LIMA
Convalescent Home
Foundation (GNMA), 6.40%,
1/1/21 $ 1,022,330
Aa2 NR 1,600 Hamilton County,
Episcopal Retirement
Homes, 6.80%, 1/1/08 1,745,504
NR BBB- 1,800 Marion County, United
Church Homes, 6.30%,
11/15/15 1,734,354
Baa BBB 2,925 Puerto Rico Urban Renewal
& Housing Corporation,
0%, 10/1/99 2,364,570
Aa2 NR 600 Warren County, Otterbein
Home Project, 7.20%,
7/1/11 662,418
-------------
$ 7,529,176
-------------
HOSPITALS - 19.3%
Baa BBB- $ 1,000 Butler County, Hamilton-
Hughe Hospital, 7.50%,
1/1/10 $ 1,032,270
NR BBB 1,000 Cambridge Ohio, Guernsey
Memorial Hospital, 8.00%,
12/1/11 1,068,500
A1 A 2,100 Cuyahoga County, Fairview
General Hospital, 6.25%,
8/15/10 2,152,101
A1 A 2,370 Cuyahoga County, Meridia
Health System, 7.00%,
8/15/23 2,505,967
A1 A 2,000 Cuyahoga County, Meridia
Health System, 6.50%,
8/15/12 2,052,600
</TABLE>
48
<PAGE> 49
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOSPITALS - (CONTINUED)
Aa AA 750 Cuyahoga County,
University Hospitals
Health System, 6.50%,
1/15/19 778,560
Aa AA 4,450 Cuyahoga County,
University Hospitals
Health System, 6.00%,
1/15/22 4,487,024
NR BBB 4,500 Defiance Hospital, Inc.,
7.625%, 11/1/03 4,641,075
Baa BBB- 665 East Liverpool City
Hospital-Series A, 8.00%,
10/1/21 696,893
Baa BBB- 1,000 East Liverpool City
Hospital-Series B, 8.00%,
10/1/21 1,044,880
A A- 4,000 Erie County, Firelands
Community Hospital,
6.75%, 1/1/08 4,237,640
Aa NR 3,000 Franklin County,
Children's Hospital,
6.60%, 5/1/13 3,167,310
Aa NR 1,900 Franklin County,
Riverside United
Methodist Hospital,
5.75%, 5/15/20 1,804,088
A A 1,015 City of Garfield Heights,
Marymount Hospital,
6.65%, 11/15/11 1,052,058
A A 1,000 City of Garfield Heights,
Marymount Hospital,
6.70%, 11/15/15 1,040,670
Aa2 NR 1,000 Hamilton County, Wesley
Hall Project, 6.50%,
3/1/15 1,022,560
A1 A 4,000 Hamilton County, Bethesda
Hospital, Inc., 6.25%,
1/1/12 4,027,400
A1 A+ 1,095 Lorain County, Humility
of Mary Health Care
Corp., 7.125%, 12/15/06 1,199,266
A1 A+ 5,900 Lorain County, Humility
of Mary Health Care
Corp., 5.90%, 12/15/08 6,048,208
A1 A+ 1,000 Lorain County, Humility
of Mary Health Care
Corp., 7.20%, 12/15/11 1,081,030
NR A+ 1,750 Lorain County, Lakeland
Community Hospital, Inc.,
6.50%, 11/15/12 1,794,538
NR BBB+ 1,000 Lucas County, Flowers
Hospital, 6.125%, 12/1/13 939,000
A A 2,760 City of Middleburg
Heights, Southwest
General Hospital Project,
6.75%, 8/15/21 2,880,971
NR NR 10,000 Mt Vernon, Knox Community
Hospital, 7.875%, 6/1/12 10,358,900
-------------
$ 61,113,509
-------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - 7.1%
Aa NR $ 1,300 City of Clermont, Laurels
Project (FHA), 6.00%,
9/1/20 $ 1,285,011
Aa NR 1,000 Franklin County, Hamilton
Creek Apartments (FHA),
(AMT), 5.80%, 7/1/14 942,190
Aa NR 3,660 Franklin County, Hamilton
Creek Apartments (FHA),
(AMT), 5.55%, 7/1/24 3,239,905
NR AAA 3,490 Ohio HFA, (GNMA), (AMT),
6.375%, 3/1/25 3,523,853
NR AAA 4,735 Ohio HFA, (GNMA), (AMT),
6.70%, 3/1/25 4,844,899
NR AAA 835 Ohio HFA, SFMR (GNMA),
7.60%, 9/1/16 871,723
NR AAA 1,250 Ohio HFA, MFMR-Asbury
Woods (FHA), 7.00%,
10/1/24 1,279,350
Aa NR 2,850 Ohio HFA, Oakleaf Village
Project, (FHA), 5.70%,
9/1/26 2,643,746
Aa NR 1,000 Ohio HFA, Aristocrat
South Board & Care
Project (FHA), (AMT),
7.30%, 8/1/31 1,037,330
Aaa AAA 1,085 Ohio HFA SFMR, (GNMA)
(AMT), Variable, 3/31/31
(1) 1,162,317
NR BBB+ 1,020 Ohio Economic
Development, KMART Corp.,
6.75%, 5/15/07 1,034,810
A1 A+ 500 Ohio Building Authority
Juvenile Correctional
Building, 5.80%, 10/1/07 515,125
-------------
$ 22,380,259
-------------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL
REVENUE - 8.8%
NR BBB $510.... Madison County, IDR,
KMART Corp., 6.75%,
9/15/06 $ 523,734
Baa1 NR 3,750 Ohio Air Quality
Development Authority,
Ashland Oil Inc, 6.85%,
4/1/10 3,991,163
NR A- 595 Ohio IDR, Enterprise Bond
Fund, Burrows Paper Corp.
(AMT), 7.625%, 6/1/11 659,546
NR A- 310 Ohio IDR, Enterprise Bond
Fund, Cheryl & Co.,
(AMT), 5.50%, 12/1/04 307,774
NR A- 530 Ohio IDR, Enterprise Bond
Fund, Cheryl & Co.,
(AMT), 5.90%, 12/1/09 530,806
</TABLE>
49
<PAGE> 50
-------
OHIO TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL
REVENUE - (CONTINUED)
NR A- 1,815 Ohio IDR, Enterprise Bond
Fund, Consolidated
Biscuit, (AMT), 7.00%,
12/1/09 2,014,051
NR A- 3,425 Ohio IDR, Enterprise Bond
Fund, J J & W LP Project
(AMT), 6.70%, 12/1/14 3,536,826
NR A- 750 Ohio IDR, Enterprise Bond
Fund, Luigino's Inc.
(AMT), 6.85%, 6/1/01 772,388
NR A- 1,000 Ohio IDR, Enterprise Bond
Fund, Progress Plastic
Products, (AMT), 6.80%,
12/1/01 1,086,040
NR A- 1,525 Ohio IDR, Enterprise Bond
Fund, Progress Plastic
Products, (AMT), 7.80%,
12/1/09 1,772,660
NR A- 680 Ohio IDR, Enterprise Bond
Fund, Royal Appliance
Manufacturing Co., Series
1991 #9 (AMT), 7.625%,
12/1/11 758,234
NR A- 1,000 Ohio IDR, Enterprise Bond
Fund, Royal Appliance
Manufacturing Co., Series
1991 #5 (AMT), 7.625%,
12/1/11 1,115,050
NR A- 1,800 Ohio IDR, Enterprise Bond
Fund, Speco Corp. (AMT),
6.60%, 6/1/04 1,857,186
NR A- 170 Ohio IDR, Enterprise Bond
Fund, Speco Corp. (AMT),
6.25%, 6/1/00 173,553
NR A- 880 Ohio IDR, Enterprise Bond
Fund, VSM Corp., (AMT),
7.375%, 12/1/11 969,936
NR AA- 1,000 Ohio Pollution Control,
Standard Oil Company,
6.75%, 12/1/15 1,167,220
Baa2 BBB 4,065 Ohio Water Development
Authority, Union Carbide
Corp. Project, 5.50%,
1/15/07 3,935,245
Ba2 NR 1,500 Portage County, Kroger
Corporation, 7.25%,
7/1/99 1,592,175
Ba2 NR 1,000 Summit County, Kroger
Corporation, 6.85%,
7/1/99 1,050,140
-------------
$ 27,813,727
-------------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED EDUCATION - 1.1%
Aaa AAA $ 1,000 Adams & Highland County
Local School District
(MBIA), 5.25%, 12/1/21 $ 923,810
Aaa AAA 1,500 Delaware County, Buckeye
Valley Local School
District (MBIA), 5.25%,
12/1/20 1,402,665
Aaa AAA 1,000 Ohio Higher Education,
University of Dayton
Project (FGIC), 5.80%,
12/1/14 1,000,720
-------------
$ 3,327,195
--------------
INSURED GENERAL
OBLIGATIONS - 1.5%
Aaa AAA $ 1,700 Puerto Rico (AMBAC),
Variable, 7/1/15 (1) $ 1,716,898
Aaa AAA 3,000 Puerto Rico (FSA),
Variable, 7/1/22 (1) 3,077,910
-------------
$ 4,794,808
-------------
INSURED HEALTH CARE -
2.4%
Aaa AAA $ 1,945 Hamilton County, Sisters
of Charity Health Care
System (MBIA), 5.25%,
5/15/13 $ 1,819,645
Aa AA- 5,925 Montgomery County,
Sisters of Charity Health
Care System (MBIA),
5.25%, 5/15/11 5,563,871
-------------
$ 7,383,516
-------------
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 $ 2,276,175
Aaa AAA 1,000 Clermont County, Mercy
Health System (AMBAC),
Variable, 10/5/21 (1) 1,128,810
Aaa AAA 1,500 Cuyahoga County, Fairview
Hospital, (MBIA), 5.50%,
8/15/19 1,389,270
Aaa AAA 5,885 Franklin County,
Riverside United
Methodist (AMBAC), 5.75%,
5/15/12 5,797,961
Aaa AAA 10,500 Franklin County,
Riverside United
Methodist (AMBAC), 5.75%,
5/15/20 10,085,565
Aaa AAA 1,455 Hamilton County, The
Christ Hospital (FGIC),
5.50%, 1/1/08 1,472,169
Aaa AAA 1,500 Hamilton County,
Children's Hospital
Medical Center, (FGIC),
5.00%, 5/15/13 1,370,130
Aaa AAA 2,750 Mansfield General
Hospital (AMBAC), 6.70%,
12/1/09 2,970,028
</TABLE>
50
<PAGE> 51
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS -
(CONTINUED)
Aaa AAA 1,000 Montgomery County, Ohio
Miami Valley Hospital,
(AMBAC), 6.25%, 11/15/16 1,030,000
Aaa AAA 6,565 Portage County, Robinson
Memorial Hospital,
(MBIA), 5.80%, 11/15/15 6,272,201
Aaa AAA 3,500 Stark County, Timken
Mercy Medical, (MBIA),
5.00%, 12/1/19 3,113,320
-------------
$ 36,905,629
-------------
INSURED HOUSING - 0.6%
Aaa AAA $ 990 Ohio Capital Corporation
FHA Insured Mortgage
Loans, (MBIA), 7.25%,
7/1/24 $ 1,032,649
Aaa AAA 750 Ohio Capital Corporation
FHA Insured Mortgage
Loans, (MBIA), 6.50%,
1/1/25 763,965
-------------
$ 1,796,614
-------------
INSURED INDUSTRIAL DEVELOPMENT
REVENUE - 2.3%
Aaa AAA $ 7,000 Ohio Air Quality
Development Authority,
JMG Funding, L.P.
Project, (AMBAC), (AMT),
6.375%, 1/1/29 $ 7,180,670
-------------
INSURED LEASE - 2.6%
Aaa AAA $ 1,000 Ohio Higher Education,
University of Dayton,
(FGIC), 0%, 12/1/06 $ 560,870
Aaa AAA 8,000 Ohio State Public
Building
Authority-Workers Comp
Facilities (MBIA),
4.50%, 4/1/04 7,785,200
-------------
$ 8,346,070
-------------
INSURED SPECIAL TAX
REVENUE - 4.9%
Aaa AAA $ 2,110 Hudson Local School
District, (FGIC), 0%,
12/15/09 $ 976,656
Aaa AAA 2,115 Hudson Local School
District, (FGIC), 0%,
12/15/10 920,427
Aaa AAA 2,000 North Canton City School
District (AMBAC), 5.90%,
12/1/14 2,024,260
Aaa AAA 1,400 Pickerington Local School
District, (AMBAC), 0%,
12/1/11 562,800
Aaa AAA 2,000 Puerto Rico Highway &
Transportation Authority
(FSA), 5.50%, 7/1/17 1,911,920
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 7,000 Puerto Rico Highway &
Transportation Authority
(FSA), 5.25%, 7/1/21 6,435,380
Aaa AAA 3,000 Puerto Rico Highway &
Transportation Authority
(FSA), 5.25%, 7/1/20 2,762,220
-------------
$ 15,593,663
-------------
INSURED UTILITIES - 2.4%
Aaa AAA $ 1,650 Cleveland Public Power
System, (MBIA), 7.00%,
11/15/17 $ 1,809,605
Aaa AAA 2,000 Cuyahoga County Medical
Center Utility System
(AMT) (MBIA), 6.10%,
8/15/15 2,001,480
Aaa AAA 1,380 OH Municipal Electric
Generation Agency
(AMBAC), 5.375%, 2/15/24 1,289,665
Aaa AAA 2,300 Puerto Rico Electric
Power Authority, (FSA),
Variable, 7/1/02 (1) 2,548,814
-------------
$ 7,649,564
-------------
LEASE/COPS - 1.1%
A NR $ 1,000 University of Akron COP,
West Campus Parking Deck,
5.50%, 1/1/14 $ 974,080
Baa1 A 2,500 Puerto Rico Public
Building Authority,
6.00%, 7/1/12 2,504,675
-------------
$ 3,478,755
-------------
LIFE CARE - 0.6%
Aa NR $ 2,000 Franklin County,
Kensington Place Project,
6.75%, 1/1/34 ()2 $ 2,046,600
-------------
SPECIAL TAX REVENUE -
4.2%
Baa1 A $ 3,000 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/12 $ 3,168,450
Baa1 A 1,500 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/15 1,427,055
Baa1 A 5,000 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/20 4,466,150
Baa1 A 4,995 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 4,280,216
-------------
$ 13,341,871
-------------
</TABLE>
51
<PAGE> 52
-------
OHIO TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION - 1.7%
NR BBB $ 2,750 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 2,755,913
A1 AA- 2,830 Ohio Turnpike Commission,
5.75%, 2/15/24 2,771,617
-------------
$ 5,527,530
-------------
UTILITIES - 7.2%
NR BBB $ 5,500 Guam Power Authority,
5.25%, 10/1/13 $ 4,960,170
NR BBB 5,000 Guam Power Authority,
5.25%, 10/1/23 4,307,600
Baa1 A- 3,000 Puerto Rico Electric
Power Authority, 5.00%,
7/1/12 2,709,060
Baa1 A- 360 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 392,580
Baa1 A- 4,000 Puerto Rico Electric
Power Authority, 6.00%,
7/1/14 3,968,440
Baa1 A- 20,165 Puerto Rico Electric
Power Authority, 0%,
7/1/17 5,301,379
NR NR 1,000 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,050,210
-------------
$ 22,689,439
-------------
WATER & SEWER REVENUE -
0.9%
NR NR $ 800 The Mahoning Valley
Sanitary District, 7.80%,
12/15/08 $ 855,392
<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, 7.80%,
12/15/09 1,013,099
NR NR 1,000 City of Vermilion, Ohio
Water System, 7.25%,
8/15/15 1,066,720
-------------
$ 2,935,211
-------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $304,406,955)
$ 316,398,646
===============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
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 September 30, 1995, 36.3% 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 2.0% to 11.4% of total investments.
See notes to financial statements
52
<PAGE> 53
-------
Rhode Island Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT SECURITIES - 100%
- --------------------------------------------------------------------------------
<TABLE>
<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 $ 1,410,315
A NR 750 Rhode Island Student Loan
Authority, 5.60%, 12/1/12 703,560
-----------
$ 2,113,875
-----------
ELECTRIC UTILITY - 3.7%
Baa1 A- $ 710 Puerto Rico Electric Power
Authority, 5.00%, 7/1/12 $ 641,144
Baa1 A- 1,000 Puerto Rico Electric Power
Authority, 5.50%, 7/1/25 912,910
-----------
$ 1,554,054
-----------
GENERAL OBLIGATIONS (LOCAL)
-0.8%
Ba NR $ 310 West Warwick, 6.80%,
7/15/98 $ 315,670
-----------
GENERAL OBLIGATIONS
(TERRITORY) - 3.9%
Baa1 A $ 500 Puerto Rico Public
Improvement, 5.50%, 7/1/13 $ 477,075
Baa1 A 500 Puerto Rico Public Building
Authority, 5.75%, 7/1/15 483,355
NR BBB 750 Government of Guam, 5.40%,
11/15/18 652,755
-----------
$ 1,613,185
-----------
HOSPITALS - 5.7%
NR AA $1,500 Rhode Island Health and
Educational Building
Corporation, Landmark
Medical Center, 5.875%,
10/1/19 $ 1,432,335
NR A 1,015 Rhode Island Health and
Educational Building
Corporation, Butler
Hospital, 5.125%, 1/1/08 957,135
-----------
$ 2,389,470
-----------
HOUSING - 16.7%
Aa AA+ $1,500 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 6.60%,
10/1/25 $ 1,502,370
Aa AA 100 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 6.70%,
10/1/12 101,929
Aa AA 270 Rhode Island Housing and
Mortgage Finance
Corporation, 6.70%, 10/1/14 280,930
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aa AA+ 875 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 6.80%,
10/1/25 (2) 893,034
Aa AA+ 1,000 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 7.10%,
10/1/23 1,033,790
Aa AA+ 2,000 Rhode Island Housing and
Mortgage Finance
Corporation (AMT), 7.55%,
10/1/22 2,137,460
NR A 35 Rhode Island Housing and
Mortgage Finance
Corporation, 7.875%,
10/1/22 36,217
Baa BBB 1,025 Puerto Rico Housing Bank
and Finance Agency, 5.125%,
12/1/05 994,527
-----------
$ 6,980,257
-----------
INDUSTRIAL DEVELOPMENT
REVENUE - 3.6%
Baa3 BB+ $ 500 Puerto Rico Port Authority,
American Airlines, Inc.
(AMT), 6.30%, 6/1/23 $ 493,499
Aa2 AA 1,000 Rhode Island Industrial
Facilities Corp., Mobil
Corp., 6.00%, 11/1/14 995,440
-----------
$ 1,488,939
-----------
INSURED COLLEGE AND
UNIVERSITY - 9.8%
Aaa AAA $1,000 Rhode Island Health and
Educational Building,
Providence College Issue
(MBIA), 5.60%, 11/1/15 $ 954,740
Aaa AAA 730 Rhode Island Health and
Educational Building,
Providence College Issue
(MBIA), 5.60%, 11/1/22 687,397
Aaa AAA 500 Rhode Island Health and
Educational Building,
University of Rhode Island
(MBIA), 5.50%, 9/15/13 478,550
Aaa AAA 2,200 Rhode Island Health and
Educational Building,
University of Rhode Island
(MBIA), 5.25%, 9/15/23 1,966,712
-----------
$ 4,087,399
-----------
</TABLE>
53
<PAGE> 54
-------
RHODE ISLAND TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT SECURITIES (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL OBLIGATIONS
- 7.9%
Aaa AAA $ 750 Rhode Island Depositors
Economic Protection
Corporation (MBIA), 5.25%,
8/1/21 $ 677,453
Aaa AAA 1,980 Rhode Island Port Authority
and Economic Development
Corporation Airport, (FSA),
5.25%, 7/1/23 1,734,539
Aaa AAA 900 Rhode Island Public
Buildings Authority
(AMBAC), 5.25%, 2/1/10 866,601
-----------
$ 3,278,593
-----------
INSURED GENERAL OBLIGATIONS
(LOCAL) - 4.7%
Aaa AAA $1,000 Burrellville, (MBIA),
5.75%, 10/15/17 $ 993,800
Aaa AAA 500 Town of West Warwick,
(MBIA), 5.90%, 1/1/05 534,925
Aaa AAA 480 City of Woonsocket, Water
Bonds (MBIA), 5.125%,
3/1/13 454,824
-----------
$ 1,983,549
-----------
INSURED GENERAL OBLIGATIONS
(STATE) - 2.4%
Aaa AAA $1,000 State of Rhode Island and
Providence Plantations,
Consolidated Capital
Development (FGIC), 5.50%,
7/15/12 $ 999,900
-----------
INSURED GENERAL OBLIGATION
(TERRITORY) - 0.6%
Aaa AAA $ 250 Puerto Rico, Public
Improvement Bonds of 1992,
Yield Curve Notes (AMBAC),
Variable, 7/1/15 (1) $ 252,485
-----------
INSURED HOUSING - 6.1%
Aaa AAA $ 890 Providence Housing
Development Corporation
Mortgage, (Barbara Jordan
Apartments) (MBIA), 6.50%,
7/1/09 $ 917,643
Aaa AAA 1,075 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA), 6.75%,
1/1/19 1,103,756
Aaa AAA 500 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA), 6.85%,
1/1/24 515,260
-----------
$ 2,536,659
-----------
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED LEASE/CERTIFICATE
OF PARTICIPATION - 4.6%
Aaa AAA $ 800 City of Pawtucket, Public
Building Authority (CGIC),
5.75%, 3/15/14 $ 796,368
Aaa AAA 590 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/13 551,249
Aaa AAA 630 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/14 583,947
-----------
$ 1,931,564
-----------
INSURED WATER & SEWER - 16.6%
Aaa AAA $1,500 Kent County Water Authority
General Revenue Bonds, 1994
Series A (MBIA), 6.35%,
7/15/14 $ 1,560,390
Aaa AAA 1,000 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.80%, 10/1/09 1,030,650
Aaa AAA 1,000 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.80%, 8/1/12 1,003,100
Aaa AAA 500 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.85%, 10/1/09 515,120
Aaa AAA 2,000 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.875%, 10/1/15 1,996,480
Aaa AAA 750 Rhode Island Clean Water,
Safe Drinking Water (MBIA),
6.70%, 1/1/15 800,610
-----------
$ 6,906,350
-----------
MISCELLANEOUS - 1.1%
Baa1 A- $ 500 Rhode Island Depositors
Economic Protection
Corporation, 5.75%, 8/1/21 $ 476,090
-----------
SPECIAL TAX - 6.7%
Baa BBB- $1,500 City of Providence, Rhode
Island, Special Obligation
Tax Increment Bonds, 7.65%,
6/1/16 $ 1,631,490
Baa1 A 750 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/17 701,258
</TABLE>
54
<PAGE> 55
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT SECURITIES (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
- ------------------ PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
SPECIAL TAX - (CONTINUED)
Baa1 A 500 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/20 446,615
-----------
$ 2,779,363
-----------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $41,635,939) $ 41,687,402
===========
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
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 September 30, 1995, 52.7% 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 1.9% to 37.4% of total investments.
See notes to financial statements
55
<PAGE> 56
-------
West Virginia Tax Free Portfolio
Portfolio of Investments - September 30, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 3.2%
NR BBB- $1,490 Puerto Rico IM&E
(Polytechnic University of
Puerto Rico), 5.50%, 8/1/24 $ 1,293,424
------------
ELECTRIC UTILITIES - 11.8%
NR BBB $ 750 Guam Power Authority,
5.25%, 10/1/13 $ 676,388
NR BBB 500 Guam Power Authority,
5.25%, 10/1/23 430,760
NR BBB 450 Guam Power Authority,
6.625%, 10/1/14 461,111
A2 A 2,000 Harrison, West Virginia PCR
(Monongahela Power Company
Harrison Station), 6.75%,
8/1/24 2,087,160
A3 BBB+ 1,000 Mason, West Virginia PCR
(Appalacian Power Co.),
6.85%, 6/1/22 1,050,440
------------
$ 4,705,859
------------
ESCROWED - 1.7%
Aaa AAA $2,500 Kanawha-Putnam, West
Virginia Single Family
Mortgage (AMBAC), 0%,
12/1/16 672,925
------------
HEALTH CARE - 1.9%
NR NR $ 745 Kanawha, West Virginia IDR
(Beverly Enterprises),
7.25%, 11/1/04 $ 751,102
------------
HOSPITALS - 9.9%
NR BBB+ $1,750 Berkeley, West Virginia
Building Commission (City
Hospital), 6.50%, 11/1/22 $ 1,747,655
A1 NR 1,000 West Virginia HFA
(Charleston Area Medical
Center), 6.50%, 9/1/23 1,028,530
A1 NR 1,125 West Virginia HFA
(Charleston Area Medical
Center), 6.50%, 9/1/16 1,160,303
------------
$ 3,936,488
------------
HOUSING - 4.6%
Aa1 AA+ $1,000 West Virginia Housing
Development Finance, 5.45%,
11/1/21 $ 907,180
Aa1 AA+ 1,000 West Virginia Housing
Development Finance, 5.55%,
5/1/17 932,170
------------
$ 1,839,350
------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL REVENUE -
12.5%
NR A- $1,375 Jefferson, West Virginia
IDR (Royal Venders,
Incorporated) (AMT), 5.90%,
8/1/04 $ 1,402,321
Baa2 BBB 300 Kanawha, West Virginia IDR
(Union Carbide Chemicals
and Plastics Company)
(AMT), 8.00%, 8/1/20 328,362
A2 NR 1,500 Puerto Rico IM&E (American
Home Products Corporation),
5.10%, 12/1/18 1,321,875
Baa3 BB+ 925 Puerto Rico Port Authority
(American Airlines) (AMT),
6.30%, 6/1/23 923,696
NR NR 1,000 Upshur, West Virginia Solid
Waste (TJI Project) (AMT),
7.00%, 7/15/25 1,017,510
------------
$ 4,993,764
------------
INSURED EDUCATION - 4.5%
Aaa AAA $1,150 West Virginia State College
System (AMBAC), 6.00%,
4/1/12 (2) $ 1,164,088
Aaa AAA 650 West Virginia State
University System (AMBAC),
6.00%, 4/1/12 660,329
------------
$ 1,824,417
------------
INSURED ELECTRIC UTILITIES - 13.5%
Aaa AAA $2,500 Marshall County PCR (Ohio
Power Kammer Plant) (MBIA),
5.45%, 7/1/14 $ 2,386,825
Aaa AAA 1,500 Mason County PCR (Ohio
Power Company) (AMBAC),
5.45%, 12/1/16 1,425,840
Aaa AAA 250 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 279,805
Aaa AAA 1,400 Putnam County PCR
(Appalachian Power Company)
(AMBAC), 5.45%, 6/1/19 1,304,898
------------
$ 5,397,368
------------
INSURED GENERAL OBLIGATIONS - 2.5%
Aaa AAA $1,000 West Virginia School
Building Authority (MBIA),
6.00%, 7/1/12 $ 1,009,250
------------
INSURED HOSPITALS - 15.7%
Aaa AAA $1,000 West Virginia HFA (Linked
Bulls & Bears) (MBIA),
6.10%, 1/1/18 $ 1,007,600
</TABLE>
56
<PAGE> 57
-------
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS -
(CONTINUED)
Aaa AAA 200 West Virginia HFA
(University Hospital)
(MBIA), 5.00%, 6/1/13 179,592
Aaa AAA 2,000 West Virginia HFA
(University Hospital)
(MBIA), 5.00%, 6/1/16 1,756,180
Aaa AAA 2,300 West Virginia HFA (Cabell
Huntington Hospital)
(AMBAC), 6.25%, 1/1/19 2,346,782
Aaa AAA 1,000 West Virginia HFA
(Charleston Area Medical
Center) (MBIA), 5.75%,
9/1/13 972,720
------------
$ 6,262,874
------------
INSURED TRANSPORTATION -
2.0%
Aaa AAA $1,250 West Virginia Parkways
Economic Development and
Tourism Authority (FGIC),
0%, 5/15/04 $ 793,888
------------
INSURED WATER & SEWER -
11.1%
Aaa AAA $1,500 Huntington City Sewerage
System (FSA), 5.375%,
11/1/23 $ 1,412,085
Aaa AAA 1,000 Parkersburg City Waterworks
(MBIA), 6.375%, 9/1/19 1,036,110
Aaa AAA 500 West Virginia Water
Development (Loan Program
II) (FSA), 5.75%, 11/1/19 485,395
Aaa AAA 810 West Virginia Water
Development (Loan Program
II) (FSA), 5.50%, 11/1/23 751,162
Aaa AAA 750 West Virginia Water
Development (Loan Program
II) (FSA), 6.00%, 11/1/14 754,170
------------
$ 4,438,922
------------
<CAPTION>
RATINGS (UNAUDITED)
- ------------------------
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SOLID WASTE - 2.6%
A2 A $1,000 Braxton, West Virginia
Solid Waste (Weyerhaeuser)
(AMT), 6.50%, 4/1/25 $ 1,022,740
------------
SPECIAL TAX REVENUE - 2.3%
Baa1 A $ 500 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/20 $ 446,615
Baa1 A 500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 475,681
------------
$ 922,294
------------
TOTAL TAX-EXEMPT
INVESTMENTS (IDENTIFIED
COST, $40,032,289) $ 39,864,667
============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
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 September 30, 1995, 49.5% 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 2.0% to 48.8% total investments.
See notes to financial statements
57
<PAGE> 58
- --------------------------------------------------------------------------------
Tax Free Portfolios
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments --
Identified cost $381,719,158 $661,202,447 $277,979,560 $27,181,386
Unrealized appreciation 24,303,093 33,808,006 17,523,995 1,162,683
------------ ------------ ------------ -----------
Total investments, at value (Note 1A) $406,022,251 $695,010,453 $295,503,555 $28,344,069
Cash 589 5,917,921 6,632 38
Receivable for investments sold 50,000 45,000 13,030,253 1,555,677
Interest receivable 6,743,380 15,155,609 5,219,546 492,405
Deferred organization expenses (Note 1D) 14,563 21,095 12,432 1,700
------------ ------------ ------------ -----------
Total assets $412,830,783 $716,150,078 $313,772,418 $30,393,889
------------ ------------ ------------ -----------
LIABILITIES:
Demand note payable (Note 5) $ 2,032,000 $ -- $ 2,018,000 $ 405,000
Payable for investments purchased -- -- 9,507,914 975,907
Payable for when-issued securities (Note 1F) -- 3,936,280 -- --
Payable for daily variation margin on open financial
futures contracts (Note 1E) 103,125 -- 61,875 16,500
Payable to affiliates --
Trustees' fees 4,638 5,150 4,126 426
Custodian fee 8,667 1,879 4,381 1,946
Accrued expenses 12,215 3,633 5,875 1,150
------------ ------------ ------------ -----------
Total liabilities $ 2,160,645 $ 3,946,942 $ 11,602,171 $ 1,400,929
------------ ------------ ------------ -----------
NET ASSETS applicable to investors' interest in
Portfolio $410,670,138 $712,203,136 $302,170,247 $28,992,960
============ ============ ============ ===========
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $386,540,544 $678,395,130 $284,750,352 $27,858,037
Unrealized appreciation of investments and financial
futures contracts (computed on the basis of
identified cost) 24,129,594 33,808,006 17,419,895 1,134,923
------------ ------------ ------------ -----------
Total $410,670,138 $712,203,136 $302,170,247 $28,992,960
============ ============ ============ ===========
</TABLE>
See notes to financial statements
58
<PAGE> 59
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments --
Identified cost $610,645,613 $304,406,955 $41,635,939 $40,032,289
Unrealized appreciation (depreciation) 31,702,974 11,991,691 51,463 (167,622)
------------ ------------ ----------- -----------
Total investments, at value (Note 1A) $642,348,587 $316,398,646 $41,687,402 $39,864,667
Cash 696 522 999,953 122
Receivable for investments sold 17,612,917 998,095 -- 1,251,526
Interest receivable 10,635,275 5,490,518 771,453 698,045
Deferred organization expenses (Note 1D) 14,921 9,316 1,744 1,738
------------ ------------ ----------- -----------
Total assets $670,612,396 $322,897,097 $43,460,552 $41,816,098
------------ ------------ ----------- -----------
LIABILITIES:
Demand note payable (Note 5) $ 476,000 $ 3,860,000 $ -- $ 970,000
Payable for investments purchased 16,908,493 -- 504,263 --
Payable for daily variation margin on open
financial futures contracts (Note 1E) 477,125 -- 48,125 7,313
Payable to affiliates --
Trustees' fees 5,150 4,126 426 427
Custodian fee 1,500 6,183 1,500 1,500
Accrued expenses 7,819 10,140 271 1,797
------------ ------------ ----------- -----------
Total liabilities $ 17,876,087 $ 3,880,449 $ 554,585 $ 981,037
------------ ------------ ----------- -----------
NET ASSETS applicable to investors' interest in
Portfolio $652,736,309 $319,016,648 $42,905,967 $40,835,061
============ ============ =========== ===========
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $621,396,197 $307,024,957 $42,891,975 $41,009,996
Unrealized appreciation (depreciation) of
investments and financial futures contracts
(computed on the basis of identified cost) 31,340,112 11,991,691 13,992 (174,935)
------------ ------------ ----------- -----------
Total $652,736,309 $319,016,648 $42,905,967 $40,835,061
============ ============ =========== ===========
</TABLE>
See notes to financial statements
59
<PAGE> 60
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income (Note 1B) $ 28,624,042 $ 47,432,310 $ 19,516,946 $1,829,920
------------ ------------ ------------ ----------
Expenses --
Investment adviser fee (Note 2) $ 2,121,262 $ 3,433,489 $ 1,383,407 $ 65,442
Compensation of Trustees not members of
the Investment Adviser's organization (Note 2) 18,570 21,513 16,111 1,642
Custodian fee (Note 2) 187,581 231,473 135,884 20,589
Interest expense (Note 5) -- 267,593 -- --
Legal and accounting services 42,258 37,372 30,407 15,822
Amortization of organization expenses (Note 1D) 5,625 8,830 5,209 620
Miscellaneous 120,219 36,943 91,575 11,551
------------ ------------ ------------ ----------
Total expenses $ 2,495,515 $ 4,037,213 $ 1,662,593 $ 115,666
------------ ------------ ------------ ----------
Deduct reduction of investment adviser fee
(Note 2) $ -- $ -- $ -- $ 36,759
Deduct reduction of custodian fee (Note 2) 47,611 220,751 61,501 10,910
------------ ------------ ------------ ----------
Total $ 47,611 $ 220,751 $ 61,501 $ 47,669
------------ ------------ ------------ ----------
Net expenses $ 2,447,904 $ 3,816,462 $ 1,601,092 $ 67,997
------------ ------------ ------------ ----------
Net investment income $ 26,176,138 $ 43,615,848 $ 17,915,854 $1,761,923
------------ ------------ ------------ ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss --
Investment transactions (identified cost basis) $(19,076,355) $(10,100,669) $(12,310,806) $(1,606,974)
Financial futures contracts (3,974,440) (12,765,513) (3,356,628) (429,946)
------------ ------------ ------------ ----------
Net realized loss on investments $(23,050,795) $(22,866,182) $(15,667,434) $(2,036,920)
------------ ------------ ------------ ----------
Change in unrealized appreciation (depreciation) --
Investments $ 34,125,832 $ 54,420,669 $ 24,470,289 $3,291,986
Financial futures contracts (650,309) -- (482,875) (49,109)
------------ ------------ ------------ ----------
Net unrealized appreciation of investments $ 33,475,523 $ 54,420,669 $ 23,987,414 $3,242,877
------------ ------------ ------------ ----------
Net realized and unrealized gain on
investments $ 10,424,728 $ 31,554,487 $ 8,319,980 $1,205,957
------------ ------------ ------------ ----------
Net increase in net assets from operations $ 36,600,866 $ 75,170,335 $ 26,235,834 $2,967,880
============ ============ ============ ==========
</TABLE>
See notes to financial statements
60
<PAGE> 61
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income (Note 1B) $ 41,798,094 $20,219,008 $ 2,510,499 $ 2,448,706
------------ ------------ ----------- -----------
Expenses --
Investment adviser fee (Note 2) $ 3,031,508 $ 1,463,895 $ 100,476 $ 98,033
Compensation of Trustees not members of
the Investment Adviser's organization (Note
2) 20,640 19,598 1,642 1,614
Custodian fee (Note 2) 221,548 157,716 25,652 19,975
Interest expense (Note 5) -- 114,074 9,944 --
Legal and accounting services 37,661 30,478 19,975 22,425
Amortization of organization expenses (Note 1D) 6,278 3,960 633 631
Miscellaneous 193,968 31,370 8,450 14,013
------------ ------------ ----------- -----------
Total expenses $ 3,511,603 $ 1,821,091 $ 166,772 $ 156,691
------------ ------------ ----------- -----------
Deduct reduction of investment adviser fee
(Note 2) $ -- $ -- $ 50,721 $ 32,526
Deduct reduction of custodian fee (Note 2) 220,048 67,412 16,510 8,102
------------ ------------ ----------- -----------
Total $ 220,048 $ 67,412 $ 67,231 $ 40,628
------------ ------------ ----------- -----------
Net expenses $ 3,291,555 $ 1,753,679 $ 99,541 $ 116,063
------------ ------------ ----------- -----------
Net investment income $ 38,506,539 $18,465,329 $ 2,410,958 $ 2,332,643
------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss --
Investment transactions (identified cost basis) $(12,293,704) $(4,554,010) $ (674,421) $ (534,437)
Financial futures contracts (6,983,956) (2,677,416) (717,584) (623,660)
------------ ------------ ----------- -----------
Net realized loss on investments $(19,277,660) $(7,231,426) $(1,392,005) $(1,158,097)
------------ ------------ ----------- -----------
Change in unrealized appreciation
(depreciation) --
Investments $ 43,541,560 $20,963,434 $ 2,912,214 $ 2,862,911
Financial futures contracts (498,006) -- (37,471) (52,368)
------------ ------------ ----------- -----------
Net unrealized appreciation of investments $ 43,043,554 $20,963,434 $ 2,874,743 $ 2,810,543
------------ ------------ ----------- -----------
Net realized and unrealized gain on
investments $ 23,765,894 $13,732,008 $ 1,482,738 $ 1,652,446
------------ ------------ ----------- -----------
Net increase in net assets from
operations $ 62,272,433 $32,197,337 $ 3,893,696 $ 3,985,089
============ ============ =========== ===========
</TABLE>
See notes to financial statements
61
<PAGE> 62
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 26,176,138 $ 43,615,848 $ 17,915,854 $ 1,761,923
Net realized loss on investments (23,050,795) (22,866,182) (15,667,434) (2,036,920)
Change in unrealized appreciation of investments 33,475,523 54,420,669 23,987,414 3,242,877
------------- ------------- ------------ -----------
Net increase in net assets from operations $ 36,600,866 $ 75,170,335 $ 26,235,834 $ 2,967,880
------------- ------------- ------------ -----------
Capital transactions --
Contributions $ 39,676,667 $ 64,327,943 $ 27,917,577 $ 4,982,661
Withdrawals (110,738,796) (199,418,295) (60,522,944) (8,434,232)
------------- ------------- ------------ -----------
Decrease in net assets resulting from capital
transactions $ (71,062,129) $(135,090,352) $(32,605,367) $(3,451,571)
------------- ------------- ------------ -----------
Total decrease in net assets $ (34,461,263) $ (59,920,017) $ (6,369,533) $ (483,691)
NET ASSETS:
At beginning of year 445,131,401 772,123,153 308,539,780 29,476,651
------------- ------------- ------------ -----------
At end of year $ 410,670,138 $ 712,203,136 $302,170,247 $28,992,960
============= ============= ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 38,506,539 $ 18,465,329 $ 2,410,958 $ 2,332,643
Net realized loss on investments (19,277,660) (7,231,426) (1,392,005) (1,158,097)
Change in unrealized appreciation of
investments 43,043,554 20,963,434 2,874,743 2,810,543
------------- ------------ ----------- -----------
Net increase in net assets from operations $ 62,272,433 $ 32,197,337 $ 3,893,696 $ 3,985,089
------------- ------------ ----------- -----------
Capital transactions --
Contributions $ 61,423,633 $ 24,237,228 $ 9,514,698 $ 3,302,492
Withdrawals (126,606,533) (61,829,470) (8,622,345) (6,925,830)
------------- ------------ ----------- -----------
Increase (decrease) in net assets resulting
from capital transactions $ (65,182,900) $(37,592,242) $ 892,353 $(3,623,338)
------------- ------------ ----------- -----------
Total increase (decrease) in net assets $ (2,910,467) $ (5,394,905) $ 4,786,049 $ 361,751
NET ASSETS:
At beginning of year 655,646,776 324,411,553 38,119,918 40,473,310
------------- ------------ ----------- -----------
At end of year $ 652,736,309 $319,016,648 $42,905,967 $40,835,061
============= ============ =========== ===========
</TABLE>
See notes to financial statements
62
<PAGE> 63
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
-----------------------------
YEAR ENDED YEAR ENDED
SEPTEMBER 30, MARCH 31, FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- -----------
YEAR ENDED
1994** 1994* SEPTEMBER 30, 1994
------------- ------------ ---------------------------------------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 13,943,369 $ 25,183,098 $ 45,081,235 $ 17,598,654 $ 1,360,681
Net realized gain (loss) on
investment transactions (10,624,666) 10,976,521 (5,816,054) (5,575,616) (648,050)
Change in unrealized
depreciation of investments (942,071) (34,132,327) (84,917,438) (26,955,377) (2,341,025)
------------ ------------ ------------- ------------ -----------
Net increase (decrease) in net
assets from operations $ 2,376,632 $ 2,027,292 $ (45,652,257) $(14,932,339) $(1,628,394)
------------ ------------ ------------- ------------ -----------
Capital transactions --
Contributions $ 24,605,354 $553,867,973 $ 174,248,758 $ 73,999,994 $22,605,600
Withdrawals (49,109,598) (88,736,272) (128,894,901) (41,140,572) (2,733,129)
------------ ------------ ------------- ------------ -----------
Increase (decrease) in net
assets resulting from
capital transactions $(24,504,244) $465,131,701 $ 45,353,857 $ 32,859,422 $19,872,471
------------ ------------ ------------- ------------ -----------
Total increase (decrease)
in net assets $(22,127,612) $467,158,993 $ (298,400) $ 17,927,083 $18,244,077
NET ASSETS:
At beginning of year 467,259,013 100,020 772,421,553 290,612,697 11,232,574
------------ ------------ ------------- ------------ -----------
At end of year $445,131,401 $467,259,013 $ 772,123,153 $308,539,780 $29,476,651
============ ============ ============= ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ -------------
YEAR ENDED SEPTEMBER 30, 1994
-------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 38,006,256 $ 18,012,641 $ 1,702,520 $ 1,998,183
Net realized loss on investment transactions (2,555,481) (413,084) (572,496) (467,540)
Change in unrealized depreciation of
investments (67,884,728) (32,855,282) (3,287,877) (3,500,185)
------------- ------------- ------------ -----------
Net decrease in net assets from operations $(32,433,953) $(15,255,725) $(2,157,853) $(1,969,542)
------------- ------------- ------------ -----------
Capital transactions --
Contributions $135,102,754 $ 78,699,031 $26,648,655 $21,082,434
Withdrawals (95,828,619) (37,123,714) (3,352,183) (3,399,808)
------------- ------------- ------------ -----------
Increase in net assets resulting from capital
transactions $ 39,274,135 $ 41,575,317 $23,296,472 $17,682,626
------------- ------------- ------------ -----------
Total increase in net assets $ 6,840,182 $ 26,319,592 $21,138,619 $15,713,084
NET ASSETS:
At beginning of year 648,806,594 298,091,961 16,981,299 24,760,226
------------- ------------- ------------ -----------
At end of year $655,646,776 $324,411,553 $38,119,918 $40,473,310
============ ============ =========== ===========
</TABLE>
See notes to financial statements
63
<PAGE> 64
- --------------------------------------------------------------------------------
* For the period from the start of business, May 3, 1993 to March 31, 1994.
** For the six months ended September 30, 1994 (Note 7).
See notes to financial statements
64
<PAGE> 65
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO
-------------------------------- ----------------------------------
YEAR ENDED YEAR ENDED
-------------------------------- ----------------------------------
SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
------------------- -------- ----------------------------------
1995 1994**** 1994*** 1995 1994 1993*
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average
daily net assets):
Expenses 0.59% 0.57% + 0.55% + 0.55% 0.48% 0.47%+
Net investment income 6.22% 6.09% + 5.72% + 5.94% 5.65% 5.53%+
Net assets, end of year (000 omitted) $410,763 $445,131 $467,259 $712,203 $772,123 $772,422
PORTFOLIO TURNOVER 58% 40% 91% 61% 57% 55%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
------------------------------ -------------------------------
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------ -------------------------------
1995 1994 1993* 1995 1994 1993**
-------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average daily net
assets)++:
Net expenses 0.56% 0.51% 0.49%+ 0.27% 0.05% 0.00%+
Net investment income 6.00% 5.74% 5.72%+ 5.97% 5.67% 4.49%+
Net assets, end of year (000 omitted) $302,170 $308,540 $290,613 $28,993 $29,477 $11,233
PORTFOLIO TURNOVER 87% 53% 38% 52% 38% 11%
</TABLE>
++The operating expenses of the Mississippi Portfolio 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average daily net
assets):
Expenses 0.39% 0.32% 0.25%+
Net investment income 5.85% 5.40% 4.24%+
</TABLE>
+ Annualized.
* 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.
*** For the period from the start of business, May 3, 1993 to March 31, 1994.
**** For the six months ended September 30, 1994 (Note 7).
See notes to financial statements
65
<PAGE> 66
- --------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
---------------------------------- ----------------------------------
1995 1994 1993* 1995 1994 1993*
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average
daily net assets):
Expenses 0.54% 0.48% 0.48%+ 0.57% 0.51% 0.49%+
Net investment income 5.97% 5.70% 5.64%+ 5.80% 5.61% 5.61%+
Net assets, end of year (000 omitted) $652,736 $655,647 $648,807 $319,017 $324,412 $298,092
PORTFOLIO TURNOVER 55% 47% 37% 51% 31% 24%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
--------------------------------- ---------------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
--------------------------------- ---------------------------------
1995 1994 1993** 1995 1994 1993**
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average daily
net assets)++:
Net expenses 0.29% 0.12% 0.00%+ 0.31% 0.10% 0.00%+
Net investment income 5.96% 5.64% 4.86%+ 5.81% 5.52% 4.50%+
Net assets, end of year (000 omitted) $42,906 $38,120 $16,981 $40,835 $40,473 $24,760
PORTFOLIO TURNOVER 42% 42% 23% 19% 39% 19%
</TABLE>
++ The operating expenses of the Rhode Island and West Virginia 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:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
RATIOS (As a percentage of average daily
net assets):
Expenses 0.41% 0.33% 0.26%+ 0.39% 0.33% 0.21%+
Net investment income 5.80% 5.43% 4.60%+ 5.73% 5.29% 4.30%+
</TABLE>
+ Annualized.
* 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.
See notes to financial statements
66
<PAGE> 67
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
California Tax Free Portfolio (California Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end Management Investment
Company. 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. The Portfolios
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
consistently followed by the Portfolios in the preparation of their financial
statements. 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.
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 Portfolio records when-issued
securities on trade date and maintains security positions such that sufficient
liquid assets will be available to make payments for the securities purchased.
Securities purchased on a when-issued or delayed delivery basis are
marked-to-market daily and begin earning interest on settlement date.
G. OTHER -- Investment transactions are accounted for on a trade date basis.
67
<PAGE> 68
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- --------------------------------------------------------------------------------
(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 year ended September 30, 1995, each Portfolio paid advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
- ------------------ ---------- ----------------
<S> <C> <C>
California $2,121,262 0.50%
Florida 3,433,489 0.47%
Massachusetts 1,383,407 0.46%
Mississippi 65,442 0.22%
New York 3,031,508 0.47%
Ohio 1,463,895 0.46%
Rhode Island 100,476 0.25%
West Virginia 98,033 0.24%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
To enhance the net income of the Mississippi Portfolio, Rhode Island Portfolio
and West Virginia Portfolio, BMR made a reduction in its fee in the amount of
$36,759, $50,721 and $32,526, respectively, for the year ended September 30,
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. All significant credit balances are reported as a
reduction of expenses in the statement of operations.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations. Trustees of the Portfolio that
are not affiliated with the Investment Adviser may elect to defer receipt of all
or a percentage of their annual fees in accordance with the terms of the
Trustees Deferred Compensation Plan. For the year ended September 30, 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 fiscal year ended September 30, 1995, were as
follows:
<TABLE>
<CAPTION>
CALIFORNIA
PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
------------------- ------------------ ------------------------ ------------------------
<S> <C> <C> <C> <C>
Purchases $ 240,733,525 $442,070,821 $256,567,304 $ 15,055,910
Sales 289,176,459 538,413,651 272,646,745 17,241,107
</TABLE>
<TABLE>
<CAPTION>
NEW YORK RHODE ISLAND WEST VIRGINIA
PORTFOLIO OHIO PORTFOLIO PORTFOLIO PORTFOLIO
------------------- ------------------ ------------------------ ------------------------
<S> <C> <C> <C> <C>
Purchases $ 355,016,997 $159,675,006 $ 18,875,194 $ 7,550,158
Sales 397,804,899 188,427,313 16,667,230 10,130,261
</TABLE>
68
<PAGE> 69
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation (depreciation) in value of the investments
owned by each Portfolio at September 30, 1995, as computed on a federal income
tax basis, are as follows:
<TABLE>
<CAPTION>
CALIFORNIA FLORIDA MASSACHUSETTS MISSISSIPPI
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Aggregate Cost $381,719,158 $661,202,447 $277,979,560 $27,181,386
============ ============ ============= ==============
Gross unrealized appreciation $ 24,714,474 $ 37,104,327 $17,673,126 $ 1,233,400
Gross unrealized depreciation 411,381 3,296,321 149,131 70,717
------------ ------------ ------------ -------------
Net unrealized appreciation $ 24,303,093 $ 33,808,006 $17,523,995 $ 1,162,683
============ ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
NEW YORK OHIO RHODE ISLAND WEST VIRGINIA
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Aggregate Cost $610,645,613 $304,406,955 $41,635,939 $40,032,289
============ ============ ============ =============
Gross unrealized appreciation $ 34,539,991 $ 13,447,996 $ 809,990 $ 586,957
Gross unrealized depreciation 2,837,017 1,456,305 758,527 754,579
------------ ------------ ------------ -------------
Net unrealized appreciation (depreciation) $ 31,702,974 $ 11,991,691 $ 51,463 $ (167,622)
============ ============ ============ =============
</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. Each Portfolio may temporarily borrow up to 5% of its
total assets to satisfy redemption requests or settle securities transactions.
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 and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. At September 30, 1995, the California Portfolio,
Massachusetts Portfolio, Mississippi Portfolio, New York Portfolio, Ohio
Portfolio and West Virginia Portfolio had loan balances outstanding pursuant to
this line of credit of $2,032,000, $2,018,000, $405,000, $476,000, $3,860,000
and $970,000, respectively.
For the year ended September 30, 1995, the average daily balance outstanding
pursuant to this line of credit, the average interest rate and the maximum
outstanding month end balance were as follows:
<TABLE>
<CAPTION>
MAXIMUM
OUTSTANDING
AVERAGE AVERAGE MONTH END
PORTFOLIO DAILY BALANCE INTEREST RATE BALANCE
- ------------- ------------- ------------- -----------
<S> <C> <C> <C>
Florida $ 9,287,587 7.28% $26,664,000
Ohio 2,928,000 7.27% 9,776,000
Rhode Island 747,882 7.26% 1,370,000
</TABLE>
The California, Massachusetts, Mississippi, New York, and West Virginia
Portfolios did not have any significant borrowings or allocated fees during the
year end September 30, 1995.
69
<PAGE> 70
- --------------------------------------------------------------------------------
(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.
A summary of obligations under these financial instruments at September 30,
1995, were as follows:
<TABLE>
<CAPTION>
FUTURES
CONTRACTS NET UNREALIZED
PORTFOLIO EXPIRATION DATE CONTRACTS POSITION DEPRECIATION
- -------------- ---------------- ------------------------- -------- --------------
<S> <C> <C> <C> <C>
California 12/95 75 U.S. Treasury Bonds Short $173,499
Massachusetts 12/95 45 U.S. Treasury Bonds Short 104,100
Mississippi 12/95 12 U.S. Treasury Bonds Short 27,760
New York 12/95 347 U.S. Treasury Bonds Short 362,862
Rhode Island 12/95 35 U.S. Treasury Bonds Short 37,471
West Virginia 12/95 10 U.S. Treasury Bonds Short 7,313
</TABLE>
At September 30, 1995, each Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts. The Florida Portfolio and
Ohio Portfolio did not have any open obligations under these financial
instruments at September 30, 1995.
- --------------------------------------------------------------------------------
(7) CHANGE IN FISCAL YEAR
The California Portfolio changed it fiscal year end from March 31 to September
30, effective September 30, 1994.
70
<PAGE> 71
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
TO THE TRUSTEES AND INVESTORS OF:
CALIFORNIA TAX FREE PORTFOLIO
FLORIDA TAX FREE PORTFOLIO
MASSACHUSETTS TAX FREE PORTFOLIO
MISSISSIPPI TAX FREE PORTFOLIO
NEW YORK TAX FREE PORTFOLIO
OHIO TAX FREE PORTFOLIO
RHODE ISLAND TAX FREE PORTFOLIO
WEST VIRGINIA TAX FREE PORTFOLIO
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of California Tax Free Portfolio, Florida Tax
Free Portfolio, Massachusetts Tax Free Portfolio, Mississippi Tax Free
Portfolio, New York Tax Free Portfolio, Ohio Tax Free Portfolio, Rhode Island
Tax Free Portfolio and West Virginia Tax Free Portfolio as of September 30,
1995, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended September 30, 1995 and
1994, and for the California Tax Free Portfolio, the year ended March 31, 1994,
and the supplementary data for each of the years in the three-year period ended
September 30, 1995. These financial statements and supplementary data are the
responsibility of each Trusts' management. Our responsibility is to express an
opinion on the financial statements and supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at
September 30, 1995, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other audit procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of California Tax Free
Portfolio, Florida Tax Free Portfolio, Massachusetts Tax Free Portfolio,
Mississippi Tax Free Portfolio, New York Tax Free Portfolio, Ohio Tax Free
Portfolio, Rhode Island Tax Free Portfolio and West Virginia Tax Free Portfolio
at September 30, 1995, the results of their operations, the changes in their net
assets and their supplementary data for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 27, 1995
71
<PAGE> 72
-------
Investment Management
- --------------------------------------------------------------------------------
FUNDS OFFICERS INDEPENDENT TRUSTEES
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
Chairman, Newspaper of New
England, Inc.
JAMES B. HAWKES
Vice President, Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of
Investment
ROBERT B. MACINTOSH Banking, Harvard University
Vice President Graduate School of
Business Administration
JAMES L. O'CONNOR
Treasurer
NORTON H. REAMER
THOMAS OTIS President and Director,
Secretary United Asset Management
Corporation
JOHN L. THORNDIKE
Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser
and Consultant
- --------------------------------------------------------------------------------
PORTFOLIOS OFFICERS JAMES L. O'CONNOR
Treasurer
THOMAS J. FETTER
President and Portfolio
Manager of Florida THOMAS OTIS
and Ohio Tax Free Secretary
Portfolios
JAMES B. HAWKES
Vice President, Trustee INDEPENDENT TRUSTEES
DONALD R. DWIGHT
ROBERT B. MACINTOSH President, Dwight Partners, Inc.
Vice President and Chairman, Newspaper of New
Portfolio England, Inc.
Manager of California and
Massachusetts
Tax Free Portfolios SAMUEL L. HAYES, III
Jacob H. Schiff Professor of
Investment Banking,
NICOLE ANDERES Harvard University
Vice President and Graduate School of
Portfolio Business Administration
Manager of New York and
Rhode Island
Tax Free Portfolios
NORTON H. REAMER
TIMOTHY T. BROWSE President and Director,
Vice President and United Asset Management
Portfolio Corporation
Manager of West Virginia
Tax Free Portfolio JOHN L. THORNDIKE
Director,
Fiduciary Company Incorporated
CYNTHIA J. CLEMSON
Vice President and
Portfolio
Manager of Mississippi JACK L. TREYNOR
Tax Free Portfolio Investment Adviser
and Consultant
<PAGE> 73
-------
- --------------------------------------------------------------------------------
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
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
73
<PAGE> 74
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 75
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 76
-------
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-8TFCSRC
