<PAGE> 1
EATON VANCE MUNICIPALS TRUST
FOR THE FUNDS:
--EV TRADITIONAL CONNECTICUT TAX FREE FUND
--EV TRADITIONAL NEW JERSEY TAX FREE FUND
--EV TRADITIONAL PENNSYLVANIA TAX FREE FUND
- - --------------------------------------------------------------------------------
[LOGO]
- - --------------------------------------------------------------------------------
SEMI-ANNUAL SHAREHOLDER REPORT
JANUARY 31, 1995
<PAGE> 2
TO SHAREHOLDERS
To say that 1994 was a difficult time for fixed-income markets
would be an understatement. According to several reports, 1994 was the worst
single year for bond markets since at least 1927.
Put simply, the troubles experienced by fixed-income markets were the result
of an economy that remained stronger than most observers had anticipated at
the start of the year. In response to this persistent economic strength and
in an attempt to keep inflation in check, the Federal Reserve raised
short-term interest rates a total of six times during the year, thereby
depressing bond prices.
Since the end of the year, the Fed already has raised interest rates once
again. It's expected that economists and market observers alike will continue
to watch closely both the Fed's actions and the economic indicators, to
ensure that inflation is in check.
But the market slide was not the only investment news during 1994. Many
shareholders also may have heard about the problems affecting the investments
of Orange County, CA., and may have wondered whether those problems have in
any way affected other municipal investments. While Orange County bonds were
affected, the market realized that this was an isolated situation and other
bonds have not been affected.
Despite the difficulties that beset the market in 1994, we feel optimistic
about the prospects for 1995. The market now appears convinced that the
Federal Reserve is, in fact, keeping a tight watch on inflation. Core
inflation was 2.7 percent for 1994.
Also, the changes in Washington that resulted from the November elections
could be positive for financial markets. While it is impossible to predict
the outcomes of government initiatives, it appears that proposals already put
forth to cut spending and taxes could have a positive effect if they are
enacted.
No matter what the economic environment, the goal of your Fund remains
the same: to continue to hold a portfolio of high-quality bonds that provides
shareholders a competitive distribution of tax-exempt income.
For this most recent report, please note that we have made some changes in
the way we describe the individual Funds and their Portfolios. On the
following pages, each of the Funds will be described using a Portfolio
Overview, which is a brief description of the Portfolio's contents as well as
some observations from the portfolio manager. Of course, we continue to
provide a detailed description of the contents of each Portfolio in the back
of this report.
For the first time, we also are including a profile of a specific bond held
in the Portfolio. This information will help you understand the kinds of
investments that we make with your money.
Municipal bonds provide a way for government to raise money for a diverse
range of projects. Shareholders should realize that their Fund's portfolio
provides funding for projects that governments believe will benefit the
public, from road and bridge repairs to industrial development projects.
I hope that you find this additional information useful.
Sincerely,
/s/Thomas J. Fetter [photo of Thomas J. Fetter]
Thomas J. Fetter
President
March 20, 1995
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<TABLE>
DIVIDENDS NAV FUND'S If Your You Would
PAID Per Share DISTRIB- Combined Need An
RESULTS FOR THE SIX MONTHS BY FUND At UTION Federal After-Tax
ENDING JANUARY 31, 1995 (DURING 1/31/95 RATE and Equivalent
SIX MOS. AT State Tax Yield Of...
FOR THE FOLLOWING FUNDS ENDED 1/31/95 Rate Is...
1/31/95
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EV Traditional Connecticut Tax Free Fund $0.290 $9.72 5.92% 38.88% 9.69%
EV Traditional New Jersey Tax Free Fund $0.297 $9.72 6.07% 40.26% 10.16%
EV Traditional Pennsylvania Tax Free Fund $0.295 $9.62 6.08% 42.00% 10.48%
</TABLE>
2
<PAGE> 3
EV TRADITIONAL CONNECTICUT TAX FREE FUND
While significantly improved in the past year, Connecticut's economy
continued to lag national and regional trends. The state's deep recession,
which was felt across a broad range of industries, exacted a heavy job toll in
key industries such as finance, real estate, insurance and defense. Those
sectors were hard-hit by industry restructurings, and, in the case of defense
manufacturing, by shrinking government appropriations. Together, those setbacks
eroded the state's economic base. However, while the employment outlook for
those industries remains relatively weak, job gains in construction, service,
trade, health care and tourism have partially offset those losses and helped
pace the Connecticut recovery.
The state's fiscal picture has brightened significantly with an improved
economy. Having encountered massive deficits earlier in the decade, Connecticut
pursued a series of fiscal and budgetary reforms, including instituting a 4
percent income tax, lowering the state sales tax, eliminating taxes on capital
gains, dividends and interest, and instituting a constitutional expenditure
cap. While those actions were politically controversial at first, they have
resulted in a more stable tax revenue base. Moreover, having recorded operating
surpluses in each of the past three fiscal years, Connecticut's headaches have
lessened. With a more vibrant economic outlook, the state should look forward
to continued fiscal stability and an improving financial future.
- - --------------------------------------------------------------------------------
"Entering 1994, the Portfolio was defensively positioned, but the market
decline was so sharp that even defensive bonds underperformed. In the
deteriorating market environment, I sold some lower-yielding bonds to establish
capital losses that can be used to offset future capital gain distributions and
generate higher income levels.
"Recent strategies have included the sale of current coupon bonds and the
purchase of discount bonds, which strengthened the Portfolio's performance
during the market rally of the past two months. Finally, from a sector
standpoint, I've continued to add to the Portfolio's weighting of state-backed
nursing home bonds. Oddly, the market seems to have overlooked the
state-backing even though the story remains strong. Because they represent
unusual value, I consider the bonds a good opportunity to enhance yield while
preserving credit quality."
Nicole Anderes -- Portfolio Manager [photo of Nicole Anderes]
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- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO OVERVIEW
Based on market value as of January 31, 1995
<S> <C> [graphic of CT]
Number of issues........................... 104
Average quality............................ AA-
Investment grade........................... 97.5%
Effective maturity......................... 18.9 yrs.
Largest sectors:
Healthcare (non hospital).............. 14.3%
Insured hospitals...................... 11.4*
Education.............................. 9.1
Housing................................ 7.8
Solid waste............................ 7.6
<FN>
* Private insurance does not remove the market risk associated with this
investment.
</TABLE>
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YOUR INVESTMENT AT WORK [graphic of state house]
City of
Danbury, CT.
General Obligations
This Danbury general obligation is an example of an out-of-favor, deep
discount bond that offered good value for the Portfolio. As interest rates
edged higher throughout 1994, investors generally avoided discount bonds --
those with coupons below current coupon levels -- as they offer less desirable
characteristics in a rising rate environment.
The Danbury bonds -- which are rated AA/Aa by S&P and Moody's, respectively,
were similarly overlooked and undervalued. The Portfolio purchased the bonds in
December at a level that represented a 35 basis point yield advantage relative
to comparable current coupon bonds. In the subsequent market rally, investors
recognized the value of the Danbury bonds, which outperformed the broad market.
3
<PAGE> 4
EV TRADITIONAL NEW JERSEY TAX FREE FUND
New Jersey continued along the road to recovery in 1994 with strong gains
across a wide range of industry sectors. According to the New Jersey
Department of Labor, net job gains since the bottom of the recession in March
1992 have surpassed 100,000, with jobs added in contruction, trade, business
services, transportation, finance and health care. Mirroring trends at the
national level, the service sectors accounted for the majority of employment
gains, including health care transportation, financial services, and
temporary business service agencies. Construction activity rebounded as well
on the strength of rising housing starts, non-residential building, and
public works such as water, sewer, roads, and communications systems.
The financial condition of New Jersey deteriorated throughout the first half
of the 1990s due to declining revenues and sharply rising social costs. To
balance the budget during that period, the state was heavily reliant on
one-time revenue sources such as asset sales and stop-gap measures such as
accounting changes. Since it took office, the Whitman administration has made
lowering state taxes a major goal. In the short term, balancing those revenue
losses with spending cuts will prove challenging. However, in the long run,
these actions should lead to a better fiscal balance. In an improved economic
environment, that should lead to a better fiscal balance for the state's
finances.
- - --------------------------------------------------------------------------------
"The past year saw a debacle in the bond market, as investors were overly
concerned by inflation fears and the Fed's actions. The market decline was so
swift and so severe, that high quality bonds actually underperfomed lower
quality issues in a falling market, contrary to conventional wisdom.
"In the wake of the market decline I have made a number of adjustments to the
Portfolio. First, I sold bonds with relatively low yields, realizing capital
losses which can be used against any future capital gains. Next, because a
large number of high quality issues reached undervalued levels, I redoubled my
efforts to find undervalued high quality bonds. Finally, I sought opportunities
to add deep discount bonds. In a stronger bond environment, these bonds would
likely have superior upside potential."
Robert B. MacIntosh -- Portfolio Manager [photo of
Robert B. MacIntosh]
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- - --------------------------------------------------------------------------------
<TABLE> [graphic of NJ]
<CAPTION>
PORTFOLIO OVERVIEW
Based on market value as of January 31, 1995
<S> <C>
Number of issues............................ 137
Average quality............................. A+
Investment grade............................ 86.1%
Effective maturity.......................... 16.3 yrs.
Largest sectors:
Transportation.......................... 13.3%
Insured-transportation.................. 10.1*
General obligation...................... 8.8
Hospitals............................... 7.4
Solid waste............................. 7.1
<FN>
* Private insurance does not remove the market risk associated with this
investment.
</TABLE>
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YOUR INVESTMENT AT WORK
New Jersey Economic [graphic of factory]
Development Bonds
The Seeing Eye Inc.
These bonds are obligations of the New Jersey Economic Development Authority.
Interest and principal payments represent the loan payments to the Authority by
The Seeing Eye, Inc., a non-profit corporation located in Morris County, that
breeds, raises, and trains guide dogs, and trains qualified blind citizens in
their use. The Seeing Eye has received wide acclaim for its training
techniques and singular accomplishments in aiding the unsighted.
The proceeds of the bonds were devoted to upgrading existing buildings and
sewer lines, as well as constructing new kennel facilities. Although non-rated,
the bond represents a highly-regarded issuer. And, with an above-average coupon
- - -- 7.3 percent -- this issue affords an opportunity to add incrementally to the
Portfolio's yield.
4
<PAGE> 5
EV TRADITIONAL PENNSYLVANIA TAX FREE FUND
Pennsylvania's total non-farm jobs surpassed 5.2 million in November, the
highest total on record, according to the Pennsylvania Department of Labor and
Industry, and a further sign of the Commonwealth's strong economic performance.
Growth has been especially robust in the service, retail and government
sectors, which added around 80,000 jobs above the 1993 level. In the
goods-producing sectors, construction and durable goods manufacturers also
managed gains, while mining remained an area of weakness.
Pennsylvania weathered the recession of the early 1990s better than its
neighbors in the Northeast because of a smaller dependence on the financial
services, real estate, and defense industries. Elsewhere, because the state's
manufacturers have focused on restructuring and modernizing industrial plants,
the manufacturing sector is now well-positioned to compete in an increasingly
global marketplace. Having suffered through operating deficits during the
recession, Pennsylvania made difficult budget decisions that paid dividends in
the past year in the form of larger-than-expected surpluses. Recent tax cuts
will provide a revenue challenge if the economy weakens. And, like other
states, the Commonwealth still faces rising mandated social and medical
spending. But having instituted more effective spending controls, Pennsylvania
has significantly improved its budgetary disciplines and should enjoy a much
improved financial outlook.
- - --------------------------------------------------------------------------------
"Following a difficult market in 1994, I've extended several major themes
in the Portfolio. I've continued to upgrade the hospital sector holdings by
moving out of the over-bedded Philadelphia market, while diversifying into high
quality providers in smaller cities and rural areas elsewhere in the state.
"Other efforts in the wake of the market downturn have included seeking
opportunities to increase the Portfolio's yield. The Portfolio has accomplished
that in several ways: through private placements in non-rated bonds, selective
purchases of lower investment grade bonds, and replacing lower-yielding issues
with higher-yielding bonds. Capital losses realized from the sale of such bonds
will be used to offset future capital gains and thus further lower shareholders
future tax liabilities.
David C. Reilly -- Portfolio Manager [photo of David C. Reilly]
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO OVERVIEW
Based on market value as of January 31, 1995
<S> <C>
Number of issues........................... 127 [graphic of PA]
Average quality............................ Aa-
Investment grade........................... 95.9%
Effective maturity......................... 17.7 yrs.
Largest sectors:
Hospitals.............................. 24.8%*
Housing................................ 10.2
Insured-hospital....................... 10.2*
Insured-water & sewer.................. 9.1*
Industrial development................. 8.4
<FN>
* Private insurance does not remove the market risk associated with this
investment.
</TABLE>
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YOUR INVESTMENT AT WORK
Pennsylvania EDA
Northampton, PA. [graphic of factory]
Generating Project
This bond, an issue of the Pennsylvania Economic Development Authority,
provides funding for the Northampton Generating Project, an energy
cogeneration facility. The Northampton Project takes waste coal and turns it
into electricity and steam to be used for industrial purposes. The project is
popular with industry because it is a cost-effective way to produce energy, and
popular with environmentalists because it averts further environmental
contamination by industrial by-products.
While non-rated, the bond was favorably structured for the Portfolio and is
the result of an extensive internal research effort at Eaton Vance. The bonds
have a 6 1/2 percent coupon, but the Portfolio purchased them at a modest
discount for a yield above 7 percent. This bond purchase is characteristic of
the our recent efforts to increase the yield of the Portfolio.
5
<PAGE> 6
<TABLE>
EV TRADITIONAL TAX FREE FUNDS
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
- - -------------------------------------------------------------------------------------------------------------------------------
January, 31, 1995 (Unaudited)
- - -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT NEW JERSEY PENNSYLVANIA
FUND FUND FUND
------------ ------------ -----------
<S> <C> <C> <C>
ASSETS:
Investments in Portfolios-
Identified cost $ 736,074 $ 811,647 $ 234,517
Unrealized appreciation 14,443 4,454 1,788
------------ ------------ -----------
Total investments in Portfolio, at value (Note 1A) $ 750,517 $ 816,101 $ 236,305
Receivable from the Administrator (Note 4) 11,359 15,841 11,919
Deferred organization expenses (Note 1D) 21,658 20,736 21,399
------------ ------------ -----------
Total assets $ 783,534 $ 852,678 $ 269,623
------------ ------------ -----------
LIABILITIES:
Dividends payable $ 2,121 $ 2,986 $ 818
Payable to affiliate -- Custodian fee 84 84 46
Accrued expenses 15,075 17,640 17,143
------------ ------------ -----------
Total liabilities $ 17,280 $ 20,710 $ 18,007
------------ ------------
NET ASSETS $ 766,254 $ 831,968 $ 251,616
============ ============= ===========
SOURCES OF NET ASSETS:
Paid-in capital $ 760,244 $ 849,800 $ 253,719
Accumulated net realized loss on investment and financial
futures transactions (computed on the basis of identified cost) (7,277) (21,500) (3,416)
Accumulated distributions in excess of net investment income (1,156) (786) (475)
Unrealized appreciation of investments and financial futures contracts
from Portfolio (computed on the basis of identified cost) 14,443 4,454 1,788
------------ ------------ -----------
Total $ 766,254 $ 831,968 $ 251,616
============ ============ ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 78,825 85,629 26,162
============ ============ ===========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets / shares of beneficial interest outstanding) $ 9.72 $ 9.72 $ 9.62
============ ============ ===========
COMPUTATION OF OFFERING PRICE PER SHARE
(100/95.25 of net asset value per share) $ 10.20 $ 10.20 $ 10.10
============ ============ ===========
<FN>
On sales of $100,000 or more, the offering price is reduced.
</TABLE>
See notes to financial statements
6
<PAGE> 7
<TABLE>
STATEMENTS OF OPERATIONS
- - -------------------------------------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JANUARY 31, 1995 (UNAUDITED)
- - -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT NEW JERSEY PENNSYLVANIA
FUND FUND FUND
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income allocated from Portfolio $ 14,003 $ 21,951 $ 5,036
Expenses allocated from Portfolio (1,244) (1,800) (387)
----------- ----------- -----------
Net investment income from Portfolio $ 12,759 $ 20,151 $ 4,649
----------- ----------- -----------
Expenses-
Custodian fees (Note 4) $ 583 $ 584 $ 389
Printing and postage 5,157 6,820 6, 121
Legal and accounting 3,022 5,122 2,552
Amortization of organization expenses (Note 1D) 2,490 2,490 2,490
Registration costs 168 321 114
Transfer and dividend disburing agent fees 127 172 278
Miscellaneous 437 337 -
----------- ----------- -----------
Total expenses $ 11,984 $ 15,846 $ 11,944
Deduct preliminary, allocation of expenses to the Administrator (Note 4) 11,359 15,841 11,919
----------- ----------- -----------
Net expenses $ 625 $ 5 $ 25
----------- ----------- -----------
Net investment income $ 12,134 $ 20,146 $ 4,624
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from Portfolio -
Investment transactions (identified cost basis) $ (7,084) $ (21,547) $ (3,147)
Financial futures contracts (171) 59 (269)
----------- ----------- -----------
Net realized loss on investments $ (7,255) $ (21,488) $ (3,416)
Change in unrealized appreciation of investments 12,804 3,425 1,386
----------- ----------- -----------
Net realized and unrealized gain(loss) $ 5,549 $ (18,063) (2,030)
----------- ----------- -----------
Net increase in net assets from operations $ 17,683 $ 2,083 $ 2,594
=========== =========== ===========
</TABLE>
See notes to financial statements
7
<PAGE> 8
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended January 31, 1995 (Unaudited)
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT NEW JERSEY PENNSYLVANIA
FUND FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 12,134 $ 20,146 $ 4,624
Net realized loss on investments (7,255) (21,488) (3,416)
Change in unrealized appreciation of investments 12,804 3,425 1,386
-------- -------- --------
Net increase in net assets from operations $ 17,683 $ 2,083 $ 2,594
-------- -------- --------
Distributions to shareholders (Note 2) -
From net investment income $(12,134) $(20,146) $ (4,624)
In excess of net investment income (1,079) (725) (341)
-------- -------- --------
Total distributions to shareholders $(13,213) $(20,871) $ (4,965)
-------- -------- --------
Transactions in shares of beneficial interest (Note 3) -
Proceeds from sales of shares $594,318 $658,350 $197,560
Net asset value of shares issued to shareholders in
payment of distributions declared 4,306 5,051 1,834
Cost of shares redeemed - (109,130) (40,240)
Increase in net assets from Fund share transactions $598,624 $554,271 $159,154
-------- -------- --------
Net increase in net assets $603,094 $535,483 $156,783
NET ASSETS:
At beginning of period 163,160 296,485 94,833
-------- -------- --------
At end of period $766,254 $831,968 $251,616
======== ======== ========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET ASSETS AT END OF PERIOD $ (1,156) $ (786) $ (475)
======== ======== ========
</TABLE>
See notes to financial statements
8
<PAGE> 9
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- - -------------------------------------------------------------------------------------------------------------------------------
Year Ended July 31, 1994*
- - -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT NEW JERSEY PENNSYLVANIA
FUND FUND FUND
------------ ------------ ----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 1,092 $ 600 $ 111
Net realized loss on investments (22) (12) -
Unrealized appreciation of investments 1,639 1,029 402
------------ ------------ ----------
Net increase in net assets from operations $ 2,709 $ 1,617 $ 513
------------ ------------ ----------
Distributions to shareholders (Note 2) -
From net investment income $ (1,092) $ (600) $ (111)
In excess of net investment income (77) (61) (134)
------------ ------------ ----------
Total distributions to shareholders $ (1,169) $ (661) $ (245)
------------ ------------ ----------
Transactions in shares of beneficial interest (Note 3) -
Proceeds from sales of shares $ 161,241 $ 346,177 $ 94,424
Net asset value of shares issued to shareholders in payment
of distributions declared 379 52 141
Cost of shares redeemed - (50,700) -
------------ ------------ ----------
Increase in net assets from Fund share transactions $ 161,620 $ 295,529 $ 94,565
------------ ------------ ----------
Net increase in net assets $ 163,160 $ 296,485 $ 94,833
NET ASSETS:
At beginning of period - - -
------------ ------------ ----------
At end of period $ 163,160 $ 296,485 $ 94,833
============ ============ ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET ASSETS AT END of period $ (77) $ (61) $ (134)
============ ============ ==========
<FN>
* For the Traditional Connecticut, Traditional New Jersey and the Traditional
Pennsylvania Funds, the Statements of Changes in Net Assets are for the period
from the commencement of operations, April 19, 1994, April 13, 1994 and June 1,
1994, respectively, to July 31, I994.
</TABLE>
9
<PAGE> 10
<TABLE>
FINANCIAL HIGHLIGHTS
- - ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT FUND NEW JERSEY FUND PENNSYLVANIA FUND
----------------------- ---------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 1/31/95 ENDED ENDED 1/31/95 ENDED ENDED 1/31/95 ENDED
(UNAUDITED) 7/31/94* (UNAUDITED) 7/31/94* (UNAUDITED) 7/31/94*
--------- --------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.100 $10,000 $9.940 $10.000 $10.050 $10.000
--------- --------- --------- --------- -------- --------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.266 $ 0.153 $0.287 $ 0.161 $ 0.275 $ 0.044
Net realized and unrealized gain(loss) on
invest (0.356) 0.111 (0.210) (0.044) (0.410) 0.104
--------- --------- --------- --------- -------- --------
Total income (loss) from operations ($0.090) $ 0.264 $0.077 $ 0.117 $(0.135) $ 0.148
--------- --------- --------- --------- -------- --------
LESS DISTRIBUTIONS:
From net investment income ($0.266) ($0.153) ($0.287) ($0.161) $(0.275) ($0.044)
In excess of net investment income (0.024) (0.011) (0.010) (0.016) (0.020) (0.054)
--------- --------- --------- --------- -------- --------
Total distributions ($0.290) ($0.164) ($0.297) ($0.177) $(0.295) ($0.098)
--------- --------- --------- --------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.720 $10.100 $9.720 $ 9.940 $ 9.620 $10.050
========= ========= ========= ========= ======== ========
TOTAL RETURN(2) (0.83%) 2.66% 0.85% 1.19% (1.30%) 1.49%
RATIOS/SUPPLEMENTAL DATA*:
Net assets, end of period (000 omitted) $ 766 $ 163 $ 832 $ 296 $ 252 $ 95
Ratio of net expenses to average daily
net assets (1) 0.82%+ 0.48%+ 0.50%+ 0.43%+ 0.49/6+ 1.69/6+
Ratio of net investment income to
average daily net assets 5.32%+ 4.83%+ 5.58%+ 4.11%+ 5.50% 2.76%+
<FN>
For the six months ended January 31, 1995 and for the period from the start business, April 19, 1994, April I3, 1994 and June 1,
1994, to July 31, 1994, respectively, the operating expenses of the Funds reflect an allocation of expenses to the Administrator.
Had such actions not been taken, net investment income (loss) per share and the ratios would have been as follows:
NET INVESTMENT INCOME (LOSS) PER SHARE $0.017 ($0.045) $0.061 ($0.237) ($0.433) ($0.258)
========== =========== ========== ========== ========== ==========
RATIOS (As a percentage of average daily net assets):
Expenses (1) 5.80%+ 6.73%+ 4.89%+ 10.59%+ 14.67%+ 20.95%+
Net investment income (loss) 0.34%+ (1.42%)+ 1.19%+ (6.05%)+ (8.68%)+ (16.50%)+
** For the Traditional Connecticut, Traditional New Jersey and the Traditional Pennsylvania Funds, the Financial Highlights are for
the period from the commencement of operations, April 19, 1994, April 13, 1994 and June 1, 1994, respectively, to
July 31, 1994.
+ Computed on an annualized basis.
++ The per share amount is not in accord with the net realized and unrealized gains and losses for the period because of the
timing of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(1) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(2) Total return is calculated assuming 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.
</TABLE>
See notes to financial statements
10
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- - --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Trust presently consists of sixty-three Funds, three of which are included
in these financial statements. They include EV Traditional Connecticut Tax
Free Fund, ("Traditional Connecticut Fund"), EV Traditional New Jersey Tax Free
Fund ("Traditional New Jersey Fund") and EV Traditional Pennsylvania Tax Free
Fund ("Traditional Pennsylvania Fund"). Each Fund invests all of its investable
assets in interests in a separate corresponding open-end management investment
company (a Portfolio), a New York Trust, having the same investment
objective as its corresponding Fund. The Traditional Connecticut Fund invests
its assets in the Connecticut Tax Free Portfolio, the Traditional New Jersey
Fund invests its assets in the New Jersey Tax Free Portfolio and the
Traditional Pennsylvania Fund invests its assets in the Pennsylvania Tax Free
Portfolio. The value of each Fund's investment in its corresponding Portfolio
reflects the Funds' proportionate interest in the net assets of that Portfolio
(0.4%, 0.2% and 0.05% at January 31, 1995 for the Traditional Connecticut Fund,
Traditional New Jersey Fund and Traditional Pennsylvania Fund, respectively.)
The performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each basis 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 VALUATIONS -- 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 each 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 July 31, 1994, the Funds, for
federal income tax purposes, had capital loss carryovers of $280, $307, and
$218, respectively, 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 to
shareholders which would otherwise be necessary to relieve the Funds of any
liability for federal income or excise tax. Such capital loss carryovers will
expire on July 31, 2002. Dividends paid by each Fund from net interest on
tax-exempt municipal bonds allocated from its corresponding Portfolio are not
includable by shareholders as gross income for federal income tax purposes
because each Fund and Portfolio intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which will
enable the Funds to pay exempt-interest dividends. The portion of such
interest, if any, earned on private activity bonds issued after August 7,
1986, may be considered a tax preference item to shareholders.
D. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by a Fund in connection with
its organization, including registration costs, are being amortized on the
straight-line basis over five years, beginning on the date each Fund commenced
operations.
E. OTHER -- Investment transactions are accounted for on a trade date
basis.
F. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating to
January 31, 1995, and the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments necessary for the fair presentation of the financial statements.
11
<PAGE> 12
- - --------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net income of each Fund is determined daily and substantially all of the net
income so determined is declared as a dividend to shareholders of record at
the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest capital gain distributions in additional shares of a
Fund at the net asset value as of the ex-dividend date. Distributions are paid
in the form of additional shares or, at the election of the shareholder,
in cash. The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles require that
only distributions in excess of tax basis earnings and profits be reported in
the financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statements purposes are classified as distributions 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.
- - --------------------------------------------------------------------------------
(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>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT FUND NEW JERSEY FUND PENNSYLVANIA FUND
---------------- --------------- -----------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 1/31/95 ENDED ENDED 1/31/95 ENDED ENDED 1/31/95 ENDED
(UNAUDITED) 7/31/94* (UNAUDITED) 7/31/94* (UNAUDITED) 7/31/94*
---------- -------- ---------- ------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Sales 62,228 16,109 66,899 34,973 20,531 9,425
Issued to shareholders selecting to receive
payments of distributions in fund shares 450 38 528 5 192 14
Redemptions - (11,622) (5,154) (4,000) -
------ ------ ------ ------ ------ -----
NET INCREASE 62,678 16,147 55,805 29,824 16,723 9,439
====== ====== ====== ====== ====== =====
<FN>
* For the Traditional Connecticut, Traditional New Jersey and Traditional
Pennsylvania Funds, the start of business is April 19, 1994, April 13, 1994,
and June 1, 1994, respectively.
</TABLE>
- - --------------------------------------------------------------------------------
(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, $11,359,
$15,841, and $11,919 of expenses related to the operation of the Traditional
Connecticut Fund, Traditional New Jersey Fund and Traditional Pennsylvania Fund,
respectively, were allocated, on a preliminary basis, to EVM. Except as to
Trustees of the Funds and the Portfolios who are not members of EVM's or BMR,'s
organization, officers and Trustees receive remuneration for their services to
each Fund out of such investment adviser fee. Investors Bank & Trust Company
(IBT), an affiliate of EVM, serves as custodian to the Funds and the
Portfolios. Pursuant to the respective custodian agreements, IBT receives a fee
reduced by credits which are determined based on the average cash balances the
Funds or the Portfolios maintain with IBT. Certain of the officers and Trustees
of the Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 5).
12
<PAGE> 13
- - --------------------------------------------------------------------------------
(5) SERVICE PLAN
Each Fund has adopted a service plan designed to meet the requirements of Rule
12b-1 under the Investment Company Act of 1940 and the service fee requirements
of the revised sales charge rule of The National Association of
Securities Dealers, Inc. The Service Plans provide that each Fund may
make service fee payments to the Principal Underwriter, Eaton Vance
Distributors, Inc. (EVD), a subsidiary of Eaton Vance Management, Authorized
Firms or other persons in amounts not exceeding 0.25% of each Fund's average
daily net assets for any fiscal year. The Trustees have initially implemented
each Plan by authorizing the Funds to make quarterly service fee payments to
the Principal Underwriter and Authorized Firms in amounts not exceeding
0.20% of each Fund's average daily net assets for any fiscal year which is
attributable to shares of a Fund sold by such persons and remaining
outstanding for at least one year. Service fee payments are made for personal
services and/or the maintenance of shareholder accounts. No provision for
service fee payments was made for the six months ended January 31, 1995.
Certain of the officers and Trustees of the Funds are officers and directors of
EVD.
- - --------------------------------------------------------------------------------
(6) INVESTMENT TRANSACTIONS
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended January 31, 1995 were as follows:
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
CONNECTICUT FUND NEW JERSEY FUND PENNSYLVANIA FUND
---------------- --------------- -----------------
<S> <C> <C> <C>
Increases $595,731 $818,192 $198,390
Decreases 20,971 134,161 59,384
</TABLE>
13
<PAGE> 14
<TABLE>
CONNECTICUT TAX FREE PORTFOLIO
PORTFOLIO OF INVESTMENTS - JANUARY 31, 1995
(UNAUDITED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS- 100%
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION: 9.1%
Baa1 A $ 625 Connecticut HEFA, Fairfield
University Issue, 6.90%,
7/1/14, 6.9 $ 633,950
Aaa AAA 3,000 Connecticut HEFA, Yale
University, Residual Interest
Bond, Variable,
6/10/30 (1) 2,661,900
Baa BBB 1,000 Connecticut HEFA,
University of Hartford,
6.75%, 7/1/12 922,210
Baa BBB 5,500 Connecticut HEFA,
University of Hartford,
6.80%, 7/1/22 4,960,670
NR BBB- 6,175 Connecticut HEFA,
Quinnipiac College, 6.00%,
7/1/23 5,135,686
NR BBB- 1,000 Connecticut HEFA,
Sacred Heart University,
6.80%, 7/1/12 970,200
NR A- 1,000 Connecticut HEFA, Sacred
Heart University, 5.80%,
7/1/23 836,780
NR A- 1,125 Connecticut HEFA, Taft
School, 5.40%, 7/1/20 948,757
-----------
$17,070,153
-----------
ESCROWED TO MATURITY: 2.3%
NR AA- $ 650 State of Connecticut G.O.
Bonds, 6.875%, 7/15/10 $ 699,576
NR AAA 800 Connecticut Special Tax
Obligation Bonds,
Transportation 6.75
Infrastructure Purposes,
6.75%, 6/1/11 860,416
NR AAA 645 Connecticut Special Tax
Obligation Bonds,
Transportation 6.75
Infrastructure Purposes,
6.50%, 7/1/09 682,616
A1 AA 300 Amity RSD No. 5
Bonds, 6.80%, 6/15/08 317,721
NR NR 1,630 City of Stratford, Connect-
icut G.O. Bonds, 7.30%,
3/1/12 1,794,092
-----------
$ 4,354,421
-----------
GENERAL OBLIGATION: 6.6%
Aa NR $ 525 Town of Guilford, Connecticut
Bonds, 4.75%, 11/15/10 $ 455,721
Aa NR 525 Town of Guilford,
Connecticut Bonds,
4.75%, 11/15/11 450,681
Aa AA 225 Town of Windsor,
Connecticut Bonds, 5.75%,
1/15/13 212,263
Aa AA 190 Town of Windsor,
Connecticut Bonds,
5.75%, 1/15/14 178,927
A AA- 2,000 City of Bridgeport,
Connecticut Bonds,
5.125%, 3/1/05 1,999,140
Aa AA- 1,750 State of Connecticut,
Capital Appreciation
Bonds, 0%, 11/1/09 717,903
AA AA- 1,000 State of Connecticut
Bonds, 5.50%, 3/15/10 936,570
AA AA- 500 State of Connecticut
Bonds, 5.50%, 3/15/11 467,040
Aa AA 1,270 City of Danbury,
Connecticut Bonds,
4.50%, 2/1/14 5.625 1,011,720
Aa1 NR 650 City of Farmington,
Connecticut Bonds,
5.70%, 1/15/11 631,430
NR BBB 500 Government of Guam
Bonds, 5.40%, 11/15/18 406,935
Aa1 AA+ 925 City of Norwalk Maritime
Center Project Bonds, 6.05%,
2/1/09 921,531
Baa1 A 2,620 Puerto Rico Public
Improvement Bonds,
5.25%, 7/1/18 2,268,212
Baa1 A 2,000 Puerto Rico PBA Bonds,
5.50%, 7/1/21 1,733,240
-----------
$12,391,313
-----------
HEALTH CARE (NON-HOSPITAL): 14.3%
A1 AA- $ 600 Connecticut HEFA,
Nursing Home Program
(Noble Horizons),6.00%,
11/1/22 $ 536,286
A1 AA- 1,045 Connecticut HEFA,
Nursing Home Program
(Cherry Brook),
5.875%, 11/1/12 943,154
</TABLE>
14
<PAGE> 15
<TABLE>
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE (NON-HOSPITAL)
(CONTINUED)
A1 AA- 720 Connecticut HEFA,
Nursing Home Program
(Highland View),
7.00%, 11/1/07 750,996
A1 AA- 1,000 Connecticut HEFA, Nursing
Home Program (Jewish
Home-Fairfield), 6.25%,
11/1/20 940,370
A1 AA- 515 Connecticut HEFA, Nursing
Home Program (Mansfield),
5.875%, 11/1/12 464,808
A1 AA- 655 Connecticut HEFA, Nursing
Home Program (St. Camillus),
6.25%, 11/1/18 619,388
A1 AA- 3,250 Connecticut HEFA, Nursing
Home Program (St. Joseph's
Manor), 6.25%, 11/1/16 3,048,143
A1 AA- 1,030 Connecticut HEFA, Nursing
Home Program (St. Joseph's
Learning Center), 5.00%,
11/1/09 864,963
A1 AA- 2,235 Connecticut HEFA,
Nursing Home Program
(St. Joseph's Living Center),
5.00%, 11/1/09 1,732,259
A1 AA- 1,365 Connecticut HEFA, Nursing
Home Program (Sharon Health
Care), 6.25%, 11/1/14 1,306,742
A1 AA- 335 Connecticut HEFA, Nursing
Home Program (Wadsworth
Glen), 7.00%, 11/1/07 349,421
A1 AA- 2,000 Connecticut HEFA, Nursing
Home Program (Wadsworth
Glen), 7.50%, 11/1/16 2,090,220
A1 AA- 3,000 Connecticut HEFA, Nursing
Home Program (Windsor),
7.125%, 11/1/14 3,102,030
Aa3 NR 9,000 Connecticut Development
Authority Health Care Bonds
(Duncaster),
6.75%, 9/1/15 (2) 8,930,250
NR A- 1,000 Puerto Rico I. M. E. (Dr.
Pila Hospital), 7.85%,
8/1/28 1,050,440
-----------
$26,729,470
-----------
HOSPITALS: 5.9%
NR A- $3,770 Connecticut HEFA,
William W. Backus
Hospital, 6.375%, 7/1/22 $ 3,505,723
Baa1 NR 9,150 Connecticut HEFA,
Griffin Hospital, 5.75%,
7/1/23 7,469,237
-----------
$10,974,960
-----------
HOUSING: 7.8%
Aa AA $ 100 Connecticut HFA Mortgage
Revenue Bonds, 7.40%,
11/15/99 $ 102,354
Aa AA 1,400 Connecticut HFA Mortgage
Revenue Bonds, 7.20%,
11/15/01 1,468,978
Aa AA 5,000 Connecticut HFA Mortgage
Revenue Bonds, 6.70%,
11/15/12 5,103,400
Aa AA 235 Connecticut HFA Mortgage
Revenue Bonds, 6.55%,
11/15/13 237,331
Aa AA 3,250 Connecticut HFA Mortgage
Revenue Bonds, 6.20%,
5/15/14 3,132,935
Aa AA 1,000 Connecticut HFA Mortgage
Revenue Bonds, 5.85%,
11/15/16 916,030
Aa AA 1,700 Connecticut HFA Mortgage
Revenue Bonds, 6.35%,
5/15/17 1,654,406
Aa AA 2,000 Connecticut HFA Mortgage
Revenue Bonds, 6.60%,
11/15/23 2,002,580
-----------
$14,618,014
-----------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL REVENUES: 1.6%
Aaa AAA $1,000 Connecticut Development
Authority PCR (Pfizer Inc.),
6.55% 2/15/13 $ 1,025,540
Aa AA- 2,000 Connecticut Development
Authority (Economic
Development Projects),
Revenue Bonds, 6.00%,
11/15/08 1,975,820
-----------
$ 3,001,360
-----------
INSURED AIRPORTS: 4.8%
Aaa AAA $8,200 State of Connecticut Airport
Revenue Bonds, Bradley
International, Airport, (FGIC),
7.65%, 10/1/12 $ 9,065,346
-----------
</TABLE>
15
<PAGE> 16
<TABLE>
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED COLLEGE AND
UNIVERSITY: 2.9%
Aaa AAA $ 725 Connecticut HEFA, Fairfield
University (MBIA), 5.00%,
7/1/18 $ 600,380
Aaa AAA 1,200 Connecticut HEFA, Connecticut
College (MBIA), 6.625%,
7/1/11 1,239,240
Aaa AAA 2,000 Connecticut HEFA, Trinity
College (MBIA), 6.00%,
7/1/22 1,889,700
Aaa AAA 1,555 Connecticut HEFA, Choate
Rosemary College (MBIA),
6.80%, 7/1/15 1,635,020
-----------
$ 5,364,340
-----------
INSURED GENERAL
OBLIGATIONS: 3.9%
Aaa AAA $1,750 Connecticut Municipal
Electric Energy Cooperative
Bonds(MBIA), 5.00%,
1/1/18 $ 1,470,438
Aaa AAA 1,000 Connecticut Development
Authority Water Facilities
Bonds, Bridgeport Hydraulic
Company (MBIA), 6.05%,
3/1/29 952,970
Aaa AAA 3,710 South Central Connecticut,
Regional Water Authority
Bonds MBIA), 5.75%,
8/1/12 3,503,056
Aaa AAA 1,500 State of Connecticut Special
Tax Obligation Bonds (FGIC),
5.00%, 10/1/13 1,280,355
-----------
$ 7,206,819
-----------
INSURED GENERAL OBLIGATIONS
(LOCAL): 3.2%
Aaa AAA $1,220 Town of Bethel, Connecticut
Bonds (MBIA), 6.50%,
2/15/09 $ 1,293,932
Aaa AAA 2,000 City of Waterbury Connecticut,
Tax Revenue Bonds (FGIC),
5.375%, 4/15/08 1,893,980
Aaa AAA 740 Town of Stratford,
Connecticut, Bonds
(MBIA), 6.60%, 3/1/11 770,562
Aaa AAA 1,000 City of New Britain,
Connecticut, Bonds (MBIA),
6.00%, 3/1/12 984,230
Aaa AAA 1,000 Town of Plainfield,
Connecticut, Bonds
(MBIA), 6.375%, 8/1/11 1,013,390
-----------
$ 5,956,094
-----------
INSURED HOSPITALS: 11.4%
Aaa AAA $1,000 Connecticut HEFA,
Bridgeport Hospital (MBIA),
6.625%, 7/1/18 $ 1,020,570
Aaa AAA 5,750 Connecticut HEFA, St.
Francis Hospital (FGIC),
5.00%, 7/1/23 4,619,608
Aaa AAA 1,500 Connecticut HEFA, Lawrence
and Memorial Hospital (MBIA),
5.00%, 7/1/13 1,277,610
Aaa AAA 5,750 Connecticut HEFA, Lawrence
and Memorial Hospital
(MBIA), 5.00%, 7/1/22 4,633,983
Aaa AAA 1,000 Connecticut HEFA,
Middlesex Hospital
(MBIA), 6.25%, 7/1/22 976,870
Aaa AAA 1,000 Connecticut HEFA, New
Britain General Hospital
(MBIA), 6.25%, 7/1/24 947,230
Aaa AAA 1,000 Connecticut HEFA, Newington
Hospital (MBIA), 6.30%,
7/1/21 989,770
Aaa AAA 1,000 Connecticut HEFA, Norwalk
Hospital (MBIA), 6.25%,
7/1/22 976,870
Aaa AAA 1,000 Connecticut HEFA, Hospital
of St. Raphael (AMBAC),
6.50%, 7/1/11 1,032,610
Aaa AAA 1,500 Connecticut HEFA, Hospital
of St. Raphael (AMBAC),
6.625%, 7/1/14 1,533,255
Aaa AAA 2,000 Connecticut HEFA, Yale-
New Haven Hospital (MBIA),
6.50%, 7/1/12 2,030,720
Aaa AAA 1,200 Connecticut HEFA, Yale-
New Haven Hospital
(MBIA), 7.10%, 7/1/25 1,248,791
-----------
$21,287,887
-----------
INSURED SOLID WASTE: 0.7%
Aaa AAA $1,275 Connecticut Resources
Recovery Authority Mid-
Connecticut 7.3 System
Bonds (MBIA), 7.30%,
10/15/12 $ 1,343,825
-----------
INSURED WATER AND SEWER: 1.4%
Aaa AAA $1,750 Connecticut Development
Authority Water Facilities
Bonds,Connecticut Water
Company (AMBAC),(AMT),
5.875%, 9/1/22 $ 1,589,753
</TABLE>
16
<PAGE> 17
<TABLE>
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED WATER AND SEWER
(CONTINUED)
Aaa AAA 1,150 Connecticut Development Authority
Water Facilities Bonds, 5.875%
Connecticut Water Company
(MBIA),(AMT), 5.75%,
7/1/28 1,018,727
------------
$ 2,608,480
------------
SOLID WASTE: 7.6%
A NR $2,500 Bristol Resource Recovery Facility
Operating Committee,
(Ogden Martin Systems),
6.50%, 7/1/1 $ 2,291,550
A2 A+ 1,000 Connecticut Resources Recovery
Authority (American REF-
FUEL Company), (AMT), 8.10%,
11/15/15 1,085,300
A2 A+ 450 Connecticut Resources Recovery
Authority (American REF-
FUEL Company), (AMT),
8.00%, 11/15/15 486,896
A2 A+ 4,250 Connecticut Resources Recovery
Authority (American REF-
FUEL Company), (AMT),
6.45%, 11/15/22 3,940,473
NR A 7,970 Eastern Connecticut Resource
Recovery Authority,
(Wheelabrator Lisbon), 5.50%,
1/1/20 6,349,060
------------
$ 14,153,279
------------
SPECIAL TAX: 4.0%
A1 AA- $2,750 State of Connecticut Special
Tax Obligation Bonds,
4.40%, 10/1/04 $ 2,385,268
A1 AA- 1,000 State of Connecticut Special
Tax Obligation Bonds,
5.40%, 9/1/10 911,480
A1 AA- 3,180 State of Connecticut Special
Tax Obligation Bonds, 6.125%,
9/1/12 3,141,108
NR BR 1,000 Virgin Islands PFA Revenue
Bonds, 7.25%, 10/1/18 (2) 1,008,130
------------
$ 7,445,986
------------
STUDENT LOANS: 1.2%
A1 NR $1,370 Connecticut Higher Education
Supplemental Loan Authority
Revenue Bonds (AMT),
6.20%, 11/15/09 $ 1,328,653
A1 NR 925 Connecticut Higher Education
Supplemental Loan Authority
Revenue Bonds (AMT), 7.50%,
11/15/10 954,896
------------
$ 2,283,549
------------
TRANSPORTATION: 2.2%
Baa1 A $4,250 Puerto Rico Highway and
Transportation Authority
Bonds, 5.50%, 7/1/15 $ 3,734,008
Baa1 A 440 Puerto Rico Highway and
Transportation Authority
Bonds, 5.00%, 7/1/22 349,443
------------
$ 4,083,451
------------
UTILITY: 5.9%
A1 A+ $2,000 Connecticut Development
Authority, New England
Power Company Project,
7.25%, 10/15/15 $ 2,099,080
NR BBB 1,100 Guam Power Authority
Revenue Bonds, 6.625%,
10/1/14 1,083,852
NR BBB 4,625 Guam Power Authority
Revenue Bonds, 6.30%,
10/1/22 4,316,189
NR NR 3,500 Virgin Islands Water and
Power Authority, Electric
Revenue System Bonds,
7.40%, 7/1/11 3,611,370
------------
$ 11,110,491
------------
WATER & SEWER REVENUE: 3.2%
Aa AA $1,950 State of Connecticut Clean
Water Fund Revenue Bonds,
6.125%, 2/1/12 $ 1,932,723
Aa AA 1,250 State of Connecticut Clean
Water Fund Revenue
Bonds, 6.00%, 10/1/12 1,221,963
Aa AA 1,000 State of Connecticut Clean
Water Fund Revenue
Bonds, 5.80%, 6/1/16 940,560
NR A+ 2,225 Connecticut Development
Authority Water Facilities,
Stamford Water Company,
5.30%, 9/1/28 1,888,068
------------
$ 5,983,314
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST $198,211,032) $187,032,552
============
</TABLE>
17
<PAGE> 18
<TABLE>
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C>
<FN>
(1) The above designated securities have been issued as inverse floater bonds.
(2) At January 31, 1995, the market value of securities segregated to cover
margin requirements on open financial futures contracts amounted to
$9,938,380.
</TABLE>
The Portfolio primarily invests in debt securities issued by Connecticut
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 January 31, 1995, 28.3% of the securities in the portfolio of
investments are backed by bond insurance of various institutions and financial
guarenty assuranceagencies. The aggregate percentage by financial institutions
ranged from 3.3% to 15.3% of total investments.
See Notes to Financial Statements
18
<PAGE> 19
<TABLE>
NEW JERSEY TAX FREE PORTFOLIO
PORTFOLIO OF INVESTMENTS - JANUARY 31, 1995
(UNAUDITED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS- 100%
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION- 4.0%
NR NR $15,600 New Jersey Economic
Development Authority,
Vineland Cogeneration
Limited Partnership, (AMT),
7.875% 6/1/19 (2) $15,878,928
-----------
EDUCATION- 3.3%
Baa1 BBB $ 2,480 New Jersey Educational
Facilities Authority,Seton
Hall University, 7.00%,
7/1/21 $ 2,552,614
Aa1 AA+ 1,000 New Jersey Educational
Facilities Authority,
Princeton Theological
Seminary, 6.375%, 7/1/22 1,004,470
NR NR 8,800 New Jersey State Higher
Education Assistance
Authority,
(AMT), 0%, 7/1/20 2,781,680
NR BBB- 1,760 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Authority
Polytechnic University,
5.70%, 8/1/13 1,519,848
NR BBB- 675 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Authority,
Polytechnic University, 5.50%,
8/1/24 547,236
NR BBB- 1,000 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Authority,
Polytechnic University,
6.50%, 8/1/24 937,940
A1 AA 2,500 Rutgers, The State University
of New Jersey, 6.85%, 5/1/21 2,617,975
A AA 1,000 University of Medicine and
Dentistry of New Jersey,
7.20%, 12/1/19 1,060,160
-----------
$13,021,923
-----------
ESCROWED - 0.8%
Aaa AAA $ 870 The City of Newark, New
Jersey, (AMBAC), 7.375%,
10/1/07 $ 953,320
NR NR 2,000 County of Passaic, New
Jersey, 6.70%, 9/1/13 2,126,880
-----------
$ 3,080,200
-----------
GENERAL OBLIGATIONS - 8.8%
NR BBB $ 9,745 Government of Guam,
5.40%, 11/15/18 $ 7,931,163
NR A+ 5,000 The Hudson County
Improvement Authority,
6.625%, 8/1/25 5,103,850
Aa1 NR 3,000 Mercer County Improvement
Authority Solid Waste,
0%, 4/1/10 1,148,340
Aa1 AAA 3,500 New Jersey Economic
Development Authority,
Public Schools, 5.40%,
8/15/11 3,176,005
Aa1 AAA 1,440 New Jersey Economic
Development Authority
Public Schools,
5.40%, 8/15/13 1,308,240
Baa1 A 3,000 Commonwealth of Puerto
Rico, 5.50%, 7/1/13 2,686,410
Baa BBB 5,645 The Commonwealth of
Puerto Rico Aqueduct
and Sewer Authority,
7.875%, 07/01/17 6,099,647
Baa1 A 3,250 Puerto Rico Public
Buildings Authority, Public
Education and Health
Facilities, 5.75%, 7/1/15 2,962,798
Baa1 A 3,125 Puerto Rico Public Buildings
Authority, Public Education
and Health Facilities, 5.50%,
7/1/21 2,708,188
Baa1 A 2,075 Puerto Rico Public
Buildings Authority, Public
Education and Health
Facilities, 5.75%, 7/1/16 1,880,780
-----------
$35,005,421
-----------
HEALTH CARE (NON-
HOSPITAL) - 2.1%
NR BBB $ 615 New Jersey Economic
Development Authority
Cadbury Corporation, 7.50%,
7/1/21 $ 529,533
NR BBB 300 New Jersey Economic
Development Authority
Cadbury Corporation,
8.70%, 7/1/07 296,163
NR NR 1,400 New Jersey Economic
Development Authority,
Claremont Health System,
9.10%, 9/1/22 1,418,102
NR NR 2,500 New Jersey Economic
Development Authority
Victoria Health Corporation,
7.65%, 1/1/14 2,267,050
</TABLE>
19
<PAGE> 20
<TABLE>
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE (NON-
HOSPITAL) - CONTINUED
NR NR 4,000 New Jersey Economic
Development Authority
Keswick Pines Project,
8.75%, 1/1/24 3,845,480
-----------
$ 8,356,328
-----------
HOSPITALS - 7.4%
Aa AA $ 500 New Jersey Health Care
Facilities Financing Authority,
Cathedral Health Services,
7.25%, 2/15/10 $ 525,370
Aa AA- 1,330 New Jersey Health Care
Facilities Financing Authority,
Cathedral Health Services,
7.25%, 2/15/21 1,394,093
Aa AAA 10,790 New Jersey Health Care
Facilities Financing Authority,
Barnert Hospital, (FHA),
6.80%, 8/1/19 11,049,500
A A- 2,300 New Jersey Health Care
Facilities Financing Authority,
Atlantic City Medical Center,
6.80%, 7/1/11 2,326,818
Baa1 NR 2,100 New Jersey Health Care
Facilities Financing Authority,
Deborah Heart and Lung
Center, 6.30%, 7/1/23 1,914,780
Baa NR 2,200 New Jersey Health Care
Facilities Financing Authority,
Southern Ocean County
Hospital, 5.75%, 7/1/01 2,109,008
Baa NR 2,000 New Jersey Health Care
Facilities Financing Authority,
Southern Ocean County
Hospital, 6.25%, 7/1/23 1,739,020
A A- 10,150 New Jersey Health Care
Facilities Financing Authority,
Chilton Memorial Hospital,
5.00%, 7/1/13 8,321,274
-----------
$29,379,863
-----------
HOUSING - 4.8%
Aa AA $ 1,250 New Jersey Building
Authority, 7.20%,
6/15/13 $ 1,339,850
Aa AA- 750 New Jersey Building
Authority, Garden State
Savings, 0%, 6/15/09 318,758
Aa AA- 2,591 New Jersey Building
Authority, Garden State
Savings, 0%, 6/15/10 1,022,124
NR AAA 3,700 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
7.00%, 5/1/30 3,769,486
NR AAA 2,000 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
6.95%, 5/1/13 2,050,940
NR AA+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/12 1,038,690
NR AA+ 1,975 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/11 2,058,088
NR AA+ 1,250 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.25%, 11/1/22 1,284,037
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.10%, 5/1/22 1,019,480
NR A+ 3,965 New Jersey Housing and
Mortgage Finance Agency,
6.60%, 11/1/14 3,975,745
Aaa AAA 300 Puerto Rico Housing
Finance Corporation
Mortgage Revenue(GNMA),
6.85%, 10/15/23 305,058
Aaa AAA 1,000 Puerto Rico Housing
Finance Corporation
Mortgage Revenue "BULL"
Floaters (GNMA), (AMT),
Variable, 8/1/16 (1) 1,001,840
-----------
$19,184,096
-----------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL - 6.6%
NR NR $ 2,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation,
7.875%, 6/1/22 $ 2,139,760
NR NR 4,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation,
6.875%, 12/1/22 3,953,040
Baa1 BBB+ 1,500 New Jersey Economic
Development Authority,
General Motors Corporartion,
5.35%, 4/1/09 1,339,260
Aa1 NR 3,000 New Jersey Economic
Development Authority,
Garden State Paper Company,
(AMT), 7.125%, 4/1/22 3,061,140
</TABLE>
20
<PAGE> 21
<TABLE>
NEW JERSEY TAX FREE PORTFOLIO (CONTINUED)
TAX-EXEMPT INVESTMENTS (CONTINUED)
<CAPTION>
- - ---------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - ---------------------------------------------------------------------------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL
(continued)
<S> <C> <C> <C>
NR NR 2,000 New Jersey Economic
Development Authority,
The Seeing Eye, Inc., 7.30%,
4/1/11 2,040,240
NR BBB 1,160 New Jersey Economic
Development Authority
National Association of
Accountants, Inc. 7.65%,
7/1/09 1,191,238
NR AA- 3,300 New Jersey Economic
Development Authority, Oak
Grove Associates, 6.125%,
12/1/06 3,246,606
NR BBB- 3,370 New Jersey Economic
Development Authority,
Trigen-Trenton Project,
(AMT), 6.10%, 12/1/04 3,218,856
A1 A+ 5,500 New Jersey Economic
Develoment Authority,
Economic Recovery Fund,
0%, 3/15/13 1,700,325
A1 A+ 1,650 New Jersey Economic
Develoment Authority,
Economic Recovery Fund,
0%, 9/15/09 649,160
Baa1 A- 2,135 New Jersey Economic
Development Authority
GATX Terminals Corporation,
7.30%, 9/1/19 2,252,617
Aa3 AA- 1,300 Puerto Rico Industrial,
Medical and Environmental
Pollution Control
Authority, Motorola, Inc.,
6.75%, 1/1/14 1,356,875
----------
$26,149,117
----------
INSURED EDUCATION - 0.5%
Aaa AAA $2,000 New Jersey State Educational
Facilities Authority Seton
Hall University, (BIGI), 6.85%,
7/1/19 $2,064,460
---------
INSURED GENERAL
OBLIGATION - 0.3%
Aaa AAA $1,000 Jackson Township Board of
Education, (FGIC), 6.60%,
6/1/09 $1,046,200
---------
INSURED HOSPITAL - 0.5%
Aaa AAA $2,000 New Jersey Health Care
Facilities Financing Authority,
Hackensack Medical Center,
(FGIC), 6.25%, 7/1/21 $1,969,360
---------
INSURED HOUSING - 2.0%
Aaa AAA $3,090 New Jersey Housing and
Mortgage Finance Agency,
(AMT), (MBIA), 5.50%,
10/1/26 $2,622,730
Aaa AAA 1,410 New Jersey Housing and
Mortgage Finance Agency,
(MBIA), 7.375%,
10/1/17 1,454,880
Aaa AAA 1,765 New Jersey Housing and
Mortgage Finance Agency,
(AMT), (MBIA), 7.70%,
10/1/29 1,837,136
Aaa AAA 1,795 Pennsauken Township
Housing Finance
Corporation,(MBIA),
8.00%, 04/01/11 1,888,304
----------
$7,803,050
----------
INSURED LEASE REVENUE - 4.6%
Aaa AAA $3,900 County of Atlantic, New
Jersey, Public Facilities
Lease Agreement,(FGIC),
6.00%, 3/1/13 $3,815,721
Aaa AAA 1,750 County of Hudson, New
Jersey Correctional Facility,
(MBIA), 6.50%,
12/01/11 1,790,705
Aaa AAA 6,240 County of Hudson, New
Jersey Correctional Facility,
(MBIA), 6.60%,
12/01/21 6,341,837
Aaa AAA 2,500 County of Hudson, New
Jersey Improvement Authority,
Secondary Yield Curve
Notes, (FGIC), Variable,
12/01/25 (1) 2,289,475
Aaa AAA 1,800 County of Middlesex, New
Jersey Certificates of
Participation,
(MBIA), 6.125%,
2/15/19 1,754,712
Aaa AAA 2,225 University of Medicine and
Dentistry Certificates of
Participation, (MBIA), 6.75%,
12/1/09 2,313,199
----------
$18,305,649
----------
</TABLE>
21
<PAGE> 22
<TABLE>
NEW JERSEY TAX FREE PORTFOLIO (CONTINUED)
- - ---------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - ---------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED SOLID WASTE - 0.5%
Aaa AAA $ 2,000 The Mercer County
Improvement Authority,
Solid Waste Revenue, (AMT),
(FGIC), 6.70%, 04/1/13 $ 2,068,820
-----------
INSURED SPECIAL TAX - 0.8%
Aaa AAA $ 3,375 New Jersey Economic
Development Authority,
Market Transition Facility,
(MBIA), 5.875%, 7/1/11 $ 3,279,724
-----------
INSURED TRANSPORTATION - 10.1%
Aaa AAA $ 2,250 The Delaware River and
Bay Authority, (MBIA),
5.00%, 1/1/17 $ 1,874,588
Aaa AAA 16,010 The Delaware River and
Bay Authority, (MBIA),
4.75%, 1/1/24 12,497,566
Aaa AAA 10,000 New Jersey Transportation
Trust Fund Authority, Linked
RITES, (FSA), 4.75%,
6/15/03 9,255,400
Aaa AAA 5,000 New Jersey Turnpike
Authority "RITES", (MBIA),
Variable, 1/1/16 (1) 5,354,150
A A 10,450 New Jersey Turnpike
Authority, 6.50%, (MBIA)
1/1/16 10,801,224
-----------
$39,782,928
-----------
INSURED UTILITIES - 1.6%
Aaa AAA $ 6,250 New Jersey Economic
Development Authority,
New Jersey American Water
Co., (AMT), (FGIC), 6.875%,
11/1/34 $ 6,337,000
-----------
INSURED WATER & SEWER - 4.6%
Aaa AAA $ 6,500 Landis New Jersey Sewerage
Authority, Linked "CARS",
5.65% , 9/19/19 $ 6,024,525
Aaa AAA 2,500 Middlesex County Utilities
Authority, Sewer Revenue
(MBIA), Variable,
8/15/10 (1) 2,496,475
Aaa AAA 2,590 Township of Monroe, New
Jersey Municipal Utilities
Authority (MBIA), 5.50%,
2/1/17 2,319,708
Aaa AAA 3,150 New Jersey Economic
Development Authority,
Hackensack Water Company,
(MBIA), 5.80%, 3/1/24 2,878,690
Aaa AAA 850 Passaic Valley Water
Commissioners, (FGIC),
5.00%, 12/15/22 693,320
Aaa AAA 4,500 West New York, New Jersey
Municipal Utilities Authority,
(FGIC), 5.125%,
12/15/17 3,787,110
-----------
$18,199,828
-----------
LEASE/CERTIFICATE
OF PARTICIPATION - 4.6%
Baa1 A- $ 720 County of Atlantic, New
Jersey Public Facilities Lease
Agreement, 8.875%,
1/15/14 $ 891,057
Baa1 A- 785 County of Atlantic, New
Jersey Public Facilities Lease
Agreement, 8.875%,
1/15/15 971,281
A1 NR 1,000 Township of Bedminster,
New Jersey Board of
Education, 7.125%,
9/1/10 1,074,120
Aa AA- 1,000 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/14 962,920
Aa AA- 2,000 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/15 1,923,860
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/16 1,441,500
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/17 1,440,195
Aa AA 5,000 New Jersey Building
Authority, 5.00%,
6/15/13 4,259,550
Aa AA- 2,095 New Jersey Building
Authority, 5.00%,
6/15/16 1,749,493
NR A+ 1,000 New Jersey Economic
Development Authority,
Performing Arts Center Site
Acquisition, 6.75%, 6/15/12 1,022,270
</TABLE>
22
<PAGE> 23
<TABLE>
NEW JERSEY TAX FREE PORTFOLIO (CONTINUED)
- - ---------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - ---------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LEASE/CERTIFICATE OF
PARTICIPATION (CONTINUED)
Baa BBB 3,000 Puerto Rico Housing Bank
and Finance Agency, 5.25%,
12/1/06 2,650,680
-----------
$18,386,926
-----------
MISCELLANEOUS - 2.3%
NR NR $ 6,000 New Jersey Sports and
Exposition Authority,
Monmouth Park, 8.00%,
1/1/25 $ 6,086,520
Aa A+ 3,500 New Jersey Sports and
Exposition Authority,
5.20%, 1/1/20 3,003,455
-----------
$ 9,089,975
-----------
SOLID WASTE - 7.1%
Baa NR $ 3,655 The Atlantic County Utilities
Authority, Solid Waste Revenue,
7.125%, 3/1/16 $ 3,625,212
Baa1 BBB+ 6,125 Pollution Control Financing
Authority of Camden
County, (AMT), 7.50%,
12/1/09 5,922,569
Baa1 NR 5,975 Mercer County Improvement
Authority, Solid Waste
System Revenue (AMT),
0%, 4/1/14 1,308,465
Baa1 NR 6,000 Mercer County Improvement
Authority, Solid Waste System
Revenue (AMT), 0%,
4/1/15 1,213,740
Baa1 NR 3,000 Mercer County Improvement
Authority, Solid Waste System
Revenue (AMT), 0%,
4/1/16 560,610
Baa1 NR 1,500 Passaic County Utilities
Authority Solid Waste System
Revenue, 7.00%, 11/15/07 1,537,635
NR A- 13,930 Union County, New Jersey
Utilities Authority, Solid
Waste Revenue, (AMT), 7.20%,
6/15/14 14,041,161
-----------
$28,209,392
-----------
SPECIAL TAX - 3.0%
Baa1 BBB+ $ 550 Puerto Rico Infrastructure
Financing Authority , 7.90%,
7/1/07 $ 592,774
NR NR 11,350 Virgin Islands Public Finance
Authority, 7.25%, 10/1/18 11,442,275
-----------
$12,035,049
-----------
TRANSPORTATION - 13.3%
NR BBB $ 1,400 Guam Airport Authority,
6.50%, 10/1/23 $ 1,337,000
NR BBB 2,000 Guam Airport Authority,
(AMT), 6.70%,
10/1/23 1,923,580
A1 AA- 4,400 The Port Authority of New
York and New Jersey, 6.875%,
1/1/25 4,522,100
A1 AA- 9,500 The Port Authority of New
York and New Jersey,
7.35%, 10/1/27 (2) 10,120,445
A1 AA- 2,645 The Port Authority of New
York and New Jersey, 6.75%,
8/1/26 2,699,619
A1 AA- 5,000 The Port Authority of New
York and New Jersey, (AMT),
6.25%, 1/15/27 4,793,500
A1 AA- 5,000 The Port Authority of New
York and New Jersey, 6.125%,
6/1/2094 4,740,600
A1 AA- 5,000 The Port Authority of New
York and New Jersey,
5.375%, 3/1/28 4,304,750
Baa1 BB 4,500 The Port Authority of
New York and New Jersey,
Delta Air Lines Inc., 6.95%,
6/1/08 4,457,070
A1 AA- 1,000 New Jersey State Highway
Authority, Garden State Park-
way, 5.75%, 1/1/19 924,340
Baa1 A 3,000 Puerto Rico Highway and
Transportation Authority,
5.00%, 7/1/22 2,382,570
Baa1 A 1,500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/13 1,327,035
Baa3 BB+ 1,700 Puerto Rico Port Authority,
American Airlines, (AMT),
6.30%, 6/1/23 1,499,297
NR A+ 1,115 South Jersey Port Corpora-
tion, New Jersey Marine
Terminal 7, 6.875%, 1/1/20 1,139,497
NR AA 2,450 South Jersey Port
Corporation, New Jersey
Marine Terminal,(AMT),
5.75%, 1/1/13 2,284,013
</TABLE>
23
<PAGE> 24
<TABLE>
NEW JERSEY TAX FREE PORTFOLIO (CONTINUED)
- - ---------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - ---------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (continued)
NR AA 4,270 South Jersey Port
Corporation, New Jersey
Marine Terminal, 5.60%,
1/1/23 3,807,730
------------
$ 52,263,146
UTILITY - 4.2% ------------
NR BBB $3,925 Guam Power Authority,
6.30%, 10/1/22 $ 3,662,928
NR BBB 100 Guam Power Authority,
5.25%, 10/1/13 82,825
NR BBB 2,000 Guam Power Authority,
6.75%, 10/1/24 1,972,020
A3 BBB+ 625 New Jersey Economic
Development Authority,
Elizabethtown Gas Co.,
(AMT), 6.75%, 10/1/21 609,850
A2 A 1,455 New Jersey Economic
Development Authority,
Natural Gas Facilities,
(AMT), 7.05%, 3/1/16 1,525,989
Baa1 A- 3,000 Puerto Rico Electric
Power Authority, 7.00%,
7/1/07 3,122,970
Baa1 A- 460 Puerto Rico Electric
Power Authority,
7.125%, 7/1/14 477,444
NR NR 5,105 Virgin Islands Water and
Power Authority, Electric
System Revenue, 7.40%,
7/1/11 5,267,441
------------
$ 16,721,467
------------
WATER & SEWER - 2.2%
A1 AA- $2,000 Gloucester County Utilites
Authority, 6.50%, 1/1/21 $ 2,007,160
A3 A 3,250 New Jersey Economic
Development Authority,
Elizabethtown Water
Revenue, (AMT), 6.70%,
8/1/21 3,268,688
Aa AA 1,400 New Jersey Wastewater
Treatment Trust,
7.25%, 5/15/08 1,497,034
Aa AA 1,000 New Jersey Wastewater
Treatment Trust, 6.875%,
6/15/09 1,052,160
Aa AA 250 New Jersey Wastewater
Treatment Trust, 7.00%,
6/15/10 263,862
A1 AA 500 The Somerset Raritan
Valley Sewerage Authority
6.75%, 07/01/10 519,685
------------
$ 8,608,589
------------
TOTAL TAX-EXEMPT INVESTMENTS $396,227,439
(IDENTIFIED COST, $400,119,549) ============
<FN>
(1) The above designated securites have been issued as inverse floater bonds.
(2) At January 31, 1995, the market value of securites segregated to cover
margin requirements on open financial futures contracts amounted to $25,999,373.
</TABLE>
The Portfolio primarily invests in debt securities issued by New Jersey
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 January 31, 1995, 25.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guarenty assurance agencies. The aggregate percentage by financial
institution ranged from 0.2% to 15.5% of total investments.
See Notes to Financial Statements
24
<PAGE> 25
<TABLE>
Pennsylvania Tax Free Portfolio
Portfolio of Investments - January 31, 1995
(Unaudited)
<CAPTION>
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS- 100%
- - --------------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION - 4.0%
NR NR $12,000 Pennsylvania Economic
Development Authority,
Northampton Generating
Project, 6.50%, 1/1/13 $10,708,200
NR BBB- 9,000 Pennsylvania Economic
Developement Authority,
Colver Project, 7.125%,
12/1/16 8,636,670
-----------
$19,344,870
-----------
EDUCATION - 5.1%
NR BBB $4,865 Erie Higher Education
Building Authority,
Mercyhurst College, 5.75%,
3/15/20 $ 4,185,992
Baa1 NR 1,500 Latrobe, Saint Vincent
College, 6.75%,
5/1/24 1,475,355
NR AAA 2,000 Lehigh County, Allentown
College of St. Francis,
6.75%, 12/15/12 2,081,920
Aa AA 3,700 Pennsylvania, University of
Pennsylvania, 6.625%,
1/1/17 3,719,572
NR A- 4,225 Scranton-Lackawanna,
Pennsylvania University,
University of Scranton,
6.40%, 3/1/07 4,193,228
NR AA 9,700 Swarthmore Borough,
Swathmoe College,
6.00%, 9/15/20 9,121,007
-----------
$24,777,074
-----------
ESCROWED - 4.0%
Aaa AAA $5,600 Berks County, GO, (FGIC),
Variable, 11/15/20(1) $5,973,464
NR A- 1,750 Chester County, HEFA,
Bryn Mar Hospitals,
6.75%, 7/1/14 1,899,240
Aaa AAA 5,195 Derry Township School
District, GO, (AMBAC),
6.20%, 9/1/08 5,353,655
Aaa AAA 2,000 Doylestown Hospital
Authority, Doylestown
Hospital, (AMBAC), 6.90%,
7/1/19 2,147,600
Aaa AAA 1,405 County of Lycoming, GO,
(FGIC), 6.40%, 8/15/11 1,473,494
Aaa AAA 945 County of Lycoming, GO,
(FGIC), 6.40%, 8/15/11 991,069
NR A- 1,000 Pennsylvania, HEFA, Elizabeth
College, 7.25%, 6/15/11 1,101,190
Aaa AAA 500 York County Hospital
Authority, York Hospital,
(AMBAC), 7.00%, 7/1/21 544,575
-----------
$19,484,287
-----------
GENERAL OBLIGATIONS - 4.8%
NR A $4,725 Chester Upland School
District, 6.375%,
9/1/12 $ 4,692,681
NR A 300 Chester Upland School
District, 6.375%,
9/1/21 2,915,760
A1 AA- 465 Commonwealth of
Pennsylvania,
6.75%, 1/1/07 487,469
A1 AA- 500 Commonwealth of
Pennsylvania,
6.75%, 1/1/08 522,890
A1 AA- 5,435 Commonwealth of
Pennsylvania, 6.50%,
11/1/09 5,572,071
A1 AA- 2,000 Commonwealth of
Pennsylvania, 6.375%,
9/15/12 2,010,920
NR A 3,000 Dauphin County,
6.90%, 6/2/26 3,095,010
A1 A+ 2,050 Lower Providence Township
Sewer Authority Guaranteed,
6.75%, 5/01/22 2,088,376
NR A 1,950 McKeesport Area School
District, 5.00%,
4/1/13 1,662,960
-----------
$23,048,137
-----------
HOSPITALS - 24.8%
NR AAA $2,500 Allegheny Coutny, IDA,
Presbyterian Medical
Center, 6.75%, 2/1/26 $ 2,474,325
NR A- 4,000 Butler County IDA,
Sherwood Oaks,
5.75%, 6/1/16 3,311,960
NR AA- 12,000 Chester County, HEFA,
(Main Line Health System),
5.50%, 5/15/15 (4) 10,295,880
</TABLE>
25
<PAGE> 26
<TABLE>
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
<CAPTION>
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOSPITALS (CONTINUED)
Baa1 BBB 2,000 Dauphin County Hospital
Authority, Community General
Osteopathic Hospital,
7.375%, 6/1/16 2,012,380
NR A- 10,250 Delaware County, Riddle
Memorial Hospital,
6.50%, 1/1/22 9,168,010
NR NR 4,880 Hazelton Luzerne County,
Saint Joseph Medical
Center, 8.375%, 7/1/12 4,868,239
Baa1 NR 2,670 Indiana County Hospital
Authority, Indiana
Hospital, 7.125%, 7/1/23 2,531,774
NR BBB+ 3,500 Lebanon County, Good
Samaritan Hospital, 6.00%,
11/15/18 2,944,795
Baa1 A 3,250 Lehigh County, Muhlenberg
Hospital, 6.60%, 7/15/22 3,017,820
NR BBB- 5,405 McKean County Hospital
Authority, Bradford
Hospital, 6.10%, 10/1/20 4,341,566
NR BBB+ 2,615 Montgomery County,
Pottstown Medical Center,
6.875%, 11/15/20 2,432,133
Aa AA- 500 Pennsylvania HEFA,
Allegheny General Hospital,
7.25%, 9/1/17 519,980
A BBB+ 8,500 Philadelphia Hospital and
Higher Education Facilities
Authority, Albert
Einstein Medical Center,
7.625%, 4/1/11 8,898,565
Baa1 BBB+ 1,500 Philadelphia Hospitals
and Higher Education Facilities,
Graduate Health System,
6.625%, 7/1/21 1,349,895
Baa1 BBB+ 11,000 Philadelphia, Hospitals
and Higher Education
Facility Authority, Graduate
Hospital, 7.25%, 7/1/18 10,721,260
Aa AA 4,500 Philadelphia, Hospitals
and Higher Education
Facility Authority, Children's
Hospital, 5.50%,
2/15/22 3,819,870
NR A- 5,155 The Hospitals and Higher
Education Facilities
Authority of Philadelphia,
Presbyterian Medical
Center, 6.50%, 12/1/11 4,853,433
Baa1 BBB+ 4,500 Philadelphia, Hospitals and
Higher Education
Facility Authority,
Temple Hospital, 6.50%,
11/15/08 4,344,840
Baa1 BBB+ 15,515 The Hospitals and Higher
Education Facilities Authority
of Philadelphia, Temple
University Hospital,
6.625%, 11/15/23 14,156,817
Aa AA 16,200 Philadelphia, Hospitals
and Higher Education
Facility Authority, Children's
Hospital, 5.00%,
2/15/21 12,713,112
Baa NR 4,115 Somerset County, Hospital
Authority, Somerset County,
Sommerset Community
Hospital Project, 6.75%,
3/1/11 3,722,758
A NR 7,000 Washington County Hospital
Authority, Monongahela Valley
Hospital, 6.75%,
12/1/08 7,089,180
------------
$119,588,592
------------
HOUSING - 10.2%
NR AAA $1,000 Bucks County, Mortage
Revenue Bonds, Warminster
Heights Project, Section
8-A, 6.80%, 8/1/12 $ 1,015,490
NR NR 2,680 Chester County, IDA,
8.50%, 1/1/24 2,436,656
A1 A+ 3,000 Pennsylvania HFA MFMRB,
7.60%, 7/1/13 3,174,390
Aaa NR 3,000 Philadelphia Redevelopment
Authority, MFMRB, 6.95%,
5/15/24 3,050,700
Aaa NR 2,175 Allegheny County Residential
Finance Authority, SMFR,
(GNMA), 7.15%, 6/1/17 2,177,371
Aa AA 5,700 Pennsylvania HFA SFM,
(AMT), 6.75%, 4/1/16 5,654,970
Aa AA 3,730 Pennsylvania HFA SFMR,
6.90%, 4/1/17 3,787,591
Aa AA 4,000 Pennsylvania HFA SFMR,
6.85%, 4/1/16 4,048,240
Aa AA 300 Pennsylvania HFA SFMR,
7.40%, 10/1/09 313,530
Aa AA 770 Pennsylvania HFA SFMR,
7.20%, 10/1/11 801,123
Aa AA 695 Pennsylvania HFA SFMR,
7.375%, 10/1/16 720,534
Aa AA 1,000 Pennsylvania HFA SFMR,
Variable, 10/1/23(1) 1,047,290
Aa AA 5,500 Pennsylvania HFA SFMR,
6.85%, 4/1/25 5,485,370
Aa AA 8,350 Pennsylvania HFA SFMR,
7.50%, 10/1/25 8,745,456
</TABLE>
26
<PAGE> 27
<TABLE>
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
<CAPTION>
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING (CONTINUED)
A1 A 4,235 Urban Redevelopment
Authority of Pittsburgh
Mortgage Revenue Bonds,
(AMT), 7.10%, 4/1/24 4,157,796
A1 A 265 Urban Redevelopment
Authority of Pittsburgh,
7.45%, 4/1/10 275,608
A1 A 1,000 Urban Redevelopment
Authority of Pittsburgh
Mortgage Revenue Bonds,
7.125%, 4/1/15 1,028,130
A1 A 1,090 Urban Redevelopment
Authority of Pittsburgh
Mortgage Revenue Bonds,
(AMT), 7.40%, 4/1/24 1,119,986
-----------
$49,040,231
-----------
INDUSTRIAL DEVELOPMENT
AUTHORITY - 8.4%
A3 A $4,950 Butler County IDA, Witco
Corporation Project,
5.85%, 12/1/23 $ 4,302,788
NR BBB+ 1,005 Clearfield County IDA,
KMART Corporation,
6.80%, 5/15/07 980,418
NR A+ 4,000 Franklin County IDA,
Corning Incorporated,
6.25%, 8/1/05 3,999,920
NR AAA 9,160 Mercer County IDA,
Hillcrest Nursing Center,
0%, 1/15/13 2,509,198
A2 A 12,000 New Morgan IDA, New
Morgan Landfill,
6.50%, 4/1/19 11,370,840
Baa2 BBB- 5,000 Pennsylvania, IDA,
Macmilliam Project, 7.60%,
12/1/20 5,117,650
Baa1 BBB+ 4,450 Pennsylvania, IDA, Sun
Company Project,
7.60%, 12/1/24 4,571,484
A A- 6,900 Pennsylvania IDA,
Economic Developement,
7.00%, 1/1/11 7,509,960
-----------
$40,362,259
-----------
INSURED EDUCATION - 1.1%
Aaa AAA $2,500 Pennsylvania Higher
Education Assistance Agency
Student Loan Revenue
Bonds, (AMBAC), AMT,
7.15%, 9/1/21 $ 2,583,750
Aaa AAA 1,500 Pennsylvania Higher Education
Assistance Agency Student
Loan Revenue Bonds,
(AMBAC), Variable,
3/1/22(1) 1,242,345
Aaa AAA 700 Pennsylvania Higher
Education Assistance
Agency Student Loan
Revenue Bonds, (AMBAC),
Variable, 9/1/26(1) 697,081
Aaa AAA 800 Pennsylvania Higher
Education Assistance Agency
Student Loan Revenue
Bonds, (AMBAC), (AMT),
6.40%, 3/1/22 772,080
-----------
$ 5,295,256
-----------
INSURED GENERAL - 0.8%
Aaa AAA $4,500 Keystone Oaks School District
Bonds, GO, (AMBAC),
Variable, 9/1/16(1) $ 3,923,505
-----------
INSURED GENERAL
OBLIGATION - 2.3%
Aaa AAA $5,500 Commonwealth of
Pennsylvania, (MBIA),
Variable, 6/15/04(1) $ 5,091,350
Aaa AAA 1,460 Haverford School District,
(FGIC), 6.25%, 6/1/14 1,423,558
Aaa AAA 1,430 Mars Area School District,
(MBIA), 0%, 3/1/14 427,827
Aaa AAA 655 Rochester Area School
District, (AMBAC),
0%, 5/1/10 255,365
Aaa AAA 2,795 County of Venango,
(AMBAC), 6.30%, 12/1/19 2,773,870
Aaa AAA 1,000 West Allegheny County
School District,
(AMBAC), 6.60%, 2/1/09 1,025,930
-----------
$10,997,900
-----------
INSURED HOSPITAL - 10.2%
Aaa AAA $1,170 Allegheny County, Children's
Hospital of Pittsburgh,
(MBIA), 6.75%, 7/1/08 $ 1,207,674
Aaa AAA 4,000 Allegheny County, Magee-
Womens Hospital, (FGIC),
0%, 10/1/15 1,071,840
</TABLE>
27
<PAGE> 28
<TABLE>
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
<CAPTION>
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITAL (CONTINUED)
Aaa AAA 9,000 Allegheny County, Magee-
Womens Hospital, (FGIC),
5.625%, 10/1/20 8,073,900
Aaa AAA 1,400 Armstrong County Saint
Francis Health Care,
(AMBAC), 6.25%, 6/1/13 1,387,792
Aaa AAA 2,500 Armstrong County Saint
Francis Health Care,
(AMBAC), 6.00%, 8/15/08 2,456,850
Aaa AAA 4,400 Bucks County, IDA, Grand
View Hospital, (AMBAC),
5.25%, 7/1/21 3,705,020
Aaa AAA 775 Carbon County, Gnaden
Memorial Hospital, (AMBAC),
7.00%, 11/15/94 804,458
Aaa AAA 10,000 Doylestown Hospital
Authority, Dolyestown
Hospital, (AMBAC),
5.00%, 7/1/23(3) 7,947,800
Aaa AAA 750 Erie County Hospital
Authority, Harlot Medical
Center, (AMBAC),
7.10%, 2/15/10 796,028
Aaa AAA 230 Lehigh County Health East,
Incorperated, (MBIA),
7.00%, 7/1/15 239,662
Aaa AAA 5,000 Lehigh County, St. Luke's
Hospital, (AMBAC),
6.25%, 7/1/22 4,822,050
Aaa AAA 1,000 Montgomery County,
Abington Memorial Hospital,
(AMBAC), Variable,
6/1/11(1) 1,061,550
Aaa AAA 5,000 Philadelphia Hospital and
Higher Education,
Pennsylvania Hospital,(FGIC),
Variable, 2/15/12(1) 3,853,700
Aaa AAA 3,500 Sayre Health Care Facilities
Authority, Guthrie Healthcare
System, (AMBAC), 6.00%,
3/1/21 3,293,885
Aaa AAA 1,500 Scranton-Lackawanna, Mercy
Health Systems, (MBIA),
6.90%, 1/1/23 1,543,695
Aaa AAA 7,500 Washington County, Shadyside
Hospital, (AMBAC),
5.75%, 12/15/14 6,900,375
-----------
$49,166,279
-----------
INSURED LEASE - 2.2%
Aaa AAA $4,595 Harrisburg Authority, Dauphin
County, Lease Revenue,
(CGIC), 6.25%, 6/1/10 $ 4,714,975
Aaa AAA 3,000 Northumberland County,
Lease Revenue, (MBIA),
0%, 10/15/12 981,000
Aaa AAA 5,600 Philadelphia Muni Authority,
Lease Revenue,
5.625%, 11/15/18 5,010,264
-----------
$10,706,239
-----------
INSURED UTILITIES - 5.3%
Aaa AAA $8,200 Beaver County IDA, Ohio
Edison County, (AMBAC),
5.45%. 9/15/33 $ 7,068,482
Aaa AAA 4,000 Beaver County IDA, Ohio
Edison Company, (FGIC),
7.00%, 6/1/21 4,193,360
Aaa AAA 10,000 Beaver County IDA, Ohio
Edison Company, (FGIC),
7.050%, 10/1/20 (2) 10,251,200
Aaa AAA 3,800 Puerto Rico Electric Power
Authority, Variable,
7/1/02(1) 3,847,006
-----------
$25,360,048
-----------
INSURED WATER
& SEWER - 9.1%
Aaa AAA $2,750 Allegheny County, Sewer
Revenue, (FGIC), 0%,
12/01/08 $1,171,858
Aaa AAA 9,000 Bethlehem Authority,
Northampton and Lehigh
Counties, Water Revenue
Bonds, (MBIA), 4.875%,
11/15/14 7,427,790
Aaa AAA 2,500 City of Philadelphia, Water
and Wastewater, (FGIC),
Variable, 6/15/12(1) 2,096,225
Aaa AAA 15,000 City of Philadelphia, Water
and Wastewater, (FGIC),
5.65%, 6/15/12 13,815,000
Aaa AAA 10,000 City of Philadelphia, Water
and Wastewater, (FGIC),
Variable, 6/15/04(1) 9,553,700
Aaa AAA 9,000 City of Philadelphia, Water
and Wastewater, (FGIC),
5.50%, 6/15/15 7,991,100
</TABLE>
28
<PAGE> 29
<TABLE>
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
<CAPTION>
- - --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- - --------------------------------------------------------------------------------
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- - --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED WATER &
SEWER (CONTINUED)
Aaa AAA 2,460 City of Philadelphia, Water
and Wastewater, (FGIC),
5.00%, 6/15/16 2,030,779
------------
$44,086,452
------------
MISCELLANEOUS - 3.7%
NR AA $ 870 Pennsylvania Infrastructure
Investment Authority, Pennvest,
6.80%, 9/1/10 $ 895,804
NR A 16,950 Pennsylvania Finance
Authority, Beaver County,
6.60%, 11/1/09 16,821,689
------------
$17,717,493
------------
NURSING HOMES - 1.2%
NR NR $ 3,500 Montgomery County IDA,
Geriatric Health Care Institute,
8.375%, 7/1/23 $ 3,313,870
NR NR 1,460 Westmoreland County IDA,
Highland Health System,
9.250%, 6/1/22 1,470,220
NR NR 1,190 Philadelphia Hospital and
Higher Education Facilities
Authority, Philadelphia
Protestant, 8.625%,
7/1/21 1,152,051
------------
$ 5,936,141
------------
SPECIAL TAX REVENUE - 0.1%
Baa1 BBB+ $ 500 Puerto Rico Special Tax
Revenue, 7.50%, 7/1/09 $ 531,370
------------
TRANSPORTATION - 0.3%
Baa1 A $1,500 Puerto Rico Commonwealth
Highway, 5.50%, 7/01/13 $ 1,327,035
------------
UTILITIES - 2.2%
Baa1 A- $3,370 Puerto Rico Electric
Power Authority Power
Revenue, 0%, 7/1/17 $ 766,709
NR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,547,730
Baa3 BB+ 500 Beaver County, IDA,
Ohio Edison Company,
7.75%, 9/1/24 505,060
Baa1 BBB+ 3,250 Delaware County, IDA,
Phildelphia Electric Company,
7.375%, 4/1/21 3,344,575
Baa1 BBB+ 4,070 Montgomery County, IDA,
Philadelphia Electric Company,
(AMT), 7.60%,
4/1/21 4,191,188
------------
$10,355,262
------------
WATER & SEWER
REVENUE - 0.2%
Ba BBB $1,000 Puerto Rico Aqueduct
and Sewer Authority,
7.90%, 7/1/07 $ 1,089,400
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST $497,750,345) $482,137,830
============
<FN>
(1) The above designated securities have been issued as inverse floater bonds.
(2) When-issued security.
(3) At January 31, 1995, the market value of securities segregated to cover
margin requirements on open financial futures contracts amounted to
$7,947,800.
(4) At January 31, 1995, the market value of securities segregated to cover
when-issued securities amounted to $10,295,880.
</TABLE>
The Portfolio primarily invests in debt securities issued by Pennsylvania
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 January 31, 1995, 28.7% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
guarenty assurance agencies. The aggregate percentage by financial institution
ranged from 3.5% to 14.9% of total investments.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE> 30
<TABLE>
TAX FREE PORTFOLIOS
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
- - ---------------------------------------------------------------------------------------------------------
January 31, 1995 (Unaudited)
- - ---------------------------------------------------------------------------------------------------------
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments-
Identified cost $198,211,032 $400,119,549 $497,750,345
Unrealized depreciation (11,178,480) (3,892,110) (15,612,515)
------------ ------------ ------------
Total investments, at value (Note 1A) $187,032,552 $396,227,439 $482,137,830
Cash 98,385 2,375,957 16,638,071
Receivable for investments sold - 18,617,054 2,426,752
Interest receivable 2,718,570 5,534,362 7,026,823
Deferred organization expenses (Note 1D) 8,122 13,484 16,176
------------- ------------ ------------
Total assets $189,857,629 $422,768,296 $508,245,652
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased $2,513,542 $15,546,639 $2,048,546
Payable for when issued securities (Note 1F) - - 10,000,000
Payable for daily variation margin on open
financial futures contracts (Note 1E) 44,532 75,469 48,375
Payable to affiliates -
Trustees' fee 890 1,528 1,720
Custodian fees 4,002 7,500 -
Accrued expenses 1,166 4,015 4,965
------------- ------------ ------------
Total liabilities $ 2,564,132 $ 15,635,151 $ 12,103,106
------------- ------------ ------------
NET ASSETS applicable to investors' interest
in Portfolio $187,293,497 $407,133,145 $496,142,546
============= ============ ============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $198,646,453 $411,309,185 $511,970,830
Unrealized depreciation of investments and
financial futures contracts (computed on
the basis of identified cost) (11,352,956) (4,176,040) (15,828,284)
------------- ------------ ------------
Total $187,293,497 $407,133,145 $496,142,546
============= ============ ============
See notes to financial statements
</TABLE>
30
<PAGE> 31
<TABLE>
STATEMENTS OF OPERATIONS
- - ---------------------------------------------------------------------------------------------------------
For the six month ended January 31, 1995 (Unaudited)
- - ---------------------------------------------------------------------------------------------------------
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B) :
Interest income $ 6,047,761 $ 13,496,090 $ 16,922,653
------------ ------------ ------------
Expenses-
Investment adviser fee (Note 2) $ 410,999 $ 969,866 $ 1,216,350
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 3,495 5,997 10,174
Custodian fees (Note 2) 19,579 47,234 -
Interest expennse (Note 5) 40,737 25,292 3,973
Legal and accounting fees 27,646 35,192 36,213
Bond pricing 7,585 10,788 10,867
Printing 2,238 2,500 2,700
Amortization of organization expenses (Note 1D) 1,321 2,250 2,661
Miscellaneous 2,276 1,589 6,935
----------- ------------ ------------
Total expenses $ 515,876 $ 1,100,708 $ 1,289,873
----------- ------------ ------------
Net investment income $ 5,531,885 $ 12,395,382 $ 15,632,780
----------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) -
Investment transactions (identified cost basis) $(2,513,959) $(11,750,539) $ (9,978,715)
Financial futures contracts (234,381) (340,422) (670,296)
----------- ------------ ------------
Net realized loss on investments $(2,748,340) $(12,090,961) $(10,649,011)
----------- ---------- ------------
Change in unrealized appreciation(depreciation) -
Investments $(5,628,237) $ (1,964,448) $(12,915,434)
Financial futures contracts 251,782 732,401 2,108,172
----------- ------------ ------------
Net unrealized depreciation $(5,376,455) $ (1,232,047) $(10,807,262)
----------- ------------ ------------
Net realized and unrealized
loss on investments $(8,124,795) $(13,323,008) $(21,456,273)
----------- ------------ ------------
Net decrease in net
assets from operations $(2,592,910) $ (927,626) $ (5,823,493)
=========== ============ ============
See notes to financial statements
</TABLE>
31
<PAGE> 32
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- - ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended January 31, 1995 (Unaudited)
- - ----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations -
Net investment income $ 5,531,885 $ 12,395,382 $ 15,632,780
Net realized loss on investment transactions (2,748,340) (12,090,961) (10,649,011)
Change in unrealized depreciation of investments (5,376,455) (1,232,047) (10,807,262)
----------- ----------- -----------
Net decrease in net assets from operations $ (2,592,910) $ (927,626) $ (5,823,493)
----------- ----------- -----------
Capital transactions -
Contributions $ 15,954,472 $ 24,902,148 $ 22,148,338
Withdrawals (18,106,030) (40,695,393) (56,968,438)
----------- ----------- -----------
Decrease in net assets resulting from capital transactions $ (2,151,558) $ (15,793,245) $(34,820,100)
----------- ----------- -----------
Total decrease in net assets (4,744,468) (16,720,871) (40,643,593)
NET ASSETS:
At beginning of period 192,037,965 423,854,016 536,786,139
----------- ----------- -----------
At end of period $187,293,497 $407,133,145 $496,142,546
=========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------------------------
Year Ended July 31, 1994*
- - ----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From Operations -
Net investment income $ 8,098,918 $ 19,598,942 $ 25,052,308
Net realized loss on investment transactions 610,531 1,931,832 (1,606,336)
Change in unrealized depreciation of investments (15,885,963 (34,629,145) (41,094,537)
----------- ----------- -----------
Net decrease in net assets from operations ($ 7,176,514) ($ 13,098,371) ($17,648,565)
----------- ----------- -----------
Capital transactions -
Contributions $ 55,286,988 $ 95,610,275 $113,666,177
Withdrawals (15,920,869 (52,334,675) (56,232,111)
----------- ----------- -----------
Decrease in net assets resulting from capital transactions $ 39,366,119 $ 43,275,600 $ 57,434,066
----------- ----------- -----------
Total decrease in net assets $ 32,189,605 $ 30,177,229 $ 39,785,501
NET ASSETS:
At beginning of year 159,848,360 393,676,787 497,000,638
----------- ----------- -----------
At end of year $192,037,965 $423,854,016 $536,786,139
=========== =========== ===========
<FN>
* For the ten months ended July 31, 1994.
See notes to financial statements
</TABLE>
32
<PAGE> 33
<TABLE>
SUPPLEMENTARY DATA
- - ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
---------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1995 JULY 31, 1994* SEPTEMBER 30, 1993**
(Unaudited)
------------------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF
AVERAGE DAILY NET ASSETS):
Net expenses 0.55%+ 0.47%+ 0.46%+
Net investment income 5.92%+ 5.40%+ 5.45%+
PORTFOLIO TURNOVER 17%+ 10%+ 10%+
- - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
NEW JERSEY PORTFOLIO
--------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1995 JULY 31, 1994* SEPTEMBER 30, 1993**
(UNAUDITED)
------------------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF
AVERAGE DAILY NET ASSETS):
Net expenses 0.53%+ 0.50%+ 0.50%+
Net investment income 6.01%+ 5.62%+ 5.67%+
PORTFOLIO TURNOVER 34%+ 25%+ 12%+
- - ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
PENNSYLVANIA PORTFOLIO
----------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED
JANUARY 31, 1995 JULY 31, 1994* SEPTEMBER 30, 1993**
(UNAUDITED)
------------------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF
AVERAGE DAILY NET ASSETS):
Net expenses 0.51%+ 0.48%+ 0.50%+
Net investment income 6.17%+ 5.66%+ 5.71%+
PORTFOLIO TURNOVER 26%+ 21%+ 17%+
- - -----------------------------------------------------------------------------------------------------------------------------
<FN>
+ Computed on an annualized basis.
* For the ten months ended July 31, 1994
** For the period from the start of business, February 1, 1993, to September 30, 1993.
See notes to financial statements
</TABLE>
33
<PAGE> 34
Notes to Financial Statements
(Unaudited)
(1) SIGNIFICANT ACCOUNTING POLICIES
Connecticut Tax Free Portfolio ("Connecticut Portfolio"), New Jersey Tax Free
Portfolio ("New Jersey Portfolio") and Pennsylvania Tax Free Portfolio
("Pennsylvania Portfolio"), collectively the Portfolios, are registered under
the Investment Company Act of 1940 as non-diversified open-end investment
companies which were organized as trusts under the laws of the State of New
York on May 1, 1992. The Declarations of Trust permit the Trustees to issue
interests in the Portfolios. The following is a summary of significant
accounting policies of the Portfolios. The policies are in conformity with
generally accepted accounting principles.
A. INVESTMENT VALUATIONS - Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on commodity
exchanges are valued at closing settlement prices. Short-term obligations,
maturing in sixty days or less, are valued at amortized cost, which
approximates value. Investments for which valuations or market quotations are
unavailable are valued at fair value using methods determined in good faith by
or at the direction of the Trustees.
B. INCOME - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C. INCOME TAXES - The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes on
any taxable income of the Portfolios because each investor in the Portfolios
are 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 th e 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 ORGANIZATION EXPENSES - Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years beginning on the date each Portfolio commenced operations.
E. FINANCIAL FUTURES CONTRACTS - Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio ("margin maintenance") each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for book
purposes as unrealized gains or losses by a Portfolio. A Portfolio's investment
in financial futures contracts is designed only to hedge against anticipated
future changes in interest rates. Should interest rates move unexpectedly, a
Portfolio may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS - The Portfolios may engage
in when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on settlement date.
G. OTHER - Investment transactions are accounted for on a trade date basis.
H. INTERIM FINANCIAL INFORMATION - The interim financial statements relating to
January 31, 1995, and the period then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments necessary for the fair presentation of the financial statements.
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<PAGE> 35
(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).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolios. Pursuant to the custodian agreements, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances each
Portfolio maintains with IBT. Certain of the officers and Trustees of the
Portfolios are officers and directors/trustees of the above organizations.
For the six months ended January 31, 1995 each portfolio paid advisory fees
as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
- - --------- ------ ---------------
<S> <C> <C>
Connecticut $ 410,999 0.44%
New Jersey 969,866 0.47%
Pennsylvania 1,216,350 0.48%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets (annualized).
35
<PAGE> 36
<TABLE>
- - ------------------------------------------------------------------------------------------------------------------------------------
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six months ended January 31, 1995 were as
follows:
<CAPTION>
CONNECTICUT PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
--------------------- -------------------- ----------------------
<S> <C> <C> <C>
Purchases $33,837,755 $135,559,066 $134,372,094
Sales 31,294,325 143,934,719 161,178,172
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized depreciation/appreciation in value of the investments
owned by each Portfolio at January 31, 1995, as computed on a federal income tax
basis, are as follows:
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
Aggregate Cost $198,211,032 $400,119,549 $497,750,345
------------ ------------ ------------
Gross unrealized depreciation $12,280,662 $9,698,548 $21,989,852
Gross unrealized appreciation 1,102,182 5,806,438 6,377,337
------------ ------------ ------------
Net unrealized depreciation $11,178,480 $3,892,110 $15,612,515
============ ============ ============
- - ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(5) LINE OF CREDIT
The Portfolios participate with other Portfolios and Funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. Borrowings will be made by the Portfolios solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each Portfolio or Fund based on its
borrowings at an amount above either the bank's adjusted certificate of
deposit rate, a variable adjusted certificate of deposit rate, or a federal
funds effective rate. In addition, a fee computed at an annual rate of 1/4 of
1% on the $20 million committed facility 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. The Portfolios did not have any
significant borrowings or allocated fees during the period.
36
<PAGE> 37
(6) FINANCIAL INSTRUMENTS
The Portfolios regularly trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options and futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
<TABLE>
A summary of obligations under these financial instruments at January 31,
1995 is as follows:
<CAPTION>
FUTURES CONTRACTS NET UNREALIZED
PORTFOLIO EXPIRATION DATE CONTRACTS POSITION DEPRECIATION
- - --------- ------------------ --------- -------- --------------
<S> <C> <C> <C> <C>
Connecticut 3/95 95 U.S. Treasury Bond Short $174,476
New Jersey 3/95 161 U.S. Treasury Bond Short $283,930
Pennsylvania 3/95 86 Municipal Bond Short $215,769
At January 31, 1995 each Portfolio had sufficient cash and/or securities to cover margin requirements on open futures contracts.
</TABLE>
37
<PAGE> 38
<TABLE>
INVESTMENT MANAGEMENT
- - ------------------------------------------------------------------------------------------------
<S> <C>
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 MACINTOSH Banking, Harvard University Graduate
Vice President School of Business Administration
JAMES L. O'CONNOR NORTON H. REAMER
Treasurer President and Director, United
Asset Management Corporation
BARBARA E. CAMPBELL
Assistant Treasurer JOHN L. THORNDIKE
Director, Fiduciary Trust Company
DOUGLAS C. MILLER
Assistant Treasurer JACK L. TREYNOR
Investment Adviser and Consultant
THOMAS OTIS
Secretary
JANET E. SANDERS
Assistant Treasurer and
Assistant Secretary
- - ------------------------------------------------------------------------------------------------
PORTFOLIOS OFFICERS PORTFOLIO MANAGERS
THOMAS J. FETTER DAVID C. REILLY
President Portfolio Manager of
Pennsylvania Tax Free Portfolio
JAMES B. HAWKES
Vice President, Trustee NICOLE ANDERES
Portfolio Manager of Connecticut
ROBERT MACINTOSH Tax Free Portfolio
Vice President and Portfolio Manager
of New Jersey Tax Free Portfolio INDEPENDENT TRUSTEES
JAMES L. O'CONNOR DONALD R. DWIGHT
Treasurer President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
BARBARA E. CAMPBELL
Assistant Treasurer SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
DOUGLAS C. MILLER Banking, Harvard University Graduate
Assistant Treasurer School of Business Administration
THOMAS OTIS NORTON H. REAMER
Secretary President and Director, United Asset
Management Corporation
JANET E. SANDERS
Assistant Treasurer and JOHN L. THORNDIKE
Assistant Secretary Director, Fiduciary Trust Company
JACK L. TREYNOR
Investment Adviser and Consultant
</TABLE>
38
<PAGE> 39
INVESTMENT ADVISER OF STATE TAX FREE PORTFOLIO
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF EV TRADITIONAL STATE TAX FREE FUND
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
39
<PAGE> 40
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Funds, including 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
T-3CSRC
