Eaton Vance Municipals Trust
For the Funds:
[BULLET] EV Classic California Municipals Fund
[BULLET] EV Classic Florida Municipals Fund
[BULLET] EV Classic New York Municipals Fund
[BULLET] EV Classic Rhode Island Municipals Fund
[LOGO]
Semi-Annual Shareholder Report
March 31, 1996
Table of Contents
Item Page
Six-month results, listed by state 2
President's letter to shareholders 3
Management Reports:
EV Classic California Municipals Fund 4
EV Classic Florida Municipals Fund 5
EV Classic New York Municipals Fund 6
EV Classic Rhode Island Municipals Fund 7
Financial Results 8
<TABLE>
<CAPTION>
Results for the six months ending March 31, 1996
The
Dividends If Your after-tax
paid Fund's combined equivalent
Total return by fund NAV distribution Federal & yield
(excl. sales (During per share rate state tax you would
charge) period) at 3/31/96 at 3/31/96 rate is... need is...
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EV Classic 3.3% $0.230 $9.40 4.90% 43.04% 8.56%
California Municipals Fund
EV Classic
Florida Municipals Fund 2.8% $0.227 $9.39 4.85% 42.09% 8.31%
EV Classic
New York Municipals Fund 2.7% $0.228 $9.45 4.84% 40.56% 8.10%
EV Classic
Rhode Island Municipals Fund 2.5% $0.221 $9.22 4.82% 42.34% 8.33%
[GRAPHICS OMITTED IN COLUMN 5 OF CALIFORNIA, FLORIDA, NEW YORK & RHODE ISLAND]
</TABLE>
To Shareholders
The municipal bond market rallied strongly throughout 1995, gaining back
most of the losses of the previous year. Twice during the year, the
Federal Reserve lowered short-term interest rates, further buoying the
market.
Realistically, it may be difficult for the market to match last year's
gains. Still, there are many reasons to be optimistic about the
municipal bond market in 1996 and to believe that an investment in
municipal bonds represents very good value and should be a part of a
wise investor's fixed-income portfolio.+
The U.S. economy continues in its favorable pattern
of slow growth and low inflation, which is a good environment for the
municipal bond market.
<TEXT BOX>
TAX-EXEMPT BONDS YIELD 85% OF TREASURY YIELDS
30-yr. AAA General Obligation (GO) Bonds* 5.69%
Taxable equivalent yield of investment
for couple in 36% tax bracket 8.89%
30-year Treasury Bonds 6.67%
Principal and interest payments of Treasury securities are
guaranteed by the U.S. government.
* GO yield is a compilation of a representative variety of general
obligation bonds and is not necessarily represented by the Fund's yield.
Statistics as of March 31, 1996. Past performance is no guarantee of
future results. Source: Bloomberg, L.P.
During 1995 the municipal market underperformed the taxable market
because of concern about the possible passage of major tax reform
legislation. While such concerns are likely to persist this year, we at
Eaton Vance continue to believe there is little chance that significant
reform, in the form of a flat tax, consumption tax or value-added tax,
will be enacted in the foreseeable future. While flat tax and other
reform proposals will be debated, especially during the Presidential
campaigns, they are so controversial and sweeping that we believe the
process needed to secure agreement and subsequent passage of a plan is,
at best, years away.
At the same time, the Presidential campaigns could provide impetus to
proposals that should prove favorable to the bond market. Any positive
result in this area is likely to provide additional momentum to the bond
market through fiscal restraint and, therefore, lower yields.
These factors have combined to produce a significant opportunity for
municipal bond investors. To the extent that fears about tax reform
depress prices, investors can enter the market at a discount. To the
extent that budget reform measures lessen the Federal government's
borrowing needs, investors may be expected to reap the rewards through a
strengthening bond market.
As always, achieving investment rewards may depend on an investor's
willingness to adopt a long-term investment horizon. That's why we at
Eaton Vance believe patience is a major key to successful investing.
[PHOTO OF THOMAS J. FETTER OMITTED]
Sincerely,
/S/Thomas J. Fetter
Thomas J. Fetter
President
May 9, 1996
+ A portion of the Portfolios' income could be subject to Federal
alternative minimum tax.
EV Classic California Municipals Fund
The State of the State: California
California's economy seems to be continuing its slow improvement from
the recession that began in 1990. The state benefits from a growing
population and diverse employment base. Despite the loss of high-paying
aerospace jobs in recent years, the state's job growth is expected to be
twice that at the national level in 1996.
Overall, job increases have been led by gains in construction,
electronics, tourism, business services, international trade and
entertainment.
Despite the state's recent problems, the economic outlook is generally
favorable. The economic turnaround is expected to be created in part by
growth in the state's sizable high-technology sector. For example, it is
predicted that personal income will rise significantly during the mid
1990s, which should continue to elevate state revenue collections.
Revenues have already improved significantly, running 3% above estimates
for the current fiscal year. That is likely to produce a
$1 billion surplus at fiscal year-end.
[GRAPHIC OF THE STATE OF CALIFORNIA OMITTED]
Portfolio Overview
Based on market value as of March 31, 1996
Number of issues 99
Average quality A
Investment grade 88.3%
Effective maturity (years) 14.09
Largest sectors:
Lease revenues/Certificates
of participation 20.5%
Escrowed 16.9
Special tax 14.6
Housing 8.7
Insured utilities 6.4*
* Private insurance does not remove the market risks that are associated
with these investments.
Your Investment at Work:
[GRAPHIC OF FACTORY OMITTED]
San Bernardino, CA
Joint Power Financing Authority
Lease Revenue Bond
The California Department of Transportation builds and maintains the
state's highway system. The proceeds of this bond issue will be used to
build an office building and parking facility in San Bernardino for the
use of Department employees. The new building will allow the Department
to consolidate 1,200 employees currently working in higher-priced,
rented buildings.
The bonds are expected to benefit from California's continued rebound
from recession. California has regained all of the jobs lost from the
recession of the early 1990s and has successfully diversified from the
aerospace and defense industries into entertainment, electronics and
apparel. The Department of Transportation will be responsible for making
the lease payments that back interest payments on the bonds.
From the Portfolio Manager:
[PHOTO OF CYNTHIA J. CLEMSON OMITTED]
"The California municipal market has been characterized by relatively
low supply. As a result, insured bonds have, at times, traded at rich
levels relative to the overall market. In a difficult bond environment,
I've used those occasions as an opportunity to trade out of insured par
bonds and into discount and premium bonds. With the economy giving
conflicting signals in recent months, I've pursued a barbell approach
within the Portfolio. At one end of the barbell, premium bonds increase
the income to the Portfolio while providing some defensive
characteristics in the event of a rate reversal. At the other end of the
spectrum, discount bonds are more sensitive to interest rate movements
and provide some potential for capital appreciation if rates decline.
"I've added some non-rated bonds to the Portfolio, which often provide
good opportunities in terms of income and as strong credits. I've also
focused on improving the Portfolio's call protection, which has become
an increasingly important market criterion in the past year."
Cynthia J. Clemson
EV Classic Florida Municipals Fund
The State of the State: Florida
Florida continues to rank among the southeastern region's growth
leaders. Despite a slight slowdown in economic activity in 1995, the
state's economy expanded at a faster pace than the national rate,
resulting in good employment growth.
While Florida's population gains have eased from the blistering 2.9%
pace of the 1980s, the state remains a favorite retirement destination
and continues to benefit from a large migration from northern states.
The tourism industry performed erratically in 1995, but has strengthened
in recent months and remains a major source of service sector
employment. The service, trade and construction sectors together account
for 64% of the state's employment.
Like many states, the lack of a federal budget and growing social
service expenditures add a degree of uncertainty to the financial
picture. However, rising investment returns in 1995 and 1996 have
boosted the state's per capita income growth. And, importantly, Florida
has benefited from a growing revenue base, especially from rising
corporate, sales and use-tax revenues. Moreover, the state's well-
managed financial program and excellent economic performance have
contributed to credit stability.
Portfolio Overview
[GRAPHIC OF THE STATE OF FLORIDA OMITTED]
Based on market value as of March 31, 1996
Number of issues 133
Average quality AA-
Investment grade 89.6%
Effective maturity (years) 16.99
Largest sectors:
Utilities 13.3%
General obligations 11.5
Housing 11.0
Insured transportation 7.7*
Escrowed 7.4
* Private insurance does not remove the market risks that are associated
with these investments.
Your Investment at Work:
[GRAPHIC OF TELEPHONE POLES AND LINES OMITTED]
Jacksonville Electric Authority
Bulk Power Supply System
Scherer 4 Project
The Authority is a public body established in 1968 to own and manage the
electric utility which the City of Jacksonville had owned since 1895. As
of 1992, the Authority served approximately 305,000 customers in a
service area covering most of the city.
The Authority's electric system includes generation, transmission,
interconnection and distribution facilities. Generating facilities,
located at three plants in the city, consist of nine steam-turbine
generator units and seven combustion-turbine generator units, all of
which are oil/gas-fired.
The proceeds of this bond issue were used to acquire an initial interest
in the Robert W. Scherer Electric Generating Plant, a coal-fired, steam
electric generating station located near Forsyth, Ga. The Authority is
entitled to 17.7% of the capacity of the plant on a take-or-pay basis.
The bonds, which represent the Portfolio's largest single holding, are
rated Aa1/AA by Moody's and Standard & Poor's and have a 5.25% coupon.
From the Portfolio Manager:
[PHOTO OF THOMAS J. FETTER OMITTED]
"The bond market has proved difficult in 1996 as interest rates have
moved significantly higher since the first of the year. In an uncertain
environment, I've continued a barbell approach for the Portfolio, which
includes some defensive characteristics but also provides some upside
potential in the event rates turn lower. Housing bonds represented
especially good value and improved the Fund's income.
"The continued migration of transferees and retirees to Florida in
recent years has been accompanied by a massive program of infrastructure
building. Financing needs associated with these projects have required a
large issuance of revenue bonds. These bonds have been tied to a wide
array of projects, such as water and sewer or transportation facilities.
The periodic infusions of bonds into the market have provided us
opportunities to invest in these sectors at very attractive yield
levels. Finally, we have focused on liquidity. Insured bonds compose a
large portion of the Portfolio, which helps improve liquidity. And of
course, we maintained the Portfolio's long-held focus on call protection
in order to avert a disruption in the Fund's high current income."
Thomas J. Fetter
EV Classic New York Municipals Fund
The State of the State: New York
The New York economy continues to grow, albeit at a slower pace than the
nation as a whole. The recession of the early 1990s claimed more than a
half-million jobs in the state. New York employment is not expected to
reach pre-recession levels until 1998, according to Standard & Poor's.
Job growth has been stagnant, increasing at 1.1% annually compared to
national job growth of 1.6% a year. Unemployment rates have fallen,
although they remain higher than the national average.
The sluggish state economy has intensified difficult fiscal choices that
face the state. Because a high state tax burden appears to have
impaired the state's competitive position, Governor Pataki's goal is to
reduce New Yorkers' tax bite. Consequently, the Pataki administration's
current budget proposals aim to make further cuts in social spending.
These cuts are highly problematic in that they are very dependent on
actions at the federal level. In addition, cuts in social spending are
likely to trigger a fierce partisan debate with the state legislature.
But the proposals nonetheless represent a bold attempt by the
administration to reform the state's past budget procedures and
strengthen the state's competitive position.
Portfolio Overview
[GRAPHIC OF NEW YORK STATE OMITTED]
Based on market value as of March 31, 1996
Number of issues 171
Average quality A+
Investment grade 97.9%
Effective maturity (years) 13.56
Largest sectors:
Healthcare 15.3%
Education 14.5
Escrowed 11.4
Special tax revenue 11.2
Lease/Certificate of participation 6.1
Your Investment at Work:
[GRAPHIC OF HEALTHCARE LOGO OMITTED]
State of New York
Dormitory Authority
St. John's Health Care Corp.
The proceeds of this bond issue are being used to renovate facilities
and add 75 beds to St. John's existing 400-bed facility in Rochester.
These St. John's bonds are an especially good example of FHA-insured
health care bonds, most of which have anticipated sinking fund schedules
that result in shorter average lives than indicated by their stated
maturities.
For example, these bonds have a stated maturity of twenty years, but
should be retired in full by 2002 from sinking fund payments. Thus,
investors receive the yield of a 20-year bond with the interest rate
exposure of a five-year bond.
Because the secondary market does not always recognize the sinking fund
story until the sinking fund date approaches, these bonds trade
infrequently. Portfolio managers who recognize this story prize these
bonds and view them as core holdings representing good value.
From the Portfolio Manager:
[PHOTO OF NICOLE ANDERES OMITTED]
"Our efforts last year to restructure the Portfolio have served us well
in the more defensive climate of the past several months. We reduced the
Portfolio's holdings in deep discount bonds in favor of more moderate
discount bonds. That left the Portfolio better-positioned as interest
rates edged higher in the first quarter of 1996. Naturally, the
Portfolio remains sensitive to the New York supply calendar. Periodic
large infusions of state issues into the market created opportunities to
purchase state-appropriated debt at fairly attractive levels.
"I reduced the Portfolio's exposure to triple-B-rated state
appropriation credits to around 30% as of March 31 in anticipation of
some potentially "rocky" months ahead as state budget negotiations drag
into the new fiscal year."
Nicole Anderes
EV Classic Rhode Island Municipals Fund
The State of the State: Rhode Island
Rhode Island's economy has undergone dramatic changes during the last 10
years, with employment in the manufacturing sector dropping markedly and
service sector employment rising. The state's dependence on
manufacturing, particularly consumer goods, has been a heavy burden, and
remains higher than that of any other New England state. The rate of
annual job growth has remained sluggish, near the 1% level, with trade
and services pacing job creation. The state is, however, making headway
in attracting the financial services industry, a major key to future job
creation.
Rhode Island's debt level is among the highest in the nation, due to
previous bond issuance to relieve the credit union crisis and to finance
the construction of a new Providence convention center. In addition, the
slow pace of job growth has contributed to declining operating revenues,
which have posed significant financial challenges in recent years.
However, the state has acted decisively to counter the revenue crunch
and to close the deficits. Despite some uncertainty, Rhode Island's long
record of financial responsibility continues to earn it a AA- rating
from major ratings agencies.
Portfolio Overview
[GRAPHIC OF THE STATE OF RHODE ISLAND OMITTED]
Based on market value as of March 31, 1996
Number of issues 49
Average quality AA
Investment grade 100%
Effective maturity (years) 15.77
Largest sectors:
Insured general obligations 16.8%*
Housing 16.2
Insured college & university 10.1*
Hospitals 7.7
Special tax 6.8
* Private insurance does not remove the market risks that
are associated with these investments.
Your Investment at Work:
[GRAPHIC OF GRADUATION CAP OMITTED]
Rhode Island Health &
Educational Building
University of Rhode Island
These bonds represent one of the largest core positions in the Rhode
Island Portfolio. The 5.25% discount coupon and their MBIA-insured
status result in a high degree of market liquidity for these bonds.
Issued in 1993, the proceeds of these bonds were used to refinance
existing higher-coupon debt and funded capital projects at the
University of Rhode Island.
While the bonds are rated AAA because of their MBIA bond insurance,
underlying credit quality depends on ongoing state support of the state
college system, as well as on tuition revenues generated by the schools.
The university's long history of state support and involvement, its
stature in the community and its sound reputation all contribute to a
stable credit.
From the Portfolio Manager:
[PHOTO OF NICOLE ANDERES OMITTED]
"The Rhode Island municipal market has traditionally been marked by very
low supply and a heavy reliance on the secondary market. That has been
especially true in recent months, with virtually no new issuance
coming to market. Because Rhode Island is a high-tax state, there
remains strong demand for state issues, which contributes to the tight
secondary market.
"Insured general obligations, housing bonds, and colleges and university
bonds were among the Portfolio's largest weightings. Rhode Island
Housing and Mortgage Homeowner bonds were issued to finance home
purchases by state residents. They were among the Portfolio's largest
holdings and provided especially attractive yields. In the education
sector, we were able to take advantage of selected opportunities among
Higher Education Finance Authority bonds. These bonds represent
investments in quality issuers, stable credits, and good opportunities
in discount bonds."
Nicole Anderes
EV Classic Municipals Funds
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996 (Unaudited)
---------------------------------------------------------------------------------------------------------------------
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets:
Investment in Portfolio --
Identified cost 1,723,488 5,510,021 4,837,637 2,487,944
Unrealized appreciation (depreciation) 52,108 (104,807) 116,847 (96,333)
---------- ---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) 1,775,596 5,405,214 4,954,484 2,391,611
Receivable for Fund shares sold -- -- 55,009 --
Receivable from the Administrator (Note 4) 16,521 11,233 13,942 11,181
Deferred organization expenses (Note 1D) 7,500 4,059 5,521 5,501
---------- ---------- ---------- ----------
Total assets 1,799,617 5,420,506 5,028,956 2,408,293
---------- ---------- ---------- ----------
Liabilities:
Dividends payable 2,165 6,442 6,017 2,845
Payable to affiliate --
Trustees' fees -- 41 41 --
Accrued expenses 2,252 2,146 2,395 1,833
---------- ---------- ---------- ----------
Total liabilities $4,417 $8,629 $8,453 $4,678
---------- ---------- ---------- ----------
Net Assets $1,795,200 $5,411,877 $5,020,503 $2,403,615
========== ========== ========== ==========
Sources of Net Assets:
Paid-in capital $1,926,104 $6,155,955 $5,061,711 $2,764,514
Accumulated net realized loss on investment and
financial futures transactions (computed on
the basis of identified cost) (188,817) (639,152) (160,279) (266,566)
Accumulated undistributed (distributions in excess of )
net investment income 5,805 (119) 2,224 2,000
Unrealized appreciation (depreciation) of investments
and financial futures contracts from Portfolio
(computed on the basis of identified cost) 52,108 (104,807) 116,847 (96,333)
--------- --------- --------- ---------
Total $1,795,200 $5,411,877 $5,020,503 $2,403,615
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding 190,996 576,362 531,508 260,739
========== ========== ========== ==========
Net Asset Value, Offering Price and Redemption
Price Per Share
(net assets (divided by) shares of beneficial
interest outstanding) $9.40 $9.39 $9.45 $9.22
===== ===== ===== =====
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six Months Ended March 31, 1996 (Unaudited)
------------------------------------------------------------------------------------------------------------------
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
------- -------- -------- -------
<S> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $59,919 $164,095 $160,407 $79,778
Expenses allocated from Portfolio (5,388) (13,397) (12,951) (4,045)
------- -------- -------- -------
Net investment income from Portfolio $54,531 $150,698 $147,456 $75,733
------- -------- -------- -------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ -- $79 $79 $ --
Distribution costs (Note 5) 9,436 25,840 25,202 13,016
Custodian fee (Note 4) 1,500 916 1,384 1,932
Transfer and dividend disbursing agent fees 797 1,893 1,783 1,407
Printing and postage 8,903 5,837 5,820 5,203
Legal and accounting services 4,544 5,925 5,982 3,977
Amortization of organization expenses (Note 1D) 1,488 766 1,052 1,029
Miscellaneous 117 654 523 354
------- -------- -------- -------
Total expenses $26,785 $41,910 $41,825 $26,918
------- -------- -------- -------
Deduct --
Preliminary allocation of expenses to the
Administrator (Note 4) $16,521 $11,233 $13,942 $11,181
Reduction of custodian fee (Note 4) -- 897 -- --
------- -------- -------- -------
Total $16,521 $12,130 $13,942 $11,181
------- -------- -------- -------
Net expenses $10,264 $29,780 $27,883 $15,737
------- -------- -------- -------
$44,267 $120,918 $119,573 $59,996
------- -------- -------- -------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $17,148 $39,057 $52,433 $6,604
Financial futures contracts (1,854) 12,350 (13,508) (15,228)
------- -------- -------- -------
Net realized gain (loss) on investments $15,294 $51,407 $38,925 ($8,624)
Change in unrealized appreciation (depreciation)
of investments 16,106 (33,065) (9,998) 33,912
------- -------- -------- -------
Net realized and unrealized gain $31,400 $18,342 $28,927 $25,288
------- -------- -------- -------
$75,667 $139,260 $148,500 $85,284
======= ======== ======== =======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six Months Ended March 31, 1996 (Unaudited)
-------------------------------------------------------------------------------------------------------------------
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $44,267 $120,918 $119,573 $59,996
Net realized gain (loss) on investments 15,294 51,407 38,925 (8,624)
Change in unrealized appreciation (depreciation)
of investments $16,106 ($33,065) ($9,998) $33,912
---------- ---------- ---------- ----------
Net increase in net assets from operations $75,667 $139,260 $148,500 $85,284
---------- ---------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income ($44,267) ($120,918) ($119,573) ($59,996)
In excess of net investment income (1,176) (8,173) (6,707) (4,737)
---------- ---------- ---------- ----------
Total distributions to shareholders ($45,443) ($129,091) ($126,280) ($64,733)
---------- ---------- ---------- ----------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sales of shares $293,483 $543,194 $764,751 $98,581
Net asset value of shares issued to
shareholders in
23,980 52,535 102,040 38,967
Cost of shares redeemed (1,312,586) (454,636) (1,317,890) (788,768)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from
($995,123) $141,093 ($451,099) ($651,220)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets ($964,899) $151,262 ($428,879) ($630,669)
Net Assets:
At beginning of period 2,760,099 5,260,615 5,449,382 3,034,284
---------- ---------- ---------- ----------
At end of period $1,795,200 $5,411,877 $5,020,503 $2,403,615
========== ========== ========== ==========
Accumulated undistributed (distributions in
excess of) net investment income included in
net assets at end of period $5,805 ($119) $2,224 $2,000
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the Year Ended September 30, 1995
------------------------------------------------------------------------------------------------------------------
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $142,253 $304,061 $275,225 $168,073
Net realized loss on investments (138,296) (461,060) (141,825) (172,461)
Change in unrealized appreciation of investments 203,944 629,276 381,603 261,324
---------- ---------- ---------- ----------
Net increase in net assets from operations $207,901 $472,277 $515,003 $256,936
---------- ---------- ---------- ----------
Distributions to shareholders (Note 2) --
From net investment income ($142,253) ($304,061) ($275,225) ($168,073)
In excess of net investment income (3,147) (13,024) (7,088) (4,045)
In excess of net realized gain on investments (5,291) -- -- --
---------- ---------- ---------- ----------
Total distributions to shareholders ($150,691) ($317,085) ($282,313) ($172,118)
---------- ---------- ---------- ----------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sales of shares $785,921 $899,398 $2,176,868 $315,949
Net asset value of shares issued to
shareholders in
payment of distributions declared 56,477 139,236 229,427 114,621
Cost of shares redeemed (1,032,948) (3,996,087) (2,326,154) (1,399,657)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from
Fund share transactions ($190,550) ($2,957,453) $80,141 ($969,087)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets ($133,340) ($2,802,261) $312,831 ($884,269)
Net Assets:
At beginning of year 2,893,439 8,062,876 5,136,551 3,918,553
---------- ---------- ---------- ----------
At end of year $2,760,099 $5,260,615 $5,449,382 $3,034,284
========== ========== ========== ==========
Accumulated undistributed net
investment income included in
net assets at end of year $6,981 $8,054 $8,931 $6,737
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Classic California Fund Classic Florida Fund
----------------------------------------------- ----------------------------------
Six Six
months Year Ended months Year Ended
ended -------------------------------- ended -----------------------
March 31, September 30, March 31, March 31, September 30,
1996 ------------------- -------- 1996 -----------------------
(unaudited) 1995 1994++ 1994*** (unaudited) 1995 1994*
--------- ------ ------ ------- --------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $9.320 $9.080 $9.340 $10.000 $9.350 $8.970 $10.000
------ ------ ------ ------- ------ ------ -------
Income (loss) from operations:
Net investment income $0.225 $0.460 $0.227 $0.140 $0.213 $0.444 $0.351
Net realized and unrealized
gain (loss) on investments 0.086 0.267 (0.224) (0.635) 0.054 0.399 (0.967)
------ ------ ------ ------- ------ ------ -------
Total income (loss) from
operations $0.311 $0.727 $0.003 ($0.495) $0.267 $0.843 ($0.616)
------ ------ ------ ------- ------ ------ -------
Less distributions:
From net investment income ($0.225) ($0.460) ($0.227) ($0.140) ($0.213) ($0.444) ($0.351)
In excess of net investment income (0.006) (0.010) (0.036) (0.025) (0.014) (0.019) (0.063)
In excess of net realized gain
on investments -- (0.017) -- -- -- -- --
------ ------ ------ ------- ------ ------ -------
Total distributions ($0.231) ($0.487) ($0.263) ($0.165) ($0.227) ($0.463) ($0.414)
------ ------ ------ ------- ------ ------ -------
Net asset value, end of period $9.400 $9.320 $9.080 $9.340 $9.390 $9.350 $8.970
====== ====== ====== ======= ====== ====== =======
Total Return (2) 3.30% 8.32% 0.03% (5.16%) 2.82% 9.72% (6.36%)
Ratios/Supplemental Data**:
Net assets, end of period
(000 omitted) $1,795 $2,761 $2,893 $2,095 $5,412 $5,261 $8,063
Ratio of net expenses to average daily
net assets (1)(3) 1.67%+ 1.67% 1.73%+ 1.64%+ 1.66%+ 1.59% 1.63%+
Ratio of net expenses to average
daily net
assets, after expense reductions (1)(3) 1.67%+ 1.66% 1.73%+ 1.64%+ 1.59%+ 1.54% 1.63%+
Ratio of net investment income to
average daily net assets 4.71%+ 5.11% 4.89%+ 4.17%+ 4.45%+ 4.99% 4.51%+
** For the period from the start of business, December 3, 1993, to March 31, 1994, for the six months ended September 30, 1994,
for the year ended September 30, 1995 and for the six months ended March 31, 1996 (for Classic California Fund) and for the
period from the start of business, December 3, 1993, to September 30, 1994, for the year ended September 30, 1995 and for the
six months ended March 31, 1996 (for Classic Florida Fund), the operating expenses of the Funds and the Portfolios may reflect
a reduction of expenses by the Administrator or Investment Adviser. Had such actions not been taken, net investment income per
share and the ratios would have been as follows:
Net investment income per share $0.141 $0.335 $0.120 $0.123 $0.194 $0.408 $0.331
====== ====== ====== ======= ====== ====== =======
Ratios (As a percentage of
average daily net assets):
Expenses (1)(3) 3.42%+ 3.07% 4.03%+ 2.15%+ 2.06%+ 1.99% 1.88%+
Net investment income 2.96%+ 3.71% 2.59%+ 3.66%+ 4.04%+ 4.59% 4.26%+
+ Annualized.
(1) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset
value on the payable date. Total return is computed on an non-annualized basis.
(3) The annualized expense ratios for the six months ended March 31, 1996 and for the year ended September 30, 1995 have been
adjusted to reflect a change in reporting requirements. The new reporting guidelines require each Fund, as well as its
corresponding Portfolio, to increase its expense ratio by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended on or before September 30, 1994 have not been adjusted to
reflect this change.
* For the period from the start of business, December 3, 1993, to September 30, 1994.
*** For the period from the start of business, December 3, 1993, to March 31, 1994.
++ For the six months ended September 30, 1994. The Classic California Fund changed its fiscal year from March 31 to September
30, effective September 30, 1994.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
-------------------------------------------------------------------------------------------------------------------
Classic New York Fund Classic Florida Fund
---------------------------------- -----------------------------------
Six Six
months Year Ended months Year Ended
ended ------------------- ended ------------------------
March 31, September 30, March 31, September 30,
1996 ------------------- 1996 ------------------------
(unaudited) 1995 1994* (unaudited) 1995 1994*
--------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $9.420 $9.060 $10.000 $9.210 $8.890 $10.000
------ ------ ------ ------ ------ ------
Income (loss) from operations:
Net investment income $0.217 $0.454 $0.344 $0.206 $0.442 $0.347
Net realized and unrealized
gain (loss) on investments 0.042 0.372 (0.869) 0.026 0.331 (1.046)
------ ------ ------ ------ ------ ------
Total income (loss) from
operations $0.259 $0.826 ($0.525) $0.232 $0.773 ($0.699)
------ ------ ------ ------ ------ ------
Less distributions:
From net investment income ($0.217) ($0.454) ($0.344) ($0.206) ($0.442) ($0.347)
In excess of net investment income (0.012) (0.012) (0.071) (0.016) (0.011) (0.064)
------ ------ ------ ------ ------ ------
Total distributions ($0.229) ($0.466) ($0.415) ($0.222) ($0.453) ($0.411)
------ ------ ------ ------ ------ ------
Net asset value, end of period $9.450 $9.420 $9.060 $9.220 $9.210 $8.890
====== ====== ====== ====== ====== ======
Total Return (2) 2.71% 9.45% (5.45%) 2.49% 9.00% (7.29%)
Ratios/Supplemental Data**:
Net assets, end of period
(000 omitted) $5,021 $5,449 $5,137 $2,404 $3,034 $3,919
Ratio of net expenses to average
daily net assets (1)(3) 1.56%+ 1.57% 1.64%+ 1.47%+ 1.29% 1.23%+
Ratio of expenses to average daily
net assets after
expense reductions (1)(3) 1.54%+ 1.49% 1.64%+ 1.45%+ 1.23% 1.23%+
Ratio of net investment income to
average daily net assets 4.52%+ 4.96% 4.41%+ 4.39%+ 5.00% 4.50%+
** For the period from the start of business, December 6, 1993 and December 7, 1993, respectively, to September 30,
1994, for the year ended September 30, 1995 and for the six months ended March 31, 1996, the operating expenses of
the Funds and the Portfolios may reflect a reduction of expenses by the Administrator or Investment Adviser. Had
such actions not been taken, net investment income per share and the ratios would have been as follows:
Net investment income per share $0.191 $0.414 $0.293 $0.162 $0.377 $0.299
====== ====== ====== ====== ====== ======
Ratios (As a percentage of average
daily net assets):
Expenses (1)(3) 2.09%+ 2.01% 2.29%+ 2.41%+ 2.03% 1.85%+
Net investment income 3.99%+ 4.52% 3.76%+ 3.45%+ 4.26% 3.88%+
+ Annualized.
(1) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(2) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net
asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date. Total return is computed on an non-annualized basis.
(3) The annualized expense ratios for the six months ended March 31, 1996 and the year ended September 30,
1995 have been adjusted to reflect a change in reporting requirements. The new reporting guidelines require
each Fund, as well as its corresponding Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratios for the period ended September 30, 1994 have
not been adjusted to reflect this change.
* For the Classic New York and Classic Rhode Island Funds, the Financial Highlights are for the period
from the start of business, December 6, 1993 and December 7, 1993, respectively, to September 30, 1994.
See notes to financial statements
</TABLE>
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 (1940 Act), as amended, as an open-
end management investment company. The Trust presently consists of
sixty-six Funds, four of which are included in these financial
statements. They include EV Classic California Municipals Fund,
("Classic California Fund"), EV Classic Florida Municipals Fund
("Classic Florida Fund"), EV Classic New York Municipals Fund ("Classic
New York Fund"), and EV Classic Rhode Island Municipals Fund ("Classic
Rhode Island Fund"), each of which is registered under the 1940 Act as a
non-diversified management investment company. Each Fund invests all of
its investable assets in interests in a separate corresponding open-end
management investment company (a "Portfolio"), a New York Trust, having
the same investment objective as its corresponding Fund. The Classic
California Fund invests its assets in the California Municipals
Portfolio, the Classic Florida Fund invests its assets in the Florida
Municipals Portfolio, the Classic New York Fund invests its assets in
the New York Municipals Portfolio and the Classic Rhode Island Fund
invests its assets in the Rhode Island Municipals Portfolio. The value
of each Fund's investment in its corresponding Portfolio reflects the
Fund's proportionate interest in the net assets of that Portfolio,
(0.5%, 0.8%, 0.8%, and 5.6% at March 31, 1996 for the Classic California
Fund, Classic Florida Fund, Classic New York Fund and Classic Rhode
Island Fund, respectively). The performance of each Fund is directly
affected by the performance of its corresponding Portfolio. The
financial statements of each Portfolio, including the portfolio of
investments, are included elsewhere in this report and should be read in
conjunction with each Fund's financial statements. The following is a
summary of significant accounting policies consistently followed by the
Trust in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles.
A. Investment 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 September 30, 1995, the Funds, for federal income tax
purposes, had capital loss carryovers which will reduce taxable income
arising from future net realized gain on investments, if any, to the
extent permitted by the Internal Revenue Code, and thus will reduce the
amount of the distributions which would otherwise be necessary to
relieve the Funds of any liability for federal income or excise tax.
The amounts and expiration dates of the capital loss carryovers are as
follows:
Fund Amount Expires
--------------------------------------------------------------
Classic California Fund $ 4,833 September 30, 2003
59,053 September 30, 2002
Classic Florida Fund 19,484 September 30, 2003
166,878 September 30, 2002
Classic New York Fund 16,076 September 30, 2003
46,131 September 30, 2002
Classic Rhode Island Fund 85,223 September 30, 2002
Additionally, at September 30, 1995, net capital losses of $141,249,
$360,526, $122,750 and $168,377, for the Classic California Fund,
Classic Florida Fund, Classic New York Fund and the Classic Rhode Island
Fund, respectively, attributable to security transactions incurred after
October 31, 1994, are treated as arising on the first day of the Fund's
current taxable year.
Dividends paid by each Fund from net tax-exempt interest on municipal
bonds allocated from its corresponding Portfolio are not includable by
shareholders as gross income for federal income tax purposes because
each Fund and Portfolio intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which
will enable the Funds to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item to shareholders.
D. Deferred Organization Expenses - Costs incurred by each Fund in
connection with its organization, including registration costs, are
being amortized on the straight-line
basis over five years.
E. Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other - Investment transactions are accounted for on a trade date
basis.
G. Interim Financial Information - The interim financial statements
relating to March 31, 1996 and for the six month period then ended have
not been audited by independent certified public accountants, but in the
opinion of the Fund's management, reflect all adjustments, necessary for
the fair presentation of the financial statements.
(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 the Fund at the net asset value as of the ex-
dividend date. Distributions are paid in the form of additional shares
or, at the election of the shareholder, in cash. The Funds distinguish
between distributions on a tax basis and a financial reporting basis.
Generally accepted accounting principles require that only distributions
in excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax
earnings and profits which result in temporary over distributions for
financial statements purposes are classified as distributions in excess
of net investment income or accumulated net realized gains. Permanent
differences between book and tax accounting relating to distributions
are reclassified to paid-in capital. The tax treatment of distributions
for the calendar year will be reported to shareholders prior to February
1, 1997 and will be based on tax accounting methods which may differ
from amounts determined for financial statements purposes.
(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:
Classic Classic
California Fund Florida Fund
--------------------- ---------------------
Six Months Six Months
Ended Year Ended Year
March 31, Ended March 31, Ended
1996 Sept. 30, 1996 Sept. 30,
(unaudited) 1995 (unaudited) 1995
--------- --------- --------- ---------
Sales 30,561 86,883 55,955 100,863
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 2,508 6,267 5,480 15,557
Redemptions (138,226) (115,522) (47,437) (452,681)
------- ------- ------ -------
Net increase
(decrease) (105,157) (22,372) 13,998 (336,261)
======= ====== ====== =======
Classic Classic
New York Fund Rhode Island Fund
--------------------- ---------------------
Six Months Six Months
Ended Year Ended Year
March 31, Ended March 31, Ended
1996 Sept. 30, 1996 Sept. 30,
(unaudited) 1995 (unaudited) 1995
--------- --------- --------- ---------
Sales 79,591 242,369 10,522 35,648
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 10,594 25,207 4,150 12,896
Redemptions (137,040) (255,881) (83,612) (159,886)
------- ------- ------ -------
Net increase
(decrease) (46,855) 11,695 (68,890) (111,342)
======= ====== ====== =======
(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, $16,521, $11,233, $13,948 and $11,181 of
expenses related to the operation of the Classic California Fund,
Classic Florida Fund, Classic New York Fund and Classic Rhode Island
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) serves as custodian to the Funds
and the Portfolios. Prior to November 10, 1995, IBT was an affiliate of
BMR and EVM. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the
average cash balances the Funds or the Portfolios maintain with IBT. All
significant credit balances are reported as a reduction of expenses in
the statement of operations. Certain of the officers and Trustees of the
Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 5).
(5) Distribution Plan
Each Fund has adopted a distribution plan (the Plans) pursuant to Rule
12b-1 under the Investment Company Act of 1940. Effective January 30,
1995, the Trustees of the Funds adopted an Amended Distribution Plan.
The Plans require the Funds to pay the principal underwriter, Eaton
Vance Distributors, Inc. (EVD), amounts equal to 1/365 of 0.75% of each
Fund's daily net assets, for providing ongoing distribution services and
facilities to the respective Fund. A Fund will automatically
discontinue payments to EVD during any period in which there are no
outstanding Uncovered Distribution Charges, which are equivalent to the
sum of (i) 6.25% of the aggregate amount received by the Fund for shares
sold plus (ii) distribution fees calculated by applying the rate of 1%
over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD, reduced by the aggregate amount of
contingent deferred sales charges (see Note 6) and amounts theretofore
paid to EVD. The amount payable to EVD with respect to each day is
accrued on such day as a liability of each Fund and, accordingly,
reduces the Fund's net assets. For the six months ended March 31, 1996,
Classic California Fund, Classic Florida Fund, Classic New York Fund,
and Classic Rhode Island Fund, paid or accrued $7,077, $20,400, $19,896,
and 10,276, respectively, to or payable to EVD representing 0.75%
(annualized) of average daily net assets. At March 31, 1996, the amount
of Uncovered Distribution Charges of EVD calculated under the Plans for
Classic California Fund, Classic Florida Fund, Classic New York Fund and
Classic Rhode Island Fund were approximately $345,000, $748,000,
$510,000 and $346,000, respectively.
In addition, the Plans permit the Funds to make monthly payments of
service fees to the Principal Underwriter, in amounts not exceeding
0.25% of each Fund's average daily net assets for any fiscal year. The
Trustees have initially implemented the Plans by authorizing the Funds
to make monthly service fee payments to the Principal Underwriter in
amounts not expected to exceed 0.20% (0.25% for the Classic California
Fund) of each Fund's average daily net assets for each fiscal year. For
the six months ended March 31, 1996, Classic California Fund, Classic
Florida Fund, Classic New York Fund, and Classic Rhode Island Fund paid
or accrued service fees to or payable to EVD in the amount of $2,359,
$5,440, 5,306 and $2,740, respectively. Pursuant to the Amended
Distribution Plan, on sales made prior to January 30, 1995, EVD makes
monthly service fee payments to Authorized Firms in amounts anticipated
to be equivalent to 0.20% (0.25% for the Classic California Fund),
annualized, of the assets maintained in each Fund by their customers. On
sales of shares made on January 30, 1995 and thereafter, EVD currently
expects to pay to an Authorized Firm a service fee at the time of sale
equal to 0.20% (0.25% for the Classic California Fund) of the purchase
price of the shares sold by such Firm and monthly payments of service
fees in amounts not expected to exceed 0.20% (0.25% for the Classic
California Fund) per annum of the Fund's average daily net assets based
on the value of Fund shares sold by such Firm and remaining outstanding
for at least one year. During the first year after a purchase of Fund
shares, EVD will retain the service fee as reimbursement for the service
fee payment made to the Authorized Firm at the time of sale. Service fee
payments are made for personal services and/or maintenance of
shareholder accounts. Service fees paid to EVD and Authorized Firms are
separate and distinct from the sales commissions and distribution fees
payable by a fund to EVD, and as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution
Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(6) Contingent Deferred Sales Charges
For shares purchased on or after January 30, 1995, a contingent deferred
sales charge (CDSC) of 1% is imposed on any redemption of Fund shares made
within one year of purchase. Generally, the CDSC is based upon the lower
of the net asset value at date redemption or date of purchase. No charge
is levied on shares acquired by reinvestment of dividends or capital gains
distributions. No CDSC is levied on shares which have been sold to EVD or
its affiliates or to their respective employees or clients. CDSC charges are
paid to EVD to reduce the amount of Uncovered Distribution Charges
calculated under the Funds' Distribution Plans. CDSC received when no
Uncovered Distribution Charges exist will be credited to the Funds.
For the six months ended March 31, 1996, EVD received $10, $25 and $660,
of CDSC paid by shareholders for the Classic California Fund, Classic
Florida Fund and Classic New York Fund, respectively. EVD did not receive
any CDSC from shareholders redeeming out of the Classic Rhode Island
Fund during the period ended March 31, 1996.
(7) Investment Transactions
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended March 31, 1996 were
as follows:
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
---------- ---------- ---------- ------------
Increases $ 862,417 $1,072,146 $2,030,460 $144,009
Decreases 2,186,493 963,197 486,289 866,333
(8) Special Meetings of Shareholders
On December 8, 1995, special meetings of the shareholders of the Classic
California Fund and the Classic Florida Fund and on December 15, 1995,
special meetings of the shareholders of the Classic New York Fund and
the Classic Rhode Island Fund, respectively, were held for the purpose
of voting on the matters listed below. On October 23, 1995, the record
date of the meetings, each of the Funds had the following number of
shares outstanding and each Fund had the following number of shares
represented at the December 8, 1995 and the December 15, 1995 meetings:
Shares Outstanding Shares Represented at
Fund at 10/23/95 12/8/95 and 12/15/95 Meetings
---- ------------------ -----------------------------
Classic California 183,056 95,752
Classic Florida 557,708 344,170
Classic New York 556,152 297,962
Classic Rhode Island 4,260,005 1,874,794
Item 1. To consider and act on a proposal to amend the Fund's investment
policy to provide that the Fund may invest without limit in municipal
obligations the interest on which is exempt from regular federal income
tax (but which may be a tax preference item for purposes of alternative
minimum tax) and from the State taxes that, in accordance with the
Fund's investment objective, the Fund seeks to avoid.
Item 2. To approve the revision of certain of each Fund's fundamental
investment restrictions as follows:
2A. Eliminate the restriction concerning transactions with affiliates.
2B. Eliminate the restriction concerning investing for control.
2C. Eliminate the restriction concerning joint transactions.
2D. Reclassify the restriction concerning short sales.
2E. Reclassify the restriction concerning investment in affiliate
issuers.
2F. Reclassify the restriction concerning investment of exploration
companies.
2G. Eliminate the restriction concerning diversification of assets.
2H. Amend the restriction concerning underwriting.
2I. Amend the restriction concerning investing in future transactions.*
2J. Amend the restriction concerning lending.
2K. Amend the restriction concerning borrowing, pledging and senior
securites.**
2L. Clarify the restriction concerning investing in another investment
company.
* For the Classic Florida Fund and the Classic New York Fund this
restriction reads as follows:
2I. Amend the restriction concerning real estate.
** For the Classic California Fund this restriction reads as follows:
2K. Eliminate the restriction prohibiting investing in investment
companies.
<TABLE>
<CAPTION>
Item 3. This item applies to the Classic California Fund Only.
To change the Fund's diversification status from diversified to
non-diversified.
The following are the results of the voting on each proposal:
For the Classic California Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
For 84,526 84,526 84,526 84,526 84,526 86,683 84,526
Against 9,069 9,069 9,026 9,069 9,069 9,069 9,069
Abstain 2,157 2,157 2,157 2,157 2,157 0 2,157
Proposal: 2G 2H 2I 2J 2K 2L 3
----------------------------------------------------------------------
For 84,526 84,526 84,526 84,526 82,325 84,526 84,526
Against 9,069 9,069 9,069 9,069 11,270 9,069 9,069
Abstain 2,157 2,157 2,157 2,157 2,157 2,157 2,157
For the Classic Florida Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F
----------------------------------------------------------------------
For 229,121 228,041 228,041 228,041 228,041 228,041 228,041
Against 92,665 92,665 92,665 92,665 92,665 92,665 92,665
Abstain 12,384 13,464 13,464 13,464 13,464 13,464 13,464
Proposal: 2G 2H 2I 2J 2K 2L
------------------------------------------------------------
For 228,041 228,041 228,041 228,041 228,041 300,055
Against 92,665 92,665 92,665 92,665 92,665 20,651
Abstain 13,464 13,464 13,464 13,464 13,464 13,464
For the Classic New York Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F
----------------------------------------------------------------------
For 201,064 205,804 195,509 206,363 206,310 194,623 195,889
Against 20,983 21,869 21,363 21,310 20,983 32,670 31,784
Abstain 75,915 70,289 81,090 70,289 70,669 70,669 70,289
Proposal: 2G 2H 2I 2J 2K 2L
------------------------------------------------------------
For 195,327 195,562 193,686 195,562 189,074 210,169
Against 21,546 32,111 23,187 21,310 27,798 20,983
Abstain 81,090 70,289 81,090 81,090 81,090 66,810
For the Classic Rhode Island Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F
----------------------------------------------------------------------
For 192,005 197,188 197,844 197,188 197,844 202,810 197,844
Against 11,439 2,858 2,858 2,858 2,858 2,858 2,858
Abstain 4,966 8,364 7,708 2,742 7,708 2,742 7,708
Proposal: 2G 2H 2I 2J 2K 2L
------------------------------------------------------------
For 197,844 192,222 189,456 189,456 192,222 187,844
Against 2,858 2,858 5,624 5,624 2,858 2,858
Abstain 7,708 13,330 13,330 13,330 13,330 7,708
</TABLE>
<TABLE>
<CAPTION>
California Municipals Portfolio
Portfolio of Investments - March 31, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings
(Unaudited) Principal
------------------ Amount
Standard (000
Moody's & Poor's Omitted) Security Value
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR Cogeneration - 5.6%
NR BBB- $ 4,985 Central Valley Financing
Authority, Carson Ice,
6.20%, 7/1/20 $ 4,850,455
NR BBB- 10,900 Sacramento Cogeneration
Authority, Procter &
Gamble, 6.50%, 7/1/21 11,011,071
NR BBB- 6,000 Sacramento Power
Authority, Cogeneration
Project, 6.00%, 7/1/22 5,718,000
---------------
$ 21,579,526
---------------
Escrowed - 16.9%
NR NR $ 1,575 Fontana Public Financing
Authority, 7.75%, 12/1/20 $ 1,844,010
NR NR 4,000 Huntington Beach Public
Financing Authority,
8.375%, 5/1/18 4,402,120
NR NR 3,200 Oceanside Community
Development Commission,
8.40%, 6/1/18 3,288,512
Aaa AAA 6,400 Port of Oakland, (BIGI)
0%, 11/1/15 3,876,288
NR NR 3,000 Poway Redevelopment
Agency, 7.75%, 12/15/21 3,515,100
NR BBB 2,000 City of Rancho Mirage,
Joint Power Financing
Authority, 7.50%, 4/1/17 2,288,060
NR A- 2,360 Richmond Joint Power
Financing Authority,
7.00%, 5/15/07 2,618,585
Aaa AAA 8,000 County of Sacramento,
SFMR, (AMT), (GNMA)
8.125%, 7/1/16 (2) 10,141,680
Aaa AAA 14,285 County of Sacramento,
SFMR, (AMT), (GNMA)
8.50%, 11/1/16 (2) 18,883,199
Aaa AAA 6,000 County of Sacramento,
SFMR, (AMT), (GNMA)
8.25%, 1/1/21 (2) 7,822,020
Aaa AAA 3,000 City and County of San
Francisco Sewer System,
(AMBAC) Variable,
10/1/21 (1) 3,519,000
NR A- 2,375 City of San Luis Obispo,
8.25%, 6/1/06 2,440,122
---------------
$ 64,638,696
---------------
General Obligations - 1.6%
Aa AA $ 5,000 East Bay Municipal Utilities
District, 5.00%, 4/1/15 $ 4,548,450
NR NR 1,500 Virgin Islands, 7.25%,
10/1/18 1,563,600
---------------
$ 6,112,050
---------------
Hospitals - 1.2%
NR BBB+ $ 2,700 City of Stockton, Dameron
Hospital Association,
8.30%, 12/1/14 $ 2,830,923
NR BBB- 1,500 City of Woodland ,
Woodland Memorial
Hospital, 8.20%, 8/1/15 1,595,625
---------------
$ 4,426,548
---------------
Housing - 8.7%
NR NR $ 2,000 Los Angeles County,
Corporate Fund Housing
Authority, 10.50%,
12/1/29 $ 2,044,400
NR A+ 1,915 City of Oakland, Housing
Finance Agency, 7.10%,
1/1/10 1,954,621
Aa AA- 2,500 California Housing Finance
Agency, 8.20%, 8/1/17 2,582,325
Aa AA- 1,280 California Housing Finance
Agency, (AMT), 8.60%,
8/1/19 1,342,643
Aa AA- 2,500 California Housing Finance
Agency, 8.10%, 8/1/16 2,557,650
Aa AA- 3,680 California Housing Finance
Agency, (AMT), 7.375%,
8/1/11 3,833,971
Aa AA- 8,185 California Housing Finance
Agency, (AMT), (FHA)
7.65%, 8/1/23 8,557,172
Aa AA- 4,730 California Housing Finance
Agency, (AMT), 7.40%,
8/1/26 4,962,811
Aa AA- 3,855 California Housing Finance
Agency, (AMT), 7.50%,
8/1/25 3,980,172
A1 NR 845 Los Angeles County,
SFMR, 7.875%, 8/1/16 842,039
NR AAA 455 Riverside County, SFMR,
(AMT), (GNMA) 6.85%,
10/1/16 484,120
---------------
$ 33,141,924
---------------
Insured Education - 1.5%
Aaa AAA $ 3,330 University of California,
Multiple Purpose Project,
(MBIA) 4.75%, 9/1/21 $ 2,836,627
Aaa AAA 3,500 University of California,
Multiple Purpose Project,
(AMBAC) 5.00%, 9/1/23 3,082,975
---------------
$ 5,919,602
---------------
Insured Lease/Certificate
of Participation - 4.6%
Aaa AAA $ 3,300 California Statewide
Communities Development
Authority, Motion Picture
& Television Fund,
(AMBAC), 5.68%, 1/1/24 $ 2,954,655
Aaa AAA 7,700 Moulton Niguel Water
District, (AMBAC) 4.80%,
9/1/17 6,736,653
Aaa AAA 4,350 City of Stockton, Wastewater
Treatment Plant, (FGIC)
6.80%, 9/1/24 4,756,856
Aaa AAA 13,985 Visalia Unified School
District, (MBIA) 0%,
12/1/17 3,358,777
---------------
$ 17,806,941
---------------
Insured Special Tax - 1.1%
Aaa AAA $ 4,850 City of San Jose
Redevelopment Agency,
(MBIA) 4.75%, 8/1/24 $ 4,098,056
---------------
Insured Transportation - 4.2%
Aaa AAA $10,000 City and County of
San Francisco Airport,
(MBIA) 6.75%, 5/1/13 $ 10,841,900
Aaa AAA 3,500 City and County of
San Francisco Airport,
(AMT), (MBIA)
5.625%, 5/1/21 3,339,420
Aaa AAA 10,000 Port of Oakland, (AMT),
(BIGI), 0%, 11/1/19 1,809,500
---------------
$ 15,990,820
---------------
Insured Utilities - 6.4%
Aaa AAA $ 4,000 Anaheim Public Financing
Authority, (FGIC) 5.75%,
10/1/22 $ 3,878,400
Aaa AAA 8,000 Northern California Power
Agency, (MBIA) Variable,
8/1/25 (1) 8,896,000
Aaa AAA 3,500 Sacramento Municipal
Utilities District, (MBIA)
6.375%, 8/15/22 3,648,085
Aaa AAA 2,000 Southern California Public
Power Authority, (FGIC)
Variable, 7/1/12 (1) 1,812,000
Aaa AAA 6,915 Southern California Public
Power Authority, (MBIA),
5.00%, 1/1/20 6,100,620
---------------
$ 24,335,105
---------------
Insured Water & Sewer - 3.3%
Aaa AAA $ 5,000 East Bay Municipal Utility
District, (MBIA) Variable,
6/1/08 (1) $ 4,825,000
Aaa AAA $ 3,430 San Buenaventura Water
District, (AMBAC) 4.75%,
10/1/13 3,044,297
Aaa AAA 2,000 San Diego Public Finance
Authority, (FGIC) 5.00%,
5/15/25 1,763,480
Aaa AAA 3,000 San Diego County Water
Authority, (FGIC)
Variable, 4/22/09 (1) 3,102,000
---------------
$ 12,734,777
---------------
Lease/Certificate of
Participation - 20.5%
A1 A- $ 8,000 California Public Works,
University of California,
5.50%, 6/1/14 $7,636,960
A1 A- 6,500 California Public Works,
University of California,
5.00%, 6/1/23 5,625,815
A1 A- 3,000 California Public Works,
University of California,
5.50%, 6/1/10 2,970,660
A A- 3,500 California Public Works,
Susanville Prison, 5.375%,
6/1/18 3,229,415
A A- 2,800 California Public Works,
State Prison System,
5.375%, 6/1/12 2,645,160
A1 A- 5,000 California Public Works,
University of California,
5.25%, 6/1/20 4,548,050
A1 A- 14,025 California Public Works,
University of California,
5.50%, 6/1/19 13,052,787
Aaa AAA 2,500 California Statewide Public
Works, J. Paul Getty Trust,
5.00%, 10/1/23 2,220,500
A BBB 2,750 City of Inglewood, Civic
Center Improvement,
7.00%, 8/1/19 2,857,993
Baa1 BBB 3,100 County of Los Angeles,
Disney Parking Project,
0%, 3/1/20 613,645
Baa1 BBB 5,115 County of Los Angeles,
Disney Parking Project,
0%, 3/1/16 1,340,437
Baa1 BBB 1,925 County of Los Angeles,
Disney Parking Project,
0%, 3/1/17 466,909
Baa1 BBB 5,000 County of Los Angeles,
Disney Parking Project,
0%, 9/1/17 1,172,400
Baa1 BBB 5,370 County of Los Angeles,
Disney Parking Project,
0%, 3/1/18 1,217,218
Baa1 BBB 6,925 County of Los Angeles,
Disney Parking Project,
0%, 9/1/20 1,325,098
Baa1 BBB 1,000 County of Los Angeles,
Disney Parking Project,
6.50%, 3/1/23 1,003,940
NR NR 11,000 County of Los Angeles,
Marina Del Rey, 6.50%,
7/1/08 10,970,960
A1 A+ 5,000 Pasadena Parking Facility
Project, 6.25%, 1/1/18 5,187,250
Aa A+ 4,000 City of Sacramento
Financing Authority,
5.40%, 11/1/20 3,761,720
A A 3,000 San Bernadino Joint Power
Financing Authority,
5.50%, 12/1/20 2,753,820
Aa AA 4,425 Orange County Water
District, 5.00%, 8/15/18 3,834,792
---------------
$ 78,435,529
---------------
Nursing Homes - 0.9%
NR NR $ 3,170 City of Banning, San
Gorgonio Pass
Convalescent, (AMT),
9.50%, 12/1/11 $ 3,286,339
---------------
Solid Waste - 0.6%
Baa1 NR $ 2,350 Mojave Desert and
Mountain Joint Power
Authority, (AMT),
7.875%, 6/1/20 $ 2,569,702
---------------
Special Tax - 14.6%
NR NR $ 3,000 Lincoln Unified School
District, 7.625%, 9/1/21 $ 3,108,450
NR NR 3,000 Riverside County
Community Facilities
District, 7.55%, 9/1/17 3,036,930
NR NR 945 City of Fairfield, North
Cordelia District, 8.00%,
9/2/11 973,803
NR NR 2,090 City of Fairfield, North
Cordelia District, 7.375%,
9/2/18 2,118,528
Baa NR 9,725 City of Pleasanton, Joint
Power Financing Authority,
6.15%, 9/2/12 9,731,224
NR NR 2,915 City of Commerce, Joint
Power Financing Authority,
8.00%, 3/1/22 3,057,660
NR BBB 5,000 Contra Costa County,
Public Financing Authority,
7.10%, 8/1/22 5,154,300
NR BBB 3,910 City of Fontana, Public
Financing Authority, 7.00%,
9/1/21 3,968,180
NR BBB 8,220 Fontana Redevelopment
Agency, Jurupa Hills,
7.00%, 10/1/14 8,388,346
NR BBB 2,500 City of Pittsburg
Redevelopment Agency,
7.40%, 8/15/20 2,619,525
NR BBB 600 City of Rancho Mirage,
Joint Power Financing
Authority, 7.50%, 4/1/17 633,636
NR BBB 2,500 Riverside County
Redevelopment Agency,
7.50%, 10/1/26 2,625,300
NR BBB 5,605 San Carlos
Redevelopment Agency,
7.10%, 9/1/17 5,802,632
NR NR 1,400 City of Simi Valley
Community Development,
Sycamore Plaza II, 8.20%,
9/1/12 1,412,698
Baa BBB+ 3,000 Westminster
Redevelopment Agency,
Community
Redevelopment, 7.30%,
8/1/21 3,135,992
---------------
$ 55,767,204
---------------
Transportation - 6.4%
NR BBB $ 3,050 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 $ 3,097,001
A A- 1,400 Orange County, John
Wayne International
Airport, (AMT), 8.125%,
7/1/16 1,460,788
Baa1 BBB 1,500 Stockton Port District,
7.95%, 1/1/05 1,583,820
Baa1 BBB 1,500 Stockton Port District,
8.10%, 1/1/14 1,596,285
NR NR 12,000 San Joaquin Hills
Transportation Corridor
Agency, 0%, 1/1/14 3,732,960
NR NR 35,975 San Joaquin Hills
Transportation Corridor
Agency, 0%, 1/1/27 4,756,974
NR NR 5,765 San Joaquin Hills
Transportation Corridor
Agency, 0%, 1/1/26 814,191
NR NR 4,940 San Joaquin Hills
Transportation Corridor
Agency, 7.00%, 1/1/30 5,148,863
AA AA- 2,000 City of Long Beach
Harbor, (AMT), 7.25%,
5/15/19 2,137,720
---------------
$ 24,328,602
---------------
Utilities - 1.0%
A1 AA- $ 1,490 Southern California Public
Power Authority, 6.875%,
7/1/15 $ 1,531,690
Aa A+ 7,070 Southern California Public
Power Authority, 0%,
7/1/15 2,211,991
---------------
$ 3,743,681
---------------
Water and Sewer -0.9%
NR BBB $ 3,190 Orange Cove Irrigation
District, 6.625%, 2/1/17 $ 3,262,382
---------------
Total Tax-Exempt
Investments (identified
cost $356,860,992) $382,177,484
===============
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial future contracts.
The Portfolio invests primarily in debt securities issued by California municipalities. The ability of the issuers
of the debt securities to meet their obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 21.1% of
the securities in the portfolio of investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial institution ranged from 4.0% to
12.5% of total of investments.
See notes to financial statements
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Florida Municipals Portfolio
Portfolio of Investments - March 31, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited) Principal
---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration -3.8%
Baa3 BBB- $ 7,275 Martin County, Indian
Town Project, (AMT),
7.875%, 12/15/25 $ 8,169,389
NR NR 4,000 Palm Beach County,
Okeelanta Power L.P.
Project (AMT), 6.85%,
2/15/21 4,025,160
NR NR 9,250 Palm Beach County,
Osceola Power L.P. Project
(AMT), 6.95%, 1/1/22 9,381,350
NR NR 3,100 Palm Beach County,
Osceola Power L.P. Project
(AMT), 6.85%, 1/1/14 3,156,141
---------------
$ 24,732,040
---------------
Education -0.9%
NR AAA $ 5,500 Volusia County Educational
Facilities, Embry-Riddle
Aeronautical University
Project (CLEE), 6.625%,
4/15/22 $ 5,832,200
---------------
Escrowed -7.4%
Aaa AAA $ 9,225 Dade County, Baptist
Hospital of Miami Project,
5.75%, 5/1/21 $ 9,347,324
Aaa AAA 5,000 Florida Municipal Power
Agency Stanton II Project
(AMBAC), Variable,
10/1/20 (1) 6,150,000
NR NR 1,675 Mid-Bay Bridge Authority,
6.875%, 10/1/22 1,917,188
Aaa AAA 2,000 Orlando & Orange County
Expressway Authority
(FGIC), 8.25%, 7/1/14 2,603,340
NR AAA 2,355 Pinellas County Health
Facilities Finance Authority,
Sun Coast Health
System, Series A, 8.50%,
3/1/20 2,728,809
A NR 14,000 City of Venice Health
Facilities, 6.00%, 12/1/14 15,207,500
A NR 9,810 City of Venice Health
Facilities, 5.75%, 12/1/24 10,485,026
---------------
$ 48,439,187
---------------
General Obligations -11.5%
Aa AA $22,000 Florida Board of Education,
4.75%, 6/1/22 $ 18,698,680
Aa AA 7,700 Florida Board of Education,
5.00%, 6/1/10 7,389,844
Aa AA 15,235 Florida Board of Education,
5.00%, 6/1/20 13,605,769
Aa AA 8,000 Florida Board of General
Services, 6.60%, 7/1/17 8,612,480
NR BBB 4,675 Guam Government, 5.40%,
11/15/18 4,130,035
A A 7,255 Hillsborough County,
Museum of Science &
Industry, 6.45%, 1/1/22 7,846,573
Baa1 A 2,000 Puerto Rico, 6.50%, 7/1/23 2,109,920
Baa1 A 3,235 Puerto Rico Public
Building Authority, 5.50%,
7/1/21 3,001,951
Baa1 A 7,350 Puerto Rico Public
Building Authority, 5.70%,
7/1/09 7,396,820
Baa1 A 3,055 Puerto Rico Public
Building Authority, 5.75%,
7/1/16 2,955,406
---------------
$ 75,747,478
---------------
Health Care - 4.8%
NR AAA $ 5,075 Dade County Industrial
Development Authority,
Gramercy Park
Nursing Care Center,
6.60%, 8/1/23 $ 5,275,158
NR AAA 4,285 Dade County Industrial
Development Authority,
Florida Club Care
Center (GNMA), 6.60%,
1/20/18 4,358,059
NR BBB+ 3,600 Escambia County Health
Facilities Authority, Baptist
Hospital, Inc. and The
Baptist Manor, Inc.,
6.75%, 10/1/14 3,673,188
NR BBB+ 9,995 Escambia County Health
Facilities Authority, Baptist
Hospital, Inc., 6.00%,
10/1/14 9,410,492
Baa1 NR 3,750 Jacksonville Health
Facilities Authority,
National Benevolent
Association, Cypress
Village Florida Project,
7.00%, 12/1/22 3,793,088
NR NR 5,000 Osceola County IDA
Community Pooled Loan,
7.75%, 7/1/17 5,068,100
---------------
$ 31,578,085
---------------
Hospital Revenue - 0.8%
NR AA+ $ 4,750 Jacksonville Health Facilities
Finance Authority, St. Luke's
Hospital Association Project,
6.75%, 11/15/13 $ 5,042,220
---------------
Housing - 11.0%
NR AAA $ 630 Broward County HFA
SFMR (GNMA), (AMT),
7.35%, 3/1/23 $ 650,897
NR AAA 1,300 Clay County HFA MFMR
(GNMA), 7.40%, 12/1/25 1,373,047
Aaa NR 2,750 Clay County HFA SFMR
(GNMA), (AMT), 6.55%,
3/1/28 2,665,163
Aaa NR 290 Dade County HFA SFMR
(GNMA), 7.10%, 3/1/17 300,788
Aaa NR 1,155 Dade County HFA SFMR
(GNMA), (AMT), 7.75%,
9/1/22 1,208,095
Aaa NR 1,160 Dade County HFA SFMR
(GNMA), (AMT), 7.25%,
9/1/23 1,210,994
Aaa NR 75 Dade County HFA SFMR
(GNMA), 7.00%, 3/1/24 77,687
NR AAA 5,100 Dade County HFA SFMR
(GNMA), (AMT) 6.55%,
10/1/27 5,131,671
NR AAA 5,850 Dade County HFA SFMR
(GNMA), (AMT) 6.70%,
4/1/28 5,982,327
Aaa NR 2,540 Escambia County HFA
SFMR (GNMA), (AMT),
7.40%, 10/1/23 2,630,830
Aaa AAA 7,500 Escambia County HFA
SFMR (GNMA), (AMT),
6.85%, 10/1/17 7,392,225
Aaa AAA 5,000 Escambia County HFA
SFMR (GNMA), (AMT),
6.90%, 10/1/21 4,923,350
Aaa AAA 6,250 Escambia County HFA
SFMR (GNMA), (AMT),
6.95%, 10/1/27 6,186,875
NR AAA 1,125 Florida HFA (FHA), 6.35%,
6/1/14 1,164,341
Aaa NR 925 Hillsborough County HFA
SFMR (GNMA), (AMT),
7.875%, 5/1/23 981,647
NR NR 3,445 City of North Miami
Health Care Facilities, The
Imperial Club Project,
9.25%, 1/1/13 3,753,672
NR AAA 1,695 Orange County HFA
SFMR (GNMA), (AMT),
7.375%, 9/1/24 1,776,919
Aaa NR 12,000 Orange County HFA
SFMR (GNMA), (AMT),
6.85%, 10/1/27 12,371,040
NR AAA 8,000 Orange County HFA
SFMR (GNMA), (AMT),
6.60%, 4/1/28 8,062,080
Aaa NR 845 Palm Beach County HFA
SFMR (GNMA), 7.60%,
3/1/23 885,763
Aaa NR 1,455 Polk County HFA SFMR
(GNMA), 7.15%, 9/1/23 1,521,654
Baa BBB 1,400 Puerto Rico Urban
Renewal & Housing Corp,
7.875%, 10/1/04 1,558,298
Aaa AAA 810 Puerto Rico Housing
Finance Corp SFMR
(GNMA), 7.65%, 10/15/22 851,877
---------------
$ 72,661,240
---------------
Industrial Development
Revenue/Pollution
Control Revenue - 3.4%
NR NR $ 6,000 NJ EDA -Holt Hauling
Project (AMT), 9.75%,
12/15/16 $ 6,244,680
B1 BB+ 15,200 Polk County IDA -MC
Fertilizer Project (AMT),
7.525%, 1/1/15 15,917,744
---------------
$ 22,162,424
---------------
Insured General
Obligation -0.8%
Aaa AAA $ 5,515 Florida Board of Education
Capital Outlay (MBIA),
5.60%, 6/1/25 $ 5,352,694
---------------
Insured Healthcare -0.4%
Aaa AAA $ 500 Alachua County Health
Facility, Mental Health
Services Project
(CGIC), 7.75%, 7/1/10 $ 561,685
Aaa AAA 2,050 Hillsborough County IDA,
Allegany Health Systems,
J. Knox Village (MBIA),
5.75%, 12/1/21 2,022,735
---------------
$ 2,584,420
---------------
Insured Hospital -6.1%
Aaa AAA $ 8,000 Charlotte County Health
Care, Bon-Secours Health
System Project (FSA),
Variable, 8/30/27 (1) $ 8,140,000
Aaa AAA 23,355 Jacksonville FL Health
Authority, Daughters of
Charity (MBIA), 5.00%,
11/15/15 21,105,446
Aaa AAA 2,000 Lee County, Memorial
Hospital (MBIA), Variable,
4/1/20 (1) 2,245,000
Aaa AAA 5,275 Orange County Health
Facilities Finance Authority,
Pooled Hospital Loan
Program - Orlando
Regional Medical Center
& Indian River Memorial
Hospital (FGIC), 7.875%,
12/1/25 5,552,307
Aaa AAA 3,000 Orange County Health
Facilities Authority (MBIA),
Variable, 10/1/21 (1) 3,255,000
---------------
$ 40,297,753
---------------
Insured Housing - 2.4%
Aaa AAA $ 1,355 Brevard County HFA
SFMR (FSA), 7.00%,
3/1/13 $ 1,412,804
Aaa AAA 1,720 Duval County HFA SFMR
(FGIC), 7.35%, 7/1/24 1,800,169
Aaa AAA 6,530 FL HEFA, Maitland Club
Apartment Project
(AMBAC) (AMT),
6.875%, 8/1/26 6,773,961
Aaa AAA 3,000 FL HFA, Brittany of
Rosemont Project
(AMBAC) (AMT),
6.875%, 8/1/26 3,112,080
Aaa AAA 2,675 Lee County SCA MFMR
(FSA) (AMT),
7.05%, 1/1/30 2,782,910
---------------
$ 15,881,924
---------------
Insured IDR/PCR - 1.3%
Aaa AAA $ 8,200 Citrus County PCR
(MBIA), 6.35%, 2/1/22 $ 8,548,664
---------------
Insured Lease - 0.3%
Aaa AAA $ 2,460 Polk County FL
Correctional Privatization
(AMBAC), 5.00%, 7/1/17 $ 2,220,716
---------------
Insured Miscellaneous - 0.5%
Aaa AAA $ 2,000 Escambia County (MBIA),
7.20%, 1/1/15 $ 2,145,180
Aaa AAA 799 Osceola County IDA
Community Provider
Pooled Loan Program,
(CGIC), 7.75%, 7/1/10 850,959
---------------
$ 2,996,139
---------------
Insured Solid Waste - 0.3%
Aaa AAA $ 1,500 St. John's County Solid
Waste Disposal (FGIC),
7.25%, 11/1/10 $ 1,675,455
---------------
Insured Special Tax
Revenue - 2.3%
Aaa AAA $ 1,500 FL Department of
Environmental Protection
(AMBAC), 5.75%, 7/1/10 $ 1,538,370
Aaa AAA 1,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/10 435,380
Aaa AAA 1,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/11 404,960
Aaa AAA 2,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/12 757,920
Aaa AAA 1,185 City of Opa-Locka (FGIC),
7.00%, 1/1/14 1,332,924
Aaa AAA 5,000 St. Petersburg Excise Tax
(FGIC), 5.00%, 10/1/16 4,535,100
Aaa AAA 2,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/10 889,340
Aaa AAA 1,760 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/12 683,196
Aaa AAA 2,840 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/14 974,120
Aaa AAA 4,000 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/15 1,282,680
Aaa AAA 4,140 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/16 1,252,350
Aaa AAA 2,525 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/17 720,534
---------------
$ 14,806,874
---------------
Insured Transportation - 7.7%
Aaa AAA $4,000 Dade County Aviation
Facilities (MBIA) (AMT),
6.55%, 10/1/13 $ 4,240,200
Aaa AAA 7,500 Dade County Aviation
Facilities (MBIA) (AMT),
5.75%, 10/1/18 7,369,950
Aaa AAA 11,000 Dade County Aviation
Facilities (MBIA) (AMT),
5.75%, 10/1/26 10,617,090
Aaa AAA 1,000 Dade County Seaport
Revenue (MBIA), 5.125%,
10/1/26 896,120
Aaa AAA 8,455 FL State Turnpike Authority
(FGIC), 6.35%, 7/1/22 8,776,459
Aaa AAA 8,600 Greater Orlando Aviation
Authority, Orlando Airport
Facilities (FGIC),
(AMT), 6.375%, 10/1/21 8,904,612
Aaa AAA 10,920 Orlando & Orange County
Expressway Authority
(FGIC), 5.125%, 7/1/20 9,926,280
---------------
$ 50,730,711
---------------
Insured Utilities - 4.9%
Aaa AAA $11,465 FL Municipal Power
Agency Stanton II Project
(AMBAC), 4.50%,
10/1/27 $ 9,207,885
Aaa AAA 7,770 FL Municipal Power
Agency Stanton II Project
(AMBAC), 4.50%, 10/1/16 6,584,453
Aaa AAA 8,000 FL Municipal Power
Agency Stanton II Project
(AMBAC), 5.10%, 10/1/25 7,130,800
Aaa AAA 4,000 Lakeland Electric & Water
(FGIC), 6.00%, 10/1/13 4,060,720
Aaa AAA 1,540 Manatee County Public
Utility (FGIC), 0%, 10/1/12 593,978
Aaa AAA 1,750 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/02 (1) 1,919,750
Aaa AAA 2,200 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 2,442,000
---------------
$ 31,939,586
---------------
Insured Water & Sewer - 4.7%
Aaa AAA $11,450 Broward County Water &
Sewer (AMBAC), 5.125%,
10/1/15 $ 10,579,686
Aaa AAA 9,500 Dade County Water and
Sewer System (FGIC),
5.00%, 10/1/13 8,720,430
Aaa AAA 2,000 City of Fort Myers Utility
(FGIC), 5.00%, 10/1/16 1,814,040
Aaa AAA 4,000 Sanford Water and Sewer
(AMBAC), 4.50%, 10/1/21 3,298,280
Aaa AAA 1,700 St. John's County Water &
Sewer (MBIA), 0%, 6/1/16 524,348
Aaa AAA 5,600 St. Lucie County Utility
System (FGIC), 6.00%.
10/1/20 5,858,216
---------------
$ 30,795,000
---------------
Life Care - 1.1%
NR NR $ 6,895 Atlantic Beach, Fleet
Landing Project, 8.00%,
10/1/24 $ 7,114,537
---------------
Nursing Homes - 1.8%
NR NR $ 300 Broward County Industrial
Development Authority,
Beverly Enterprises Florida,
Inc. Project, 9.80%,
11/1/10 $ 333,947
NR NR 475 Charlotte County
Industrial Development
Authority, Beverly
Enterprises, 10.00%,
6/1/11 539,087
NR NR 6,520 Citrus County Industrial
Development Authority,
Beverly Enterprises, 7.25%,
4/1/03 6,596,154
NR NR 2,135 Highlands County
Industrial Development
Authority, Beverly
Enterprises Florida, Inc.
Project, 9.25%, 7/1/07 2,357,275
NR NR 410 Okaloosa County, Beverly
Enterprises, 10.75%,
10/1/03 442,370
NR NR 700 Orange County Industrial
Development Authority,
Beverly Enterprises,
9.25%, 8/1/10 774,221
NR NR 1,000 Winter Garden, Beverly
Enterprises, 8.75%, 7/1/12 1,090,660
---------------
$ 12,133,714
---------------
Solid Waste - 0.6%
A A $ 3,745 Broward County Waste
Energy Company, L.P.
North Project, 7.95%,
12/1/08 $ 4,153,055
---------------
Special Tax Revenue - 6.0%
A1 A+ $ 8,020 Orange County 5.375%,
1/1/24 $ 7,365,968
A1 NR 3,000 City of Orlando, 6.00%,
10/1/22 3,017,940
Baa1 A 7,410 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/19 6,930,351
Baa1 A 10,135 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 8,778,836
Baa1 A 10,560 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/21 9,510,442
Baa1 A 2,150 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/36 1,796,647
NR AA 1,000 St. Lucie FL Special
Assessment, 6.10%, 11/1/20 1,011,520
NR AA 1,000 St. Lucie FL Special
Assessment, 6.20%, 11/1/25 1,015,620
---------------
$ 39,427,324
---------------
Transportation - 1.5%
NR NR $10,140 Mid-Bay Bridge Authority,
6.125%, 10/1/22 $ 9,938,214
---------------
Utilities - 13.3%
A1 A+ $ 5,000 Citrus County PCR Florida
Power. 6.625%, 1/1/27 $ 5,276,150
Aa AA 11,125 Gainesville Utility System,
5.20%, 10/1/22 10,198,955
NR BBB 27,825 Guam Power Authority,
5.25%, 10/1/23 23,773,124
Aa1 AA 39,005 Jacksonville Electric
Authority, Bulk Power
Supply System,
Scherer 4 Project, 5.25%,
10/1/21 35,972,361
Aa1 AA 2,850 Orlando Utilities
Commission Water and
Electric, 5.125%, 10/1/19 2,587,914
Aa AA- 1,750 Orlando Utilities
Commission Water and
Electric, 5.25%, 10/1/23 1,609,510
Aa AA- 2,965 Orlando Utilities
Commission Water and
Electric, 5.50%, 10/1/26 2,818,144
Baa1 A- 185 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 199,445
A2 A+ 2,515 St. Lucie County Solid
Waste Disposal, Florida
Power & Light Company
(AMT), 6.70%, 5/1/27 2,629,507
NR NR 2,000 Virgin Islands Water &
Power Authority, 7.40%,
7/1/11 2,093,000
---------------
$ 87,158,110
---------------
Water & Sewer - 0.4%
Baa1 BBB+ $ 2,500 Hillsborough County
Utility, 6.625%, 8/1/11
$ 2,627,525
---------------
Total Tax-Exempt
Investments (identified
cost, $624,599,013) $656,577,289
===============
(1) The above designated security has been issued as an inverse floater bond.
The Portfolio invests primarily in debt securities issued by Florida municipalities. The ability of the issuers
of the debt securities to meet their debt obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 31.7% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution ranged
from 0.1% to 12.8% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New York Municipals Portfolio
Portfolio of Investments - March 31, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited) Principal
---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living - 0.3%
NR NR $ 1,970 Village of North Syracuse
Housing Authority, (AJM
Senior Housing, $ 1,961,135
---------------
Education - 14.5%
A NR $ 1,000 Dutchess County IDA,
Bard College, 7.00%,
11/1/17 $ 1,077,270
A1 NR 6,170 Monroe County IDA,
University of Rochester,
7.25%, 12/1/16 6,448,884
Baa BBB- 1,660 City of New Rochelle
IDA Civic Facilities,
College of New
Rochelle, 6.75%, 7/1/22 1,705,102
Baa1 BBB+ 9000 Dormitory Authority,
State University Educational
Facilities, 6.25%, 5/15/17 8,978,220
Baa1 BBB+ 1,300 Dormitory Authority, State
University Educational
Facilities, 7.50%, 5/15/11 1,498,939
Baa1 BBB+ 11,500 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/13 10,618,870
Aaa AA+ 6,895 Dormitory Authority, State
University Educational
Facilities, 4.75%, 7/1/14 6,215,290
Aa AA 2,650 Dormitory Authority, State
University Educational
Facilities, 5.00%, 7/01/15 2,437,550
Baa1 BBB+ 415 Dormitory Authority, State
University Educational
Facilities, 7.375%, 5/15/14 454,911
Baa1 BBB+ 9,850 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/15 8,984,382
Baa1 BBB+ 7,605 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/19 6,843,663
Baa1 BBB+ 6,805 Dormitory Authority, State
University Educational
Facilities, 5.25%, 5/15/21 6,081,901
NR AA 1,300 Dormitory Authority,
New York Medical College
(Asset Guaranty),
6.875%, 7/1/21 1,402,453
Baa1 BBB+ 28,975 Dormitory Authority, State
University Educational
Facilities, 5.50%,
5/15/13 27,495,247
---------------
$ 90,242,682
---------------
Electric Utilities - 4.9%
A1 A $ 2,500 New York State Energy
Resource & Development
Authority, Brooklyn Union
Gas (RIBS)(AMT), Variable,
7/1/26 (1) $ 2,963,750
A1 A+ 500 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.75%,
1/1/24 529,000
A1 A+ 2,365 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
7/1/25 2,544,480
A1 A+ 1,000 New York State Energy
Resource & Development
Authority, Consolidated
Edison (AMT), 7.50%,
1/1/26 1,081,580
Aa AA- 19,445 Power Authority of the
State of New York, 5.25%,
1/1/18 17,950,457
Baa1 A- 1,500 Puerto Rico Electric
Power Authority, 0%,
7/1/17 404,085
Baa1 A- 2,250 Puerto Rico Electric
Power Authority, 5.50%,
7/1/20 2,101,545
NR NR 3,000 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 3,139,500
---------------
$ 30,714,397
---------------
Escrowed - 11.4%
Aaa AAA $ 725 Albany Municipal Water
(MBIA), 7.50%, 12/1/17 $ 799,501
Aaa BBB 1,000 Dormitory Authority, City
University, 7.625%, 7/1/20 1,140,150
Aaa BBB+ 1,530 Dormitory Authority, State
University Educational
Facilities, 7.70%, 5/15/12 1,743,695
NR BBB 1,000 Dormitory Authority, City
University, 8.125%, 7/1/08 1,102,480
Baa1 BBB- 2,250 Dormitory Authority,
Upstate Community
College, 7.20%, 7/1/21 2,560,725
Baa1 NR 2,000 Dormitory Authority,
Upstate Community
College, 7.30%, 7/1/21 2,285,440
Baa BBB+ 13,380 New York State Housing
Finance Agency Health
Facilities, 6.00%, 5/01/16 13,379,197
Aaa AAA 500 Erie County Water
Authority, Water Works
System, 6.00%,
12/1/08 535,280
Aaa AAA 500 Metropolitan Transportation
Authority Commuter
Facilities Bonds, 7.50%,
7/1/19 565,600
Aaa AAA 1,000 New York Local
Government Assistance
Corporation, 7.00%, 4/1/16 1,126,720
Aaa AAA 1,500 New York Local
Government Assistance
Corporation, 6.75%, 4/1/21 1,690,125
Aaa BBB 1,000 New York State Housing
Finance Agency Service
Contracts, 7.80%, 9/15/11 1,160,990
Aaa AAA 1,775 New York State Housing
Finance Agency Service
Contracts, 7.375%, 9/15/21 2,055,876
Aaa BBB+ 90 New York State Medical
Care Facilities Finance
Agency, (MCFFA),
Mental Health Services
Facilities, 7.75%, 8/15/10 102,127
Aaa AAA 450 New York State MCFFA,
Mental Health Services
Facilities, 7.875%, 8/15/08 518,917
Aaa AAA 3,320 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 3,804,189
Aaa NR 8,100 New York State Urban
Development Corporation
Correctional Facilities,
6.50%, 1/1/21 8,784,450
Baa1 BBB 4,750 New York State Thruway
Authority, Local Highway
and Bridge Service
Contract Bonds, 7.25%,
1/1/10 (2) 5,357,145
Baa1 BBB 7,200 New York State Urban
Development Corporation,
5.70%, 4/1/20 6,839,496
Baa1 BBB 500 New York State Urban
Development Corporation,
Alfred Technology,
7.875%, 1/1/20 567,825
Baa1 BBB 750 New York State Urban
Development Corporation,
Clarkson Center,
7.80%, 1/1/20 864,997
Baa1 BBB 750 New York State Urban
Development Corporation,
Clarkson Center,
8.00%, 1/1/20 841,538
Aaa AAA 5,350 New York State UDC,
Onondaga Co. Convention
Center, 7.875% 1/1/10 6,199,741
NR AA- 500 Power Authority of the
State of New York, 8.00%,
1/1/17 542,215
NR A 1,760 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/18 1,976,339
Baa1 AAA 3,750 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 4,127,212
---------------
$ 70,671,970
---------------
General Obligations - 2.3%
A A- $ 5,965 New York State, 6.125%,
6/15/14 $ 6,186,421
Baa1 A- 120 New York City, 8.25%,
5/15/16 138,904
Baa1 A- 4,000 New York City, 7.50%,
2/1/18 4,333,440
Aa AA 1,700 Onondaga County,
5.875%, 2/15/11 1,776,364
Aa AA 1,600 Onondaga County,
5.875%, 2/15/12 1,659,392
---------------
$ 14,094,521
---------------
Health Care - 15.3%
NR AAA $ 6,705 Dormitory Authority,
United Health Services,
FHA, 7.35%, 8/1/29 $ 7,243,344
NR AA 1,000 Dormitory Authority,
St. Johns, FHA Insured
Nursing Home
6.05%, 2/1/16 1,010,840
Aa AA 750 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.35%, 2/15/29 809,108
NR AAA 3,550 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.125%, 2/15/14 3,640,809
NR AA 9,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.70%, 8/15/23 9,402,750
Aa AA 6,600 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.25%, 2/15/31 7,119,354
Aa AA 1,500 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.95%, 2/15/32 1,591,065
Aa AA 2,190 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.00%, 8/15/32 2,342,577
Aa AA 1,050 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.75%, 2/15/12 1,110,837
Health Care (continued)
Aa AA 1,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.55%, 8/15/12 1,037,660
NR AA 2,670 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.10%, 8/15/15 2,676,461
Aa AA 3,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/14 3,588,445
Aa AA 2,425 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 2/15/10 2,500,199
Aa AA 2,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.50%, 2/15/35 2,546,525
Aa AA 6,550 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.25%, 8/15/15 6,720,824
Aa AA 6,625 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/15 6,678,133
Aa AA 950 New York State MCFFA,
Insured Mortgage Project
(FHA), 7.45%, 8/15/31 1,027,511
Baa1 BBB+ 1,610 New York State MCFFA,
Mental Health Services
Facilities, 7.625%, 8/15/17 1,797,404
Baa1 BBB+ 145 New York State MCFFA,
Mental Health Services
Facilities, 7.75%, 8/15/10 159,949
Baa1 BBB+ 495 New York State MCFFA,
Mental Health Services
Facilities, 7.875%, 8/15/08 554,821
Baa1 BBB+ 1,230 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 1,365,940
Baa1 BBB+ 4,785 New York State MCFFA,
Mental Health Services
Facilities, Series 1994 A,
5.25%, 8/15/23 4,149,887
Baa NR 5,540 New York State MCFFA,
Secured Hospital, 7.35%,
8/15/11 5,919,435
Baa BBB 19,700 New York State MCFFA,
Secured Hospital
(Brookdale), 6.80%,
8/15/12 20,323,701
---------------
$ 95,317,579
---------------
Hospitals - 0.7%
Aa AAA $ 1,500 Dormitory Authority,
Long Island Jewish Medical
Center (FHA),
7.75%, 8/15/27 $ 1,605,150
NR AAA 1,000 Dormitory Authority, St.
Francis Hospital (FHA),
7.65%, 8/1/30
1,106,890
Baa1 BBB+ 1,800 Syracuse Industrial
Development Agency
(IDA), St. Joseph's Hospital
Health Center, 7.50%,
6/1/18 1,904,688
---------------
$ 4,616,728
---------------
Housing - 5.8%
NR NR $ 4,704 New York City Housing
Development Corporation
(HDC), Allerville Project,
6.50%, 11/15/18 $ 4,770,839
NR NR 2,062 New York City HDC,
Dayton Project, 6.50%
11/15/18 2,067,436
NR AAA 2,550 New York City HDC,
Multi-Unit Management,
7.35%, 6/1/19 2,678,163
Baa A 4,750 New York City HDC,
General Housing, 6.50%,
5/1/22 4,797,785
Aa AAA 235 New York State Housing
Finance Agency, Baytown,
7.10%, 8/15/35 248,468
Aa NR 565 New York State Mortgage
Agency, 7.70%, 10/1/12 606,754
Aaa AAA 250 New York State Mortgage
Agency, 6.90%, 4/1/03 262,945
Aa NR 8,750 New York State Mortgage
Agency, 6.90%, 4/1/15 9,266,950
Aa NR 500 New York State Mortgage
Agency, 6.65%, 4/1/22 515,280
Aa NR 1,000 New York State Mortgage
Agency, 7.50%, 4/1/15 1,083,300
Aa NR 270 New York State Mortgage
Agency, 8.00%, 10/1/17 284,880
Aa NR 275 New York State Mortgage
Agency, 7.65%, 4/1/19 290,820
Aa NR 1,600 New York State Mortgage
Agency (AMT), 7.95%,
10/1/21 1,715,344
Aa NR 6,350 New York State Mortgage
Agency (AMT), 6.40%,
10/1/20 6,431,280
Baa BBB 350 Puerto Rico
Commonwealth Urban
Renewal & Housing
Corporation,
7.875%, 10/1/04 389,575
Aaa AAA 380 Puerto Rico Housing
Financial Corporation
Single-Family (GNMA),
7.65%, 10/15/22 399,646
---------------
$35,809,465
---------------
Insured College & University - 1.9%
Aaa AAA $ 2,485 Dormitory Authority,
State University (AMBAC),
5.25%, 7/1/14 $ 2,353,544
Aaa AAA 6,950 Dormitory Authority,
Marist College (MBIA),
6.00%, 7/1/22 7,025,685
Aaa AAA 2,000 Dormitory Authority,
New York University
(MBIA), 5.00%, 7/1/11 1,893,560
Aaa AAA 450 Dormitory Authority,
Colgate University,
6.00%, 7/1/16 466,592
---------------
$ 11,739,381
---------------
Insured General Obligations - 0.8%
Aaa AAA $ 1,035 Erie County Water
Authority (AMBAC),
0%, 12/1/17 $ 218,965
Aaa AAA 2,480 New York State
Environmental Facilities
Corporation (EFC), Jamaica
Water Supply Company
(AMT) (AMBAC),
7.625% 4/1/29 2,686,584
Aaa AAA 1,955 New York State Dorm
Authority, City University,
5.75%,7/1/13 1,980,474
---------------
$ 4,886,023
---------------
Insured General
Obligations Local - 1.8%
Aaa AAA $ 465 Chautauqua County
Unlimited Tax (FGIC),
7.30%, 4/1/07 $ 548,128
Aaa AAA 520 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/08 574,132
Aaa AAA 770 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/09 846,800
Aaa AAA 725 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/07 836,164
Aaa AAA 600 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/08 692,304
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/09 813,372
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/10 815,542
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/11 817,033
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/12 788,683
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/13 788,947
Aaa AAA 515 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/14 601,736
Aaa AAA 2,000 New York City (AMBAC),
7.00%, 8/1/17 2,227,220
Aaa AAA 500 Oyster Bay (FGIC),
6.60%, 2/15/12 554,610
Aaa AAA 450 Oyster Bay (FGIC),
6.60%, 2/15/13 499,149
---------------
$ 11,403,820
---------------
Insured General
Obligations School District - 0.3%
Aaa AAA $ 700 Bethlehem Central School
District (AMBAC),
7.10%, 11/1/08 $ 819,497
Aaa AAA 700 Bethlehem Central School
District (AMBAC),
7.10%, 11/1/09 822,332
---------------
$ 1,641,829
---------------
Insured General
Obligations Territory - 0.7%
Aaa AAA $ 4,500 Commonwealth of Puerto
Rico Public Improvement
Residual Interest Tax
Exempt Securities (FSA),
Variable, 7/1/22 (1) $ 4,628,250
---------------
Insured Health Care - 4.8%
Aaa AAA $ 9,130 New York State Dormitory
Authorty, Mental Health
Facilities (MBIA)
5.125%, 8/15/21 $ 8,282,188
Aaa AAA 1,500 New York State MCFFA,
Long Term Health Care
(CGIC), 6.80%, 11/1/14 1,600,530
Aaa AAA 1,300 New York State MCFFA,
New York Hospital FHA
Insured Mortgage
(AMBAC), 6.60%, 2/15/11 1,417,156
Aaa AAA 5,400 New York State MCFFA,
New York Hospital FHA
Insured Mortgage
(AMBAC), 6.75%, 8/15/14 5,845,014
Aaa AAA 13,025 New York State MCFFA,
Mental Health Services
Facilities (MBIA),
5.375%, 2/15/14 12,330,116
---------------
$ 29,475,004
---------------
Insured Housing - 0.1%
Aaa AAA $ 500 New York City HDC,
Charter Oaks (MBIA),
7.375% 4/1/17 $ 520,650
---------------
Insured Miscellaneous - 3.7%
Aaa AAA $ 500 New York City IDA,
(USTA National Tennis
Center Incorporated
Project) (FSA), 6.375%,
11/15/14 $ 523,725
Aaa AAA 2,000 New York State Dormitory
Authority, City University,
(Sec. AMBAC)
5.75%, 7/1/13 2,026,060
Aaa AAA 21,500 New York State Energy
Research & Development
Authority Brooklyn Union
Gas, 5.50%, 1/1/21 20,601,515
---------------
$ 23,151,300
---------------
Insured Solid Waste - 1.6%
Aaa AAA $ 1,650 Dutchess County Resource
Recovery Solid Waste
(FGIC), 7.50%, 1/1/09 $ 1,805,232
Aaa AAA 6,795 Islip Resource Recovery
Agency (MBIA), 6.50%,
7/1/09 7,426,052
Aaa AAA 1,000 Montgomery, Otesgo,
Schoharie Solid Waste
Management Authority
(MBIA), 5.25%, 1/1/14 943,690
---------------
$ 10,174,974
---------------
Insured Toll & Turnpike - 0.5%
Aaa AAA $ 3,000 Triborough Bridge &
Tunnel Authority Residual
Interest Tax Exempt
Securities (MBIA), Variable,
1/1/19 (1) $ 3,030,000
---------------
Insured Transit - 0.5%
Aaa AAA $ 3,000 Triborough Bridge &
Tunnel Authority Residual
Interest Tax Exempt
Securities (MBIA), Variable,
1/1/12 (1) $ 3,225,000
---------------
Insured Water & Sewer - 0.1%
Aaa AAA $ 275 Albany Municipal Water
Financial Authority
(MBIA), 7.50%, 12/1/17 $ 297,014
---------------
Lease/Certificate of
Participation - 6.1%
Baa1 BBB $ 5,100 Dormitory Authority, City
University, 7.00%, 7/1/09 $ 5,634,735
Baa1 BBB 4,325 Dormitory Authority, City
University, 7.50%, 7/1/10 4,994,034
Baa1 BBB 15,815 Dormitory Authority, City
University, 5.75%, 7/1/13 15,326,000
Baa1 BBB 250 Dormitory Authority, City
University, 6.375%, 7/1/08 256,977
NR BBB 5,865 New York State Thruway
Authority, 0%, 1/1/01 4,535,932
Baa1 BBB 5,775 New York State Urban
Development Corporation
(UDC) Correctional
Facilities, 5.50%, 1/1/14 5,461,706
A A 1,825 Syracuse -Hancock
International Airport
Certificates of
Participation, 6.625%,
1/1/12 1,909,535
---------------
$ 38,118,919
---------------
Miscellaneous - 1.6%
Aa AA- $ 200 City of New York
Municipal Assistance
Corporation, 7.50%,
7/1/08 $ 216,092
Aa AA- 485 City of New York
Municipal Assistance
Corporation, 7.625%,
7/1/08 524,110
Aa AA- 635 City of New York
Municipal Assistance
Corporation, 7.625%,
7/1/08 703,377
NR NR 1,300 New York City IDA,
(YMCA of Greater
New York), 8.00%, 8/1/16 1,393,392
7,000 VRDC-IVRC Trust,
Variable, 6/26/02 (1) 7,200,900
---------------
$ 10,037,871
---------------
Solid Waste - 2.1%
Baa1 A- $ 2,665 Hempstead IDA Resource
Recovery, American
Refunding Fuel Co.,
7.40%, 12/1/10 $ 2,754,731
Baa NR 9,530 New York State EFC
Resource Recovery,
Huntington Project,
7.50%, 10/1/12 10,037,091
---------------
$ 12,791,822
---------------
Special Tax Revenue - 11.2%
A A $4,750 New York State LGAC,
5.25%, 4/1/16 $ 4,411,325
A A 5,225 New York State LGAC,
5.50%, 4/1/17 4,999,437
A A 7,420 New York State LGAC,
5.50%, 4/1/18 6,927,238
A A 33,135 New York State LGAC,
5.50%, 4/1/21 30,801,633
5,270 New York State LGAC,
5.00%, 4/1/23 4,550,856
A A 5,000 New York State LGAC,
5.00%, 4/1/21 4,409,650
NR BBB+ 2,630 New York State Municipal
Bond Bank Agency,
6.875%, 3/15/06 2,837,323
Baa1 A 4,840 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 5,337,649
Baa1 A 2,000 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 1,926,280
Special Tax Revenue
(continued)
Baa1 BBB 3,335 Triborough Bridge &
Tunnel Authority,
Convention Center,
6.00%, 1/1/11 3,331,398
---------------
$ 69,532,789
---------------
Transportation - 3.7%
Baa1 BBB $ 2,000 MTA Transit Facilities
Service Contract, 5.75%,
7/1/13 $ 1,952,800
Baa1 BBB 725 MTA Transit Facilities
Service Contract, 5.75%,
7/1/13 711,711
NR BBB 2,350 New York State Thruway
Authority, Cross Westchester
Expressway Project, 0%,
1/1/03 1,609,633
Ba1 BB 2,800 Port Authority of New York
and New Jersey, Delta
Airlines LaGuardia Airport,
6.95%, 6/1/08 2,967,496
A1 AA- 1,500 Port Authority of New York
and New Jersey (AMT),
Variable, 1/15/27 (1) 1,560,750
Aa A+ 11,580 TBTA General Purpose,
5.50%, 1/1/17 11,230,630
Aa A+ 2,500 TBTA General Purpose,
6.125%, 1/1/21 2,629,475
---------------
$ 22,662,495
---------------
Water & Sewer Revenue - 3.3%
Aa A $11,050 New York State EFC,
State Water Pollution
Control, 6.875%, 6/15/10 $ 12,211,797
Aa A+ 4,545 New York State EFC, State
Water Pollution Control,
7.20%, 3/15/11 4,979,138
Aa A 2,750 New York State EFC, State
Water Pollution Control,
7.00%, 6/15/12 3,028,053
Aa A 150 New York State EFC, State
Water Pollution Control,
7.50%, 6/15/12 166,228
---------------
$ 20,385,216
---------------
Total Tax-Exempt
Investments (identified
cost, $591,994,397) $621,130,834
===============
(1) The above securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by New York municipalities. The ability of the issuers
of the debt securities to meet their debt obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 13.8% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution ranged
from 0.3% to 9.1% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Rhode Island Municipals Portfolio
Portfolio of Investments - March 31, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited) Principal
---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.1%
Aa AA $1,500 Rhode Island Health and
Educational Building
Corporation, Brown
University, 5.375%,
9/1/23 $ 1,395,465
A NR 750 Rhode Island Student
Loan Authority, 5.60%,
12/1/12 703,590
---------------
$ 2,099,055
---------------
Electric Utilities - 3.8%
Baa1 A- $ 710 Puerto Rico Electric
Power Authority, 5.00%,
7/1/12 $ 642,365
Baa1 A- 1,000 Puerto Rico Electric
Power Authority, 5.50%,
7/1/25 934,020
---------------
$ 1,576,385
---------------
General Obligations (Local) - 0.8%
Ba NR $ 310 West Warwick, 6.80%,
7/15/98 $ 317,034
---------------
General Obligations (Territory) - 2.8%
Baa1 A $ 500 Puerto Rico Public
Improvement, 5.50%,
7/1/13 $ 484,265
NR BBB 750 Government of Guam,
5.40%, 11/15/18 662,572
---------------
$ 1,146,837
---------------
Hospitals - 7.7%
NR AA $1,500 Rhode Island Health
and Educational Building
Corporation, Landmark
Medical Center, 5.875%,
10/1/19 $ 1,454,505
NR A 1,015 Rhode Island Health
and Educational Building
Corporation, Butler
Hospital, 5.125%, 1/1/08 953,014
Baa BBB+ 830 Rhode Island Health
and Educational Building
Corporation, Westerly
Hospital, 6.00%, 7/1/14 755,433
---------------
$ 3,162,952
---------------
Housing - 16.2%
Aa AA+ $1,500 Rhode Island Housing
and Mortgage Finance
Corporation (AMT),
6.60%, 10/1/25 $ 1,579,093
Aa AA 100 Rhode Island Housing
and Mortgage Finance
Corporation (AMT),
6.70%, 10/1/12 103,692
Aa AA+ 270 Rhode Island Housing
and Mortgage Finance
Corporation, 6.70%,
10/1/14 280,760
Aa AA+ 875 Rhode Island Housing
and Mortgage Finance
Corporation (AMT),
6.80%, 10/1/25 (2) 904,173
Aa AA+ 1,000 Rhode Island Housing
and Mortgage Finance
Corporation (AMT),
7.10%,10/1/23 (2) 1,035,740
Aa AA+ 2,000 Rhode Island Housing
and Mortgage Finance
Corporation (AMT),
7.55%, 10/1/22 2,123,840
Aa A 35 Rhode Island Housing
and Mortgage Finance
Corporation, 7.875%,
10/1/22 36,261
Aa AA+ 500 Rhode Island Housing
and Mortgage Finance
Corporation, 6.20%,
10/1/06 513,100
Aa AA+ 95 Rhode Island Housing
and Mortgage Finance
Corporation, 6.85% 4/1/27 98,303
---------------
$ 6,674,962
---------------
Industrial Development
Revenue - 3.6%
Baa3 BB+ $ 500 Puerto Rico Port
Authority, American
Airlines, Inc.(AMT),
6.30%, 6/1/23 $ 504,440
Aa2 AA 1,000 Rhode Island Industrial
Facilities Corp., Mobil
Corp., 6.00%, 11/1/14 1,012,160
---------------
$ 1,516,600
---------------
Insured College and
University - 10.1%
Aaa AAA $1,000 Rhode Island Health
and Educational Building,
Providence College
Issue (MBIA), 5.60%,
11/1/15 $ 966,510
Aaa AAA 730 Rhode Island Health
and Educational Building,
Providence College
Issue (MBIA), 5.60%,
11/1/22 696,989
Aaa AAA 500 Rhode Island Health
and Educational Building,
Board of Governors
University of Rhode Island
(MBIA), 5.50%, 9/15/13 485,255
Insured College and
University (continued)
Aaa AAA 2,200 Rhode Island Health
and Educational Building,
Board of Governors
University of Rhode Island
(MBIA), 5.25%, 9/15/23 2,006,664
---------------
$ 4,155,418
---------------
Insured General Obligations - 16.8%
Aaa AAA $1,500 Kent County Water
Authority, 6.35%, 7/15/14 $ 1,572,525
Aaa AAA 1,000 Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation, 5.80%, 8/1/09 1,035,640
Aaa AAA 1,000 Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation, 5.80%, 8/1/12 1,010,440
Aaa AAA 2,000 Rhode Island Clean
Water Revolving Fund
Series-A
5.875%, 10/1/15 2,008,520
Aaa AAA 1,480 Rhode Island Port
Authority and Economic
Development Corporation
Airport, (FSA), 5.25%,
7/1/23 1,310,170
---------------
$ 6,937,295
---------------
Insured General
Obligations (Local) - 4.9%
Aaa AAA $1,000 Burrellville, (MBIA),
5.75%, 10/15/17 $ 984,210
Aaa AAA 1,000 Cranston, Rhode Island,
6.10%,6/15/15 1,026,370
---------------
$ 2,010,580
---------------
Insured General
Obligations (State) - 2.4%
Aaa AAA $1,000 State of Rhode Island,
5.50%, 7/15/12 980,940
---------------
Insured General Obligation
Aaa AAA $ 250 Puerto Rico, Public
Improvement Bonds of
1992, Yield Curve Note,
Variable, (AMBAC)
7/1/15 (1) $ 252,750
---------------
Insured Housing - 6.1%
Aaa AAA $ 870 Providence Housing
Development Corporation
Mortgage, (Barbara
Jordan Apartments)
(MBIA), 6.50%, 7/1/09 $ 896,779
Aaa AAA 1,075 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA),
6.75%, 1/1/19 1,115,893
Aaa AAA 500 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA),
6.85%, 1/1/24 520,845
---------------
$ 2,533,517
---------------
Insured Lease/Certificate
of Participation - 4.6%
Aaa AAA $ 800 City of Pawtucket, Public
Building Authority (CGIC),
5.75%, 3/15/14 $ 797,304
Aaa AAA 590 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/13 556,199
Aaa AAA 630 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/14 589,346
---------------
$ 1,942,849
---------------
Insured Water & Sewer - 4.0%
Aaa AAA $ 350 Rhode Island Clean Water,
Water Pollution Control,
5.40%,10/1/15 $ 336,144
Aaa AAA 500 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.85%,
10/1/09 515,415
Aaa AAA 750 Rhode Island Clean
Water, Safe Drinking Water
(MBIA), 6.70%, 1/1/15 806,430
---------------
$ 1,657,989
---------------
Miscellaneous - 3.7%
Baa1 A- $ 500 Rhode Island Depositors
Economic Protection
Corporation, 5.75%,
8/1/21 $ 472,605
Aaa AAA 550 Rhode Island Depositors
Economic Protection
Corporation, 5.25%,
8/1/21 536,135
NR BBB 500 Guam Airport Authority
Series 93-B, 6.70%,10/1/23 507,705
---------------
$ 1,516,445
---------------
Special Tax - 6.8%
Baa BBB- $1,500 City of Providence,
Rhode Island, Special
Obligation Tax Increment
Bonds, 7.65%, 6/1/16 $ 1,634,175
Baa1 A 750 Puerto Rico Highway
and Transportation
Authority, 5.50%,
7/1/17 703,507
Special Tax (continued)
Baa1 A 500 Puerto Rico Highway
and Transportation
Authority, 5.25%,
7/1/20 451,180
---------------
$ 2,788,862
---------------
Total Tax-Exempt
investments (identified
cost, $41,015,563) $ 41,270,470
===============
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by Rhode Island municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 49.5% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregated percentage by financial institution ranged
from 1.9% to 39.9% of total investments.
See notes to financial statements
</TABLE>
Municipals Portfolios
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996 (Unaudited)
--------------------------------------------------------------------------------------------------------------------
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $356,860,992 $624,599,013 $591,994,397 $41,015,563
Unrealized appreciation 25,316,492 31,978,276 29,136,437 254,907
------------ ------------ ------------ -----------
Total investments, at value (Note 1A) $382,177,484 $656,577,289 $621,130,834 $41,270,470
Cash 2,547,155 18,443,700 3,375,215 465,943
Receivable for investments sold 40,000 3,669,096 4,926,254 --
Interest receivable 6,109,166 13,871,511 10,283,430 804,532
Deferred organization expenses (Note 1D) 11,743 16,718 11,773 1,425
------------ ------------ ------------ -----------
Total assets $390,885,548 $692,578,314 $639,727,506 $42,542,370
------------ ------------ ------------ -----------
Liabilities:
Payable for investments purchased $2,191,672 $17,363,575 $5,015,784 $ --
Payable for daily variation margin on open
financial futures contracts (Note 1E) 150,000 -- 258,000 24,000
Payable to affiliate --
Trustees' fees 4,831 5,327 5,327 413
Accrued expenses 10,332 30,708 12,083 2,387
------------ ------------ ------------ -----------
Total liabilities $2,356,835 $17,399,610 $5,291,194 $26,800
------------ ------------ ------------ -----------
Net Assets applicable to investors' interest
in Portfolio $388,528,713 $675,178,704 $634,436,312 $42,515,570
============ ============ ============ ===========
Sources of Net Assets:
Net proceeds from capital contributions
and withdrawals $363,299,110 $643,200,428 $604,659,199 $42,203,378
Unrealized appreciation of investments
and financial
futures contracts (computed on the basis
of identified cost) 25,229,603 31,978,276 29,777,113 312,192
------------ ------------ -----------
Total $388,528,713 $675,178,704 $634,436,312 $42,515,570
============ ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended March 31, 1996 (Unaudited)
----------------------------------------------------------------------------------------------------------------------
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income (Note 1B) $13,137,711 $21,447,783 $19,853,641 $1,277,647
----------- ----------- ----------- -----------
Expenses --
Investment adviser fee (Note 2) $1,012,878 $1,626,264 $1,509,619 $56,492
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 9,294 10,249 10,249 796
Custodian fee (Note 2) 77,494 115,039 91,978 13,857
Legal and accounting services 38,502 39,202 39,502 22,210
Amortization of organization expenses (Note 1D) 2,820 4,377 3,148 319
Miscellaneous 40,482 72,234 41,668 4,318
----------- ----------- ----------- -----------
Total expenses $1,181,470 $1,867,365 $1,696,164 $97,992
----------- ----------- ----------- -----------
Deduct --
Preliminary reduction of investment
adviser fee (Note 2) $ -- $ -- $ -- $27,546
Reduction of custodian fee (Note 2) -- 115,039 91,978 4,553
----------- ----------- ----------- -----------
Total $ -- $115,039 $91,978 $32,099
----------- ----------- ----------- -----------
Net expenses $ 1,181,470 $ 1,752,326 $ 1,604,186 $ 65,893
----------- ----------- ----------- -----------
Net investment income $11,956,241 $19,695,457 $18,249,455 $1,211,754
----------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) --
Investment transactions (identified
cost basis) $3,915,509 $5,202,959 $6,438,218 $109,799
Financial futures contracts (454,837) 1,558,850 (1,688,687) (219,645)
----------- ----------- ----------- -----------
Net realized gain (loss) on investments $3,460,672 $6,761,809 $4,749,531 ($109,846)
----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation) --
Investments $1,013,399 ($1,829,730) ($2,566,537) $203,444
Financial futures contracts 86,610 -- 1,003,538 94,756
----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation)
of investments $1,100,009 ($1,829,730) ($1,562,999) $298,200
----------- ----------- ----------- -----------
Net realized and unrealized gain
on investments $4,560,681 $4,932,079 $3,186,532 $188,354
----------- ----------- ----------- -----------
Net increase in net assets from operations $16,516,922 $24,627,536 $21,435,987 $1,400,108
=========== =========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six Months Ended March 31, 1996 (Unaudited)
--------------------------------------------------------------------------------------------------------------------
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $11,956,241 $19,695,457 $18,249,455 $1,211,754
Net realized gain (loss) on investments 3,460,672 6,761,809 4,749,531 (109,846)
Change in unrealized appreciation
(depreciation)
of investments 1,100,009 (1,829,730) (1,562,999) 298,200
------------ ------------ ------------ ------------
Net increase in net assets from operations $16,516,922 $24,627,536 $21,435,987 $1,400,108
------------ ------------ ------------ ------------
Capital transactions --
Contributions $9,588,831 $24,348,369 $21,355,757 $3,496,890
Withdrawals (48,247,178) (86,000,337) (61,091,741) (5,287,395)
------------ ------------ ------------ ------------
Decrease in net assets resulting from
capital transactions ($38,658,347) ($61,651,968) ($39,735,984) ($1,790,505)
------------ ------------ ------------ ------------
Total decrease in net assets ($22,141,425) ($37,024,432) ($18,299,997) ($390,397)
Net Assets:
At beginning of period 410,670,138 712,203,136 652,736,309 42,905,967
------------ ------------ ------------ ------------
At end of period $388,528,713 $675,178,704 $634,436,312 $42,515,570
============ ============ ============ ============
--------------------------------------------------------------------------------------------------------------------
For the Year Ended September 30, 1995
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------
Increase (Decrease) in Net Assets:
From operations --
Net investment income $26,176,138 $43,615,848 $38,506,539 $2,410,958
Net realized loss on investments (23,050,795) (22,866,182) (19,277,660) (1,392,005)
Change in unrealized appreciation
of investments 33,475,523 54,420,669 43,043,554 2,874,743
------------ ------------ ------------ ------------
Net increase in net assets from operations $36,600,866 $75,170,335 $62,272,433 $3,893,696
------------ ------------ ------------ ------------
Capital transactions --
Contributions $39,676,667 $64,327,943 $61,423,633 $9,514,698
Withdrawals (110,738,796) (199,418,295) (126,606,533) (8,622,345)
------------ ------------ ------------ ------------
Increase (decrease) in net assets
resulting from capital transactions ($71,062,129) ($135,090,352) ($65,182,900) $892,353
------------ ------------ ------------ ------------
Total increase (decrease) in net assets ($34,461,263) ($59,920,017) ($2,910,467) $4,786,049
Net Assets:
At beginning of year 445,131,401 772,123,153 655,646,776 38,119,918
------------ ------------ ------------ ------------
At end of year $410,670,138 $712,203,136 $652,736,309 $42,905,967
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
--------------------------------------------------------------------------------------------------------------------
California Portfolio Florida Portfolio
----------------------------------------------- --------------------------------
Six Six
months months
ended Year Ended ended Year Ended
March 31, September 30, March 31, March 31, September 30,
1996 ------------------- -------- 1996 -----------------------------
(unaudited) 1995 1994*** 1994** (unaudited) 1995 1994 1993*
--------- ------ ------ ------- --------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net
assets):
Net expenses (1) 0.58%+ 0.59% 0.57%+ 0.55%+ 0.53%+ 0.55% 0.48% 0.47%+
Net expenses, after
expense reductions (1) 0.58%+ 0.58% 0.57%+ 0.55%+ 0.49%+ 0.52% 0.48% 0.47%+
Net investment income 5.86%+ 6.22% 6.09%+ 5.72%+ 5.55%+ 5.94% 5.65% 5.53%+
Net assets, end of year
(000 omitted) $388,529 $410,763 $445,131 $467,259 $675,179 $712,203 $772,123 $772,422
Portfolio Turnover 8% 58% 40% 91% 34% 61% 57% 55%
--------------------------------------------------------------------------------------------------------------------
New York Portolio Rhode Island Portfolio
----------------------------------------------- -----------------------------
Six Six
months months
ended Year Ended ended Year Ended
March 31, September 30, March 31, September 30,
1996 ---------------------------- 1996 -----------------------------
(unaudited) 1995 1994 1993* (unaudited) 1995 1994 1993****
--------- ------ ------ ------- --------- ------ ------ -------
Ratios (As a percentage
of average daily net
assets):++
Net expenses (1) 0.52%+ 0.54% 0.48% 0.48%+ 0.32%+ 0.29% 0.12% 0.00%+
Net expenses, after
expense reductions (1) 0.50%+ 0.51% 0.48% 0.48%+ 0.30%+ 0.25% 0.12% 0.00%+
Net investment income 5.55%+ 5.97% 5.70% 5.64%+ 5.55%+ 5.96% 5.64% 4.86%+
Net assets, end of year
(000 omitted) $634,436 $652,736 $655,647 $648,807 $42,516 $42,906 $38,120 $16,981
Portfolio Turnover 28% 55% 47% 37% 10% 42% 42% 23%
++ The operating expenses of the Rhode Island Portfolio reflect a reduction of the investment adviser fee and/or an
allocation of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as
follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.45%+ 0.41% 0.33% 0.26%+
Net investment income 5.43%+ 5.80% 5.43% 4.60%+
+ Annualized.
* For the period from the start of business, February 1, 1993, to September 30, 1993.
** For the period from the start of business, May 3, 1993 to March 31, 1994.
*** For the six months ended September 30, 1994. The California Portfolio changed its fiscal year from March 31
to September 30, effective September 30, 1994.
**** For the period from the start of business, June 11, 1993 to September 30, 1993.
(1) The annualized expense ratios for the six months ended March 31, 1996 and for the year ended September 30,
1995 have been adjusted to reflect a change in reporting requirements. The new reporting guidelines require
each Portfolio to increase its expense ratio by the effect of any expense offset arrangements with its
service providers. The expense ratios for each of the periods ended on or before September 30, 1994 have not
been adjusted to reflect this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(Unaudited)
(1) Significant Accounting Policies
California Municipals Portfolio (California Portfolio), Florida
Municipals Portfolio (Florida Portfolio), New York Municipals Portfolio
(New York Portfolio) and Rhode Island Municipals Portfolio (Rhode Island
Portfolio), collectively the Portfolios, are registered under the
Investment Company Act of 1940 as non-diversified open-end management
investment companies. The Portfolios were organized as trusts under the
laws of the State of New York on May 1, 1992. The Declarations of Trust
permit the Trustees to issue interests in the Portfolios. The following
is a summary of significant accounting policies consistently followed by
the Portfolios in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting
principles.
A. Investment Valuations-- Municipal bonds are normally valued on the
basis of valuations furnished by a pricing service. Taxable obligations,
if any, for which price quotations are readily available are normally
valued at the mean between the latest bid and asked prices. Futures
contracts listed on commodity exchanges are valued at closing settlement
prices. Short-term obligations, maturing in sixty days or less, are
valued at amortized cost, which approximates value. Investments for
which valuations or market quotations are unavailable are valued at fair
value using methods determined in good faith by or at the direction of
the Trustees.
B. Income-- Interest income is determined on the basis of interest
accrued, adjusted for amortization of premium or discount when required
for federal income tax purposes.
C. Income Taxes-- The Portfolios are treated as partnerships for Federal
tax purposes. No provision is made by the Portfolios for federal or
state taxes on any taxable income because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies
that invest all or substantially all of their assets in the Portfolios,
the Portfolios normally must satisfy the applicable source of income and
diversification requirement (under the Internal Revenue Code) in order
for their respective investors to satisfy them. The Portfolios will
allocate at least annually among their respective investors each
investor's distributive share of the Portfolios' net taxable (if any)
and tax-exempt investment income, net realized capital gains, and any
other items of income, gain, loss, deductions or credit. Interest income
received by the Portfolios on investments in municipal bonds, which is
excludable from gross income under the Internal Revenue Code, will
retain its status as income exempt from federal income tax when
allocated to each Portfolio's investors. The portion of such interest,
if any, earned on private activity bonds issued after August 7, 1986,
may be considered a tax preference item for investors.
D. Deferred Organizational Expenses-- Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-
line basis over five years.
E. Financial Futures Contracts-- Upon the entering of a financial
futures contract, a Portfolio is required to deposit ("initial margin")
either in cash or securities an amount equal to a certain percentage of
the purchase price indicated in the financial futures contract.
Subsequent payments are made or received by a Portfolio ("margin
maintenance") each day, dependent on the daily fluctuations in the value
of the underlying security, and are recorded for book purposes as
unrealized gains or losses by a Portfolio. A Portfolio's investment in
financial futures contracts is designed only to hedge against
anticipated future changes in interest rates. Should interest rates move
unexpectedly, the Portfolios may not achieve the anticipated benefits of
the financial futures contracts and may realize a loss.
F. When-issued and Delayed Delivery Transactions-- The Portfolios may
engage in when-issued and delayed delivery transactions. The Portfolio
records when-issued securities on trade date and maintains security
positions such that sufficient liquid assets will be available to make
payments for the securities purchased. Securities purchased on a when-
issued or delayed delivery basis are marked-to-market daily and begin
earning interest on settlement date.
G. Use of Estimates-- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
H. Other-- Investment transactions are accounted for on a trade date
basis.
I. Interim Financial Information-- The interim financial statements
relating to March 31, 1996 and for the six month period then ended have
not been audited by independent certified public accountants, but in the
opinion of the Portfolios' management, reflect all adjustments necessary
for the fair presentation of the financial statements.
(2) Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of gross income (i.e., income other than gains
from the sale of securities). For the six months ended March 31, 1996,
each Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
---------- ---------- ----------------
California $1,012,878 0.50%
Florida 1,626,264 0.46%
New York 1,509,619 0.46%
Rhode Island 56,492 0.26%
*Advisory fees paid as a percentage of average daily net
assets (annualized).
To enhance the net income of the Rhode Island Portfolio, BMR made a
preliminary reduction in its fee in the amount of $27,546, for the six
months ended March 31, 1996.
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) serves as custodian of the
Portfolios. Prior to November 10, 1995, IBT was an affiliate of BMR and
EVM. Pursuant to the custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances
each Portfolio maintains with IBT. All significant credit balances are
reported as a reduction of expenses in the statement of operations.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations. Trustees of the Portfolio
that are not affiliated with the Investment Adviser may elect to defer
receipt of all or a percentage of their annual fees in accordance with
the terms of the Trustees Deferred Compensation Plan. For the six months
ended March 31, 1996, no significant amounts have been deferred.
(3) Investments
Purchases and sales of investments, other than U.S. Government
securities and short-term obligations, for the six months ended March
31, 1996, were as follows:
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
---------- --------- --------- -----------
Purchases $31,732,251 $241,885,303 $180,172,889 $4,266,990
Sales 61,551,010 284,418,733 205,937,344 5,001,750
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 1996, as computed on a
federal income tax basis are as follows:
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
---------- --------- --------- -----------
Aggregate
Cost $356,860,992 $624,599,013 $591,994,397 $41,015,563
============ ============ ============ ===========
Gross
unrealized
appreciation $26,181,413 $34,700,645 $32,622,519 $840,961
Gross
unrealized
depreciation 864,921 2,722,369 3,486,082 586,054
=========== ============ ============ =========
Net
unrealized
appreciation $25,316,492 $31,978,276 $29,136,437 $254,907
============ ============ ============ =========
(5) Line of Credit
The Portfolios participate with other portfolios and funds managed by
BMR and EVM in a $120 million unsecured line of credit agreement with a
bank. The line of credit consists of a $20 million committed facility
and a $100 million discretionary facility. Each Portfolio may
temporarily borrow up to 5% of its total assets to satisfy redemption
requests or settle securities transactions. Interest is charged to each
portfolio or fund based on its borrowings at an amount above either the
bank's adjusted certificate of deposit rate, a variable adjusted
certificate of deposit rate, or a federal funds effective rate. In
addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100
million discretionary facility is allocated among the participating
funds and portfolios at the end of each quarter.
The Portfolios did not have any significant borrowings or allocated fees
during the six months ended March
31, 1996.
(6) Financial Instruments
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist
in managing exposure to various market risks. These financial
instruments include written options and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations under these financial instruments at March 31,
1996, were as follows:
Futures
Contracts Net Unrealized
Expiration Appreciation
Portfolio Date Contracts Position (Depreciation)
--------- ----------- ---------- -------- ------------
California 6/96 200 U.S. Short $ (86,889)
Treasury Bonds
New York 6/96 344 U.S. Short $640,676
Treasury Bonds
Rhode Island 6/96 32 U.S. Short $ 57,285
Treasury Bonds
At March 31, 1996, each Portfolio had sufficient cash and/or securities
to cover margin requirements on open futures contracts. The Florida
Portfolio did not have any open obligations under these financial
instruments at March 31, 1996.
Investment Management
Funds
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President and Director, United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Portfolios
Officers
Thomas J. Fetter
President, Portfolio Manager
of Florida Municipals Portfolio
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President and Portfolio Manager
of California Municipals Portfolio
Nicole Anderes
Vice President and Portfolio Manager
of New York and Rhode Island
Municipals Portfolio
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President and Director, United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Portfolio Investment Adviser
Boston Management and Research
24 Federal Street
Boston, MA 02110
Fund Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
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
C-4TFCSRC-5/96
