[FRONT COVER]
Eaton Vance Investment Trust
For the Funds:
(bullet) EV Marathon Arizona Limited Maturity Tax Free Fund
(bullet) EV Marathon California Limited Maturity Tax Free Fund
(bullet) EV Marathon Connecticut Limited Maturity Tax Free Fund
(bullet) EV Marathon Florida Limited Maturity Tax Free Fund
(bullet) EV Marathon Massachusetts Limited Maturity Tax Free Fund
(bullet) EV Marathon Michigan Limited Maturity Tax Free Fund
(bullet) EV Marathon New Jersey Limited Maturity Tax Free Fund
(bullet) EV Marathon New York Limited Maturity Tax Free Fund
(bullet) EV Marathon North Carolina Limited Maturity Tax Free Fund
(bullet) EV Marathon Ohio Limited Maturity Tax Free Fund
(bullet) EV Marathon Pennsylvania Limited Maturity Tax Free Fund
(bullet) EV Marathon Virginia Limited Maturity Tax Free Fund
[LOGO: Eaton Vance]
Semi-Annual Shareholder Report
September 30, 1995
<PAGE>
Information about your mutual fund investment
<TABLE>
<CAPTION>
Results for
the six months Fund's
ending Dividends distribution Graphic If your combined The after-tax
September 30, paid by Fund NAV per share rate at outline Federal & state equivalent yield
1995 (During period) at 9/30/95 9/30/95 map of... tax rate is... would need is...
<S> <C> <C> <C> <C> <C> <C>
EV Marathon Arizona
Limited Maturity
Tax Free Fund $0.204 $10.38 3.90% Arizona 40.42% 6.55%
EV Marathon California
Limited Maturity
Tax Free Fund $0.196 $10.12 3.83% California 43.04% 6.72%
EV Marathon Connecticut
Limited Maturity
Tax Free Fund $0.184 $9.90 3.74% Connecticut 33.88% 6.12%
EV Marathon Florida
Limited Maturity
Tax Free Fund $0.196 $10.29 3.77% Florida 39.40% 6.22%
EV Marathon Massachusetts
Limited Maturity
Tax Free Fund $0.196 $10.16 3.67% Massachusetts 43.68% 6.52%
EV Marathon Michigan
Limited Maturity
Tax Free Fund $0.187 $9.79 3.79% Michigan 41.44% 6.47%
EV Marathon New Jersey
Limited Maturity
Tax Free Fund $0.194 $10.17 3.79% New Jersey 40.21% 6.34%
EV Marathon New York
Limited Maturity
Tax Free Fund $0.196 $10.21 3.80% New York 40.86% 6.43%
EV Marathon North Carolina
Limited Maturity
Tax Free Fund $0.204 $10.32 3.92% North Carolina 40.96% 6.64%
EV Marathon Ohio
Limited Maturity
Tax Free Fund $0.190 $9.90 3.84% Ohio 40.80% 6.49%
EV Marathon Pennsylvania
Limited Maturity
Tax Free Fund $0.200 $10.26 3.87% Pennsylvania 45.33% 7.08%
EV Marathon Virginia
Limited Maturity
Tax Free Fund $0.204 $10.47 3.87% Virginia 39.68% 6.42%
</TABLE>
<PAGE>
To Shareholders:
The global economy continues to demonstrate a pattern of slow growth with low
inflation. The U.S. economy is no exception, as Gross Domestic Product should
grow only modestly during 1995 at between 2% and 3%, with inflation of less than
3%. These characteristics bode well for all capital markets and particularly
fixed-income markets, including municipal bonds.
Indeed, municipal bonds performed well during the first nine months of of 1995
by realizing strong capital appreciation as a result of this favorable
investment environment. However, during this period, the tax-exempt market
under-performed the taxable market because of concern about the potential
passage of major tax reform (e.g., flat tax, value added tax or consumption tax)
legislation.
Were major tax reform to become law, municipal bonds would probably be
underperformers relative to taxable bonds because the current tax-advantaged
status of municipal bonds likely would be eliminated.
However, for many reasons, we at Eaton Vance believe there is little chance of
major tax reform legislation being enacted. For example, the inherent
regressivity of the various flat tax proposals will provoke much opposition, as
will proposals to eliminate such tax breaks as deductions for mortgage interest
and state and local taxes. Also, such proposals could seriously depress entire
sectors of the U.S. economy.
Accordingly, we view this recent underperformance by municipal bonds (because of
fears of tax reform) as a potential buying opportunity. Municipal bonds could
represent an attractive asset class at these current relative trading
relationships, with the potential for future outperformance for those investors
willing to adopt a patient, long-term investment horizon.
In addition, proposals are now circulating in both Congress and the White House
to reduce the nation's budget deficit by severely cutting expenditures over the
next decade. If enacted, such a concept would drastically reduce the federal
government's borrowing needs and, as a result, would exert a meaningful downward
influence on interest rates across the entire yield curve. All fixed-income
instruments, including municipal bonds, would benefit.
We will continue to monitor changes in economic and political conditions and to
pursue the goal of your Fund: to provide you with a competitive distribution of
tax-free income from a portfolio of quality municipal bonds.+
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
November 20, 1995
[Photo of Thomas J. Fetter]
+ A portion of the Portfolios' income could be subject to Federal alternative
minimum tax.
[Bar chart]
Despite tax policy uncertainties,
tax-exempt bonds yield more
than 89% of Treasury yields
5.90% 30-yr. AA General Obligation(GO) Bonds*
9.21% Taxable equivalent yield of investment
for couple in 36% tax bracket
6.50% 30-yr Treasury Bonds
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government
*GO yield is a compilation of a representative variety of general obligation
bonds and is not necessarily represented by the Fund's yield.
Statistics as of September 30, 1995.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
- --------------------------------------------------------------------------------
<PAGE>
Management Discussion
An interview with Raymond E. Hender, Vice President, and William H. Ahern, Vice
President, Portfolio Managers of the Limited Maturity Tax Free Portfolios.
Q. Ray, how would you describe the market climate in recent months?
R.H.: The economy has given a lot of mixed signals in recent months, and that
has added some uncertainty to the market. On one hand, the economy continues to
expand a bit. On the other hand, there is evidence that the economy is reaching
a mature phase. Consumers appear to have nearly exhausted their borrowing power,
and auto and home sales have flagged somewhat. Importantly, inflation has
remained in check, in the 2% range. With inflation posing little threat, we feel
interest rates should be stable-to-modestly lower for the foreseeable future.
Q. What changes have you made to the Portfolios?
R.H.: The Portfolios' objective of seeking to maximize income while limiting net
asset volatility has remained unchanged. We did, however, slightly alter the
make-up of the Portfolios to take advantage of a changing market.
From a credit standpoint, we've added to our holdings of non-rated bonds, which
should provide some new opportunities for the Portfolios. We've also positioned
the Portfolios' investments more evenly along the yield curve to take advantage
of a flatter curve. That's preferable to concentating on one area of the curve.
In some cases, focusing on the short end alone results in minimizing income,
while focusing on the long end may provide too much volatility. Given a flatter
yield curve, we've been able to spread our investment to offer a measure of
protection against getting caught at the wrong end.
With a more constructive outlook for the market, we were comfortable in slightly
increasing the Portfolios' exposure to interest rate changes. Accordingly, we've
sold bonds with the lowest book yield and lowest durations and slightly
increased the Portfolios' average durations.
Finally, from a quality standpoint, the Portfolios have maintained an average
rating of AA. While the rating mix within the Portfolios is changing, our credit
standards remain the same.
Q. Bill, what is the advantage of investing in non-rated bonds?
W.A.: Non-rated bonds may provide some unusual opportunties for investors. Eaton
Vance has added to its analytical staff in recent months and has thereby
enhanced its research capabilities. We can now provide the intensive research
and constant monitoring that non-rated issues demand. In addition to providing
opportunities to enhance the Portfolios' yields, investing in non-rated bonds
represents a further diversification of the Portfolios. For example, insured
issues -- which now represent 40% of the market -- are insured by only five
major insurance companies. By including bonds with so-called "stand-alone
ratings" -- those without third-party ratings -- we are diversifying away from
these monoline insurers. I think that's a positive development for the
Portfolios.
Q. What changes have you made from a sector standpoint?
W.A.: As just mentioned, we've lightened up on the insured sector a bit. We've
also somewhat reduced the Portfolios' exposure to solid waste bonds and electric
utilities. Finally, we have become more selective with respect to hospitals and
the healthcare sector.
The solid waste sector tends to be very project-specific. Recent court rulings
have eliminated floor supports for some of these projects, so there will be
winners and losers in the resource recovery field. We're focusing on projects we
believe will benefit from these rulings. In the electric utility sector, the
onset of wholesale wheeling has reduced the credit quality of some utilities, as
large customers choose less costly alternatives.
[Photo of Raymond E. Hender]
Raymond E. Hender
<PAGE>
Q. Why have you been reducing your hospital exposure?
R.H.: The hospital sector has become more competitive with shifting demographics
and rising pressure to reduce health care costs. In a tougher competitive
environment, some hospitals will emerge with a larger market share, while others
will face a bleak future. We've tried to focus on those hospitals and
alternative health care facilities, such as assisted living centers, that will
be among the beneficiaries of the newly competitive climate.
Q. What kind of hospitals are you looking at?
W.A.: We look for hospitals that have especially favorable demographics. Others
may have a unique market niche, such as rehabilitation or organ transplants.
Finally, we look for hospitals that have formed strategic alliances with health
maintenace organizations (HMOs). It's clear that HMOs represent the wave of the
future for health care. The hospitals that have formed these alliances, or have
merged with other institutions, have managed to sharply reduce their cost
structures. As a result, we believe they can deliver health care more
efficiently.
Q. Earlier you mentioned maintaining strict credit standards. Could you expand a
bit on that theme?
R.H.: Certainly. At Eaton Vance, we have established very rigorous credit
standards. We follow a credit- intensive approach and monitor issuers very
closely for any change in their creditworthiness. We try to detect early any
sign of deteriorating conditions that might adversely affect an issuer's cash
flows or compromise its ability to comfortably meet interest payments. Unless a
bond issuer can meet our strict credit criteria, we reject it as a candidate for
investment and direct our investments elsewhere. That is true regardless of the
market climate.
Q. We keep hearing about the proposals for a flat tax. Are they likely to pass
in your view?
W.A.: At first blush, the flat tax is very appealing to voters. Who, after all,
doesn't like the idea of lower tax rates? However, the closer people look at
these proposals and their likely ramifications, the less enthusiastic they
become. The dimensions of such large scale changes in the tax code are
far-reaching. Such changes would affect many special interests, not to mention
the possibility of eliminating the deductibility of mortgage interest. Moreover,
by reducing the attractiveness of tax-free bonds, such legislation would
compromise the ability of states and municipalities to raise money for
much-needed projects such as health care facilities, roads, and infrastructure
repairs. In my view, that simply will not be tolerated by the American public.
While it's very likely that tax reform will pass in some form, municipal bonds
will likely retain their tax-advantaged status.
Q. Looking ahead, what is your outlook for the market?
R.H.: Because of investors' flat tax concerns -- which are greatly exaggerated
in my view -- the municipal market has lagged the Treasury market in 1995. But
10-year municipal bonds still offer yields that are nearly 83% of 30-year muni
yields, according to Bloomberg Financial. As we noted earlier, the economy shows
signs of maturing, usually a favorable time to consider bonds. And, a flat yield
curve typically signals value in the intermediate range. If the Federal Reserve
chooses to lower interest rates, as has been rumored for many months, the
outlook for bonds could improve further. Naturally, past trends don't always
provide a clue to future performance. But, in my view, fixed-income investors
who want to limit their volatility while enjoying a competitive level of
tax-free income, should consider the intermediate-term market.
[Photo of William H. Ahern]
William H. Ahern
<PAGE>
================================================================================
EV Marathon Arizona Limited Maturity Tax Free Fund
Arizona's economic growth has slowed in recent months but has nevertheless
remained well ahead of the rest of the nation. The state's unemployment rate
hovered near 5% during the first quarter of 1995 -- one full percentage point
lower than a year earlier -- before rising to 5.5% at mid-year due to weakness
in the construction industry. Most of the job growth has centered on the service
sectors -- including finance, banking, and healthcare -- which support the
state's large population of retirees. Arizona remains in sound financial
condition. The state's general fund balance was boosted by cost cuts and strong
tax revenue gains in fiscal 1994 and 1995. However, scheduled tax cuts for 1996
and 1997 will produce a financial challenge for the state if the economy slows
significantly.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Arizona]
Number of issues 30
Average quality AA
Investment grade 100%
Effective maturity 5.79 yrs.
Largest sectors:
General obligations 23.5%
Escrowed/prerefunded 22.1
Insured general obligations 17.0*
Insured education 11.5*
Special tax revenue 7.1
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon California Limited Maturity Tax Free Fund
The California economy continued to grow in 1995 as job creation gathered new
momentum. The state's unemployment rate dipped below 8% for the first time since
1991. While the jobless rate remains well above the national level, the trend is
nonetheless encouraging. Most job growth centered on the services industries.
Total manufacturing employment was largely unchanged, although losses continued
in the aircraft and defense industries. Trade remains a strong suit for
California, as exports rose 15% in 1994 to $81 billion. Trade with the newly
emerging markets of Taiwan, Korea, and Singapore accounts for an increasing
share of that growth. The state's strength in electronics, industrial machinery,
and computers suggest an improving outlook for foreign trade.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of California]
Number of issues 49
Average quality AA
Investment grade 100%
Effective maturity 5.98 yrs.
Largest sectors:
Escrowed/prerefunded 19.1%
General obligation 13.5
Electric utilities 9.3
Insured electric utilities 6.1*
Housing 5.5
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon Connecticut Limited Maturity Tax Free Fund
The economy in Connecticut is beginning to regain its luster. Economic
indicators such as job growth and personal income continue to strengthen from
their late 1980's bout with layoffs. The state's deep recession led to major job
losses in industries such as finance, real estate, insurance and defense, which
were hard-hit by industry restructurings, and shrinking government
appropriations. Together, those setbacks eroded the state's economic base.
However, while the employment outlook for those industries remains relatively
weak, job gains in construction, service, trade, health care and tourism have
partially offset those losses and have helped put the state on the road to
recovery. Connecticut has a long history of conservative financial management
and is steadily moving to improve its financial picture.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Connecticut]
Number of issues 34
Average quality AA-
Investment grade 100%
Effective maturity 5.78 yrs.
Largest sectors:
General obligations 20.8%
Insured hospitals 15.2*
Housing 8.9
Insured general obligations 7.7*
Insured special tax 7.2*
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
<PAGE>
================================================================================
EV Marathon Florida Limited Maturity Tax Free Fund
The Florida economy has been slightly weaker than expected in 1995, as job
growth has slowed and income growth has leveled off. Current state forecasts
call for per capita income to grow 6.5% in 1995, following a 7.4% rise in 1994.
The slowdown reflects a slightly slower growth in population, which is expected
to rise by 1.8% in 1995. An increase in tourism has been generally offset by a
decline in residential construction spending of $200 million in the first six
months of the year. Single family home construction has been hurt by a bias
toward less costly multi-family projects. Commercial construction, on the other
hand, has risen $80 million above state forecasts. Predictably, given the
state's large retirement and tourist-based economy, service industry job growth
continues at a fast pace.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Florida]
Number of issues 83
Average quality AA
Investment grade 98.9%
Effective maturity 5.82 yrs.
Largest sectors:
Escrowed/prerefunded 22.8%
General obligations 13.2
Insured hospitals 8.7*
Insured transportation 8.2*
Utilities 7.1
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon Massachusetts Limited Maturity Tax Free Fund
Massachusetts' employment levels have climbed sharply in recent years,
recovering roughly 60% of the jobs lost in the last recession. Recent jobless
rates have remained at or below the national rate, and personal income growth
continues to accelerate. Growth has been especially impressive in the high
technology and financial sectors. In addition, the Commonwealth has greatly
improved its financial position. As a result, Massachusetts now enjoys enhanced
liquidity and more leeway with respect to operations and should record a modest
surplus in the current fiscal year. Reflecting that progress, the Commonwealth's
debt ratings have been upgraded to A1 and A+. The Weld administration has
recently initiated efforts to control social spending. While opening a thorny
political issue, the move could result in further fiscal improvements in the
future.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Massachusetts]
Number of issues 77
Average quality AA
Investment grade 98.3%
Effective maturity 5.74 yrs.
Largest sectors:
Escrowed/prerefunded 21.4%
Insured general obligations 13.1*
Hospitals 10.6
General obligations 9.5
Education 7.4
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon Michigan Limited Maturity Tax Free Fund
Michigan's economy has remained on the upswing in 1995, as the retail,
construction, and manufacturing sectors each continued to post good results.
Motor vehicle sales, while below 1994's blistering 8.5% growth rate, continue at
an annual rate well above 15 million units.The state's wage and salary levels
rose slightly from last year, with construction employment especially robust,
registering a 12% gain. Michigan's tax revenues are running well above last
year's, with most of the revenue increase the result of strong growth in income,
single-business, and use taxes. As a result of cost containment measures, tax
and educational funding reforms, strong personal income growth and tax revenue
growth, Michigan's financial picture has brightened.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Michigan]
Number of issues 30
Average quality AA-
Investment grade 100%
Effective maturity 6.00 yrs.
Largest sectors:
Insured general obligations 16.1%*
General obligations 14.7
Hospitals 10.4
Special tax revenue 10.2
Water & sewer revenue 8.5
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment. 7
<PAGE>
================================================================================
EV Marathon New Jersey Limited Maturity Tax Free Fund
The New Jersey economy has reflected the slower activity of the national
scene.The state's unemployment rate stood at 6.8%, significantly above the
national rate. On a more positive note, the service sector continued to add
jobs. More than two-thirds of the 52,000 private sector jobs created in the past
year were generated by the business, management, engineering, retailing, food
services, and health care.While housing starts were depressed, outlays for
commercial construction and public works projects remained fairly strong. New
Jersey has benefited from its increasingly well-managed financial operations and
a strong display of fiscal prudence. Implementing stricter cost controls and
reductions in expenditures, New Jersey is providing a model for other states
hoping to control social spending.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of New Jersey]
Number of issues 78
Average quality AA
Investment grade 99.6%
Effective maturity 6.62 yrs.
Largest sectors:
General obligations 13.3%
Housing 13.1
Transportation 12.9
Insured general obligations 11.8*
Insured transportation 8.5*
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon New York Limited Maturity Tax Free Fund
The state economy has suffered from cutbacks in key industries, with job growth
remaining flat. Moreover, New York is nearing a critical juncture, facing rising
social costs at a time when the administration is proposing tax cuts. Governor
Pataki's goal of matching spending to ongoing revenue resources is positive for
the state's long-term credit standing but may produce near-term turmoil. The
1996-97 budget talks are likely to be especially contentious given the need to
balance tax reductions with spending cuts. The state anxiously awaits the
outcome of the Medicaid funding debate in Congress, given its $10 billion
Medicaid bill. New Yorkers also face the issue of debt reform, which, if passed
by voters, could lead to a more responsible borrowing process.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of New York]
Number of issues 81
Average quality AA
Investment grade 100%
Effective maturity 5.73 yrs.
Largest sectors:
Escrowed/prerefunded 15.5%
Education 9.5
Insured transportation 8.6*
Special tax revenue 8.5
General obligations 8.1
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon North Carolina Limited Maturity Tax Free Fund
North Carolina's personal income growth has outstripped that of the nation as a
whole in recent years. Unemployment remains in the 4% range, well below the
national rate. Employment gains have been especially strong in the construction
industry, services, trade, and finance and real estate industries. The
manufacturing sector has also grown, although at a less robust pace, with jobs
created in non-durable manufacturing, including textiles, machinery, and
furniture. North Carolina continues to rely significantly on the manufacturing
sector, which makes the state more vulnerable to changes in the economic cycle
than other states. Never-theless, the state has an expanding services economy
and is attractive to business and tourists. With its conservative approach to
its finances and low debt burden, North Carolina continues to merit its AAA
rating.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of North Carolina]
Number of issues 21
Average quality AA
Investment grade 95.6%
Effective maturity 6.66 yrs.
Largest sectors:
General obligations 47.1%
Insured general obligations 15.6*
Housing 10.7
Water & sewer 4.7
Lease revenue/COP 4.5
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
<PAGE>
================================================================================
EV Marathon Ohio Limited Maturity Tax Free Fund
The Ohio job market remained strong in 1995. The state's 5.2% unemployment rate
in September was ranked third lowest among the eleven largest states. Orders for
durable goods remained robust, providing a boost to the state's manufacturing
sector. Demand for automobiles, auto parts, and aircraft equipment was
particularly strong. And the state's manufacturing sector remains a major
beneficiary of foreign demand. While personal income tax receipts were running
slightly below estimates for the year, corporate tax receipts were significantly
higher than expected. Moreover, the Ohio financial outlook remains encouraging,
helped by a tightening of the pursestrings with regard to social spending and a
generally optimistic economic outlook.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Ohio]
Number of issues 40
Average quality AA-
Investment grade 91.9%
Effective maturity 6.97 yrs.
Largest sectors:
Insured general obligations 23.5%*
General obligations 16.7
Health care 8.5
Water & sewer revenue 8.2
Industrial development revenue 8.1
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon Pennsylvania Limited Maturity Tax Free Fund
The Pennsylvania economy continues to improve, with the service sector
accounting for nearly two-thirds of the state's job gains, with health services
and social services pacing the gains. Durable goods manufacturing also added
significantly to job growth, led by metals and industrial machinery.
Pennsylvania has now posted three consecutive years with surplus operations.
That marks a significant departure from the early 1990s, when a declining
cyclical economy and rising social costs wreaked havoc with the state's
finances. Importantly, with an improved economic mix, Pennsylvania's fiscal
outlook has benefited from a tax package implemented in 1991, as well as from
stricter cost controls and an improving revenue base resulting from a stronger
economy.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Pennsylvania]
Number of issues 84
Average quality AA
Investment grade 96.7%
Effective maturity 6.01 yrs.
Largest sectors:
Escrowed/prerefunded 23.2%
Hospitals 11.7
Insured hospitals 9.6*
Insured general obligations 7.5*
Insured education 5.7*
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
================================================================================
EV Marathon Virginia Limited Maturity Tax Free Fund
The Virginia economy has countered the slowing trend on the national scene in
1995 with signs of further growth. State employment figures reached record
levels early in the year, while unemployment fell to its lowest rate in five
years. The service sector was the major provider of new jobs, while the
manufacturing sector, despite cuts in the defense industry, made a strong
rebound. The defense sector nonetheless remains a critical source of employment
in the Commonwealth. Virginia is home to 8% of all military personnel in the
U.S. and 12% of all civilian military jobs. Meanwhile, Virginia continues to
keep its fiscal house in order. Having engineered spending cuts and maintained
low debt, Virginia continues to earn a triple-A credit rating from the major
ratings agencies.
- -------------------------------
Portfolio Overview
Based on market value as of September 30, 1995
[Silhouette map of Virginia]
Number of issues 27
Average quality AA
Investment grade 100%
Effective maturity 6.22 yrs.
Largest sectors:
General obligations 27.6%
Escrowed/prerefunded 19.8
Industrial development revenue 10.8
Water & sewer revenue 7.0
Insured lease revenue/COP 6.9*
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with this investment.
<PAGE>
EV Marathon Limited Maturity Tax Free Funds
Financial Statements
Statements of Assets and Liabilities
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts Marathon
Limited Limited Limited Limited Limited Michigan
Fund Fund Fund Fund Fund Limited Fund
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments -
Identified cost $483,028 $60,682,468 $14,595,531 $129,264,900 $103,494,596 $22,009,876
Unrealized appreciation 21,838 1,942,167 364,169 4,826,396 2,580,208 871,784
-------- -------- -------- -------- -------- ----------
Total investment in
Portfolio, at value
(Note 1A) $504,866 $62,624,635 $14,959,700 $134,091,296 $106,074,804 $22,881,660
Receivable for Fund
shares sold -- -- -- 5,621 10,355 --
Receivable from the
Administrator
(Note 4) 13,450 -- -- -- -- --
Deferred organization
expenses (Note 1D) 2,767 10,111 10,440 12,637 11,253 11,342
-------- -------- -------- -------- -------- ----------
Total assets $521,083 $62,634,746 $14,970,140 $134,109,554 $106,096,412 $22,893,002
-------- -------- -------- -------- -------- ----------
Liabilities:
Dividends payable $ 830 $ 99,011 $ 23,053 $ 209,379 $ 160,201 $ 35,815
Payable for Fund shares
redeemed -- 20,718 124 398,018 280,942 188,856
Payable to affiliates -
Trustees' fees -- 427 43 853 853 43
Custodian fee 84 258 84 534 438 97
Accrued expenses 2,282 15,971 4,509 36,102 29,543 9,898
-------- -------- -------- -------- -------- ----------
Total liabilities $ 3,196 $ 136,385 $ 27,813 $ 644,886 $ 471,977 $ 234,709
-------- -------- -------- -------- -------- ----------
Net Assets $517,887 $62,498,361 $14,942,327 $133,464,668 $105,624,435 $22,658,293
======== ======== ======== ======== ======== ==========
Sources of Net Assets:
Paid-in capital $500,870 $63,798,208 $15,097,942 $132,943,662 $105,881,464 $23,251,360
Accumulated net realized
loss on investment and
financial futures
transactions (computed
on the basis of
identified cost) (4,811) (3,094,561) (565,731) (4,003,167) (2,563,949) (1,452,079)
Accumulated undistributed
(distributions in excess
of) net investment
income (10) (147,453) 45,947 (302,223) (273,288) (12,772)
Unrealized appreciation
of investments from
Portfolio (computed on
the basis of identified
cost) 21,838 1,942,167 364,169 4,826,396 2,580,208 871,784
-------- -------- -------- -------- -------- ----------
Total $517,887 $62,498,361 $14,942,327 $133,464,668 $105,624,435 $22,658,293
======== ======== ======== ======== ======== ==========
Shares of Beneficial
Interest Outstanding
(Class I) 49,879 6,176,640 1,509,089 12,973,683 10,400,256 2,314,092
======== ======== ======== ======== ======== ==========
Net Asset Value, Offering
Price and Redemption
Price Per Share (net
assets / shares of
beneficial interest
outstanding) (Note 6) $10.38 $10.12 $9.90 $10.29 $10.16 $9.79
======== ======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements
<PAGE>
Statement of Assets and Liabilities
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon
Marathon Marathon North Marathon Marathon
New Jersey New York Carolina Ohio Pennsylvania Marathon
Limited Limited Limited Limited Limited Virginia
Fund Fund Fund Fund Fund Limited Fund
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments -
Identified cost $84,598,665 $148,689,809 $174,612 $32,329,557 $92,658,567 $204,875
Unrealized appreciation 2,473,278 2,838,851 4,985 980,681 2,881,211 5,380
--------- --------- --------- --------- --------- ----------
Total investment in
Portfolio, at value
(Note 1A) $87,071,943 $151,528,660 $179,597 $33,310,238 $95,539,778 $210,255
Receivable for Fund
shares sold 49,919 113,657 -- 175 53,996 --
Receivable from the
Administrator
(Note 4) -- -- 13,082 -- -- 13,054
Deferred organization
expenses (Note 1D) 11,156 12,514 5,064 9,957 11,646 3,132
--------- --------- --------- --------- --------- ----------
Total assets $87,133,018 $151,654,831 $197,743 $33,320,370 $95,605,420 $226,441
--------- --------- --------- --------- --------- ----------
Liabilities:
Dividends payable $ 135,520 $ 237,477 $ 310 $ 52,467 $ 152,090 $ 355
Payable for Fund shares
redeemed 92,757 219,475 -- 9,582 248,096 --
Payable to affiliates -
Trustees' fees 427 853 -- 43 427 --
Custodian fee -- 587 -- 138 -- 62
Accrued expenses 25,032 43,887 4,805 11,647 26,941 2,534
--------- --------- --------- --------- --------- ----------
Total liabilities $ 253,736 $ 502,279 $ 5,115 $ 73,877 $ 427,554 $ 2,951
--------- --------- --------- --------- --------- ----------
Net Assets $86,879,282 $151,152,552 $192,628 $33,246,493 $95,177,866 $223,490
========= ========= ========= ========= ========= ==========
Sources of Net Assets:
Paid-in capital $87,397,462 $152,052,115 $188,664 $33,812,602 $95,008,623 $218,483
Accumulated net realized
gain (loss) on
investment and financial
futures transactions
(computed on the basis
of identified cost) (2,808,297) (3,334,024) 3 (1,622,855) (2,476,309) (32)
Accumulated undistributed
(distributions in
excess of) net
investment income (183,161) (404,390) (1,024) 76,065 (235,659) (341)
Unrealized appreciation
of investments from
Portfolio (computed on
the basis of identified
cost) 2,473,278 2,838,851 4,985 980,681 2,881,211 5,380
--------- --------- --------- --------- --------- ----------
Total $86,879,282 $151,152,552 $192,628 $33,246,493 $95,177,866 $223,490
========= ========= ========= ========= ========= ==========
Shares of Beneficial
Interest Outstanding
(Class I) 8,539,925 14,798,385 18,657 3,357,441 9,275,144 21,345
========= ========= ========= ========= ========= ==========
Net Asset Value, Offering
Price and Redemption
Price Per Share (net
assets / shares of
beneficial interest
outstanding) (Note 6) $10.17 $10.21 $10.32 $9.90 $10.26 $10.47
========= ========= ========= ========= ========= ==========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Operations
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts Marathon
Limited Limited Limited Limited Limited Michigan
Fund Fund Fund Fund Fund Limited Fund
----------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income (Note
1B):
Interest income allocated
from Portfolio $13,701 $1,852,981 $403,363 $3,764,435 $2,916,451 $ 691,544
Expenses allocated from
Portfolio -- (192,600) (27,008) (397,825) (306,522) (85,026)
--------- -------- -------- -------- -------- ----------
Net investment income
from Portfolio $13,701 $1,660,381 $376,355 $3,366,610 $2,609,929 $ 606,518
--------- -------- -------- -------- -------- ----------
Expenses -
Compensation of Trustees
not members of the
Administrator's
organization $ -- $ 1,138 $ 83 $ 1,684 $ 1,684 $ 83
Distribution costs
(Note 5) 1,929 289,656 62,426 598,339 470,015 102,304
Custodian fee (Note 4) 1,319 2,714 1,316 7,089 5,916 1,382
Transfer and dividend
disbursing agent fees 202 20,283 6,079 50,970 31,596 10,085
Printing and postage 6,259 9,804 5,130 16,505 14,048 6,381
Legal and accounting
services 4,685 11,171 7,956 12,214 11,360 9,566
Registration costs 825 500 -- 2,100 1,000 1,100
Amortization of
organization expenses
(Note 1D) 339 3,053 2,038 3,817 3,365 2,020
Miscellaneous 1,481 7,895 1,858 8,299 16,747 2,478
--------- -------- -------- -------- -------- ----------
Total expenses $17,039 $ 346,214 $ 86,886 $ 701,017 $ 555,731 $ 135,399
--------- -------- -------- -------- -------- ----------
Deduct preliminary
allocation of expenses
to the Administator
(Note 4) $13,450 $ -- $ -- $ -- $ -- $ --
Deduct reduction of
custodian fees (Note 4) 44 -- -- -- -- --
--------- -------- -------- -------- -------- ----------
Total $13,494 $ 346,214 $ 86,886 $ 701,017 $ 555,731 $ 135,399
--------- -------- -------- -------- -------- ----------
Net expenses $ 3,545 $ 346,214 $ 86,886 $ 701,017 $ 555,731 $ 135,399
--------- -------- -------- -------- -------- ----------
Net investment
income $10,156 $1,314,167 $289,469 $2,665,593 $2,054,198 $ 471,119
--------- -------- -------- -------- -------- ----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss)
from Portfolio -
Investment transactions
(identified cost basis) $ 217 $ 231,433 $ 9,394 $ (8,158) $ (37,836) $ 75,599
Financial futures
contracts (5,020) (355,663) (71,069) (730,809) (547,329) (129,101)
--------- -------- -------- -------- -------- ----------
Net realized loss $(4,803) $ (124,230) $(61,675) $ (738,967) $ (585,165) $ (53,502)
Change in unrealized
appreciation of
investments 11,576 1,324,661 396,115 3,738,689 2,620,751 462,969
--------- -------- -------- -------- -------- ----------
Net realized and
unrealized gain $ 6,773 $1,200,431 $334,440 $2,999,722 $2,035,586 $ 409,467
--------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $16,929 $2,514,598 $623,909 $5,665,315 $4,089,784 $ 880,586
========= ======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Operations
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon
Marathon Marathon North Marathon Marathon
New Jersey New York Carolina Ohio Pennsylvania Marathon
Limited Limited Limited Limited Limited Virginia
Fund Fund Fund Fund Fund Limited Fund
---------- ---------- ----------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income (Note
1B):
Interest income allocated
from Portfolio $2,411,826 $4,168,283 $ 3,312 $ 952,160 $2,662,342 $ 4,278
Expenses allocated from
Portfolio (253,912) (426,329) -- (111,280) (282,781) --
-------- -------- --------- -------- -------- ----------
Net investment income
from Portfolio $2,157,914 $3,741,954 $ 3,312 $ 840,880 $2,379,561 $ 4,278
-------- -------- --------- -------- -------- ----------
Expenses -
Compensation of Trustees
not members of the
Administrator's
organization $ 843 $ 3,339 $ -- $ 83 $ 1,258 $ 264
Distribution costs
(Note 5) 385,783 680,390 657 137,536 424,681 738
Custodian fee (Note 4) 3,944 6,515 1,303 2,174 4,266 1,458
Transfer and dividend
disbursing agent fees 22,654 56,831 65 12,181 40,373 74
Printing and postage 3,415 19,069 6,268 6,852 14,201 6,974
Legal and accounting
services 10,872 12,426 3,525 9,248 12,007 3,566
Registration costs -- 1,125 -- 1,100 -- --
Amortization of
organization expenses
(Note 1D) 3,354 3,781 609 2,009 3,497 381
Miscellaneous 20,641 10,086 2,093 2,948 6,120 956
-------- -------- --------- -------- -------- ----------
Total expenses $ 451,506 $ 793,562 $14,520 $ 174,131 $ 506,403 $14,411
-------- -------- --------- -------- -------- ----------
Deduct preliminary
allocation of expenses
to the Administator
(Note 4) $ -- $ -- $13,082 $ -- $ -- $13,054
Deduct reduction of
custodian fees
(Note 4) -- -- 781 -- -- 617
-------- -------- --------- -------- -------- ----------
Total $ 451,506 $ 793,562 $13,863 $ 174,131 $ 506,403 $13,671
-------- -------- --------- -------- -------- ----------
Net expenses $ 451,506 $ 793,562 $ 657 $ 174,131 $ 506,403 $ 740
-------- -------- --------- -------- -------- ----------
Net investment
income $1,706,408 $2,948,392 $ 2,655 $ 666,749 $1,873,158 $ 3,538
-------- -------- --------- -------- -------- ----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss)
from Portfolio -
Investment transactions
(identified cost
basis) $ (23,812) $ 258,799 $ -- $ 202,289 $ (289,213) $ --
Financial futures
contracts (452,441) (802,571) -- (172,848) (502,466) --
-------- -------- --------- -------- -------- ----------
Net realized gain
(loss) $ (476,253) $ (543,772) $ -- $ 29,441 $ (791,679) $ --
Change in unrealized
appreciation of
investments 1,846,231 3,604,121 2,489 545,508 2,524,958 2,669
-------- -------- --------- -------- -------- ----------
Net realized and
unrealized gain $1,369,978 $3,060,349 $ 2,489 $ 574,949 $1,733,279 $ 2,669
-------- -------- --------- -------- -------- ----------
Net increase in net
assets from
operations $3,076,386 $6,008,741 $ 5,144 $1,241,698 $3,606,437 $ 6,207
======== ======== ========= ======== ======== ==========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Fund Fund Fund Fund Fund Fund
--------- --------- --------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets:
From operations -
Net investment income $ 10,156 $ 1,314,167 $ 289,469 $ 2,665,593 $ 2,054,198 $ 471,119
Net realized loss on
investments (4,803) (124,230) (61,675) (738,967) (585,165) (53,502)
Change in unrealized
appreciation of
investments 11,576 1,324,661 396,115 3,738,689 2,620,751 462,969
-------- -------- -------- -------- --------- ---------
Net increase in net
assets from operations $ 16,929 $ 2,514,598 $ 623,909 $ 5,665,315 $ 4,089,784 $ 880,586
-------- -------- -------- -------- --------- ---------
Distributions to
shareholders (Note 2) -
From net investment
income $(10,106) $ (1,314,167) $ (288,328) $ (2,665,593) $ (2,054,198) $ (471,119)
In excess of net
investment income -- (19,447) -- (49,418) (78,877) (243)
-------- -------- -------- -------- --------- ---------
Total distributions to
shareholders $(10,106) $ (1,333,614) $ (288,328) $ (2,715,011) $ (2,133,075) $ (471,362)
-------- -------- -------- -------- --------- ---------
Transactions in shares of
beneficial interest
(Note 3) -
Proceeds from sales of
shares $ 50,063 $ 373,400 $ 514,179 $ 3,241,845 $ 1,594,251 $ 278,163
Net asset value of
shares issued to
shareholders in payment
of distributions
declared 8,856 644,807 188,260 1,293,910 1,249,903 274,450
Cost of shares redeemed (46,543) (13,557,676) (1,708,604) (23,602,823) (12,514,606) (4,351,779)
-------- -------- -------- -------- --------- ---------
Increase (decrease) in
net assets from Fund
share transactions $ 12,376 $(12,539,469) $(1,006,165) $(19,067,068) $ (9,670,452) $(3,799,166)
-------- -------- -------- -------- --------- ---------
Net increase
(decrease) in net
assets $ 19,199 $(11,358,485) $ (670,584) $(16,116,764) $ (7,713,743) $(3,389,942)
Net Assets:
At beginning of period 498,688 73,856,846 15,612,911 149,581,432 113,338,178 26,048,235
-------- -------- -------- -------- --------- ---------
At end of period $517,887 $ 62,498,361 $14,942,327 $133,464,668 $105,624,435 $22,658,293
======== ======== ======== ======== ========= =========
Accumulated undistributed
(distributions in excess
of) net investment
income included in net
assets at end of period $ (10) $ (147,453) $ 45,947 $ (302,223) $ (273,288) $ (12,772)
======== ======== ======== ======== ========= =========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Marathon
Marathon Marathon North Marathon Marathon
New Jersey New York Carolina Ohio Pennsylvania Marathon
Limited Limited Limited Limited Limited Virginia
Fund Fund Fund Fund Fund Limited Fund
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets:
From operations -
Net investment income $ 1,706,408 $ 2,948,392 $ 2,655 $ 666,749 $ 1,873,158 $ 3,538
Net realized gain (loss)
on investments (476,253) (543,772) -- 29,441 (791,679) --
Change in unrealized
appreciation of
investments 1,846,231 3,604,121 2,489 545,508 2,524,958 2,669
-------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $ 3,076,386 $ 6,008,741 $ 5,144 $ 1,241,698 $ 3,606,437 $ 6,207
-------- -------- -------- -------- -------- ----------
Distributions to
shareholders (Note 2) -
From net investment
income $(1,706,408) $ (2,948,392) $ (2,655) $ (645,498) $ (1,873,158) $ (3,538)
In excess of net
investment income (26,188) (121,491) (800) -- (75,020) (315)
-------- -------- -------- -------- -------- ----------
Total distributions to
shareholders $(1,732,596) $ (3,069,883) $ (3,455) $ (645,498) $ (1,948,178) $ (3,853)
-------- -------- -------- -------- -------- ----------
Transactions in shares of
beneficial interest
(Note 3) -
Proceeds from sales of
shares $ 812,130 $ 2,984,099 $ 53,640 $ 576,594 $ 1,796,129 $ 99,610
Net asset value of
shares issued to
shareholders in
payment of
distributions declared 1,120,778 2,004,942 2,180 427,383 1,131,292 3,256
Cost of shares redeemed (9,758,915) (23,466,733) -- (2,632,451) (12,960,766) --
-------- -------- -------- -------- -------- ----------
Increase (decrease) in
net assets from Fund
share transactions $(7,826,007) $(18,477,692) $ 55,820 $(1,628,474) $(10,033,345) $102,866
-------- -------- -------- -------- -------- ----------
Net increase
(decrease) in net
assets $(6,482,217) $(15,538,834) $ 57,509 $(1,032,274) $ (8,375,086) $105,220
Net Assets:
At beginning of period 93,361,499 166,691,386 135,119 34,278,767 103,552,952 118,270
-------- -------- -------- -------- -------- ----------
At end of period $86,879,282 $151,152,552 $192,628 $33,246,493 $ 95,177,866 $223,490
======== ======== ======== ======== ======== ==========
Accumulated undistributed
(distributions in excess
of) net investment
income included in net
assets at end of period $ (183,161) $ (404,390) $ (1,024) $ 76,065 $ (235,659) $ (341)
======== ======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts Marathon
Limited Limited Limited Limited Limited Michigan
Fund* Fund Fund Fund Fund Limited Fund
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets:
From operations -
Net investment income $ 5,790 $ 2,972,105 $ 597,280 $ 6,044,327 $ 4,455,147 $ 1,036,889
Net realized loss on
investments (8) (2,978,862) (480,263) (3,267,182) (1,983,330) (1,366,775)
Change in unrealized
appreciation of
investments 10,262 2,562,176 508,802 4,182,568 2,697,659 1,411,445
-------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $ 16,044 $ 2,555,419 $ 625,819 $ 6,959,713 $ 5,169,476 $ 1,081,559
-------- -------- -------- -------- -------- ----------
Distributions to
shareholders (Note 2) -
From net investment
income $ (5,790) $ (2,972,105) $ (597,280) $ (6,044,327) $ (4,455,147) $(1,036,889)
In excess of net
investment income (109) (538,134) (41,174) (943,692) (636,296) (142,668)
From net realized gain
on investments -- (55,127) -- (187,269) (79,173) --
-------- -------- -------- -------- -------- ----------
Total distributions to
shareholders $ (5,899) $ (3,565,366) $ (638,454) $ (7,175,288) $ (5,170,616) $(1,179,557)
-------- -------- -------- -------- -------- ----------
Transactions in shares of
beneficial interest
(Note 3) -
Proceeds from sales of
shares $483,928 $ 7,606,720 $ 2,473,534 $ 16,763,286 $ 11,925,643 $ 3,836,020
Net asset value of
shares issued to
shareholders in
payment of
distributions declared 4,605 1,740,566 424,785 3,443,845 3,053,147 731,314
Cost of shares redeemed -- (16,931,148) (2,024,546) (33,409,181) (16,760,396) (5,209,436)
-------- -------- -------- -------- -------- ----------
Increase (decrease) in
net assets from Fund
share transactions $488,533 $ (7,583,862) $ 873,773 $(13,202,050) $ (1,781,606) $ (642,102)
-------- -------- -------- -------- -------- ----------
Net increase
(decrease) in net
assets $498,678 $ (8,593,809) $ 861,138 $(13,417,625) $ (1,782,746) $ (740,100)
Net Assets:
At beginning of period 10 82,450,655 14,751,773 162,999,057 115,120,924 26,788,335
-------- -------- -------- -------- -------- ----------
At end of period $498,688 $ 73,856,846 $15,612,911 $149,581,432 $113,338,178 $26,048,235
======== ======== ======== ======== ======== ==========
Accumulated undistributed
(distributions in excess
of) net investment
income included in net
assets at end of period $ (60) $ (128,006) $ 44,806 $ (252,805) $ (194,411) $ (12,529)
======== ======== ======== ======== ======== ==========
</TABLE>
* For the period from the start of business, November 3, 1994, to March 31,
1995.
See notes to financial statements
<PAGE>
Statement of Changes in Net Asseets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
Marathon
Marathon Marathon North Marathon Marathon Marathon
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Fund Fund Fund** Fund Fund Fund***
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net
Assets:
From operations -
Net investment income $ 3,668,578 $ 6,691,528 $ 979 $ 1,333,160 $ 4,063,601 $ 1,112
Net realized gain (loss)
on investments (2,333,170) (2,795,918) 3 (1,541,388) (1,696,819) (32)
Change in unrealized
appreciation of
investments 2,832,889 3,210,944 2,496 1,628,473 2,245,269 2,711
-------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $ 4,168,297 $ 7,106,554 $ 3,478 $ 1,420,245 $ 4,612,051 $ 3,791
-------- -------- -------- -------- -------- ----------
Distributions to
shareholders (Note 2) -
From net investment
income $ (3,668,578) $ (6,691,528) $ (979) $(1,333,160) $ (4,063,601) $ (1,112)
In excess of net
investment income (592,682) (972,616) (224) (112,873) (743,802) (28)
From net realized gain
on investments (174,045) (62,560) -- -- (66,305) --
-------- -------- -------- -------- -------- ----------
Total distributions to
shareholders $ (4,435,305) $ (7,726,704) $ (1,203) $(1,446,033) $ (4,873,708) $ (1,140)
-------- -------- -------- -------- -------- ----------
Transactions in shares of
beneficial interest
(Note 3) -
Proceeds from sales of
shares $ 9,758,792 $ 14,454,440 $184,531 $ 4,957,796 $ 8,386,853 $144,732
Net asset value of
shares issued to
shareholders in
payment of
distributions declared 2,834,405 5,053,629 905 964,246 2,865,689 907
Cost of shares redeemed (18,707,502) (30,447,274) (52,602) (3,619,898) (16,952,998) (30,030)
-------- -------- -------- -------- -------- ----------
Increase (decrease) in
net assets from Fund
share transactions $ (6,114,305) $(10,939,205) $132,834 $ 2,302,144 $ (5,700,456) $115,609
-------- -------- -------- -------- -------- ----------
Net increase
(decrease) in net
assets $ (6,381,313) $(11,559,355) $135,109 $ 2,276,356 $ (5,962,113) $118,260
Net Assets:
At beginning of period 99,742,812 178,250,741 10 32,002,411 109,515,065 10
-------- -------- -------- -------- -------- ----------
At end of period $ 93,361,499 $166,691,386 $135,119 $34,278,767 $103,552,952 $118,270
======== ======== ======== ======== ======== ==========
Accumulated undistributed
(distributions in excess
of) net investment
income included in net
assets at end of period $ (156,973) $ (282,899) $ (224) $ 54,814 $ (160,639) $ (26)
======== ======== ======== ======== ======== ==========
</TABLE>
** For the period from the start of business, November 28, 1994, to March
31, 1995.
*** For the period from the start of buisness, November 11, 1994, to March
31, 1995.
See notes to financial statements
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon Arizona Limited Marathon California Limited
------------------------ -----------------------------------------------------
Six Months Six Months
Ended Ended
September Period September
30, Ended 30, Year Ended March 31,
1995 March 31, 1995 ---------------------------------------
(unaudited) 1995** (unaudited) 1995 1994 1993*
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 10.250 $ 10.000 $ 9.950 $ 10.050 $ 10.340 $ 10.000
-------- -------- -------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.203 $ 0.155 $ 0.192 $ 0.367 $ 0.380 $ 0.333
Net realized and
unrealized
gain (loss) on
investments 0.130 0.253 0.173 (0.027) (0.180) 0.443
-------- -------- -------- -------- -------- ----------
Total income from
operations $ 0.333 $ 0.408 $ 0.365 $ 0.340 $ 0.200 $ 0.776
-------- -------- -------- -------- -------- ----------
Less distributions:
From net investment
income $ (0.203) $ (0.155) $ (0.192) $ (0.367) $ (0.380) $ (0.333)
In excess of net
investment income -- (0.003) (0.003) (0.066) (0.096) --
From net realized gain on
investment transactions -- -- -- (0.007) (0.014) --
From paid-in capital -- -- -- -- -- (0.103)
-------- -------- -------- -------- -------- ----------
Total distributions $ (0.203) $ (0.158) $ (0.195) $ (0.440) $ (0.490) $ (0.436)
-------- -------- -------- -------- -------- ----------
Net asset value, end of
period $ 10.380 $ 10.250 $ 10.120 $ 9.950 $ 10.050 $ 10.340
======== ======== ======== ======== ======== ==========
Total Return (1) 3.29% 4.02% 3.70% 3.53% 1.86% 7.67%
Ratios/Supplemental
Data***:
Net assets, end of period
(000 omitted) $518 $499 $62,498 $73,857 $82,451 $37,124
Ratio of net expenses to
average daily net
assets (2) 1.52%+ 0.75%+ 1.62%+ 1.55% 1.40% 1.33%+
Ratio of net investment
income to average daily
net assets 3.95%+ 3.78%+ 3.81%+ 3.72% 3.55% 3.77%+
Portfolio Turnover (3) -- -- -- -- 0% 24%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of
expenses by the Administrator and/or Investment Adviser. Had such actions not been taken, net investment
income (loss) per share and the ratios would have been:
Net investment income
(loss) per share $ (0.243) $ 0.066 $ 0.377 $ 0.299
======== ======== ======== ======== ======== ==========
Ratios (As a percentage of average daily net assets):
Expenses (2) 10.19%+ 2.92 %+ 1.48% 1.72%+
Net investment income
(loss) (4.72%)+ 1.61 %+ 3.47% 3.38%+
</TABLE>
+ Annualized.
* For the period from the start of business, May 29, 1992, to March 31,
1993.
** For the period from the start of business, November 3, 1994, to March 31,
1995.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon Connecticut Limited Marathon Florida Limited
-------------------------------------- ----------------------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------- --------------------------------------
Six Months Six Months
Ended Ended
September September
30, 30,
1995 1995
(unaudited) 1995 1994** (unaudited) 1995 1994 1993*
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period $ 9.690 $ 9.690 $10.000 $10.080 $10.060 $10.360 $10.000
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from
operations:
Net investment
income $ 0.186 $ 0.373 $ 0.343 $ 0.191 $ 0.375 $ 0.387 $ 0.333
Net realized and
unrealized
gain (loss) on
investments 0.208 0.026 (0.243) 0.214 0.090 (0.200) 0.469
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total income from
operations $ 0.394 $ 0.399 $ 0.100 $ 0.405 $ 0.465 $ 0.187 $ 0.802
---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net
investment income $(0.184) $(0.373) $(0.343) $(0.191) $(0.375) $(0.387) $(0.333)
In excess of net
investment income -- (0.026) (0.056) (0.004) (0.058) (0.092) --
From net realized
gain on investment
transactions -- -- -- -- (0.012) (0.008) --
In excess of net
realized gain on
investment
transactions -- -- (0.011) -- -- -- --
From paid-in
capital -- -- -- -- -- -- (0.109)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total
distributions $(0.184) $(0.399) $(0.410) $(0.195) $(0.445) $(0.487) $(0.442)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value,
end of period $ 9.900 $ 9.690 $ 9.690 $10.290 $10.080 $10.060 $10.360
========== ========== ========== ========== ========== ========== ==========
Total Return (1) 4.10% 4.27% 0.73% 4.06% 4.79% 1.68% 7.94%
Ratios/Supplemental
Data***:
Net assets, end of
period (000
omitted) $14,942 $15,613 $14,752 $133,465 $149,581 $162,999 $90,210
Ratio of net
expenses to
average daily net
assets (2) 1.53%+ 1.23% 0.86%+ 1.56%+ 1.50% 1.42% 1.24%+
Ratio of net
investment income
to average daily
net assets 3.76%+ 3.89% 3.50%+ 3.74%+ 3.77% 3.57% 3.73%+
Portfolio Turnover
(3) -- -- -- -- -- 0% 11%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of
expenses by the Administrator and/or Investment Adviser. Had such actions not been taken, net investment
income per share and the ratios would have been:
Net investment
income per share 0.165 $ 0.317 $ 0.229 $ 0.311
========== ========== ========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net assets):
Expenses (2) 1.95%+ 1.81% 2.02%+ 1.49%+
Net investment
income 3.34%+ 3.31% 2.34%+ 3.48%+
</TABLE>
+ Annualized.
* For the period from the start of business, May 29, 1992, to March 31,
1993.
** For the period from the start of business, April 16, 1993, to March 31,
1994.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon Massachusetts Limited Marathon Michigan Limited
----------------------------------------------- -------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------- ---------------------
Six Months Six Months
Ended Ended
September 30, September 30,
1995 1995
(unaudited) 1995 1994 1993** (unaudited) 1995 1994*
-------------- --------- --------- --------- -------------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 9.980 $ 9.960 $10.270 $10.000 $ 9.630 $ 9.650 $10.000
------------- -------- -------- -------- ------------- -------- --------
Income (loss) from
operations:
Net investment income $ 0.187 $ 0.383 $ 0.385 $ 0.334 $ 0.186 $ 0.364 $ 0.345
Net realized and
unrealized
gain (loss) on
investments 0.187 0.082 (0.197) 0.368 0.160 0.030 (0.279)
------------- -------- -------- -------- ------------- -------- --------
Total income from
operations $ 0.374 $ 0.465 $ 0.188 $ 0.702 $ 0.346 $ 0.394 $ 0.066
------------- -------- -------- -------- ------------- -------- --------
Less distributions:
From net investment
income $(0.187) $(0.383) $(0.385) $(0.334) $(0.186) $(0.364) $(0.345)
In excess of net
investment income (0.007) (0.055) (0.095) -- -- (0.050) (0.071)
From net realized gain
on investment
transactions -- (0.007) (0.018) -- -- -- --
From paid-in capital -- -- -- (0.098) -- -- --
------------- -------- -------- -------- ------------- -------- --------
Total distributions $(0.194) $(0.445) $(0.498) $(0.432) $(0.186) $(0.414) $(0.416)
------------- -------- -------- -------- ------------- -------- --------
Net asset value, end of
period $10.160 $ 9.980 $ 9.960 $10.270 $ 9.790 $ 9.630 $ 9.650
============= ======== ======== ======== ============= ======== ========
Total Return (1) 3.80% 4.84% 1.75% 6.95% 3.63% 4.24% 0.37%
Ratios/Supplemental
Data***:
Net assets, end of
period
(000 omitted) $105,624 $113,338 $115,121 $55,737 $22,658 $26,048 $26,788
Ratio of net expenses
to average daily net
assets (2) 1.58%+ 1.57% 1.46% 1.24%+ 1.79%+ 1.55% 0.91%+
Ratio of net
investment income to
average daily net
assets 3.72%+ 3.89% 3.61% 3.88%+ 3.83%+ 3.82% 3.56%+
Portfolio Turnover (3) -- -- 2% 21% -- -- --
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of
expenses by the Administrator and/or Investment Adviser. Had such actions not been taken, net investment
income per share and the ratios would have been:
Net investment income
per share $ 0.307 $ 0.354 $ 0.275
======== ======== ========
Ratios (As a percentage of average daily net assets):
Expenses (2) 1.55%+ 1.66% 1.63%+
Net investment income 3.57%+ 3.71% 2.84%+
</TABLE>
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** For the period from the start of business, June 1, 1992, to March 31,
1993.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
Marathon New Jersey Limited
------------------------------------------------
Year Ended March 31,
--------------------------------
Six Months
Ended
September
30,
1995
(unaudited) 1995 1994 1993*
------------ ------- -------- ---------
Net asset value, beginning
of period $10.020 $10.030 $10.350 $10.000
---------- ----- ------ -------
Income (loss) from
operations:
Net investment income $ 0.190 $ 0.370 $ 0.374 $ 0.325
Net realized and
unrealized
gain (loss) on
investments 0.153 0.068 (0.216)++ 0.453
---------- ----- ------ -------
Total income from
operations $ 0.343 $ 0.438 $ 0.158 $ 0.778
---------- ----- ------ -------
Less distributions:
From net investment
income $(0.190) $(0.370) $(0.374) $(0.325)
In excess of net
investment income (0.003) (0.060) (0.092) --
From net realized gain on
investment transactions -- (0.018) (0.012) --
From paid-in capital -- -- -- (0.103)
---------- ----- ------ -------
Total distributions $(0.193) $(0.448) $(0.478) $(0.428)
---------- ----- ------ -------
Net asset value, end of
period $10.170 $10.020 $10.030 $10.350
========== ===== ====== =======
Total Return (1) 3.46% 4.53% 1.44% 7.71%
Ratios/Supplemental
Data**:
Net assets, end of period
(000 omitted) $86,879 $93,361 $99,743 $58,527
Ratio of net expenses to
average daily net assets
(2) 1.58%+ 1.56% 1.51% 1.25%+
Ratio of net investment
income to average daily
net assets 3.76%+ 3.73% 3.50% 3.71%+
Portfolio Turnover (3) -- -- 0% 9%
** For the following periods, the operating expenses of the Funds and
Portfolios reflect a reduction of expenses by the Administrator and/or
Investment Adviser. Had such actions not been taken, net investment
income per share and the ratios would have been:
Net investment income per
share $ 0.299
=======
Ratios (As a percentage of average daily net assets):
Expenses (2) 1.55%+
Net investment income 3.41%+
+ Annualized.
++ The per share amount is not in accord with the net realized and
unrealized gain (loss) for the period because of timing of sales of Fund
shares and the amount of per share realized and unrealized gains and
losses at such time.
* For the period from the start of business, June 1, 1992, to March 31, 1993.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
Marathon New York Limited
-----------------------------------------------
Year Ended March 31,
-------------------------------
Six Months
Ended
September
30,
1995
(unaudited) 1995 1994 1993*
------------ ------- ------- ---------
Net asset value, beginning
of period $10.030 $10.040 $10.360 $10.000
---------- ----- ----- -------
Income (loss) from
operations:
Net investment income $ 0.187 $ 0.378 $ 0.387 $ 0.327
Net realized and
unrealized
gain (loss) on
investments 0.188 0.049 (0.219) 0.475
---------- ----- ----- -------
Total income from
operations $ 0.375 $ 0.427 $ 0.168 $ 0.802
---------- ----- ----- -------
Less distributions:
From net investment
income $(0.187) $(0.378) $(0.387) $(0.327)
In excess of net
investment income (0.008) (0.055) (0.093) --
From net realized gain on
investment transactions -- (0.004) (0.008) --
From paid-in capital -- -- -- (0.115)
---------- ----- ----- -------
Total distributions $(0.195) $(0.437) $(0.488) $(0.442)
---------- ----- ----- -------
Net asset value, end of
period $10.210 $10.030 $10.040 $10.360
========== ===== ===== =======
Total Return (1) 3.77% 4.41% 1.46% 7.95%
Ratios/Supplemental
Data**:
Net assets, end of period
(000 omitted) $151,153 $166,691 $178,251 $93,819
Ratio of net expenses to
average daily net assets
(2) 1.55%+ 1.51% 1.40% 1.21%+
Ratio of net investment
income to average daily
net assets 3.69%+ 3.81% 3.56% 3.69%+
Portfolio Turnover (3) -- -- -- 11%
** For the following periods, the operating expenses of the Funds and
Portfolios reflect a reduction of expenses by the Administrator and/or
Investment Adviser. Had such actions not been taken, net investment
income per share and the ratios would have been:
Net investment income per
share $0.305
=======
Ratios (As a percentage of average daily net assets):
Expenses (2) 1.47%+
Net investment income 3.43%+
+ Annualized.
* For the period from the start of business, May 29, 1992, to March 31,
1993.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon North Carolina
Limited Marathon Ohio Limited
-------------------------- ------------------------------------
Six Months Six Months
Ended Ended
September Period September
30, Ended 30, Year Ended March 31,
1995 March 31, 1995 --------------------
(unaudited) 1995** (unaudited) 1995 1994*
------------ ---------- ------------ ------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.210 $10.000 $ 9.730 $ 9.730 $10.000
---------- -------- ---------- ----- -------
Income (loss) from operations:
Net investment income $ 0.156 $ 0.112 $ 0.196 $ 0.382 $ 0.354
Net realized and unrealized
gain (loss) on investments 0.157 0.236 0.163 0.032 (0.194)
---------- -------- ---------- ----- -------
Total income from operations $ 0.313 $ 0.348 $ 0.359 $ 0.414 $ 0.160
---------- -------- ---------- ----- -------
Less distributions:
From net investment income $(0.156) $(0.112) $(0.189) $(0.382) $(0.354)
In excess of net investment income (0.047) (0.026) -- (0.032) (0.076)
---------- -------- ---------- ----- -------
Total distributions $(0.203) $(0.138) $(0.189) $(0.414) $(0.430)
---------- -------- ---------- ----- -------
Net asset value, end of period $10.320 $10.210 $ 9.900 $ 9.730 $ 9.730
========== ======== ========== ===== =======
Total Return (1) 3.10% 3.31% 3.73% 4.41% 1.23%
Ratios/Supplemental Data***:
Net assets, end of period (000
omitted) $ 193 $ 135 $33,246 $34,279 $32,002
Ratio of net expenses to average daily
net assets (2) 2.14%+ 0.75%+ 1.72%+ 1.49% 1.03%+
Ratio of net investment income to
average daily net assets 3.02%+ 3.04%+ 3.98%+ 3.95% 3.53%+
Portfolio Turnover (3) -- -- -- -- --
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of
expenses by the Administrator and/or Investment Adviser. Had such actions not been taken, net investment
income (loss) per share and the ratios would have been:
Net investment income (loss) per share $(0.811) $(0.045) $ 0.371 $ 0.293
========== ======== ========== ===== =======
Ratios (As a percentage of average daily net assets):
Expenses (2) 20.88%+ 5.00%+ 1.60% 1.63%+
Net investment income (loss) (15.72%)+ (1.21%)+ 3.84% 2.93%+
</TABLE>
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** For the period from the start of business, November 28, 1994, to March
31, 1995.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon Pennsylvania Limited Marathon Virginia Limited
--------------------------------------------- ----------------------------
Six Months Six Months
Ended Ended
September September
30, Year Ended March 31, 30, Period Ended
1995 ----------------------------- 1995 March 31,
(unaudited) 1995 1994 1993** (unaudited) 1995*
------------ ------- ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $10.090 $10.100 $10.390 $10.000 $10.340 $10.000
---------- ----- ----- ----- ---------- ----------
Income (loss) from
operations:
Net investment income $ 0.191 $ 0.374 $ 0.399 $ 0.336 $ 0.186 $ 0.149
Net realized and
unrealized
gain (loss) on
investments 0.178 0.065 (0.195) 0.490 0.147 0.344
---------- ----- ----- ----- ---------- ----------
Total income from
operations $ 0.369 $ 0.439 $ 0.204 $ 0.826 $ 0.333 $ 0.493
---------- ----- ----- ----- ---------- ----------
Less distributions:
From net investment
income $(0.191) $(0.374) $(0.399) $(0.336) $(0.186) $(0.149)
In excess of net
investment income (0.008) (0.069) (0.083) -- (0.017) (0.004)
From net realized gain on
investment transactions -- (0.006) (0.012) -- -- --
From paid-in capital -- -- -- (0.100) -- --
---------- ----- ----- ----- ---------- ----------
Total distributions $(0.199) $(0.449) $(0.494) $(0.436) $(0.203) $(0.153)
---------- ----- ----- ----- ---------- ----------
Net asset value, end of
period $10.260 $10.090 $10.100 $10.390 $10.470 $10.340
========== ===== ===== ===== ========== ==========
Total Return (1) 3.70% 4.50% 1.89% 8.19% 3.26% 4.82%
Ratios/Supplemental
Data**:
Net assets, end of period
(000 omitted) $95,178 $103,553 $109,515 $65,005 $223 $118
Ratio of net expenses to
average daily net
assets (2) 1.61%+ 1.57% 1.45% 1.29%+ 1.83% 0.93%+
Ratio of net investment
income to average daily
net assets 3.75%+ 3.75% 3.63% 3.88%+ 3.58% 3.77%+
Portfolio Turnover (3) -- -- 0% 18% -- --
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of
expenses by the Administrator and/or Investment Adviser. Had such actions not been taken, net
investment income (loss) per share and the ratios would have been:
Net investment income
(loss) per share $ 0.315 $(0.711) $(0.117)
===== ========== ==========
Ratios (As a percentage of average daily net assets):
Expenses (2) 1.53%+ 19.08%+ 7.66%+
Net investment income (loss) 3.64%+ (13.67%)+ (2.96%)+
</TABLE>
+ Annualized.
* For the period from the start of business, November 11, 1994, to March
31, 1995.
** For the period from the start of business, June 1, 1992, to March 31,
1993.
(1) Total investment 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.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Funds were making investments directly in securities.
The portfolio turnover rate for the period since the Funds transferred
substantially all of its investable assets to the Portfolio is shown in
the Portfolio's financial statements which are included elsewhere in this
report.
See notes to financial statements
<PAGE>
Notes to Financial Statements
(Unaudited)
(1) Significant Accounting Policies
Eaton Vance Investment Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-six Funds, twelve
of which are included in these financial statements. They include EV Marathon
Arizona Limited Maturity Tax Free Fund ("Marathon Arizona Limited Fund"), EV
Marathon California Limited Maturity Tax Free Fund, ("Marathon California
Limited Fund"), EV Marathon Connecticut Limited Maturity Tax Free Fund
("Marathon Connecticut Limited Fund"), EV Marathon Florida Limited Maturity
Tax Free Fund ("Marathon Florida Limited Fund"), EV Marathon Massachusetts
Limited Maturity Tax Free Fund ("Marathon Massachusetts Limited Fund"), EV
Marathon Michigan Limited Maturity Tax Free Fund ("Marathon Michigan Limited
Fund"), EV Marathon New Jersey Limited Maturity Tax Free Fund ("Marathon New
Jersey Limited Fund"), EV Marathon New York Limited Maturity Tax Free Fund
("Marathon New York Limited Fund"), EV Marathon North Carolina Limited
Maturity Tax Free Fund ("Marathon North Carolina Limited Fund"), EV Marathon
Ohio Limited Maturity Tax Free Fund ("Marathon Ohio Limited Fund"), EV
Marathon Pennsylvania Limited Maturity Tax Free Fund ("Marathon Pennsylvania
Limited Fund"), and EV Marathon Virginia Limited Maturity Tax Free Fund
("Marathon Virginia Limited Fund"). Each Fund invests all of its investable
assets in interests in a separate corresponding open-end management
investment company (a "Portfolio"), a New York Trust, having the same
investment objective as its corresponding Fund. The Marathon Arizona Limited
Fund invests its assets in the Arizona Limited Maturity Tax Free Portfolio,
the Marathon California Limited Fund invests its assets in the California
Limited Maturity Tax Free Portfolio, the Marathon Connecticut Limited Fund
invests its assets in the Connecticut Limited Maturity Tax Free Portfolio,
the Marathon Florida Limited Fund invests its assets in the Florida Limited
Maturity Tax Free Portfolio, the Marathon Massachusetts Limited Fund invests
its assets in the Massachusetts Limited Maturity Tax Free Portfolio, the
Marathon Michigan Fund invests its assets in the Michigan Limited Maturity
Tax Free Portfolio, the Marathon New Jersey Limited Fund invests its assets
in the New Jersey Limited Maturity Tax Free Portfolio, the Marathon New York
Limited Fund invests its assets in the New York Limited Maturity Tax Free
Portfolio, the Marathon North Carolina Limited Fund invests its assets in the
North Carolina Limited Maturity Tax Free Portfolio, the Marathon Ohio Limited
Fund invests its assets in the Ohio Limited Maturity Tax Free Portfolio, the
Marathon Pennsylvania Limited Fund invests its assets in the Pennsylvania
Limited Maturity Tax Free Portfolio, and the Marathon Virginia Limited Fund
invests its assets in the Virginia Limited Maturity Tax Free Portfolio. The
value of each Fund's investment in its corresponding Portfolio reflects the
Fund's proportionate interest in the net assets of that Portfolio (82.3%,
89.6%, 92.7%, 93.5%, 95.3%, 84.5%, 97.3%, 96.4%, 62.6%, 92.3%, 88.1%, and
65.8% at September 30, 1995 for the Marathon Arizona Limited Fund, Marathon
California Limited Fund, Marathon Connecticut Limited Fund, Marathon Florida
Limited Fund, Marathon Massachusetts Limited Fund, Marathon Michigan Limited
Fund, Marathon New Jersey Limited Fund, Marathon New York Limited Fund,
Marathon North Carolina Limited Fund, Marathon Ohio Limited Fund, Marathon
Pennsylvania Limited Fund, and Marathon Virginia Limited Fund, respectively).
The performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with each Fund's financial statements. The
following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A. Investment Valuation-- Valuation of securities by the Portfolios is
discussed in Note 1 of the Portfolios' Notes to Financial Statements which
are included elsewhere in this report.
B. Income-- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C. Federal Taxes-- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At March 31, 1995,
the following Funds, for federal income tax purposes, had capital loss
carryovers, which will reduce each Fund's taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code, and thus will reduce the amount of the distributions
to shareholders which would otherwise be necessary to relieve the Funds of
any liability for federal income taxes. The amounts and expiration dates of
the capital loss carryovers are as follows:
Fund Amount Expires
- ----------------------------- ------ ----------------
Marathon Arizona Limited Fund $ 2,808 March 31, 2003
Marathon California Limited 723,340 March 31, 2003
Fund
Marathon Connecticut Limited 232,805 March 31, 2003
Fund
Marathon Florida Limited Fund 645,653 March 31, 2003
Marathon Massachusetts 595,115 March 31, 2003
Limited Fund
<PAGE>
(1) Significant Accounting Policies (cont'd)
Fund Amount Expires
- ---------------------------- ------- ----------------
Marathon Michigan Limited $513,947 March 31, 2003
Fund
Marathon New Jersey Limited 574,422 March 31, 2003
Fund
Marathon New York Limited 901,272 March 31, 2003
Fund
Marathon Ohio Limited Fund 817,971 March 31, 2003
3,600 March 31, 2002
Marathon Pennsylvania 574,393 March 31, 2003
Limited Fund
Marathon Virginia Limited 25 March 31, 2003
Fund
Additionally, at March 31, 1995, net capital losses of $2,359,364, $283,009,
$2,907,996, $1,492,331, $917,547, $1,846,049, $2,048,228, $0, $856,989, and
$1,236,490, for the Marathon California Limited Fund, Marathon Connecticut
Limited Fund, Marathon Florida Limited Fund, Marathon Massachusetts Limited
Fund, Marathon Michigan Limited Fund, Marathon New Jersey Limited Fund,
Marathon New York Limited Fund, Marathon Ohio Limited Fund, and Marathon
Pennsylvania Limited Fund, respectively, attributable to security
transactions incurred after October 31, 1994, are treated as arising on the
first day of the Fund's next taxable year. Dividends paid by each Fund from
net interest on tax-exempt municipal bonds allocated from its corresponding
Portfolio are not includable by shareholders as gross income for federal
income tax purposes because each Fund and Portfolio intend to meet certain
requirements of the Internal Revenue Code applicable to regulated investment
companies which will enable the Funds to pay exempt-interest dividends. The
portion of such interest, if any, earned on private activity bonds issued
after August 7, 1986, may be considered a tax preference item to
shareholders.
D. Deferred Organization Expenses-- Costs incurred by a Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years, beginning on the date each Fund
commenced operations.
E. Other-- Investment transactions are accounted for on a trade date basis.
F. Interim Financial Information-- The interim financial statements relating
to September 30, 1995 and for the six month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Fund's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
(2) Distributions to Shareholders
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest capital gain distributions in additional shares of
a Fund at the net asset value as of the ex-dividend date. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles require
that only distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital. Differences in
the recognition or classification of income between the financial statements
and tax earnings and profits which result in temporary over distributions for
financial statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital. The tax treatment of distributions for the calendar year
will be reported to shareholders prior to February 1, 1996 and will be based
on tax accounting methods which may differ from amounts determined for
financial statement purposes.
<PAGE>
(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). Such shares may be issued in a number of different classes.
Transactions in Class I shares were as follows:
<TABLE>
<CAPTION>
Marathon Arizona Limited Marathon California Marathon Connecticut
Fund Limited Fund Limited Fund
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Period Ended Ended
September Ended September Year Ended September Year Ended
30, 1995 March 31, 30, 1995 March 31, 30, 1995 March 31,
(Unaudited) 1995** (Unaudited) 1995 (Unaudited) 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Sales 4,866 48,211 37,066 763,993 52,450 257,528
Issued to
shareholders
electing to receive
payments of
distributions in
Fund shares 857 454 64,101 175,833 19,182 44,233
Redemptions (4,510) -- (1,348,061) (1,723,245) (173,916) (213,238)
---------- -------- ---------- -------- ---------- --------
Net increase
(decrease) 1,213 48,665 (1,246,894) (783,419) (102,284) 88,523
========== ======== ========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Marathon Massachusetts Limited
Marathon Florida Limited Fund Fund
----------------------------- -------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Year Ended
1995 March 31, 1995 March 31,
(Unaudited) 1995 (Unaudited) 1995
-------------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Sales 317,456 1,669,969 158,274 1,204,290
Issued to
shareholders
electing to receive
payments of
distributions in
Fund shares 126,704 344,557 123,874 309,056
Redemptions (2,312,683) (3,377,776) (1,241,429) (1,707,818)
------------ --------- ------------ -----------
Net decrease (1,868,523) (1,363,250) (959,281) (194,472)
============ ========= ============ ===========
</TABLE>
<TABLE>
<CAPTION>
Marathon Michigan Limited Marathon New Jersey Limited
Fund Fund
----------------------------- -------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Year Ended
1995 March 31, 1995 March 31,
(Unaudited) 1995 (Unaudited) 1995
-------------- ----------- -------------- -------------
<S> <C> <C> <C> <C>
Sales 28,709 399,248 80,357 977,485
Issued to
shareholders
electing to receive
payments of
distributions in
Fund shares 28,221 76,499 110,805 285,382
Redemptions (447,165) (548,744) (965,853) (1,896,701)
------------ --------- ------------ -----------
Net decrease (390,235) (72,997) (774,691) (633,834)
============ ========= ============ ===========
</TABLE>
<PAGE>
(3) Shares of Beneficial Interest (cont'd)
<TABLE>
<CAPTION>
Marathon New York Limited Marathon North Carolina
Fund Limited Fund Marathon Ohio Limited Fund
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Ended Period Ended
September Year Ended September Ended September Year Ended
30, 1995 March 31, 30, 1995 March 31, 30, 1995 March 31,
(Unaudited) 1995 (Unaudited) 1995** (Unaudited) 1995
------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Sales 294,513 1,445,280 5,215 18,400 58,548 513,206
Issued to
shareholders
electing to receive
payments of
distributions in
Fund shares 197,659 507,842 213 88 43,482 99,878
Redemptions (2,315,016) (3,091,008) -- (5,260) (268,435) (379,292)
---------- -------- ---------- -------- ---------- --------
Net increase
(decrease) (1,822,844) (1,137,886) 5,428 13,228 (166,405) 233,792
========== ======== ========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Marathon Pennsylvania Limited
Fund Marathon Virginia Limited Fund
----------------------------- ----------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended September 30, Period Ended
1995 March 31, 1995 March 31,
(Unaudited) 1995 (Unaudited) 1995***
-------------- ----------- -------------- ----------------
<S> <C> <C> <C> <C>
Sales 175,414 832,585 9,598 14,326
Issued to
shareholders
electing to receive
payments of
distributions in
Fund shares 110,825 286,093 313 89
Redemptions (1,270,285) (1,707,934) -- (2,982)
------------ --------- ------------ --------------
Net increase
(decrease) (984,046) (589,256) 9,911 11,433
============ ========= ============ ==============
</TABLE>
There were no transactions involving shares of any other class.
* For the period from the start of business, November 3, 1994, to March 31,
1995.
** For the period from the start of business, November 28, 1994, to March
31, 1995.
*** For the period from the start of business, November 11, 1994, to March
31, 1995.
(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 Marathon
Arizona Limited Fund, Marathon North Carolina Limited Fund, and Marathon
Virginia Limited Fund, $13,450, $13,082 and $13,054, respectively, of
expenses related to the operation of the Funds were allocated, on a
preliminary basis, to EVM. Except as to Trustees of the Funds and the
Portfolios who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their services to each Fund out of such
investment adviser fee. Investors Bank & Trust Company (IBT), an affiliate of
EVM, serves as custodian to the Funds and the Portfolios. Pursuant to the
respective custodian agreements, IBT receives a fee reduced by credits which
are determined based on the average cash balances the Funds or the Portfolios
maintain with IBT. For the six months ended September 30, 1995, credits used
to reduce custodian fees amounted to $44, $1,221, $235, $429, $732, $1,233,
$781, $808 and $617 for the Marathon Arizona Limited Fund, Marathon
California Limited Fund, Marathon Connecticut Limited Fund, Marathon Michigan
Limited Fund, Marathon New Jersey Limited Fund, Marathon New York Limited
Fund, Marathon North Carolina Limited Fund, Marathon Pennsylvania Limited
Fund and Marathon Virginia Limited Fund, respectively. The Marathon Florida
Limited Fund, Marathon Massachusetts Limited Fund and Marathon Ohio Limited
Fund did not earn any credits during the six months ended September 30, 1995.
Certain of the officers and Trustees of the Funds and Portfolios are officers
and directors/trustees of the above organizations (Note 5).
<PAGE>
(5) Distribution Plan
Each Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plans require the Funds to pay
the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD), amounts
equal to 1/365 of 0.75% of each Funds' daily net assets, for providing
ongoing distribution services and facilities to the respective Fund. A Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent
to the sum of (i) 3% (3-1/2% for Marathon Arizona Limited Fund, Marathon
Connecticut Limited Fund, Marathon Michigan Limited Fund, Marathon North
Carolina Limited Fund, Marathon Ohio Limited Fund, and Marathon Virginia
Limited Fund) of the aggregate amount received by the Fund for Class I 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 daily 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 each Funds net
assets. For the six months ended September 30, 1995, Marathon Arizona Limited
Fund, Marathon California Limited Fund, Marathon Connecticut Limited Fund,
Marathon Florida Limited Fund, Marathon Massachusetts Limited Fund, Marathon
Michigan Limited Fund, Marathon New Jersey Limited Fund, Marathon New York
Limited Fund, Marathon North Carolina Limited Fund, Marathon Ohio Limited
Fund, Marathon Pennsylvania Limited Fund and Marathon Virginia Limited Fund
paid or accrued $1,929, $258,621, $57,802, $534,232, $414,719, $92,443,
$340,397, $600,344, $657, $125,794, $374,719 and $738, respectively, to or
payable to EVD representing 0.75% (annualized) of average daily net assets.
At September 30, 1995, the amount of Uncovered Distribution Charges of EVD
calculated under the Plans for Marathon Arizona Limited Fund, Marathon
California Limited Fund, Marathon Connecticut Limited Fund, Marathon Florida
Limited Fund, Marathon Massachusetts Limited Fund, Marathon Michigan Limited
Fund, Marathon New Jersey Limited Fund, Marathon New York Limited Fund,
Marathon North Carolina Limited Fund, Marathon Ohio Limited Fund, Marathon
Pennsylvania Limited Fund and Marathon Virginia Limited Fund were
approximately $16,000, $1,012,000, $382,000, $2,047,000, $1,621,000,
$593,000, $1,318,000, $2,340,000, $6,000, $851,000, $1,373,000 and $8,000,
respectively.
In addition, the Plans authorize the Funds to make payments of service fees
to the Principal Underwriter, Authorized Firms and other persons in amounts
not exceeding 0.25% of each Fund's average daily net assets for each fiscal
year. The Trustees have initially implemented the Plans by authorizing the
Funds to make quarterly service fee payments to the Principal Underwriter and
Authorized Firms in amounts not expected to exceed 0.15% of each Fund's
average daily net assets based on the value of Class I shares sold by such
persons and remaining outstanding for at least one year. For the six months
ended September 30, 1995, Marathon Arizona Limited Fund, Marathon California
Limited Fund, Marathon Connecticut Limited Fund, Marathon Florida Limited
Fund, Marathon Massachusetts Limited Fund, Marathon Michigan Limited Fund,
Marathon New Jersey Limited Fund, Marathon New York Limited Fund, Marathon
North Carolina Limited Fund, Marathon Ohio Limited Fund, Marathon
Pennsylvania Limited Fund and Marathon Virginia Limited Fund paid or accrued
service fees to or payable to EVD in the amount of $--, $31,035, $4,624,
$64,107, $55,296, $9,861, $45,386, $80,046, $--, $11,741, $49,962, and $--,
respectively. 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 Charge
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class I shares made within four years of purchase. Generally the CDSC is
based on the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class I shares acquired by reinvestment of
dividends or capital gain distributions. The CDSC is imposed at declining
rates that begin at 3% in the case of redemptions in the first year after
purchase. No CDSC is levied on shares which have been sold to EVM 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 each Fund's Distribution Plan. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the corresponding Fund. EVD
received approximately $900, $151,900, $27,800, $380,300, $192,000, $44,900,
$168,600, $342,300, $0, $37,300, $165,700, and $0, respectively, of CDSC paid
by shareholders of Marathon Arizona Limited Fund, Marathon California Limited
Fund, Marathon Connecticut Limited Fund, Marathon Florida Limited Fund,
Marathon Massachusetts Limited Fund, Marathon Michigan Limited Fund, Marathon
New Jersey Limited Fund, Marathon New York Limited Fund, Marathon North
Carolina Limited Fund, Marathon Ohio Limited Fund, Marathon Pennsylvania
Limited Fund, and Marathon Virginia Limited Fund, for the six months ended
September 30, 1995.
<PAGE>
(7) Investment Transactions
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended September 30, 1995 were as follows:
Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida
Limited Limited Limited Limited
Fund Fund Fund Fund
-------------- ----------- ------------ -------------
Increases $ 66,575 $ 563,621 $ 572,065 $ 3,677,108
Decreases 68,330 15,145,952 1,976,651 26,330,459
Marathon Marathon Marathon Marathon
Massachusetts Michigan New Jersey New York
Limited Limited Limited Limited
Fund Fund Fund Fund
------------ --------- ---------- -----------
Increases $ 1,749,049 $ 347,256 $ 936,538 $ 3,324,139
Decreases 14,789,814 4,652,708 11,386,378 25,785,403
Marathon
North Marathon Marathon Marathon
Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited
Fund Fund Fund Fund
------------ --------- ---------- -----------
Increases $ 55,196 $ 722,496 $ 2,209,286 $ 101,077
Decreases 13,487 3,033,677 14,654,707 12,964
<PAGE>
Arizona Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- --------------------------- ------------
Education - 2.8%
A1 AA $15 Arizona State University
Revenue Bonds, 6.50%,
7/1/01 $ 16,494
----------
Escrowed/Prerefunded - 22.1%
Aaa AAA $10 Maricopa County, Arizona,
Hospital Revenue,
Escrowed to Maturity,
6.50%, 1/1/97 $ 10,157
Aaa AAA 20 Maricopa County, Arizona,
School District #28,
(Kyrene Elementary),
(FGIC), Prerefunded to
7/1/01, 6.00%, 7/1/13 21,449
NR AA+ 20 Phoenix, Arizona,
Prerefunded to 7/1/98,
6.50%, 7/1/01 21,481
NR AAA 15 Phoenix, Arizona, Civic
Improvement Corporation,
Prerefunded to 7/1/03,
6.125%, 7/1/14 16,530
NR AA+ 20 Scottsdale, Arizona,
Prerfunded to 7/1/00,
6.00%, 7/1/10 21,590
NR AA- 15 Tuscon, Arizona,
Prerefunded to 7/1/01,
6.75%, 7/1/15 16,725
Aaa AAA 20 University of Arizona
Medical Center
Corporation, (MBIA),
Prerefunded to 7/1/01,
7.00%, 7/1/11 22,758
----------
$130,690
----------
General Obligations - 23.5%
Aa AA $15 Phoenix, Arizona, 5.90%,
7/1/00 $ 16,005
Aa A+ 25 Pima County, Arizona,
6.20%, 7/1/99 26,704
A1 A 25 Maricopa County, Arizona,
School District #8,
6.10%, 7/1/04 26,616
Baa1 A 25 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 27,431
Baa1 A 20 Commonwealth of Puerto
Rico, 6.00%, 7/1/05 21,287
A1 A+ 20 Tempe Union High School
District #213, (Maricopa
County, Arizona), 5.90%,
7/1/03 21,053
----------
$139,096
----------
Housing - 4.2%
NR AAA $25 Phoenix, Arizona,
Industrial Development
Authority, 6.00%, 6/1/06 $ 25,154
----------
Insured Education - 11.5%
Aaa AAA $25 Arizona Educational Loan
Marketing Corporation,
(MBIA), 6.80%, 9/1/98 $ 26,501
Aaa AAA 20 East Valley, Arizona,
Institute of Technology,
District 401, (AMBAC),
5.90%, 7/1/03 21,029
Aaa AAA 20 Northern Arizona
University, (AMBAC),
6.00%, 6/1/06 20,711
----------
$ 68,241
----------
Insured General Obligations - 17.0%
Aaa AAA $20 Maricopa County, Arizona,
School District #40,
(AMBAC), 5.75%, 7/1/03 $ 21,025
Aaa AAA 25 Maricopa County, Arizona,
School District #80,
(FGIC), 6.30%, 7/1/05 26,894
Aaa AAA 15 Maricopa County, Arizona,
School District #28,
(FGIC), 0.00%, 7/1/03 10,188
Aaa AAA 20 Maricopa County, Arizona,
(FGIC), 6.25%, 7/1/00 21,682
Aaa AAA 20 Yavapai County, Arizona,
School District, (AMBAC),
6.00%, 7/1/01 21,108
----------
$100,897
----------
Insured Special Tax Revenue - 2.8%
Aaa AAA $15 Arizona State
Transportation Board
Excise Tax, (MBIA),
6.90%, 7/1/99 $ 16,355
----------
Special Tax Revenue - 7.1%
A A- $25 Glendale, Arizona
Improvement District #59,
6.00%, 1/1/03 $ 26,085
A1 AA+ 15 Tempe, Arizona, Municipal
Property Corporation,
5.50%, 7/1/03 15,709
----------
$ 41,794
----------
Transportation - 2.7%
A A+ $15 Phoenix, Arizona Street &
Highway User Bonds,
6.10%, 7/1/01 $ 16,076
----------
<PAGE>
Arizona Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- --------------------------- ------------
Utility - 1.7%
Baa1 A $10 Puerto Rico Electric
Power Authority, 6.75%,
1/1/01 $ 10,048
----------
Water & Sewer - 4.6%
Aa AA- $10 Scottsdale, Arizona,
Water & Sewer, 5.75%,
7/1/03 $ 10,653
Baa1 A 15 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 16,643
----------
$ 27,296
----------
Total tax-exempt
investments (identified
cost, $565,333) $592,141
==========
The Portfolio invests primarily in debt securities issued by Arizona
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 31.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 7.2% to 14.2% of total
investments.
See notes to financial statements
<PAGE>
California Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- --------------------------- ------------
Cogeneration - 2.2%
NR BBB- $1,500 Central Valley Finance
Authority, Carson Ice-Gen.
Project, 5.20%, 7/1/99 $ 1,509,990
------------
Education - 5.5%
Aaa AAA $1,500 California Educational
Facilities Authority,
Stanford University, 5.90%,
11/1/03 $ 1,613,235
Aaa AAA 2,000 California Educational
Facilities Authority,
California Institute of
Technology, 6.375%, 1/1/08 2,122,740
------------
$ 3,735,975
------------
Escrowed/Prerefunded - 19.1%
NR A- $1,700 California Educational
Facilities Authority,
National University,
Prerefunded to 5/1/01,
7.15%, 5/1/21 $ 1,946,398
Aaa AAA 2,300 California State Public
Works Board, Department of
Corrections, Prerefunded to
9/1/01, 6.50%, 9/1/19 2,577,955
Aaa AAA 1,500 East Bay Municipal Utility
District, Water System
Bonds, (AMBAC), Prerefunded
to 6/1/01, 6.375%, 6/1/21 1,676,805
Aaa AAA 2,000 Los Angeles County
Commission Authority, Sales
Tax Bonds, Prerefunded to
7/1/01, 6.75%, 7/1/18 2,261,700
NR AAA 1,000 Puerto Rico Highway,
Prerefunded to 7/1/00,
7.75%, 7/1/16 1,160,470
NR AAA 100 Redevelopment Agency of the
City of Azusa, SFMR,
Escrowed to Maturity,
6.40%, 10/1/02 107,564
NR AAA 3,000 San Bernadino, California,
Certificates of
Participation, Prerefunded
to 8/1/01, 7.00%, 8/1/28 3,434,910
------------
$13,165,802
------------
Electric Utilities - 9.3%
A2 A+ $ 500 California Pollution
Control Financing
Authority, Southern
California Edison Company,
Series C, 6.85%, 12/1/08 $ 533,035
A2 A+ 1,000 California Pollution
Control Financing
Authority, Southern
California Edison Company,
Series D, 6.85%, 12/1/08 1,066,070
Aa AA- 1,700 Department of Water and
Power of the City of Los
Angeles, Electric Plant
Revenue Bonds, 5.75%,
11/15/02 1,799,399
Aa AA- 2,000 Southern California Public
Power Authority, 5.50%,
7/1/12 1,911,320
Aa NR 1,000 Southern California Public
Power Authority,
Transmission Project,
7.00%, 7/1/00 1,078,170
------------
$ 6,387,994
------------
General Obligations - 13.5%
A1 A $1,625 State of California, 6.80%,
10/1/02 $ 1,835,633
A1 A 1,100 State of California, 6.10%,
9/1/04 1,185,250
Aa AA- 1,000 Palos Verdes Library
District, 6.70%, 8/1/11 1,061,160
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 791,760
Baa1 A 475 Puerto Rico Public Building
Authority, 6.50%, 7/1/03 521,184
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 772,388
A1 AA- 1,870 City and County of San
Francisco, 6.50%, 12/15/03 2,021,657
A1 AA- 1,000 City and County of San
Francisco, Public Schools
Facilities Improvement
Project, 7.60%, 9/1/06 1,072,480
------------
$9,261,512
------------
Housing - 5.5%
Aa A+ $1,000 Department of Veterans
Affairs of the State of
California, Home Purchase
Revenue Bonds, (AMT),
7.50%, 8/1/98 $1,026,330
A2 NR 1,000 Orange County, California,
Apartment Development
Revenue Bonds, Villa La
Paz, LOC Tokai Bank, 4.50%,
8/15/07 986,610
<PAGE>
California Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- --------------------------- ------------
Housing (continued)
NR AA+ 750 Housing Authority of the
County of Santa Clara,
Orchard Glen Apartments,
5.25%, 11/1/98 752,888
NR AAA 1,000 The City of Palmdale,
California, Oasis at
Palmdale Apartments,
(FNMA), 5.60%, 12/1/99 1,027,530
------------
$3,793,358
------------
Hospitals - 3.9%
A1 AA- $2,400 California Health
Facilities Financing
Authority, Sisters of
Providence, 7.50%,
10/1/10 $2,653,608
------------
Industrial Development
Revenue - 2.5%
Aaa AAA $1,700 California Pollution
Control Financing
Authority, North County
Recycling Center, 6.00%,
7/1/00 $1,700,000
------------
Insured Education - 1.6%
Aaa AAA $1,000 The Regents of the
University of California,
(MBIA), 6.00%, 9/1/02 $1,079,550
------------
Insured Electric Utilities - 6.1%
Aaa AAA $1,000 California Pollution
Control Financing
Authority, Southern
California Edison Company,
(MBIA), 6.85%, 12/1/08 $1,075,070
Aaa AAA 1,900 Northern California Power
Agency, (MBIA), 6.00%,
8/1/03 2,048,409
Aaa AAA 1,000 Sacramento Municipal
Utility District, (MBIA),
6.20%, 8/15/05 1,083,780
------------
$4,207,259
------------
Insured General Obligations - 4.8%
Aaa AAA $1,000 The City and County of San
Francisco, School District
Facilities Improvement
Projects, (FGIC), 6.00%,
6/15/01 $1,072,490
Aaa AAA 1,925 Moulton Niguel, California
Water District, (AMBAC),
7.30%, 4/1/12 2,186,165
------------
$3,258,655
------------
Insured Hospital Revenue - 5.1%
Aaa AAA $1,750 ABAG Finance Authority,
Certificates of
Participation, Stanford
University Hospital,
(MBIA), 4.90%, 11/1/03 $1,739,553
Aaa AAA 1,000 ABAG Finance Authority,
Certificates of
Participation, Stanford
University Hospital,
(MBIA), 5.125%, 11/1/05 994,900
Aaa AAA 750 ABAG Finance Authority,
Certificates of
Participation, Stanford
University Hospital,
(MBIA), 5.875%, 11/1/06 786,383
------------
$3,520,836
------------
Insured Lease Revenue/
Certificates of Participation - 1.9%
Aaa AAA $1,250 Merced County, California,
CSAC Lease Finance Program,
Certificates of
Participation, (FSA),
5.60%, 10/1/01 $1,315,475
------------
Insured Transportation - 1.6%
Aaa AAA $1,000 San Francisco Bay Area
Rapid Transit District,
(AMBAC), 6.75%, 7/1/09 $1,080,410
------------
Insured Water & Sewer
Revenue - 2.1%
Aaa AAA $ 585 Sweetwater Authority, Water
Revenue Bonds, (AMBAC),
7.00%, 4/1/10 $ 634,058
Aaa AAA 750 City of Vallejo,
California, Water
Improvement Project,
(FGIC), 6.00%, 11/1/00 804,368
------------
$1,438,426
------------
Lease Revenue/Certificate of
Participation - 2.9%
Aa NR $2,000 University of California,
Central Chiller Project,
5.20%, 11/1/07 $1,954,360
------------
Special Tax Revenue - 3.0%
Aa AA $2,000 Orange County Local
Transportation Authority,
Sales Tax Revenue Bonds,
5.70%, 2/15/03 $2,053,000
------------
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- --------------------------- ------------
Transportation - 3.9%
A1 NR $1,000 Contra Costa, California
Transportation Authority,
6.40%, 3/1/01 $ 1,080,300
Aa AA 1,500 Los Angeles Department of
Airports, 7.40%, 5/1/10 1,590,000
------------
$ 2,670,300
------------
Water & Sewer Revenue - 5.5%
A NR $ 700 Coachella Valley Water
District, Flood Control
Project, Certificates of
Participation, 5.75%,
10/1/00 $ 714,263
A1 A 2,000 The City of Los Angeles
Wastewater System, 6.90%,
6/1/08 2,188,380
Baa1 A 750 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/1/17 832,125
------------
$ 3,734,768
------------
Total tax-exempt
investments (identified
cost $66,519,577) $68,521,278
============
The Portfolio invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 23.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 1.9% to 12.9% of total
investments.
See notes to financial statements
<PAGE>
Connecticut Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- -------------------------- -----------
Education - 7.1%
NR A $ 345 State of Connecticut HEFA,
The Taft School Issue,
4.50%, 7/1/01 $ 338,141
Baa1 BBB+ 750 State of Connecticut HEFA,
Fairfield University
Issue, 6.90%, 7/1/14 783,390
-----------
$1,121,531
-----------
Electric Revenue - 3.5%
Baa1 A- $ 500 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 $ 545,250
-----------
Escrowed/Prerefunded - 3.5%
Aaa AAA $ 500 South Central Connecticut
Regional Water Authority,
(AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07 $ 557,050
-----------
General Obligations - 20.8%
Aa AA- $ 500 State of Connecticut,
5.95%, 11/15/00 $ 534,645
Aa AA- 500 State of Connecticut,
6.50%, 3/1/03 551,050
Aa AA 250 Town of Danbury,
Connecticut, 7.00%, 8/1/04 287,805
NR BBB 300 Government of Guam, 4.80%,
11/15/03 287,331
A1 NR 125 Town of Killington,
Connecticut, 6.80%,
9/15/07 133,905
A1 NR 125 Town of Newton,
Connecticut, 4.60%,
6/15/02 125,420
Baa1 A 250 Commonwealth of Puerto
Rico, 7.50%, 7/1/04 294,765
Baa1 A 285 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 300,869
Baa1 A- 500 Puerto Rico Municipal
Finance Agency, 5.70%,
7/1/03 516,685
Baa1 A- 250 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/06 256,935
-----------
$3,289,410
-----------
Hospital Revenue - 4.3%
NR BBB- $ 640 Connecticut Health and
Educational Facilities
Authority, New Britain
Hospital, 7.50%, 7/1/06 $ 683,834
-----------
Housing - 8.9%
Aa AA $ 120 Connecticut Housing
Finance Authority, 5.45%,
5/15/04 $ 120,401
Aa AA 200 Connecticut Housing
Finance Authority, 6.95%,
11/15/01 210,734
Aa AA 1,000 Connecticut Housing
Finance Authority, 6.90%,
11/15/99 1,068,250
-----------
$1,399,385
-----------
Insured Transportation - 5.6%
Aaa AAA $ 750 Connecticut State Airport
Bonds, Bradley
International Airport,
(FGIC), 7.40%, 10/1/04 $ 886,230
-----------
Insured Hospitals - 15.2%
Aaa AAA $ 695 Connecticut Development
Authority, Hartford
Hospital Real Estate
Corporation Project,
(MBIA), (AMT), 6.875%,
10/1/06 $ 751,545
Aaa AAA 750 Connecticut HEFA, Bristol
Hospital Issue, (MBIA),
7.00%, 7/1/09 824,753
Aaa AAA 500 Connecticut HEFA,
Waterbury Hospital Issue,
(FSA), 7.00% 7/1/20 549,835
Aaa AAA 250 Connecticut HEFA, Stamford
Hospital Issue, (MBIA),
6.50%, 7/1/06 269,653
-----------
$2,395,786
-----------
Insured General Obligations - 7.7%
Aaa AAA $315 New Haven, Connecticut,
(FGIC), 5.25%, 8/1/06 $ 314,458
Aaa AAA 500 Old Saybrook, Connecticut,
(AMBAC), 4.10%, 8/15/01 490,270
Aaa AAA 100 Town of Oxford,
Connecticut, (FGIC),
6.90%, 2/1/06 108,465
Aaa AAA 300 City of Waterbury,
Connecticut, (FGIC),
4.80%, 4/15/01 303,480
-----------
$1,216,673
-----------
Insured Miscellaneous - 5.1%
Aaa AAA $725 Woodstock, Connecticut
Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 800,705
-----------
Insured Special Tax - 7.2%
Aaa AAA $525 Connecticut Special
Assessment Unemployment
Compensation Advance Fund
Revenue Bonds, (AMBAC),
4.60%, 5/15/00 $ 529,316
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- -------------------------- -----------
Insured Special Tax (continued)
Aaa AAA 600 Connecticut Special Tax,
(FGIC), 5.10%, 6/1/03 608,310
-----------
$ 1,137,626
-----------
Miscellaneous - 7.2%
A1 AA- $500 Connecticut State
Development Authority,
4.60%, 11/15/01 $ 500,765
A2 NR 625 Connecticut State
Development Authority,
Frito-Lay Incorporated
Project, 6.375%, 7/1/04 638,537
-----------
$ 1,139,302
-----------
Solid Waste - 1.8%
NR A- $300 Eastern Connecticut
Resource Recovery
Authority, Wheelabrator
Lisbon Project, (AMT),
4.90%, 1/1/02 $ 290,265
-----------
Special Tax Revenue - 2.1%
A1 AA- $300 State of Connecticut,
Special Tax Obligation
Bonds, 7.00%, 10/1/99 $ 326,905
-----------
Total tax-exempt
investments (identified
cost $15,417,395) $15,789,952
===========
The Portfolio invests primarily in debt securities issued by Connecticut
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 40.8% 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 range from 3.5% to 14.1% of total
investments.
See notes to financial statements
<PAGE>
Florida Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- -----------
Escrowed/Prerefunded - 22.8%
Aaa AAA $1,015 Dade County FL, Educational
Facilities Authority,
(MBIA), Prerefunded to
10/1/01, 7.00%, 10/1/08 $ 1,162,510
Aaa AAA 1,000 Dunnedin FL Hospital, Mease
Health Care, (MBIA),
Prerefunded to 11/15/01,
6.75%, 11/15/21 1,134,270
Aaa AAA 3,000 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/00 7.25%, 6/1/23 3,405,330
Aaa AAA 1,500 Florida Department of
Natural Resources,
Preservation 2000, (MBIA),
7.25%, 7/1/08 1,650,120
Aaa AAA 1,000 Florida MPA, All
Requirements Power Supply
Project, (AMBAC),
Prerefunded to 10/1/02,
6.25%, 10/1/21 1,112,240
Aaa AAA 1,500 Florida MPA, Stanton II
Project, (AMBAC),
Prerefunded to 6/1/02,
6.50%, 10/1/20 1,690,575
Aaa AAA 1,780 Hollywood FL Water & Sewer,
(FGIC), Prerefunded to
10/1/02 6.375%, 10/1/02 1,980,837
Aaa AAA 1,500 Jacksonville Beach
Utilities, (MBIA),
Prerefunded to 10/1/01,
6.50%, 10/1/12 1,678,995
Aaa AAA 2,500 Jacksonville Electric
Authority, Bulk Power
Supply System, Prerefunded
to 10/1/00, 6.75%, 10/1/21 2,790,875
Aaa AAA 4,485 Jacksonville Electric
Authority, Bulk Power
Supply System, Prerefunded
to 10/1/00, 6.75%, 10/1/16 5,006,830
Aaa AAA 1,000 Manatee County Public
Utilities, (MBIA),
Prerefunded to 10/1/01,
6.80%, 10/1/05 1,134,930
Aaa AAA 3,250 Orlando Utility Community
Water & Electric,
Prerefunded to 10/1/01,
6.50%, 10/1/20 3,637,823
Aaa AAA 2,000 Palm Bay FL Utility, Palm
Bay Utility Corporation,
(MBIA) Prerefunded to
10/1/02, 6.20%, 10/1/17 2,218,560
Aaa AAA 2,805 Palm Beach County Criminal
Justice Facilities, (FGIC),
Prerefunded to 6/1/00,
7.00%, 6/1/01 3,154,727
-----------
$31,758,622
-----------
General Obligations - 13.2%
Aa AA $1,500 Florida State Board of
Education, 6.25%, 6/1/01 $ 1,635,990
Aa AA 1,500 Florida State Board of
Education, 6.75%, 6/1/12 1,670,535
Aa AA 2,000 Florida State Board of
Education, 6.75%, 6/1/00 2,207,360
Aa AA 1,295 Florida State Board of
Education, 6.75%, 6/1/04 1,423,412
NR A 350 Hillsborough County,
(Environmentally Sensitive
Lands Acquisition and
Protection Program), 6.00%,
7/1/03 370,136
Baa1 A 1,000 Puerto Rico Public Building
Authority, 6.50%, 7/1/03 1,097,230
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency, 5.50%,
7/1/01 2,057,240
Baa1 A- 775 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 798,134
Baa1 A- 5,400 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/05 5,587,704
NR NR 1,500 Virgin Islands Public
Finance Authority, 6.80%,
10/1/00 1,602,960
-----------
$18,450,701
-----------
Hospitals - 3.9%
NR BBB $470 Escambia County Health
Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.) 5.00%,
10/1/95 $470,005
NR BBB 490 Escambia County Health
Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.) 5.50%,
10/1/96 493,278
NR BBB 515 Escambia County Health
Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.) 6.00%,
10/1/97 523,276
NR BBB 545 Escambia County Health
Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.) 6.25%,
10/1/98 558,690
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- -----------
Hospitals (continued)
Baa1 NR 425 Jacksonville Health
Facilities Authority,
(National Benevolent
Association- Cypress
Village Project), 6.00%,
12/1/98 429,573
Baa1 NR 450 Jacksonville Health
Facilities Authority,
(National Benevolent
Association- Cypress
Village Project), 6.25%,
12/1/99 457,839
Baa1 NR 480 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress Village
Project), 6.50%, 12/1/00 489,821
NR A- 1,635 Palm Beach County Health
Facilities Authority, Good
Samaritan Health Systems
Inc., 5.60% 10/1/01 1,670,807
A BBB+ 290 St. Johns County Industrial
Development Authority,
(Flagler Hospital Project),
5.60%, 8/1/01 296,911
-----------
$5,390,200
-----------
Housing - 1.4%
Baa BBB $2,000 Puerto Rico Housing Bank
and Finance Agency, 5.10%,
12/1/03 $1,961,960
-----------
Industrial Development
Revenue - 2.6%
Baa2 BBB $1,470 Nassau County PCR, (ITT
Rayonier Incorporated
Project), 5.60%, 6/1/00 $1,492,109
B1 BB+ 2,000 Polk County, Florida,
Industrial Development
Authority, (IMC
Fertilizer), 7.525%, 1/1/15 2,089,640
-----------
$3,581,749
-----------
Insured General
Obligations - 5.4%
Aaa AAA $2,475 Dade County Local School
District, (MBIA), 6.40%,
8/1/00 $2,705,868
Aaa AAA 1,500 Dade County Local School
District, (MBIA), 6.00%,
8/1/06 1,573,320
Aaa AAA 1,000 Dade County Local School
District, (MBIA), 5.20%,
8/1/07 1,007,330
Aaa AAA 500 Duval County Local School
District, (AMBAC), 6.00%,
8/1/03 542,790
Aaa AAA 1,580 Sarasota County FL, (FGIC),
6.25%, 10/1/05 1,707,222
-----------
$7,536,530
-----------
Insured Health Care - 3.2%
Aaa AAA $4,000 Jacksonville Health
Facilities Authority,
(Baptist Medical Center
Project), (MBIA), 7.25%,
6/1/05 (1) $4,436,280
-----------
Insured Hospitals - 8.7%
Aaa AAA $1,050 Hillsborough County
Hospital Authority, (Tampa
General Hospital Project),
(FSA), 5.875%, 10/1/00 $1,126,493
Aaa AAA 2,000 Hillsborough County
Hospital Authority, (Tampa
General Hospital Project),
(FSA), 6.375%, 10/1/13 2,081,100
Aaa AAA 1,000 City of Lakeland, (Lakeland
Regional Medical Center
Project), (FGIC), 5.40%,
11/15/01 1,057,980
Aaa AAA 1,360 North Broward Hospital
District, (MBIA), 6.20%,
1/1/04 1,480,972
Aaa AAA 1,000 Orange County Health
Facilities Authority,
(Adventist Health System/
Sunbelt Inc,) (CGIC),
5.50%, 11/15/02 1,063,370
Aaa AAA 4,500 South Broward Hospital
District, (AMBAC), 7.50%,
5/1/08 5,260,725
-----------
$12,070,640
-----------
Insured Housing - 1.4%
Aaa AAA $2,000 Florida Housing Finance
Agency, Multi-Family
Housing, (Lantana-Oxford
Project), (FSA), 5.50%,
11/1/07 $ 2,006,920
-----------
Insured Lease Revenue/Certificates
of Participation - 1.1%
Aaa AAA $1,150 City of Collier County,
Certificate of
Participation, (FSA),
5.35%, 2/15/02 $ 1,193,827
Aaa AAA 315 Santa Rosa County, Florida,
(FSA), 5.90%, 2/1/01 338,118
-----------
$ 1,531,945
-----------
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- -----------
Insured Miscellaneous - 2.5%
Aaa AAA $2,000 City of Jacksonville,
Guaranteed Entitlement,
(AMBAC), 5.50% 10/1/02 $ 2,134,880
Aaa AAA 500 Lee County Capital Revenue,
(MBIA), 7.30%, 10/1/07 557,640
Aaa AAA 755 Miami Sports and Exhibition
Authority, Special
Obligation, (FGIC), 5.65%,
10/1/02 809,858
-----------
$ 3,502,378
-----------
Insured Solid Waste - 0.4%
Aaa AAA $ 535 Pinellas County Resource
Recovery, (MBIA), 6.85%
10/1/03 $ 599,216
-----------
Insured Special Tax - 5.3%
Aaa AAA $1,525 Florida Department of
Natural Resources,
Preservation 2000, (AMBAC),
6.70%, 7/1/05 $ 1,713,277
Aaa AAA 5,150 Tampa FL Utility Tax,
(AMBAC), 6.50%, 10/1/02 5,703,419
-----------
$ 7,416,696
-----------
Insured Transportation - 8.2%
Aaa AAA $1,700 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.60%, 10/1/03 $ 1,855,601
Aaa AAA 2,000 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.80%, 10/1/05 2,186,000
Aaa AAA 3,120 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.85%, 10/1/06 3,408,600
Aaa AAA 1,000 Port Everglades Authority
FL, Port Facilities,
(FGIC), 7.00%, 9/1/00 1,119,680
Aaa AAA 2,500 Palm Beach County, Florida,
Airport, (MBIA), 7.75%,
10/1/10 2,917,700
-----------
$11,487,581
-----------
Insured Water & Sewer - 5.5%
Aaa AAA $ 600 Cape Coral FL Wastewater,
(FSA), 5.75%, 7/1/01 $ 640,026
Aaa AAA 790 Cape Coral FL Wastewater,
(FSA), 6.10%, 7/1/05 845,087
Aaa AAA 2,000 Manatee County FL, Public
Utilities, (MBIA), 6.75%,
10/1/04 2,291,520
Aaa AAA 1,005 Northern Palm Beach County
FL Water Control District,
(MBIA), 7.15%, 11/1/02 1,107,329
Aaa AAA 1,080 Northern Palm Beach County
FL Water Control District,
(MBIA), 7.15%, 11/1/03 1,188,875
Aaa AAA 1,000 Pasco County FL, Water &
Sewer Revenue, (FGIC),
5.40%, 10/1/03 1,060,530
Aaa AAA 500 Port Orange FL Water &
Sewer Revenue, (AMBAC),
6.50%,10/1/04 541,210
-----------
$ 7,674,577
-----------
Miscellaneous - 0.7%
Baa BBB $1,000 Puerto Rico Housing Bank &
Finance Agency, 5.00%,
12/1/02 $ 982,830
-----------
Solid Waste - 0.8%
A NR $1,165 Brevard County, Florida,
Solid Waste Management
System 5.00%, 4/1/01 $ 1,174,448
-----------
Special Tax Revenue - 0.3%
Baa1 BBB+ $ 400 Puerto Rico Infrastructure
Financing Authority, 7.60%,
7/1/00 $ 437,924
-----------
Transportation - 0.7%
A A $ 925 Florida Sunshine Skyway
Revenue Bonds, 6.40%,
7/1/04 $ 994,856
-----------
Utilities - 7.1%
Aa1 AA $3,000 Jacksonville Electric
Authority, St. John's River
Power Park, 6.50%, 10/1/03 $3,362,670
Aa1 AA 4,000 Jacksonville Electric
Authority, St. John's River
Power Park, Crossover
Refunding, 6.95%, 10/1/04 4,420,080
Aa AA- 2,000 City of Tallahassee,
Electric Refunding Bonds,
5.90%, 10/1/05 2,151,560
-----------
$9,934,310
-----------
Water & Sewer Revenue - 4.6%
A3 A+ $ 330 Dunes Community Development
District, (Flagler County,
Water & Sewer Project),
5.40%, 10/1/00 $ 342,695
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- -----------
Water & Sewer Revenue (continued)
A3 A+ 345 Dunes Community Development
District, (Flagler County,
Water & Sewer Project),
5.50%, 10/1/01 360,180
A3 A+ 365 Dunes Community Development
District, (Flagler County,
Water & Sewer Project),
5.60%, 10/1/02 382,166
A3 A+ 380 Dunes Community Development
District, (Flagler County,
Water & Sewer Project),
5.70%, 10/1/03 400,155
A1 A+ 1,110 Pinellas County FL, Water
Revenue Certificates,
5.90%, 10/1/01 1,139,126
Aa AA- 1,700 St. Petersberg FL, Public
Utility Revenue, 6.65%,
10/1/03 1,941,625
Baa1 A 1,750 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 1,871,136
-----------
$ 6,437,083
-----------
Total tax-exempt
investments (identified
cost, $134,625,228) $139,367,446
===========
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 41.7% 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 range from 0.8% to 15.1% of total
investments.
See notes to financial statements
<PAGE>
Massachusetts Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Education - 7.4%
A1 A+ $1,200 Massachusetts Health and
Education Finance
Authority, Tufts University
Issue, 7.40%, 8/1/18 $ 1,293,444
A A- 1,000 Massachusetts Industrial
Finance Agency, Clark
University Issue, 6.80%,
7/01/06 1,095,940
Aaa NR 5,450 The New England Education
Loan Marketing Corporation,
5.80%, 3/1/02 5,695,359
----------
$ 8,084,743
----------
Electric Utilities - 4.8%
A BBB+ $ 500 Massachusetts Municipal
Wholesale Electric Company,
6.50%, 7/1/02 $ 544,515
A BBB+ 500 Massachusetts Municipal
Wholesale Electric Company,
5.70%, 7/1/01 520,270
A BBB+ 1,000 Massachusetts Municipal
Wholesale Electric Company,
5.70%, 7/1/01 1,040,540
A BBB+ 900 Massachusetts Municipal
Wholesale Electric Company,
6.75%, 7/1/05 988,416
Baa1 A- 2,000 Puerto Rico Electric Power
Authority, 7.00%, 7/1/07 2,156,140
----------
$ 5,249,881
----------
Escrowed/Prerefunded - 21.4%
Aaa NR $1,655 City of Boston,
Massachusetts, Boston City
Hospital, (FHA),
Prerefunded to 8/15/00,
7.15%, 8/15/01 $ 1,871,209
Aaa AAA 1,175 Boston, Massachusetts,
(MBIA), Prerefunded to
7/1/01, 6.75%, 7/1/11 1,319,196
Aaa A+ 1,000 The Commonwealth of
Massachusetts, Prerefunded
to 10/1/96, 7.125%, 10/1/05 1,049,810
Aaa A+ 470 The Commonwealth of
Massachusetts, Prerefunded
to 12/15/98, 7.375%,
12/15/04 519,698
Aaa A+ 1,000 The Commonwealth of
Massachusetts, Prerefunded
to 8/1/01, 6.75%, 8/1/06 1,124,030
Aaa NR 1,000 Lowell, Massachusetts,
Prerefunded to 2/15//01,
7.625%, 2/15/10 1,165,770
Aaa AAA 2,000 Lynn, Massachusetts Water
and Sewer Commission,
(MBIA), Prerefunded to
12/1/00, 7.25%, 12/1/10 2,282,300
Aaa BBB+ 1,245 Massachusetts Municipal
Wholesale Electric System,
Prerefunded to 7/1/02,
6.75%, 7/1/17 1,409,091
NR A+ 1,700 Massachusetts Health and
Educational Facilities
Authority, Baystate Medical
Center, Prerefunded to
7/1/99, 7.375%, 7/1/08 1,898,322
NR AAA 1,085 Massachusetts Health and
Educational Facilities
Authority, Jordan Hospital
Issue, (FHA), Prerefunded
to 8/15/98, 7.85%, 8/15/28 1,206,867
Aaa AAA 1,750 Massachusetts Industrial
Finance Agency, Museum of
Science Issue, (FSA),
Prerefunded to 11/1/99,
7.30%, 11/1/09 1,966,668
Aaa AAA 6,750 Massachusetts Water
Resource Authority,
Prerefunded to 4/1/00,
7.50%, 4/1/09 7,675,763
----------
$23,488,724
----------
General Obligations - 9.5%
Baa NR $ 750 Greater New Bedford
Regional Refuse Management
District, Landfill Bonds,
(AMT), 5.00%, 5/1/99 $743,685
Baa NR 750 Greater New Bedford
Regional Refuse Management
District, Landfill Bonds,
(AMT), 5.10%, 5/1/00 737,970
Baa A- 1,000 City of Lawrence,
Massachusetts State
Qualified Bonds, 5.00%,
9/15/02 998,230
Baa A- 500 City of Lawrence,
Massachusetts State
Qualified Bonds, 5.25%,
9/15/04 500,690
Baa1 NR 500 City of Lowell,
Massachusetts, State
Qualified Bonds, 5.50%,
8/15/97 511,055
Baa1 NR 650 City of Lowell,
Massachusetts, State
Qualified Bonds, 5.75%,
8/15/98 671,385
<PAGE>
Tax-Exempt Investments - continued
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
General Obligations (continued)
A1 A+ 730 The Commonwealth of
Massachusetts Dedicated
Income Tax Bonds, 7.875%,
6/1/97 775,253
A1 A+ 1,240 The Commonwealth of
Massachusetts, 6.10%,
6/1/02 1,343,329
A1 A+ 1,000 The Commonwealth of
Massachusetts, 6.25%,
7/1/04 1,100,190
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 772,388
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 791,760
A NR 210 Taunton, Massachusetts,
8.00%, 2/1/01 240,059
Baa1 BBB+ 1,275 Worcester, Massachusetts,
6.80%, 5/15/00 1,327,109
----------
$10,513,103
----------
Hospitals - 10.6%
Aa AA- $2,180 City of Boston,
Massachusetts, Boston City
Hospital, (FHA Insured
Mortgage), 5.00%, 2/15/00 $ 2,207,969
Aa AA- 2,160 City of Boston,
Massachusetts, Boston City
Hospital, (FHA Insured
Mortgage), 5.15%, 2/15/01 2,203,416
A A- 1,225 Massachusetts Health and
Educational Facilities
Authority, Charlton
Memorial Hospital Issue,
7.00%, 7/1/00 1,317,537
A A- 610 Massachusetts Health and
Educational Facilities
Authority, Charlton
Memorial Hospital Issue,
7.10%, 7/1/01 663,991
Aa AA 750 Massachusetts Health and
Educational Facilities
Authority, Children's
Hospital Issue, 5.50%,
10/1/02 775,463
Aa AA 500 Massachusetts Health and
Educational Facilities
Authority, Children's
Hospital Issue, 5.60%,
10/1/03 517,230
Aa NR 3,000 Massachusetts Health and
Educational Facilities
Authority, Daughters of
Charity Issue, 5.75%,
7/1/02 3,141,120
A A 650 Massachusetts Health and
Educational Facilities
Authority, New England
Deaconess Hospital Issue,
6.50%, 4/1/04 689,098
----------
$11,515,824
----------
Housing - 0.2%
NR BBB+ $ 180 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 8/1/23 $ 188,089
----------
Industrial Development
Revenue - 0.3%
A2 NR $ 350 Canton, Massachusetts,
Industrial Development
Finance Authority, General
Signal Corporation, 5.625%,
12/1/02 $ 353,147
----------
Insured Education - 3.5%
Aaa AAA $ 635 Massachusetts Educational
Financing Authority,
(AMBAC), (AMT), 6.40%,
1/1/99 $ 661,041
Aaa AAA 690 Massachusetts Educational
Financing Authority,
(AMBAC), (AMT), 6.65%,
1/1/01 731,421
Aaa AAA 2,300 Massachusetts Educational
Financing Authority,
(MBIA), (AMT), 7.35%,
1/1/99 2,399,544
----------
$3,792,006
----------
Insured General Obligations - 13.1%
Aaa AAA $1,000 City of Boston,
Massachusetts, (MBIA),
6.375%, 7/1/02 $1,093,320
Aaa AAA 1,000 City of Boston,
Massachusetts, (AMBAC),
5.20%, 2/1/04 1,017,490
Aaa AAA 1,000 Chelsea, Massachusetts,
(AMBAC), 6.00%, 6/15/02 1,073,870
Aaa AAA 1,500 The Commonwealth of
Massachusetts, (FGIC),
7.20%, 3/1/02 1,676,550
Aaa AAA 2,500 The Commonwealth of
Massachusetts, (FGIC),
6.50%, 6/1/01 2,743,200
<PAGE>
Massachusetts Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments - continued
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Insured General Obligations (continued)
Aaa AAA 4,000 City of Lowell,
Massachusetts, State
Qualified Bonds, (FSA),
5.10%,
1/15/04 4,050,880
Aaa AAA 1,000 Town of Palmer,
Massachusetts, (MBIA),
5.50%, 10/1/01 1,043,470
Aaa AAA 1,000 Town of Rockport,
Massachusetts, (AMBAC),
6.80%, 12/15/04 1,105,360
Aaa AAA 440 City of Worcester,
Massachusetts, (MBIA),
6.80%, 5/15/00 483,441
----------
$14,287,581
----------
Insured Hospitals - 3.8%
Aaa AAA $1,060 Massachusetts Health and
Educational Facilities
Authority, Berkshire Health
Systems, (MBIA), 6.75%,
10/1/19 $ 1,130,638
Aaa AAA 400 Massachusetts Health and
Educational Facilities
Authority, Metro West
Health, (AMBAC), 5.80%,
11/15/02 427,068
Aaa AAA 1,000 Massachusetts Health and
Educational Facilities
Authority, Massachusetts
General Hospital Issue,
(AMBAC), 4.85%, 7/1/04 994,300
Aaa AAA 1,000 Massachusetts Health and
Educational Facilities
Authority, Central
Massachusetts Medical
Center, (AMBAC), 5.50%,
7/1/99 1,042,040
Aaa AAA 540 Massachusetts Health and
Educational Facilities
Authority, Central
Massachusetts Medical
Center, (AMBAC), 5.70%,
7/1/00 569,236
----------
$ 4,163,282
----------
Insured Housing - 3.6%
Aaa AAA $1,900 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 5.90%, 1/1/03 $ 1,965,322
Aaa AAA 1,840 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 6.00%, 7/1/04 1,913,342
----------
$ 3,878,664
----------
Insured Solid Waste - 1.7%
Aaa AAA $1,735 Massachusetts Industrial
Finance Agency, REFUSETECH
Inc. Project, (FSA), 5.45%,
7/1/01 $ 1,805,875
----------
Insured Transportation - 0.9%
Aaa AAA $ 900 Massachusetts Port
Authority, (FGIC), (AMT),
7.10%, 7/1/01 $ 1,002,762
Insured Utility - 3.3%
Aaa AAA $2,000 Massachusetts Municipal
Wholesale Electric Company,
(AMBAC), 6.625%, 7/1/03 $ 2,229,400
Aaa AAA 1,225 Massachusetts Municipal
Wholesale Electric Company,
(MBIA), 6.40%, 7/1/02 1,342,539
----------
$ 3,571,939
----------
Insured Water & Sewer - 1.0%
Aaa AAA $1,000 Lynn Water and Sewer
Commission, (FGIC), 5.50%,
6/1/99 $ 1,039,470
----------
Special Tax Revenue - 4.9%
A1 AA- $3,050 The Commonwealth of
Massachusetts, 7.00%,
6/1/02 $ 3,435,673
NR NR 1,750 Virgin Islands Public
Finance Authority, 6.70%,
10/1/99 1,858,378
----------
$5,294,051
----------
Transportation - 4.9%
A1 A+ $1,500 Massachusetts Bay
Transportation Authority,
5.10%, 3/1/02 $1,540,305
A1 A+ 1,000 Massachusetts Bay
Transportation Authority,
5.30%, 3/1/04 1,033,510
Baa1 A 1,500 Puerto Rico Highway
Authority, 6.75%, 7/1/05 1,625,220
A1 A+ 1,000 Woods Hole, Martha's
Vineyard and Nantucket
Steamship Authority, 6.60%,
3/1/03 1,117,650
----------
$5,316,685
----------
Water & Sewer Revenue - 5.1%
Aa A+ $1,500 Massachusetts Water
Pollution Abatement Trust,
4.75%, 8/1/04 $1,479,705
<PAGE>
Tax-Exempt Investments - continued
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Water & Sewer Revenue (continued)
A A 1,975 Massachusetts Water
Resources Authority,
5.875%, 11/1/04 2,095,297
A A 500 Massachusetts Water
Resources Authority, 6.30%,
12/1/01 542,308
Baa1 A 1,300 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/1/17 1,442,350
----------
$ 5,559,660
----------
Total tax-exempt
investments (identified
cost $106,487,409) $109,105,486
==========
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 30.9% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 5.4% to 12.6% of total
investments.
See notes to financial statements
<PAGE>
Michigan Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- ------------------------ -----------
Education - 4.1%
A1 AA- $1,000 Michigan State
University, 6.00%,
8/15/06 $1,053,230
-----------
Escrowed/Prerefunded - 6.5%
Aaa AAA $1,000 Dearborn Michigan
Economic Development
Corporation, Prerefunded
to 8/15/01, 6.95%,
8/5/21 $1,137,590
A1 AA+ 500 Lansing Michigan Tax
Increment Bonds,
Escrowed to Maturity,
6.20%, 10/1/04 548,715
-----------
$1,686,305
-----------
General Obligation - 14.7%
NR BBB- $ 500 Detroit, Michigan,
5.70%, 5/1/02 $ 495,660
Ba1 BBB 650 Detroit, Michigan,
6.25%, 4/1/05 660,212
Ba1 BBB 495 Detroit, Michigan,
6.40%, 4/1/05 502,727
A1 AA 1,000 Oakland County Michigan
Evergreen-Farmington
Sewage Disposal System,
6.50%, 11/1/05 1,062,090
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.60%, 7/1/04 1,097,050
-----------
$3,817,739
-----------
Hospitals - 10.4%
A A $1,000 Kent County, Michigan
Hospital Finance
Authority, Blodgett
Memorial Medical Center,
7.25%, 7/1/05 $1,077,480
A NR 535 Marquette Michigan
Hospital Finance
Authority, 6.625%,
4/1/07 540,061
Aa AA 1,000 Royal Oak, Michigan
Hospital Finance
Authority, William
Beaumont Hospital,
7.75%, 1/1/03 1,083,650
-----------
$2,701,191
-----------
Housing - 4.1%
NR A+ $1,000 Michigan State Housing
Development Authority,
6.00%, 4/1/01 $1,052,390
-----------
Industrial Development
Revenue - 4.5%
NR A+ $ 750 Michigan Strategic Fund,
Welch Foods Incorporated
Project, 6.75%, 7/1/01 $ 800,588
NR BBB 360 Richmond, Michigan
Economic Development
Corporation, K-MART
Project, 6.30%, 1/1/99 364,680
-----------
$1,165,268
-----------
Insured Education - 1.9%
Aaa AAA $ 500 Michigan Higher
Education Student Loan
Authority, (AMBAC),
(AMT), 5.65%, 4/1/07 $ 503,410
-----------
Insured General
Obligations - 16.1%
Aaa AAA $1,000 Comstock, Michigan
Public Schools, (CGIC),
6.80%, 5/1/02 $1,092,570
Aaa AAA 1,500 Grand Ledge, Michigan
Public Schools, (MBIA),
7.875%, 5/1/11 1,773,315
Aaa AAA 225 Jackson County,
Michigan, Wastewater
Disposal
Facilities-Clark Lake,
(MBIA), 8.00%, 4/1/01 261,043
Aaa AAA 425 Jackson County,
Michigan, Wastewater
Disposal
Facilities-Clark Lake,
(MBIA), 8.00%, 4/1/02 494,139
Aaa AAA 500 State of Michigan
Municipal Bond
Authority, Local
Government Loan Project,
(MBIA), 7.25%, 5/1/20 545,865
-----------
$4,166,932
-----------
Insured Industrial
Development Revenue - 4.2%
Aaa AAA $1,000 Monroe County, Michigan,
The Detroit Edison
Company, (AMBAC), (AMT),
6.35%, 12/1/04 $1,077,570
-----------
Insured Utility - 4.2%
Aaa AAA $1,000 Western Townships
Michigan, Sewer Disposal
System, (CGIC), 6.70%,
1/1/06 $1,075,660
-----------
Lease Revenue/
Certificates of
Participation - 8.4%
A1 AA- $1,000 State of Michigan
Building Authority,
6.40%, 10/1/04 $1,092,570
A1 AA- 1,000 State of Michigan
Building Authority,
6.10%, 10/1/01 1,081,570
-----------
$2,174,140
-----------
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- ------------------------ -----------
Special Tax Revenue - 10.2%
A1 AA- $ 875 Michigan State
Comprehensive Trans,
7.625%, 5/1/11 $ 542,905
Baa1 A 500 Puerto Rico Highway and
Transportation, 5.00%,
7/1/02 502,230
NR BBB+ 1,500 Battle Creek, Michigan
Downtown Development
Authority, 6.65%, 5/1/02 1,599,975
-----------
$ 2,645,110
-----------
Utility - 2.2%
Baa1 A- $ 535 Puerto Rico Electric
Power Authority, 6.125%,
7/1/09 $ 556,507
-----------
Water & Sewer Revenue - 8.5%
Aa AA $1,000 Michigan Municipal Bond
Authority, 7.00%,
10/1/02 $ 1,140,180
Baa1 A 950 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/1/17 1,054,024
-----------
$ 2,194,204
-----------
Total tax-exempt
investments (identified
cost $24,819,371) $25,869,656
===========
The Portfolio invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 26.4% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 6.1% to 11.9% of total
investments.
See notes to financial statements
<PAGE>
New Jersey Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Education - 3.6%
NR A- $ 380 New Jersey Educational
Facilities Authority, Drew
University, 5.875%, 7/1/03 $ 400,345
NR A+ 360 Higher Education Assistance
Authority, (State of New
Jersey), (AMT), NJ Class
Loan Program, 5.70%,
1/1/02 360,148
A1 AA 1,895 Rutgers, The State
University (The State of
New Jersey) 6.20%, 5/1/04 2,062,878
A AA 250 University of Medicine and
Dentistry of New Jersey
Bonds, Series B, 7.05%,
12/1/00 262,425
----------
$ 3,085,796
----------
Escrowed - 2.5%
Aaa AAA $1,635 Commonwealth of Puerto
Rico, Prerefunded to
7/1/99, (FGIC), 7.375%,
7/1/04 $ 1,830,824
A A 300 University of Puerto Rico,
University System Revenue
Refunding Bonds, Series K,
6.50%, 6/1/04 317,550
----------
$ 2,148,374
----------
General Obligations - 13.3%
Aa NR $1,000 Cherrry Hill Township, New
Jersey, 6.20%, 6/1/08 $ 1,053,240
Aaa AAA 1,280 County of Morris, New
Jersey, 6.50%, 8/1/02 1,433,690
Aa AA 1,000 The Township of Morris, New
Jersey, 6.55%, 7/1/02 1,111,840
Aa1 AA+ 1000 State of New Jersey, 7.25%,
4/15/01 1,099,270
Aa1 AA+ 1000 State of New Jersey, 6.00%,
8/1/04 1,076,900
Aa NR 1,000 County of Ocean, New
Jersey, 6.75%, 7/13/01 1,112,680
Aa NR 1,000 County of Ocean, New
Jersey, 6.375%, 4/15/01 1,090,370
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 772,388
Baa1 A 1,000 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 1,055,680
Baa1 A 440 Commonwealth of Puerto
Rico, 8.00%, 7/1/06 482,368
Aa AA 1,000 South Brunswick, New
Jersey, 7.125%, 7/15/02 1,141,800
----------
$11,430,226
----------
Health Care - 2.6%
A A- $1,000 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.45%, 7/1/02 $ 1,057,410
A A- 340 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.25%, 7/1/00 356,106
A A- 750 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.55%, 7/1/03 798,053
----------
$ 2,211,569
----------
Housing - 13.1%
NR AA+ $2,000 New Jersey Housing Finance
Agency, 6.30%, 11/1/00 $ 2,096,920
NR AA+ 1,500 New Jersey Housing Finance
Agency, 6.60%, 11/1/03 1,600,290
NR A+ 2,500 New Jersey Housing and
Mortgage Finance Agency,
6.30%, 11/1/01 2,660,275
NR A+ 1000 New Jersey Housing and
Mortgage Finance Agency,
6.40%, 11/1/02 1,057,500
NR A+ 2,570 New Jersey Housing and
Mortgage Finance Agency,
6.50%, 11/1/03 2,708,215
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
6.00%, 11/1/02 1,039,010
----------
$11,162,210
----------
Industrial Development
Revenue - 0.9%
Aa3 NR $ 765 New Jersey Economic
Development Authority, LOC:
Bank of Paris, (AMT),
6.00%, 12/1/02 $ 787,766
----------
Insured Education - 1.7%
Aaa AAA $ 335 New Jersey State
Educational Facilities,
Seton Hall University,
6.00%, 7/1/00 $ 356,507
Aaa AAA 1,000 New Jersey State
Educational Facilities,
Seton Hall University,
6.10%, 7/1/01 1,075,890
----------
$ 1,432,397
----------
<PAGE>
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Insured General
Obligations - 11.8%
Aaa AAA $1,000 Atlantic City, New Jersey,
Board of Education,
(AMBAC), 6.00%, 12/1/02 $ 1,076,280
Aaa AAA 1,175 Edison, New Jersey,
(AMBAC), 4.70%, 1/1/04 1,165,412
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.10%, 11/15/99 534,350
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/01 541,905
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/02 541,355
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School
District, (FGIC), 6.60%,
6/1/02 1,328,232
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School
District, (FGIC), 6.60%,
6/1/03 1,336,152
Aaa AAA 1,200 Kearney, New Jersey, (FSA),
6.50%, 2/1/04 1,323,672
Aaa AAA 850 Roselle, New Jersey,
(MBIA), 4.65%, 10/15/03 841,007
Aaa AAA 1,000 South Brunswick Township,
New Jersey, Board of
Education, (FGIC), 6.40%,
8/1/03 1,095,750
Aaa AAA 270 Union County, New Jersey,
(FSA), 6.375%, 11/1/01 293,498
----------
$10,077,613
----------
Insured Health Care - 2.5%
Aaa AAA $1,910 New Jersey Health Care
Facilities & Financing
Authority, (Dover General
Hospital & Medical Center),
(MBIA), 7.00%, 7/1/04 $ 2,176,197
----------
Insured Housing - 2.1%
Aaa AAA $1,440 New Jersey State Housing
and Mortgage Finance
Agency, (MBIA), 7.25%,
10/1/15 $ 1,505,923
Aaa AAA 300 Puerto Rico Housing Bank
and Finance Agency, Special
Obligation, (FSA), 5.95%,
10/1/01 309,897
----------
$ 1,815,820
----------
Insured Industrial Development
Revenue - 4.4%
Aaa AAA $2,500 New Jersey Economic
Development Authority,
Market Transition 5.70%,
7/1/05 $ 2,629,500
Aaa AAA 1,000 New Jersey Economic
Development Authority,
Market Transition 5.80%,
7/1/07 1,042,950
Aaa AAA 100 Warren County New Jersey
Pollution Control Finance
Authority, Resource
Recovery, (MBIA), 6.55%,
12/1/06 110,563
----------
$ 3,783,013
----------
Insured Solid Waste - 1.9%
Aaa AAA $1,315 The Bergen County Utilities
Authority, Solid Waste
System, (FGIC), 5.80%,
6/15/00 $ 1,391,112
Aaa AAA 250 The Bergen County Utilities
Authority, Solid Waste
System, (FGIC), 6.00%,
6/15/02 268,170
----------
$ 1,659,282
----------
Insured Transportation - 8.5%
Aaa AAA $1,500 New Jersey Turnpike
Authority, (AMBAC), 5.90%,
1/1/03 $ 1,581,975
Aaa AAA 2,000 New Jersey Turnpike
Authority, (AMBAC), 5.90%,
1/1/04 2,148,140
Aaa AAA 895 New Jersey Turnpike
Authority, (AMBAC), 6.40%,
1/1/02 981,976
Aaa AAA 2,325 Port Authority of New York
& New Jersey, (AMBAC),
7.40%, 10/1/12 2,610,254
----------
$7,322,345
----------
Insured Utility - 1.3%
Aaa AAA $1,000 Middlesex County, New
Jersey, Utility Authority,
(FGIC) 6.10%, 12/1/01 $1,083,470
----------
Insured Water & Sewer - 2.3%
Aaa AAA $ 870 The Ocean County Utilities
Authority of New Jersey,
Wastewater Revenue Bonds,
(FGIC), 6.40%, 1/1/01 $ 905,914
<PAGE>
New Jersey Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
Insured Water & Sewer (continued)
Aaa AAA 1,000 The Ocean County Utilities
Authority of New Jersey,
Wastewater Revenue Bonds,
(FGIC), 6.70%, 1/1/07 1,044,860
----------
$1,950,774
----------
Lease Revenue/Certficates
of Participation - 3.4%
Aa AA- $1,000 Mercer County Improvement
Authority, (Richard J.
Hughes Justice Complex),
5.15%, 1/1/05 $1,000,700
Aa AA- 1,000 Mercer County Improvement
Authority, (Richard J.
Hughes Justice Complex),
5.15%, 1/1/06 1,000,220
A1 A+ 875 State of New Jersey,
Certificates of
Participation, 5.90%,
4/1/99 914,165
----------
$2,915,085
----------
Solid Waste - 5.5%
Baa NR $ 300 The Atlantic County
Utilities Authority (New
Jersey), Solid Waste
System, 7.00%, 3/1/08 $ 302,433
A1 AA- 500 Gloucester County
Improvement Authority of
New Jersey, (Landfill
Project), 5.20%, 9/1/99 514,740
A1 AA- 500 Gloucester County
Improvement Authority of
New Jersey, (Landfill
Project), 5.40%, 9/1/00 519,150
NR BBB- 1,250 New Jersey Economic
Development Authority,
Heating & Cooling, (Trigen-
Trenton Project), 6.10%,
12/1/04 1,254,388
A1 NR 300 The Passaic County
Utilities Authority (New
Jersey), Solid Waste
Disposal, 5.70%, 3/1/98 308,667
NR A 1,700 The Union County Utilities
Authority (New Jersey),
Solid Waste System, (AMT),
7.20%, 6/15/04 1,784,779
----------
$4,684,157
----------
Special Tax Revenue - 0.4%
Baa1 BBB+ $ 300 Puerto Rico Infrastructure
Financing Authority,
Special Tax Revenue Bonds,
7.60%, 7/1/00 $ 328,443
----------
Transportation - 12.9%
Aa A+ $1,350 New Jersey Transportation
Trust Fund Authority,
6.00%, 6/15/01 $1,443,663
Aa A+ 2,300 New Jersey Transportation
Trust Fund Authority,
6.00%, 6/15/02 2,469,901
A1 AA- 500 New Jersey Highway
Authority, (Garden State
Parkway), 5.90%, 1/1/04 534,570
A1 AA- 250 New Jersey Highway
Authority, (Garden State
Parkway), 6.10%, 1/1/06 267,960
A1 AA- 500 The Port Authority of New
York and New Jersey, 5.50%
8/1/05 521,370
A1 AA- 480 The Port Authority of New
York and New Jersey, 6.90%,
7/1/08 516,787
Baa1 A 2,600 Puerto Rico Highway
Authority, 6.75%, 7/1/05 2,817,048
NR A+ 755 South Jersey Port
Corporation (An
Instrumentality of the
State of New Jersey),
(AMT), 4.75%, 1/1/00 759,553
NR A+ 830 South Jersey Port
Corporation (An
Instrumentality of the
State of New Jersey),
(AMT), 4.95%, 1/1/02 831,702
NR A+ 910 South Jersey Port
Corporation (An
Instrumentality of the
State of New Jersey),
(AMT), 5.15%, 1/1/04 918,436
----------
$11,080,990
----------
Utilities - 2.7%
Baa1 A- $ 990 Puerto Rico Electric Power
Authority, 6.125%, 7/1/08 $ 1,037,946
Baa1 A- 1,250 Puerto Rico Electric Power
Authority, 6.125%, 7/1/08 1,300,250
----------
$ 2,338,196
----------
<PAGE>
Tax-Exempt Investments (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ --------------------------- ----------
----------
Water & Sewer Revenue - 2.6%
Baa1 A $1,985 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 $ 2,202,354
----------
Total tax-exempt
investments (identified
cost, $83,167,449) $85,676,077
==========
The Portfolio invests primarily in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 36.5% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 5.4% to 13.9% of total
investments.
See notes to financial statements
<PAGE>
New York Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ ------------------------- -----------
Education - 9.5%
Aaa AA+ $ 500 Dormitory Authority of
the State of New York,
Columbia University,
5.10%, 7/1/01 $ 516,525
Aa AA 2,250 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/20 2,539,035
Aa AA 1,000 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/30 1,128,460
NR AA 1,000 Dormitory Authority of
the State of New York,
Manhattan College, 6.10%,
7/1/04 1,094,020
A1 A+ 5,955 Dormitory Authority of
the State of New York,
University of Rochester,
6.50%, 7/1/09 6,179,444
Baa1 BBB 1,000 Dormitory Authority of
the State of New York,
City University, 6.10%,
7/1/01 1,053,200
Baa1 BBB+ 1,000 Dormitory Authority of
the State of New York,
State University, 7.25%,
5/15/99 1,083,430
Baa1 BBB+ 1,000 Dormitory Authority of
The State of New York,
State University, 5.20%,
5/15/03 999,310
-----------
$14,593,424
-----------
Electric Utility - 2.9%
Aa AA- $3,125 Power Authority of the
State of New York, 6.60%,
1/1/02 $ 3,469,406
Aa AA- 970 Power Authority of the
State of New York,
7.875%, 1/1/07 1,056,301
-----------
$ 4,525,707
-----------
Escrowed/Prerefunded - 15.5%
Aaa AAA $1,710 The City of New York,
Escrowed to Maturity,
(AMBAC), 6.25%, 8/1/02 $ 1,873,527
Aaa NR 2,250 Dormitory Authority of
the State of New York,
State University,
Prerefunded to 5/15/02,
6.75%, 5/15/21 2,556,338
Aaa AAA 5,000 New York Local Government
Assistance Corporation,
Prerefunded to 4/1/01,
7.00%, 4/1/16 5,680,500
Aaa AAA 2,000 New York State Housing
Finance Agency, Escrowed
to Maturity, 6.80%,
5/15/01 2,224,480
Aaa AAA 900 New York State Housing
Finance Authority, State
University, Escrowed to
Maturity, 7.80%, 5/1/01 1,044,954
Aaa AA- 2,275 Power Authority of the
State of New York,
Prerefunded to 1/1/96,
7.375%, 1/1/18 2,339,724
NR AA- 2,750 Power Authority of the
State of New York,
Prerefunded to 1/1/98,
8.00%, 1/1/17 3,019,280
Aaa AAA 2,500 Suffolk County, New York
Water Authority, (AMBAC),
Prerefunded to 6/1/02,
6.00%, 6/1/17 2,735,525
Aaa A+ 1,900 Triborough Bridge and
Tunnel Authority,
Prerefunded to 1/1/95,
7.25%, 1/1/06 2,141,984
-----------
$23,616,312
-----------
General Obligations - 8.1%
Baa1 BBB+ $ 500 The City of New York,
6.875%, 2/1/02 $ 533,510
Baa1 BBB+ 1,000 The City of New York,
6.375%, 8/1/05 1,028,740
Baa1 BBB+ 3,000 The City of New York,
6.40%, 8/1/03 3,130,770
Baa1 BBB+ 1,500 The City of New York,
6.375%, 8/1/06 1,527,660
A A- 1,500 State of New York, 7.50%,
11/15/00 1,710,765
A A- 1,000 State of New York, 7.50%,
11/15/01 1,155,830
A A- 2,000 State of New York, 7.00%,
11/15/02 2,277,880
Baa1 A 1,000 Puerto Rico Commonwealth,
6.35%, 7/1/10 1,055,680
-----------
$12,420,835
-----------
Hospitals - 5.4%
Baa BBB $ 500 Cortland County
Industrial Development
Agency, Cortland Memorial
Hospital Inc. Project,
6.15%, 7/1/02 $ 510,710
NR AAA 2,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.40%, 8/15/00 2,056,600
NR AAA 3,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.50%, 8/15/01 3,112,230
<PAGE>
Tax-Exempt Investments - (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ ------------------------- -----------
Hospitals (continued)
Baa1 BBB+ 1,415 New York State Medical
Care Facilities Finance
Agency, Hospital and
Nursing Home Revenue
Bonds, 7.625%, 2/15/08 1,523,219
Aa AA 1,000 New York State Medical
Care Facilities Finance
Agency, Hospital and
Nursing Home Revenue
Bonds, 7.50%, 2/15/09 1,094,350
-----------
$8,297,109
-----------
Housing - 0.7%
NR AAA $1,050 New York City Housing
Development Corporation,
6.70%, 6/1/00 $1,109,430
-----------
Industrial Development
Revenue - 0.7%
A NR $1,045 United Nations
Development Corporation,
5.70%, 7/1/02 $1,099,152
-----------
Insured Education - 2.8%
Aaa AAA $1,075 Dormitory Authority of
the State of New York,
Mt. Sinai School of
Medicine, (MBIA), 6.75%,
7/1/09 $1,163,763
Aaa AAA 2,000 Dormitory Authority of
the State of New York,
(FGIC), 7.00% 7/1/13 2,173,660
Aaa AAA 1,000 Dormitory Authority of
the State of New York,
City University, (FGIC),
5.25%, 7/1/06 1,015,510
-----------
$4,352,933
-----------
Insured General
Obligations - 2.3%
Aaa AAA $ 765 Brookhaven, New York,
(MBIA), 5.50%, 5/1/02 $ 800,557
Aaa AAA 2,750 Nassau County, New York,
(FGIC), 5.10%, 8/1/04 2,790,783
-----------
$3,591,340
-----------
Insured Hospital - 4.9%
Aaa AAA $4,450 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC), 6.10%,
2/15/04 $4,815,657
Aaa AAA 2,500 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC), 6.20%,
2/15/05 2,723,900
-----------
$7,539,557
-----------
Insured Housing - 1.3%
Aa AA $2,000 New York City Housing
Development Corporation,
(FHA), 5.40%, 11/1/05 $1,998,360
-----------
Insured Miscellaneous - 0.7%
Aaa AAA $1,000 New York State Municipal
Bond Bank Agency,
(AMBAC), 6.625%, 3/15/06 $1,089,480
-----------
Insured Solid Waste - 0.7%
Aaa AAA $1,000 Duchess County Resource
Recovery Agency, (FGIC),
7.20%, 1/1/02 $1,114,730
-----------
Insured Special Tax - 0.7%
Aaa AAA $1,500 Municipal Assistance
Corporation for the City
of New York, (MBIA),
6.875%, 7/1/01 $1,060,030
-----------
Insured Transportation - 8.6%
Aaa AAA $ 905 Metropolitan
Transportation Authority
for the City of New York,
(MBIA), 5.60%, 7/1/01 $ 951,065
Aaa AAA 1,135 Metropolitan
Transportation Authority
for the City of New York,
(MBIA), 5.80%, 7/1/03 1,209,081
Aaa AAA 3,500 The Port Authority of New
York and New Jersey,
(MBIA), 6.375%, 10/15/17 3,632,020
Aaa AAA 2,500 The Port Authority of New
York and New Jersey,
(AMBAC), 7.40%, 10/1/12 2,806,725
Aaa AAA 2,000 Triborough Bridge and
Tunnel Authority, (MBIA),
6.20%, 1/1/01 2,157,980
Aaa AAA 2,290 Triborough Bridge and
Tunnel Authority, (FGIC),
5.80%, 1/1/02 2,432,324
-----------
$13,189,195
-----------
<PAGE>
New York Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments - (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ ------------------------- -----------
Insured Utility - 5.0%
Aaa AAA $5,280 New York State Energy
Research and Development
Authority, Central Hudson
Gas, (FGIC), 7.375%,
10/1/14 $ 5,955,365
Aaa AAA 1,600 New York State Power
Authority, (MBIA),
7.875%, 1/1/13 1,755,344
-----------
$ 7,710,709
-----------
Insured Water & Sewer - 2.7%
Aaa AAA $1,000 Buffalo New York Sewer
Authority, (FGIC), 5.00%,
7/1/03 $ 1,014,020
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(FGIC), 6.00%, 6/15/19 1,003,170
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.55%, 6/15/01 1,045,530
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.80%, 6/15/03 1,060,340
-----------
$ 4,123,060
-----------
Lease Revenue/
Certificates of
Participation - 5.8%
A1 AA $3,000 Battery Park City
Authority, 6.00%, 11/1/03 $ 3,223,950
A1 AA 3,500 Housing New York
Corporation, 6.00%,
11/1/03 3,659,075
Baa1 A 2,000 Puerto Rico Public
Buildings Authority,
5.30%, 7/1/03 2,033,200
-----------
$ 8,916,225
-----------
Special Tax Revenue - 8.5%
Aa AA- $2,975 Municipal Assistance
Corporation for the City
of New York, 5.75%,
7/1/08 $ 3,047,412
Aa AA- 2,500 Municipal Assistance
Corporation for the City
of New York, 7.30%,
7/1/08 2,786,175
Aa AA- 1,000 Municipal Assistance
Corporation for the City
of New York, 6.75%,
7/1/96 1,058,650
A A 1,750 New York Local Government
Assistance Corporation,
7.00%, 4/1/04 1,945,615
A A 2,120 New York Local Government
Assistance Corporation,
7.20%, 4/1/04 2,378,237
A A 750 New York Local Government
Assistance Corporation,
5.90%, 4/1/05 791,985
Baa1 BBB+ 660 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities,
7.10%, 8/15/01 717,783
Baa1 BBB+ 350 Puerto Rico
Infrastructure Financing
Authority, 7.60%, 7/1/00 383,184
-----------
$13,109,041
-----------
Transportation - 7.6%
Baa1 BBB $1,000 Metropolitan
Transportation Authority,
5.375%, 7/1/02 $ 1,017,140
A1 A 1,750 New York State Thruway
Authority, 5.375%, 1/1/02 1,809,290
Baa1 BBB 1,500 New York State Thruway
Authority, 5.80%, 4/1/00 1,553,220
Baa1 BBB 2,000 New York State Thruway
Authority, 6.00%, 4/1/02 2,086,060
Baa1 BBB 1,000 New York State Thruway
Authority, 6.00%, 4/1/03 1,039,050
Baa1 A 2,850 Puerto Rico Highway
Authority, 6.75%, 7/1/05 3,087,918
Aa A+ 1,000 Triborough Bridge and
Tunnel Authority, 6.75%,
1/1/02 1,090,630
-----------
$11,683,308
-----------
Water & Sewer Revenue - 5.6%
A A- $1,825 New York City Municipal
Water Finance Authority,
5.70%, 6/15/02 $ 1,909,461
Aa AA- 1,000 New York State
Environmental Facilities
Corporation, 7.50%,
3/15/11 1,105,490
Aa A 1,000 New York State
Environmental Facilities
Corporation, 6.90%,
6/15/02 1,128,390
Aa A 1,125 New York State
Environmental Facilities
Corporation, 6.50%,
6/15/04 1,224,641
Aaa AAA 1,000 New York State
Environmental Facilities
Corporation, County of
Westchester Project,
6.30%, 9/15/05 1,095,127
<PAGE>
Tax-Exempt Investments - (continued)
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ ------------------------- -----------
Water & Sewer Revenue (continued)
Aa A 2,000 New York State
Environmental Facilities
Corporation, New York
City Municipal Water
Finance Authority, 6.60%,
6/15/05 2,181,740
-----------
$ 8,644,849
-----------
Total tax-exempt
investments (identified
cost $150,966,523) $153,784,786
===========
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 29.7% 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 range from 9.0% to 11.4% of total
investments.
See notes to financial statements
<PAGE>
North Carolina Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- ------------------------- ---------
Escrowed/Prerefunded - 4.4%
NR NR $10 Newton, North Carolina,
Prerefunded to 6/1/96,
7.30%, 6/1/99 $ 10,368
---------
General Obligations - 47.1%
A A $10 Beaufort County, North
Carolina, 6.50%, 5/1/09 $ 10,652
Aaa AAA 15 Durham County, North
Carolina, 5.80%, 4/1/02 16,078
Aa1 AA+ 10 Forsyth County, North
Carolina, 6.20%, 3/1/04 10,790
Aa1 AAA 10 Greensborough, North
Carolina Public
Improvements, 6.25%,
3/1/07 10,783
Aaa AAA 10 Mecklenberg County, North
Carolina, 5.75%, 3/1/02 10,723
Aa1 AA+ 10 Orange County, North
Carolina, 5.10%, 6/1/02 10,382
Baa1 A 10 Puerto Rico, 6.00%,
7/1/05 10,644
Baa1 A 10 Puerto Rico Public
Building Authority,
6.10%, 7/1/00 10,623
A A+ 10 Rocky Mount, North
Carolina, 5.75%, 5/1/00 10,499
A1 A+ 10 Union County, North
Carolina, 6.50%, 4/1/05 10,825
---------
$111,999
---------
Housing - 10.7%
Aaa AAA $15 Durham, North Carolina
New Public Housing,
5.75%, 10/1/00 $ 15,409
Aa A+ 10 North Carolina Housing
Finance Authority, (AMT),
5.70%, 3/1/05 10,233
---------
$ 25,642
---------
Hospital Revenue - 4.1%
Aa AA- $10 Pitt County, North
Carolina, Memorial
Hospital, 5.10%, 12/1/07
(1) $ 9,839
---------
Insured General Obligations - 15.6%
Aaa AAA $15 Gaston County, North
Carolina, (MBIA), 5.70%,
3/1/02 $ 15,966
Aaa AAA 10 Lincoln County, North
Carolina, (MBIA), 6.10%,
6/1/01 10,760
Aaa AAA 10 Morganton, North Carolina
Water and Sewer, (FGIC),
5.60%, 6/1/03 10,540
---------
$ 37,266
---------
Insured Lease Revenue - 4.5%
Aaa AAA $10 Harnett County, North
Carolina COP, (AMBAC),
6.00%, 12/1/01 $ 10,693
---------
Lease Revenue/Certificate of
Participation - 4.5%
Aa AA $10 Greensborough, North
Carolina Parking Revenue
COP, 6.25%, 12/1/08 $ 10,644
---------
Utility - 4.4%
Baa1 A- $10 Puerto Rico Electric
Power Authority, 6.125%,
7/1/08 $ 10,484
---------
Water & Sewer - 4.7%
A BBB $10 Lower Cape Fear, North
Carolina Water and Sewer,
(AMT), 7.40%, 3/1/06 $ 11,096
---------
Total tax-exempt
investments (identified
cost $229,029) $238,031
=========
(1) When-issued security. At September 30, 1995, the Portfolio had sufficient
cash and/or securities segregated as collateral for when-issued securities.
The Portfolio invests primarily in debt securities issued by North Carolina
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 20.1% 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 range from 4.5% to 11.2% of total
investments.
See notes to financial statements
<PAGE>
Ohio Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- ---------------------------- ------------
Education - 5.7%
A NR $ 325 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 6.875%, 8/1/98 $ 339,099
A1 A+ 500 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.75%, 8/1/03 513,570
A1 NR 1,200 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.95%, 8/1/05 1,232,316
------------
$2,084,985
------------
Escrowed - 4.7%
Aaa AAA $ 650 Clermont County, Ohio, Water
Works, (AMBAC), Prerefunded
to 12/1/01, 6.625%, 12/1/16 $ 731,530
NR NR 900 Franklin County, Ohio,
Prerefunded to 12/1/01,
6.375%, 12/1/20 998,361
------------
$1,729,891
------------
General Obligations - 16.7%
NR A+ $ 750 City of Cincinatti School
District, (Hamilton County,
Ohio) Revenue Anticipation
Notes, 6.05%, 6/15/00 $ 789,585
NR NR 500 Cleveland, Ohio, City School
District, 6.50%, 6/15/97 502,560
Aaa AAA 1,090 Columbus, Ohio, 6.30%,
1/1/05 1,192,776
NR NR 300 Kings County, Ohio, Local
School District, 7.60%,
12/1/10 336,324
Aa AA 200 State of Ohio,
Infrastructure Improvement
Bonds, 6.50%, 8/1/04 224,514
Baa1 A 1,000 Commonwealth of Puerto Rico,
6.25%, 7/1/08 1,064,290
A NR 1,000 Wauseon, Ohio School
District, 7.25%, 12/1/10 1,089,850
NR NR 924 Youngstown, Ohio, County
School District, 6.40%,
7/1/00 955,083
------------
$6,154,982
------------
Health Care - 8.5%
Aa2 NR $1,250 Hamilton County, Ohio
Hospital Facilities,
(Episcopal Retirement Homes,
Inc.), 6.80%, 1/1/08 $1,363,675
NR BBB- 680 Marion County, Ohio, Health
Care Facilties, (United
Church Homes Project),
5.25%, 11/15/98 669,814
Aa2 NR 1,000 Warren County, Ohio,
Hospital Facilities,
(Otterbein Homes Project),
7.20,
7/1/11 1,104,030
------------
$3,137,519
------------
Hospitals - 7.0%
A A- $1,000 Erie County Hospital
Improvement (Fireland
Community Hospital Project),
6.75%, 1/1/08 $1,059,410
Baa BBB 500 Hamilton County Ohio Health
System (Providence Hospital
Project), 6.00%, 7/1/01 506,960
NR NR 990 Mt. Vernon Ohio Hospital,
(Knox Community Hospital),
7.875%, 6/1/12 1,025,531
------------
$2,591,901
------------
Industrial Development
Revenue - 8.1%
NR A- $1,020 Ohio Economic Development
Commission, (ABS Industries)
(AMT), 6.00%, 6/1/04 $1,035,014
NR A- 1,000 Ohio Economic Development
Commission, (Ohio Enterprise
Bond Fund-Progress Plastics
Products), (AMT), 5.60%,
6/1/02 1,005,980
NR A- 855 Ohio Economic Development
Commission, (Ohio Enterprise
Bond Fund-Progress Plastics
Products), (AMT), 6.80%,
12/1/01 928,564
------------
$2,969,558
------------
Insured Education - 3.7%
Aaa AAA $350 Ohio State Public Facilities
Commission, (Higher
Educational Facilities),
(AMBAC), 6.50%, 12/1/01 381,651
<PAGE>
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- ---------------------------- ------------
Insured Education (continued)
Aaa AAA 1,000 Ohio State Public Facilities
Commission, (Higher
Educational Facilities),
(AMBAC), 4.70%, 6/1/05 985,450
------------
$ 1,367,101
------------
Insured General
Obligations - 23.5%
Aaa AAA $1,615 Cleveland, Ohio, (MBIA),
6.50%, 11/15/01 $ 1,784,963
Aaa AAA 1,350 Mt. Vernon County, Ohio,
Local School District,
(FGIC), 7.50%, 12/1/14 1,571,508
Aaa AAA 1,760 Southwest Licking Ohio
School Facilities
Improvement, (FGIC), 7.10%,
12/1/16 1,985,245
Aaa AAA 1,000 West Clermont Ohio School
District, (AMBAC), 7.125%,
12/1/19 1,140,990
Aaa AAA 1,500 West Clermont Ohio School
District, (AMBAC), 6.90%,
12/1/12 1,672,680
Aaa AAA 400 West Geauga, Ohio, Local
School District, (AMBAC),
8.10%, 11/1/03 482,712
------------
$ 8,638,098
------------
Insured Hospitals - 6.7%
Aaa AAA $1,080 Portage County Ohio Hospital
Revenue Bonds, (Robinson
Hospital Project), (MBIA),
6.50%, 11/15/03 $ 1,195,236
Aaa AAA 1,150 Portage County Ohio Hospital
Revenue Bonds, (Robinson
Hospital Project), (MBIA),
6.50%, 11/15/04 1,275,845
------------
$ 2,471,081
------------
Insured Utilties - 3.4%
Aaa AAA $ 500 Clevelend, Ohio, Public
Power System, (MBIA), 6.10%,
11/15/03 $ 546,385
Aaa AAA 650 Clevelend, Ohio, Public
Power System, (MBIA), 7.00%,
11/15/17 712,875
------------
$ 1,259,260
------------
Lease Revenue/Certificate
of Participation - 1.5%
A1 A+ $ 500 Ohio Building Authority,
(State Correctional
Facilities) 6.50%, 10/1/04 $ 547,760
------------
Special Tax - 1.4%
NR NR $ 504 Columbus Ohio Special
Assessment, 6.05%, 9/15/05 $ 505,054
------------
Utility - 0.9%
NR BBB $ 350 Guam Power Authority, 5.10%,
10/1/03 $ 344,813
------------
Water & Sewer Revenue - 8.2%
A1 AA- $ 900 Hamilton County Ohio Sewer
System, (The Metropolitan
District of Greater
Cincinatti), 6.40%, 12/1/02 $ 986,652
A1 A 850 Ohio State Water Development
Authority, Pollution Control
Facilities, (Phillip Morris
Project), 7.25%,12/1/08 906,616
Baa1 A 1,000 Puerto Rico Aqueduct & Sewer
Authority, 7.875%, 7/1/17 1,109,500
------------
$ 3,002,768
------------
Total tax-exempt investments
(identified cost,
$35,685,052) $36,804,771
============
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 37.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 9.7% to 15.0% of total
investments.
See notes to financial statements
<PAGE>
Pennsylvania Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ -------------------------- -----------
Education - 3.8%
NR AAA $ 700 Montgomery County Higher
Education and Health
Authority, (Saint Joseph's
University), 6.00%,
12/15/02 $ 747,481
Aa A+ 1,500 Pennsylvania Higher
Educational Facilities
Authority, (Thomas
Jefferson University),
5.90%, 8/15/00 1,598,130
Baa1 BBB 500 Pennsylvania Higher
Educational Facilities
Authority, (The Medical
College of Pennsylvania),
7.25%, 3/1/05 530,465
A1 AA- 1,000 The Pennsylvania State
University Bonds, 6.25%,
3/1/06 1,073,770
-----------
$3,949,846
-----------
Escrowed/Prerefunded - 23.2%
Aaa AAA $1,000 Allegheny County,
Pennsylvania, Sanitation
Authority, (FGIC)
Prerefunded to 12/1/01,
6.50%, 12/1/16 $1,103,630
AAA A- 520 Chester County Health and
Education Facilities
Authority, (Bryn Mawr
Rehabilitation Hospital),
Escrowed to Maturity,
6.50%, 7/1/02 568,786
Aaa AAA 500 Dauphin County Hospital
Authority, (Polyclinic
Medical Center of
Harrisburg), (MBIA),
Prerefunded to 8/15/99,
6.90%, 8/15/11 544,860
Aaa AAA 1,000 Harrisburg, Pennsylvania
Water Revenue Authority,
(FGIC), Prerefunded to
7/15/01, 7.00%, 7/15/06 1,123,210
Aaa AAA 1,355 Manheim Boro,
Pennsylvania, Water &
Sewer Authority, (MBIA),
Prerefunded to 9/1/01,
6.65%, 9/1/05 1,500,893
Aaa AAA 500 Pennsylvania Turnpike
Commission, (FGIC),
Escrowed to Maturity,
6.50%, 12/1/01 551,815
Aaa AAA 3,200 Philadelphia Municipal
Authority, Justice Lease
Revenue Bonds, (FGIC),
Prerefunded to 11/15/01,
7.10%, 11/15/11 3,679,648
Aaa NR 2,500 Philadelphia,
Pennsylvania, Hospital &
Higher Education,
(Children's Hospital),
Prerefunded to 2/15/02,
6.50%, 2/15/21 2,789,375
Aaa AAA 2,000 The Pittsburgh Water and
Sewer Authority, (FGIC),
Prerefunded to 9/1/01,
6.75%, 9/1/10 2,256,260
Aaa AAA 2,000 Pleasant Valley School
District (Monroe County,
Pennsylvania) (AMBAC),
Prerefunded to 3/15/01,
5.85%, 3/1/05 2,124,120
Aaa AAA 1,095 Schuykill County,
Pennsylvania,
Redevelopment Authority,
(FGIC), Prerefunded to
6/1/01, 6.75%, 6/1/02 1,210,117
Aaa AAA 1,500 Somerset County,
Pennsylvania, General
Authority, (FGIC),
Escrowed to Maturity,
6.50%,
10/15/01 1,652,715
Aaa AAA 1,000 Somerset County,
Pennsylvania, General
Authority, (FGIC),
Prerefunded to 10/15/01,
7.00%, 10/15/13 1,127,920
Aa AA+ 500 Temple University of the
Commonwealth System,
Hospital & Higher
Education, Prerefunded to
8/1/98, 6.90%, 8/1/99 534,880
Aaa AAA 3,000 County of Westmoreland,
Pennsylvania, (AMBAC),
Prerefunded to 8/1/01,
6.70%, 8/1/09 3,326,550
-----------
$24,094,779
-----------
General Obligations - 4.7%
Aa NR $ 325 Chester County,
Pennsylvania, 6.50%,
12/15/02 $ 357,448
<PAGE>
Pennsylvania Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ -------------------------- -----------
General Obligations (continued)
A1 AA- 1,220 Hatboro-Horsham School
District of Montgomery
County, Pennsylvania,
6.70%, 4/1/08 1,319,125
A1 AA- 1,500 Commonwealth of
Pennsylvania, 6.00%,
9/15/01 1,617,015
Baa1 A 1,000 The Commomwealth of Puerto
Rico, Public Improvement
Refunding Bonds, 5.50%,
7/1/01 1,042,320
Baa1 A 500 Puerto Rico Public
Building Authority, 6.00%,
7/1/99 526,045
-----------
$ 4,861,953
-----------
Health Care - 4.2%
NR NR $1,120 Delaware County,
Pennsylvania, Industrial
Development Authority,
(Glen Riddle Project),
8.125%, 9/1/05 $ 1,121,355
Aa AA 1,030 Geisinger, Pennsylvania,
Health System, 6.00%,
7/1/01 1,083,910
Aa AA 2,000 Geisinger, Pennsylvania,
Health System, 7.375%,
7/1/01 2,186,820
-----------
$ 4,392,085
-----------
Hospitals - 11.7%
NR AAA $1,030 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project), (CLEE),
5.75%, 7/1/00 $ 1,072,292
NR AAA 825 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project), (CLEE),
5.875%, 7/1/01 866,019
Baa1 BBB+ 1,000 Monroeville, Pennsylvania,
Hospital Authority,
(Forbes Health), 5.75%,
10/1/05 (1) 983,610
A NR 500 New Castle Area Hospital
Authority, (St. Francis
Hospital of New Castle),
5.90%, 11/15/00 515,505
NR BBB 500 Northampton County
Hospital Authority,
(Easton Hospital) 6.90%,
1/1/02 514,700
Baa1 BBB+ 1,640 The Hospitals and Higher
Education Facilities
Authority of Philadelphia,
(Graduate Health System),
6.70%, 7/1/98 1,704,895
Baa1 BBB+ 1,250 The Hospitals and Higher
Education Facilities
Authority of Philadelphia,
(Graduate Health System),
6.90%, 7/1/00 1,328,450
Baa1 BBB+ 1,000 The Hospitals and Higher
Education Facilities
Authority of Philadelphia,
(Graduate Health System),
7.00%, 7/1/05 1,073,840
Baa1 BBB+ 2,475 The Hospital and Higher
Education Facilities
Authority of Philadelphia,
(Temple University
Hospital), 6.00%, 11/15/00 2,524,921
Aa NR 1,535 Pottsville, PA, Hospital
Authority, (Daughters of
Charity), 4.75%, 8/15/03 1,495,612
-----------
$12,079,844
-----------
Housing - 3.7%
Aaa AAA $2,450 Pennsylvania Housing
Finance Agency, (FNMA),
5.70%, 7/1/02 $ 2,486,677
Aa AA 1,250 Pennsylvania Housing
Finance Agency, (FHA),
7.125%, 4/1/14 1,297,188
-----------
$3,783,865
-----------
Industrial Development
Revenue - 2.9%
NR A- $1,100 Butler County, PA
Industrial Development
Authority, (Sherwood Oaks
Project), 5.10%, 6/1/01 $1,074,073
NR NR 885 Chester County, PA,
Industrial Development
Authority, 8.00%, 9/1/05 886,805
A3 A- 1,000 Clinton County, PA,
Industrial Development
Authority, (International
Paper Company), 5.375%,
5/1/04 1,006,430
-----------
$2,967,308
-----------
<PAGE>
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ -------------------------- -----------
Insured Education - 5.7%
Aaa AAA $2,280 Lycoming County Authority,
Pennnsylvania, College
Revenue Bonds, (AMBAC),
6.00%, 11/1/01 $2,438,688
Aaa AAA 1,000 Northampton County Higher
Education Authority,
(Lehigh University),
(MBIA), 7.10%, 11/15/09 1,102,500
Aaa AAA 2,000 Pennsylvania State Higher
Education Assistance
Agency, (FGIC), 6.80%,
12/1/00 2,145,760
Aaa AAA 250 Pennsylvania Higher
Educational Facilities
Authority (Bryn Mawr
College), (FGIC), 6.75%,
12/1/01 271,373
-----------
$5,958,321
-----------
Insured General
Obligations - 7.5%
Aaa AAA $ 915 Conestoga Valley School
Disrtict of Lancaster
County, Pennsylvania,
(FGIC), 6.80%, 5/1/03 $ 998,402
Aaa AAA 1,235 Dauphin County,
Pennsylvania, (MBIA),
6.00%, 8/1/02 1,323,253
Aaa AAA 265 Greensburg Salem School
District, (Westmoreland
County, Pennsylvania),
(MBIA), 5.80%, 9/15/01 282,649
Aaa AAA 1,000 Commonwealth of
Pennsylvania, (MBIA),
6.60%, 1/1/01 1,095,040
Aaa AAA 385 Pennsylvania Finance
Authority, (South Side
Area School District,
Beaver County Project),
(AMBAC), 5.40%, 9/1/01 399,549
Aaa AAA 1,000 Pennsylvania Public School
District Building
Authority, (Hazelton Area
School District Project),
(FGIC), 6.50%, 3/1/08 1,055,240
Aaa AAA 275 The School District of
Philadelphia,
Pennsylvania, (AMBAC),
6.35%, 5/15/02 298,568
Aaa AAA 750 Pocono Mountain School
District, Monroe County,
Pennsylvania, (AMBAC),
5.90%, 10/1/02 795,113
Aaa AAA 1,385 City of Pittsburgh,
Pennsylvania, (MBIA),
6.00%, 9/1/01 1,494,637
-----------
$7,742,451
-----------
Insured Health Care - 2.1%
Aaa AAA $2,050 Sayre Health Care
Facilities Authority,
(Guthrie Medical Center),
(AMBAC), 6.50%, 3/1/00 $2,208,773
-----------
Insured Hospitals - 9.6%
Aaa AAA $2,215 The Hospital Authority of
Beaver County,
Pennsylvania, (The Medical
Center of Beaver, PA),
(AMBAC), 5.90%, 7/1/00 $2,349,783
Aaa AAA 500 Delaware County Authority
of Pennsylvania, (Crozer-
Chester Medical Center),
(MBIA), 7.10%, 12/15/99 549,170
Aaa AAA 2,000 Delaware County Authority
of Pennsylvania, (Delaware
Memorial Hospital),
(MBIA), 5.125%, 8/15/06 1,987,520
Aaa AAA 1,000 Erie County, Pennsylvania,
Hospital Authority, (Hamot
Health System), (AMBAC),
7.10%, 2/15/10 1,086,850
Aaa AAA 400 Franklin County Industrial
Development Authority,
(The Chambersburg Hospital
Project), (FGIC), 5.80%,
7/1/02 420,888
Aaa AAA 500 Lancaster County Hospital
Authority, (The Lancaster
General Hospital Project),
(AMBAC), 5.80%, 7/1/01 528,900
Aaa AAA 525 Lehigh County General
Purpose Authority, (St.
Luke's Hospital of
Bethlehem, Pennsylvania
Project), (AMBAC), 5.70%,
7/1/01 552,185
<PAGE>
Pennsylvania Limited Maturity Tax Free Portfolio (continued)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ -------------------------- -----------
Insured Hospitals (continued)
Aaa AAA 250 Mt. Lebanon Hospital
Authority (Allegheny
County, Pennsylvania) (St.
Clair Memorial Hospital),
(FGIC), 5.90%, 7/1/02 264,330
Aaa AAA 2,100 Washington County Hospital
Authority, (Shadyside
Hospital Project),
(AMBAC), 5.80%, 12/15/02 2,214,597
-----------
$9,954,223
-----------
Insured Lease Revenue/
Certificates of
Participation - 3.0%
Aaa AAA $ 500 The Harrisburg Authority
(Dauphin County,
Pennsylvania), Lease
Revenue Bonds, (FGIC),
6.25%, 6/1/01 $ 538,075
Aaa AAA 1,000 Northumberland County
Authority, Pennsylvania,
Lease Revenue Bonds,
(MBIA), 6.50%, 10/15/01 1,101,810
Aaa AAA 500 The Philadelphia Municipal
Authority, Justice Lease
Revenue Bonds, (MBIA),
6.40%, 11/15/98 534,020
Aaa AAA 810 The Philadelphia Municipal
Authority, Justice Lease
Revenue Bonds, (MBIA),
6.60%, 11/15/00 890,757
-----------
$3,064,662
-----------
Insured Special Tax - 2.1%
Aaa AAA $2,070 Pennsylvania
Intergovernmental
Cooperation Authority,
(City of Philadelphia
Funding Program), (FGIC),
6.00%, 6/15/02 $2,225,374
-----------
Insured Transportation - 4.3%
Aaa AAA $4,250 Pennsylvania State
Turnpike Commisssion,
(AMBAC), 6.25%, 6/1/11 $4,427,778
-----------
Insured Water & Sewer - 1.7%
Aaa AAA $ 700 Delaware County Industrial
Development Authority,
(Philadelphia Suburban
Water Conpany Project),
(FGIC), 5.95%, 6/1/02 $ 743,722
Aaa AAA 1,000 City of Philadelphia,
Pennsylvania, Water and
Wastewater Revenue Bonds,
(FSA), 4.875%, 6/15/01 1,012,570
-----------
$1,756,292
-----------
Solid Waste - 3.0%
Baa A- $ 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.20%, 5/15/99 $ 517,240
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.20%, 11/15/99 519,390
Baa A- 300 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.40%, 5/15/00 313,452
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.40%, 11/15/00 524,545
NR NR 1,200 Pennsylvania Economic
Development Financing
Authority, (Resource
Recovery for Northampton),
6.75%, 1/1/07 1,206,396
-----------
$3,081,023
-----------
Special Tax Revenue - 0.5%
Baa1 BBB+ $ 250 Puerto Rico Infrastructure
Financing Authority,
Special Tax Revenue Bonds,
7.60%, 7/1/00 $ 273,703
NR NR 250 Virgin Islands Public
Finance Authority, (V.I.
General Obligation/
Matching Fund Loan Notes),
6.70%, 10/1/99 265,483
-----------
$ 539,186
-----------
Transportation - 3.6%
Aa3 AA- $2,550 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial
Bank of Commerce, 6.00%,
6/1/99 $2,681,886
<PAGE>
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ---------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ----- ------ -------------------------- -----------
Transportation (continued)
AA3 AA- 1,000 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial
Bank of Commerce, 6.00%,
6/1/01 1,063,860
-----------
$ 3,745,746
-----------
Utility - 1.0%
NR NR $1,000 Virgin Island Water &
Power Authority, 7.40%,
7/1/11 $ 1,050,210
-----------
Water & Sewer - 1.7%
NR AA $1,600 Pennsylvania
Infrastructure Investment
Authority, (Pennvest Pool
Program), 6.45%, 9/1/04 $ 1,764,684
-----------
Total tax-exempt
investments (identified
cost, $100,829,234) $103,648,403
===========
(1) When-issued security. At September 30, 1995, the Portfolio had sufficient
cash and/or securities segregated as collateral for when-issued securities.
The Portfolio invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 36.0% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 0.5% to 16.7% of total
investments.
See notes to financial statements
<PAGE>
Virginia Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------------------
Principal
Standard Amount
& (000
Moody's Poor's omitted) Security Value
- -------- ------- -------- -------------------------- --------
Education - 3.3%
A1 AA- $10 Virginia Commonwealth
University, 4.80%, 5/1/02 $10,028
--------
Escrowed/Prerefunded - 19.8%
Aaa AAA $10 Prince William County,
Virginia Water and Sewer,
(FGIC), Prerefunded to
7/1/02, 6.50%, 7/1/21 $11,129
Aaa AAA 10 Roanoke Hospital, (MBIA),
Prerefunded to 7/1/00,
6.50%, 7/1/25 10,867
Aa AA 15 Virginia Public Schools,
Prerefunded to 6/1/97,
6.60%, 6/1/00 15,687
Aaa AAA 20 Winchester Medical Center,
Prerefunded to 1/1/00,
(AMBAC), 7.25%, 1/1/15 22,473
--------
$60,156
--------
General Obligations - 27.6%
Aaa AAA $10 Arlington, Virginia,
5.00%, 6/1/05 $10,199
A1 A+ 10 Botetourt County,
Virginia, 5.70%, 7/15/03 10,531
Aa AA- 5 Hampton, Virginia, 5.85%,
3/1/07 5,085
A1 A 10 Montgomery County,
Virginia, 6.25%, 11/1/97 10,458
Aa AA- 15 Newport News, Virginia,
6.20%, 12/1/01 16,057
Baa1 A 10 Puerto Rico Public
Building Authority, 6.10%,
7/1/00 10,623
Aaa AAA 10 State of Virginia, 6.00%,
6/1/01 10,772
Aa AA 10 Virginia Beach, Virginia,
5.60%, 11/1/06 10,215
--------
$83,940
--------
Hospitals - 6.9%
A NR $10 Petersburg, Virginia
Hospital Authority, 6.00%,
7/1/03 $10,413
Aa AA 10 Virginia Beach Development
Authority, Sentara Bayside
Hospital, 6.30%, 11/1/04 10,650
--------
$21,063
--------
Industrial Development Revenue - 10.8%
A1 A+ $10 Fairfax County, Virginia
Economic Development
Authority, Ogden Martin,
(AMT), 7.30%, 2/1/11 $10,912
NR A- 10 Fauquier County, Virginia
Industrial Development
Authority, 7.30%, 10/1/02 11,096
A1 NR 10 Louden County, Virginia
Industrial Development
Authority, 6.10%, 5/15/04 10,763
--------
$32,771
--------
Insured General Obligation - 3.5%
Aaa AAA $10 Frankiln County, Virginia,
(FGIC), 6.00%, 7/15/07 $10,538
--------
Insured Lease Revenue/Certificates of
Participation - 6.9%
Aaa AAA $10 Frederick County, Virginia
COP, (MBIA), 5.85%,
12/1/03 $10,673
Aaa AAA 10 Louden County, Virginia
COP, (FSA), 5.90%, 3/1/00 10,420
--------
$21,093
--------
Insured Miscellaneous - 3.4%
Aaa AAA $10 Richmond Redevelopment and
Housing Authority, Old
Manchester Project,
(CGIC), 5.70%, 3/1/01 $10,352
--------
Insured Transportation - 3.5%
Aaa AAA $10 Chesapeake Bay Bridge and
Tunnel, (FGIC), 6.00,
7/1/07 $10,741
--------
Lease Revenue/Certificate of
Participation - 3.7%
Aa AA $10 Henrico County, Virginia
Industrial development
Authority, 6.50%, 8/1/06 $ 11,188
--------
Miscellaneous - 3.6%
Aa AA $10 Virginia Public Building
Authority, 6.25%, 8/1/01 $ 10,914
--------
Water & Sewer - 7.0%
Aa AA $10 Chesterfield, Virginia
Water and Sewer, 5.90%,
11/1/02 $ 10,604
A1 A+ 10 Rivanna, Virginia Water
and Sewer Authority,
6.00%, 10/1/03 10,696
--------
$ 21,300
--------
Total tax-exempt
investments (identified
cost $293,422) $304,084
========
The Portfolio invests primarily in debt securities issued by Virginia
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 17.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 3.4% to 7.0% of total
investments.
See notes to financial statements
<PAGE>
Limited Maturity Tax Free Portfolios
Financial Statements
Statements of Assets and Liabilities
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ---------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments -
Identified cost $565,333 $66,519,577 $15,417,395 $134,625,228 $106,487,409 $24,819,371
Unrealized appreciation 26,808 2,001,701 372,557 4,742,218 2,618,077 1,050,285
------ -------- -------- --------- --------- ----------
Total investments, at
value (Note 1A) $592,141 $68,521,278 $15,789,952 $139,367,446 $109,105,486 $25,869,656
Cash 103 150,948 11,199 717,672 459,999 485
Receivable for
investments sold -- -- 55,000 -- -- 1,079,040
Interest receivable 9,781 1,199,741 271,044 3,327,349 1,757,622 582,448
Receivable from the
Investment Adviser
(Note 2) 9,385 -- -- -- -- --
Deferred organization
expenses (Note 1D) 3,638 3,908 3,640 10,895 10,579 4,933
------ -------- -------- --------- --------- ----------
Total assets $615,048 $69,875,875 $16,130,835 $143,423,362 111,333,686 27,536,562
------ -------- -------- --------- --------- ----------
Liabilities:
Demand note payable (Note
5) $ -- $ -- $ -- $ -- $ -- $ 444,000
Payable to affiliates -
Trustees' fees -- 1,397 43 2,590 1,908 426
Custodian fees -- -- 72 2,618 1,350 339
Accrued expenses 1,590 1,507 1,125 2,693 2,338 1,272
------ -------- -------- --------- --------- ----------
Total liabilities $ 1,590 $ 2,904 $ 1,240 $ 7,901 $ 5,596 $ 446,037
------ -------- -------- --------- --------- ----------
Net Assets applicable to
investors' interest in
Portfolio $613,458 $69,872,971 $16,129,595 $143,415,461 $111,328,090 $27,090,525
====== ======== ======== ========= ========= ==========
Sources of Net Assets:
Net proceeds from capital
contributions and
withdrawals $586,650 $67,871,270 $15,757,038 $138,673,243 $108,710,013 $26,040,240
Unrealized appreciation
of investments (computed
on the basis of
identified cost) 26,808 2,001,701 372,557 4,742,218 2,618,077 1,050,285
------ -------- -------- --------- --------- ----------
Total $613,458 $69,872,971 $16,129,595 $143,415,461 $111,328,090 $27,090,525
====== ======== ======== ========= ========= ==========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Assets and Liabilities
September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
North
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ----------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments -
Identified cost $83,167,449 $150,966,523 $229,029 $35,685,052 $100,829,234 $293,422
Unrealized appreciation 2,508,628 2,818,263 9,002 1,119,719 2,819,169 10,662
-------- --------- ---------- -------- --------- --------
Total investments, at value
(Note 1A) $85,676,077 $153,784,786 $238,031 $36,804,771 $103,648,403 $304,084
Cash 671 621,235 48,185 274,726 413,143 2,910
Receivable for investments sold 4,425,566 -- -- -- -- --
Interest receivable 1,552,264 2,769,529 3,810 722,895 1,560,256 5,165
Receivable from the Investment
Adviser (Note 2) -- -- 4,866 -- -- 5,497
Deferred organization expenses
(Note 1D) 4,578 6,647 3,638 3,838 6,923 3,557
-------- --------- ---------- -------- --------- --------
Total assets $91,659,156 $157,182,197 $298,530 $37,806,230 $105,628,725 $321,213
-------- --------- ---------- -------- --------- --------
Liabilities:
Demand note payable (Note 5) $ 325,000 $ -- $ -- $ -- $ -- $ --
Payable for investments purchased 1,819,085 -- 9,968 -- 2,113,655 --
Payable to affiliates -
Trustees' fees 1,396 2,590 -- 427 1,908 --
Custodian fees -- 3,034 -- 98 -- --
Accrued expenses 2,220 2,750 1,484 1,454 2,438 1,463
-------- --------- ---------- -------- --------- --------
Total liabilities $ 2,147,701 $ 8,374 $ 11,452 $ 1,979 $ 2,118,001 $ 1,463
-------- --------- ---------- -------- --------- --------
Net Assets applicable to investors'
interest in Portfolio $89,511,455 $157,173,823 $287,078 $37,804,251 $103,510,724 $319,750
======== ========= ========== ======== ========= ========
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $87,002,827 $154,355,560 $278,076 $36,684,532 $100,691,555 $309,088
Unrealized appreciation of
investments (computed on the basis
of identified cost) 2,508,628 2,818,263 9,002 1,119,719 2,819,169 10,662
-------- --------- ---------- -------- --------- --------
Total $89,511,455 $157,173,823 $287,078 $37,804,251 $103,510,724 $319,750
======== ========= ========== ======== ========= ========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Operations
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- --------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income (Note 1B) $16,583 $2,055,893 $440,409 $4,047,304 $3,062,695 $ 835,120
------ ------- ------- ------- --------- --------
Expenses -
Investment adviser fee
(Note 2) $ 1,363 $ 176,371 $ 38,380 $ 351,182 $ 265,896 $ 69,945
Compensation of Trustees
not members of the
Investment Adviser's
organization 264 3,529 98 6,248 4,693 971
Custodian fees (Note 2) 1,793 19,955 5,833 39,730 27,475 9,006
Printing and postage 124 -- 1,002 -- -- --
Legal and accounting
services 4,978 19,428 18,299 28,228 24,265 21,928
Amortization of
organization expenses
(Note 1D) 443 757 1,288 2,108 2,050 1,561
Miscellaneous 2,100 12,123 3,661 12,432 9,128 6,078
------ ------- ------- ------- --------- --------
Total expenses $11,065 $ 232,163 $ 68,561 $ 439,928 $ 333,507 $ 109,489
------ ------- ------- ------- --------- --------
Deduct preliminary
reduction of
investment adviser fee
(Note 2) $ 1,363 $ -- $ 35,286 $ -- $ -- $ --
Deduct preliminary
allocation of expenses
to the Investment
Adviser (Note 2) 9,385 -- -- -- -- --
Deduct reduction of
custodian fees (Note 2) 317 18,486 4,013 12,321 11,608 7,047
------ ------- ------- ------- --------- --------
Total $11,065 $ 18,486 $ 39,299 $ 12,321 $ 11,608 $ 7,047
------ ------- ------- ------- --------- --------
Net expenses $ -- $ 213,677 $ 29,262 $ 427,607 $ 321,899 $ 102,442
------ ------- ------- ------- --------- --------
Net investment income $16,583 $1,842,216 $411,147 $3,619,697 $2,740,796 $ 732,678
------ ------- ------- ------- --------- --------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss)
-
Investment transactions
(identified cost basis) $ 262 $ 258,229 $ 9,950 $ (9,718) $ (39,766) $ 89,569
Financial futures
contracts (6,079) (392,888) (77,970) (785,149) (575,026) (155,939)
------ ------- ------- ------- --------- --------
Net realized loss on
investments $(5,817) $ (134,659) $(68,020) $ (794,867) $ (614,792) $ (66,370)
------ ------- ------- ------- --------- --------
Change in unrealized
appreciation -
Investments $10,591 $1,393,879 $419,008 $3,885,734 $2,650,178 $ 536,892
Financial futures
contracts 3,400 69,703 13,600 142,806 100,304 27,201
------ ------- ------- ------- --------- --------
Net unrealized
appreciation of
investments $13,991 $1,463,582 $432,608 $4,028,540 $2,750,482 $ 564,093
------ ------- ------- ------- --------- --------
Net realized and
unrealized gain on
investments $ 8,174 $1,328,923 $364,588 $3,233,673 $2,135,690 $ 497,723
------ ------- ------- ------- --------- --------
Net increase in net
assets from
operations $24,757 $3,171,139 $775,735 $6,853,370 $4,876,486 $1,230,401
====== ======= ======= ======= ========= ========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Operations
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
New North
Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- ------------ --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income (Note 1B) $2,489,042 $4,335,568 $5,402 $1,090,834 $2,890,795 $ 6,690
------- ------- ---------- ------- -------- --------
Expenses -
Investment adviser fee
(Note 2) $ 215,061 $ 379,668 $ 552 $ 90,213 $ 249,262 $ 622
Compensation of Trustees
not members of the
Investment Adviser's
organization 3,200 6,248 -- 972 4,694 --
Custodian fees (Note 2) 22,474 43,155 1,480 11,390 25,892 1,749
Printing and postage -- -- 124 -- -- 124
Legal and accounting
services 24,128 28,628 2,328 21,928 24,128 2,328
Bond pricing -- -- -- -- -- 1,156
Amortization of
organization expenses
(Note 1D) 897 1,288 440 1,288 1,340 432
Miscellaneous 9,854 10,041 934 6,198 15,276 157
------- ------- ---------- ------- -------- --------
Total expenses $ 275,614 $ 469,028 $5,858 $ 131,989 $ 320,592 $ 6,568
------- ------- ---------- ------- -------- --------
Deduct preliminary
reduction of
investment adviser
fee (Note 2) $ -- $ -- $ 552 $ -- $ -- $ 622
Deduct preliminary
allocation of expenses
to the Investment
Adviser (Note 2) -- -- 4,866 -- -- 5,497
Deduct reduction of
custodian fees (Note 2) 13,592 25,625 440 4,597 13,572 449
------- ------- ---------- ------- -------- --------
Total $ 13,592 $ 25,625 $5,858 $ 4,597 $ 13,572 $ 6,568
------- ------- ---------- ------- -------- --------
Net expenses $ 262,022 $ 443,403 $ -- $ 127,392 $ 307,020 $ --
------- ------- ---------- ------- -------- --------
Net investment income $2,227,020 $3,892,165 $5,402 $ 963,442 $2,583,775 $ 6,690
------- ------- ---------- ------- -------- --------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain (loss) -
Investment transactions
(identified cost
basis) $ (24,897) $ 268,341 $ -- $ 231,074 $ (314,525) $ --
Financial futures
contracts (467,818) (834,507) -- (198,591) (545,788) --
------- ------- ---------- ------- -------- --------
Net realized gain
(loss) on investments $ (492,715) $ (566,166) $ -- $ 32,483 $ (860,313) $ --
------- ------- ---------- ------- -------- --------
Change in unrealized
appreciation -
Investments $1,825,460 $3,600,346 $4,208 $ 592,873 $2,650,194 $ 4,319
Financial futures
contracts 81,604 147,906 -- 32,301 95,204 --
------- ------- ---------- ------- -------- --------
Net unrealized
appreciation of
investments $1,907,064 $3,748,252 $4,208 $ 625,174 $2,745,398 $ 4,319
------- ------- ---------- ------- -------- --------
Net realized and
unrealized gain on
investments $1,414,349 $3,182,086 $4,208 $ 657,657 $1,885,085 $ 4,319
------- ------- ---------- ------- -------- --------
Net increase in net
assets from
operations $3,641,369 $7,074,251 $9,610 $1,621,099 $4,468,860 $11,009
======= ======= ========== ======= ======== ========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ------------ ----------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Increase
(Decrease) in
Net Assets:
From operations -
Net investment
income $ 16,583 $ 1,842,216 $ 411,147 $ 3,619,697 $ 2,740,796 $ 732,678
Net realized
loss on
investments (5,817) (134,659) (68,020) (794,867) (614,792) (66,370)
Change in
unrealized
appreciation of
investments 13,991 1,463,582 432,608 4,028,540 2,750,482 564,093
------ ---------- --------- ---------- ---------- -----------
Net increase in
net assets
from
operations $ 24,757 $ 3,171,139 $ 775,735 $ 6,853,370 $ 4,876,486 $ 1,230,401
------ ---------- --------- ---------- ---------- -----------
Capital
transactions -
Contributions $ 66,575 $ 1,290,241 $ 601,391 $ 4,437,740 $ 2,320,808 $ 520,163
Withdrawals (68,330) (16,932,134) (2,563,149) (32,454,564) (14,988,746 (7,858,055)
------ ---------- --------- ---------- ---------- -----------
Decrease in net
assets
resulting from
capital
transactions $ (1,755) $(15,641,893) $(1,961,758) $(28,016,824) $(12,667,938) $(7,337,892)
------ ---------- --------- ---------- ---------- -----------
Total increase
(decrease) in
net assets $ 23,002 $(12,470,754) $(1,186,023) $(21,163,454) $ (7,791,452) $(6,107,491)
Net Assets:
At beginning of
period 590,456 82,343,725 17,315,618 164,578,915 119,119,542 33,198,016
------ ---------- --------- ---------- ---------- -----------
At end of period $613,458 $ 69,872,971 $16,129,595 $143,415,461 $111,328,909 $27,090,525
====== ========== ========= ========== ========== ===========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Six Months Ended September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
North
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From operations -
Net investment income $ 2,227,020 $ 3,892,165 $ 5,402 $ 963,442 $ 2,583,775 $ 6,690
Net realized gain
(loss) on investments (492,715) (566,166) -- 32,483 (860,313) --
Change in unrealized
appreciation of
investments 1,907,064 3,748,252 4,208 625,174 2,745,398 4,319
---------- ---------- ---------- --------- ---------- --------
Net increase in net
assets from
operations $ 3,641,369 $ 7,074,251 $ 9,610 $ 1,621,099 $ 4,468,860 $ 11,009
---------- ---------- ---------- --------- ---------- --------
Capital transactions -
Contributions $ 1,142,131 $ 5,054,457 $ 55,196 $ 818,313 $ 2,639,124 $101,077
Withdrawals (12,551,720) (28,587,309) (13,487) (4,070,535) (17,203,305) (12,964)
---------- ---------- ---------- --------- ---------- --------
Increase (decrease) in
net assets resulting
from capital
transactions $(11,409,589) $(23,532,852) $ 41,709 $(3,252,222) $(14,564,181) $ 88,113
---------- ---------- ---------- --------- ---------- --------
Total increase
(decrease) in net
assets $ (7,768,220) $(16,458,601) $ 51,319 $(1,631,123) $(10,095,321) $ 99,122
Net Assets:
At beginning of period 97,279,675 173,632,424 235,759 39,435,374 113,606,045 220,628
---------- ---------- ---------- --------- ---------- --------
At end of period $ 89,511,455 $157,173,823 $287,078 $37,804,251 $103,510,724 $319,750
========== ========== ========== ========= ========== ========
</TABLE>
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio* Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ------------ ---------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Increase
(Decrease) in Net
Assets:
From operations -
Net investment
income $ 8,686 $ 4,317,764 $ 874,089 $ 8,483,858 $ 5,912,832 $ 1,731,146
Net realized
loss on
investments (10) (3,541,623) (562,025) (4,072,437) (2,100,952) (1,889,732)
Net unrealized
appreciation of
investments 12,817 2,987,188 573,926 5,067,690 2,792,609 1,913,469
------- ---------- -------- ---------- --------- -----------
Net increase in
net assets from
operations $ 21,493 $ 3,763,329 $ 885,990 $ 9,479,111 $ 6,604,489 $ 1,754,883
------- ---------- -------- ---------- --------- -----------
Capital
transactions -
Contributions $477,295 $ 14,449,584 $ 4,383,626 $ 29,535,670 $ 17,263,223 $ 8,180,397
Withdrawals (8,342) (31,573,058) (4,720,895) (60,412,518) (24,520,587) (12,345,746)
------- ---------- -------- ---------- --------- -----------
Increase
(decrease) in
net assets
resulting from
capital
transactions $468,953 $(17,123,474) $ (337,269) $(30,876,848) $ (7,257,364) $ (4,165,349)
------- ---------- -------- ---------- --------- -----------
Total increase
(decrease) in
net assets $490,446 $(13,360,145) $ 548,721 $(21,397,737) $ (652,875) $ (2,410,466)
Net Assets:
At beginning of
year 100,010 95,703,870 16,766,897 185,976,652 119,772,417 35,608,482
------- ---------- -------- ---------- --------- -----------
At end of year $590,456 $ 82,343,725 $17,315,618 $164,578,915 $119,119,542 $ 33,198,016
======= ========== ======== ========== ========= ===========
</TABLE>
* For the period from the start of business, November 3, 1994, to March 31,
1995.
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
North
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio** Portfolio Portfolio Portfolio***
------------ ------------ ------------ ---------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Increase
(Decrease) in Net
Assets:
From operations -
Net investment
income $ 4,840,639 $ 8,821,606 $ 2,582 $ 1,988,159 $ 5,762,059 $ 3,160
Net realized
gain (loss) on
investments (2,432,985) (2,970,287) 14 (1,848,899) (1,989,932) (6)
Net unrealized
appreciation of
investments 2,933,058 3,317,903 4,794 1,939,481 2,563,670 6,343
---------- ---------- ---------- -------- ---------- -----------
Net increase in
net assets from
operations $ 5,340,712 $ 9,169,222 $ 7,390 $ 2,078,741 $ 6,335,797 $ 9,497
---------- ---------- ---------- -------- ---------- -----------
Capital
transactions -
Contributions $ 13,706,598 $ 23,864,886 $184,597 $ 8,548,567 $ 15,664,244 $144,732
Withdrawals (24,715,358) (43,169,334) (56,238) (9,169,484) (32,013,516) (33,611)
---------- ---------- ---------- -------- ---------- -----------
Increase
(decrease) in
net assets
resulting from
capital
transactions $(11,008,760) $(19,304,448) $128,359 $ (620,917) $(16,349,272) $111,121
---------- ---------- ---------- -------- ---------- -----------
Total increase
(decrease) in
net assets $ (5,668,048) $(10,135,226) $135,749 $ 1,457,824 $(10,013,475) $120,618
Net Assets:
At beginning of
year 102,947,723 183,767,650 100,010 37,977,550 123,619,520 100,010
---------- ---------- ---------- -------- ---------- -----------
At end of year $ 97,279,675 $173,632,424 $235,759 $39,435,374 $113,606,045 $220,628
========== ========== ========== ======== ========== ===========
</TABLE>
** For the period from the start of business, November 28, 1994, to March
31, 1995.
*** For the period from the start of business, November 11, 1994, to March
31, 1995.
<PAGE>
Supplementary Data
<TABLE>
<CAPTION>
Arizona Limited Portfolio California Limited Portfolio
--------------------------------- -------------------------------------
Six Months Six Months
Ended Ended
September 30, September 30, Year Ended March
1995 Period Ended 1995 31,
March 31,
(unaudited) 1995*** (unaudited) 1995 1994**
--------------- -------------- --------------- ------ --------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net
assets)++:
Net expenses 0.10%+ 0.00%+ 0.60%+ 0.53% 0.46%+
Net investment income 5.40%+ 4.60%+ 4.80%+ 4.72% 4.50%+
Portfolio Turnover 14% 1% 8% 56% 6%
Net Assets, end of
period (000 omitted) $613 590 $69,873 $82,344 $95,704
++ The operating expenses of the Portfolios may 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 3.60%+ 1.31%+ 0.52%+
Net investment income 1.90%+ 3.29%+ 4.44%+
</TABLE>
<TABLE>
<CAPTION>
Connecticut Limited Portfolio Florida Limited Portfolio
---------------------------------- ---------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March September 30,
1995 31, 1995 Year Ended March 31,
(unaudited) 1995 1994* (unaudited) 1995 1994**
-------------- ------ ------ --------------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of
average daily net
assets)++:
Net expenses 0.39%+ 0.17% 0.00%+ 0.57%+ 0.52% 0.49%+
Net investment income 4.87%+ 4.95% 4.53%+ 4.71%+ 4.73% 4.53%+
Portfolio Turnover 25% 73% 39% 3% 44% 8%
Net Assets, end of period
(000 omitted) $16,130 $17,316 $16,767 $143,415 $164,579 $185,977
++ The operating expenses of the Portfolios may 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 0.81%+ 0.67% 0.62%+
Net investment income 4.45%+ 4.45% 3.92%+
</TABLE>
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** For the period from the start of business, May 3, 1993, to March 31,
1994.
*** For the period from the start of business, November 3, 1994, to March 31,
1995.
<PAGE>
Supplementary Data
<TABLE>
<CAPTION>
Massachusetts Limited Portfolio Michigan Limited Portfolio
------------------------------------- -------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March September 30, Year Ended March
1995 31, 1995 31,
(unaudited) 1995 1994** (unaudited) 1995 1994*
--------------- ------- ------- --------------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of
average daily
net assets)++:
Net expenses 0.57%+ 0.54% 0.52%+ 0.73%+ 0.48% 0.00%+
Net investment income 4.70%+ 4.90% 4.57%+ 4.91%+ 4.88% 4.62%+
Portfolio Turnover 4% 46% 8% 17% 111% 30%
Net Assets, end of period
(000 omitted) $111,328 $119,120 $119,772 $27,091 $33,198 $35,608
++ The operating expenses of the Portfolios may 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 0.59% 0.54%+
Net investment income 4.77% 4.08%+
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Portfolio New York Limited Portfolio
----------------------------------- ---------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March September 30,
1995 31, 1995 Year Ended March 31,
(unaudited) 1995 1994** (unaudited) 1995 1994**
-------------- ------ ------- --------------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of
average daily
net assets):
Net expenses 0.59%+ 0.54% 0.54%+ 0.56%+ 0.52% 0.47%+
Net investment income 4.74%+ 4.73% 4.53%+ 4.65%+ 4.79% 4.50%+
Portfolio Turnover 17% 44% 10% 12% 31% 5%
Net Assets, end of period
(000 omitted) $89,511 $97,280 $102,948 $157,174 $173,632 $183,768
</TABLE>
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** For the period from the start of business, May 3, 1993, to March 31,
1994.
<PAGE>
Supplementary Data
<TABLE>
<CAPTION>
North Carolina Limited Portfolio Ohio Limited Portfolio
--------------------------------- -------------------------------------
Six Months Six Months
Ended Ended
September 30, September 30, Year Ended March
1995 Period Ended 1995 31,
March 31,
(unaudited) 1995+++ (unaudited) 1995 1994*
--------------- -------------- --------------- ------ --------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage of
average daily net
assets)++:
Net expenses 0.32%+ 0.00%+ 0.68%+ 0.46% 0.00%+
Net investment income 3.96%+ 3.98%+ 5.00%+ 4.96% 4.68%+
Portfolio Turnover 0% 21% 33% 120% 33%
Net Assets, end of period
(000 omitted) $287 $236 $37,804 $39,435 $37,978
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and
an allocation of expenses to the Investment Adviser. Had such actions not been taken, the ratios
would have been as follows:
Ratios (As a percentage of
average daily net
assets):
Expenses 4.29%+ 2.09%+ 0.58% 0.54%+
Net investment income 0.01%+ 1.89%+ 4.84% 4.14%+
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Portfolio Virginia Limited Portfolio
------------------------------------ -----------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March September 30,
1995 31, 1995 Period Ended
March 31,
(unaudited) 1995 1994** (unaudited) 1995***
-------------- ------- ------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage of
average daily net
assets)++:
Net expenses 0.59%+ 0.53% 0.50%+ 0.30%+ 0.00%+
Net investment income 4.74%+ 4.77% 4.59%+ 4.50%+ 4.69%+
Portfolio Turnover 11% 39% 12% 0% 33%
Net Assets, end of period
(000 omitted) $103,511 $113,606 $123,620 $320 $221
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and an
allocation of expenses to the Investment Adviser. Had such actions not been taken, the ratios would
have been as follows:
Ratios (As a percentage of
average daily net
assets):
Expenses 4.42%+ 2.17%+
Net investment income 0.38%+ 2.52%+
</TABLE>
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** For the period from the start of business, May 3, 1993, to March 31,
1994.
*** For the period from the start of business, November 11, 1994, to March
31, 1995.
+++ For the period from the start of business, November 28, 1994, to March
31, 1995.
<PAGE>
Notes to Financial Statements
(Unaudited)
(1) Significant Accounting Policies
Arizona Limited Maturity Tax Free Portfolio (Arizona Limited Portfolio),
California Limited Maturity Tax Free Portfolio (California Limited
Portfolio), Connecticut Limited Maturity Tax Free Portfolio (Connecticut
Limited Portfolio), Florida Limited Maturity Tax Free Portfolio (Florida
Limited Portfolio), Massachusetts Limited Maturity Tax Free Portfolio
(Massachusetts Limited Portfolio), Michigan Limited Maturity Tax Free
Portfolio (Michigan Limited Portfolio), New Jersey Limited Maturity Tax Free
Portfolio (New Jersey Limited Portfolio), New York Limited Maturity Tax Free
Portfolio (New York Limited Portfolio), North Carolina Limited Maturity Tax
Free Portfolio (North Carolina Limited Portfolio), Ohio Limited Maturity Tax
Free Portfolio (Ohio Limited Portfolio), Pennsylvania Limited Maturity Tax
Free Portfolio (Pennsylvania Limited Portfolio), and Virginia Limited
Maturity Tax Free Portfolio (Virginia Limited Portfolio), collectively the
Portfolios, are registered under the Investment Company Act of 1940 as
non-diversified open-end management investment companies which were organized
as trusts under the laws of the State of New York on May 1, 1992. The
Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A. Investment Valuations - Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts listed on
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B. Income - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C. Income Taxes - The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
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 Organization Expenses - Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years beginning on the date each Portfolio commenced
operations.
E. Financial Futures Contracts - Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss.
F. When-issued and Delayed Delivery Transactions - The Portfolios may engage
in When-issued and Delayed Delivery Transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on
settlement date.
G. Other - Investment transactions are accounted for on a trade date basis.
H. Interim Financial Information - The interim financial statements relating
to September 30, 1995 and for the six-month period then ended have not been
audited by independent certified public accountants, but in opinion of the
Portfolio's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
<PAGE>
(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 September 30, 1995, each Portfolio paid
advisory fees as follows:
Six Months Ended
September 30, 1995
------------------------
Effective
Portfolio Amount Rate*
------------------------------ ------ --------------
Arizona Limited $ 1,363 0.44%
California Limited 176,371 0.46%
Connecticut Limited 38,380 0.46%
Florida Limited 351,182 0.46%
Massachusetts Limited 265,896 0.46%
Michigan Limited 69,945 0.47%
New Jersey Limited 215,061 0.46%
New York Limited 379,668 0.45%
North Carolina Limited 552 0.40%
Ohio Limited 90,213 0.47%
Pennsylvania Limited 249,262 0.46%
Virginia Limited 622 0.42%
To enhance the net income of the Arizona Limited Portfolio, Connecticut
Limited Portfolio, North Carolina Limited Portfolio, and Virginia Limited
Portfolio, BMR made a reduction of its fees in the amounts of $1,363,
$35,286, $552 and $622, respectively, for the six months ended September 30,
1995. In addition, $9,385, $4,866 and $5,497 of expenses related to the
operation of the Arizona Limited Portfolio, North Carolina Limited Portfolio,
and Virginia Limited Portfolio were allocated, on a preliminary basis, to BMR
for the six months ended September 30, 1995.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolios. Pursuant to the custodian agreements, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances each
Portfolio maintains with IBT. For the six months ended September 30, 1995,
credits used to reduce custodian fees amounted to $317, $18,486, $4,013,
$12,321, $11,608, $7,047, $13,592, $25,625, $440, $4,597, $13,572 and $449
for the Arizona Limited Portfolio, California Limited Portfolio, Connecticut
Limited Portfolio, Florida Limited Portfolio, Massachusetts Limited
Portfolio, Michigan Limited Portfolio, New Jersey Limited Portfolio, New York
Limited Portfolio, North Carolina Limited Portfolio, Ohio Limited Portfolio,
Pennsylvania Limited Portfolio and Virginia Limited Portfolio, respectively.
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 portion of their annual fees in accordance with the terms of the
Trustee Deferred Compensation Plan. For the six months ended September 30,
1995, no significant amounts have been deferred.
* Advisory fees paid as a percentage of average daily net assets
(annualized).
(3) Investments
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six months ended September 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ---------- --------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Purchases $120,818 $ 6,607,831 $4,125,355 $ 5,162,750 $ 4,003,173 $ 4,897,812
Sales 84,339 17,509,328 5,470,573 29,275,564 13,451,271 11,525,334
</TABLE>
<TABLE>
<CAPTION>
North
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Purchases $15,200,880 $18,971,165 $82,924 $12,407,753 $11,758,908 $120,417
Sales 25,889,803 34,910,838 -- 14,670,529 22,905,817 --
</TABLE>
<PAGE>
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at September 30, 1995, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ---------- ---------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Aggregate cost $565,333 $66,519,577 $15,417,395 $134,625,228 $106,487,409 $24,819,371
====== ======== ======== ========= ========= ==========
Gross unrealized
appreciation $ 26,808 $ 2,135,020 $ 408,314 $ 4,948,721 $ 2,684,696 $ 1,053,224
Gross unrealized
depreciation - 133,319 35,757 206,503 66,619 2,939
------ -------- -------- --------- --------- ----------
Net unrealized
appreciation $ 26,808 $ 2,001,701 $ 372,557 $ 4,742,218 $ 2,618,077 $ 1,050,285
====== ======== ======== ========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
North
New Jersey New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ----------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Aggregate cost $83,167,449 $150,966,523 $229,029 $35,685,052 $100,829,234 $293,422
======== ========= ========== ======== ========= ========
Gross unrealized
appreciation $ 2,594,969 $ 3,131,891 $ 9,169 $ 1,130,783 $ 2,972,292 $ 10,874
Gross unrealized
depreciation 86,341 313,628 167 11,064 153,123 212
-------- --------- ---------- -------- --------- --------
Net unrealized
appreciation $ 2,508,628 $ 2,818,263 $ 9,002 $ 1,119,719 $ 2,819,169 $ 10,662
======== ========= ========== ======== ========= ========
</TABLE>
(5) Line of Credit
The Portfolios participate with other portfolios and funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The
line of credit consists of a $20 million committed facility and a $100
million discretionary facility. Borrowings will be made by the Portfolios
solely to facilitate the handling of unusual and/or unanticipated short- term
cash requirements. Interest is charged to each Portfolio or fund based on its
borrowings at an amount above either the bank's adjusted certificate of
deposit rate, a variable adjusted certificate of deposit rate, or a federal
funds effective rate. In addition, a fee computed at an annual rate of 1/4 of
1% on the $20 million committed facility and on the daily unused portion of
the $100 million discretionary facility is allocated among the participating
funds and portfolios at the end of each quarter. The Portfolios did not have
any significant borrowings or allocated fees during the period.
(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. The Portfolios had no such obligations outstanding at
September 30, 1995.
<PAGE>
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
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
William H. Ahern, Jr.
Vice President and Portfolio Manager of
Connecticut, Michigan, New Jersey, North
Carolina, Ohio and Virginia Limited Maturity
Tax-Free Portfolios
Raymond E. Hender
Vice President and Portfolio Manager of
Arizona, California, Florida, Massachusetts,
New York, and Pennsylvania Limited
Maturity Tax Free Portfolios
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
<PAGE>
Investment Adviser of Limited Maturity Tax Free Portfolios
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of EV Marathon Limited Maturity Tax Free Funds
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
Transfer Agent
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
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 Investment Trust
24 Federal Street
Boston, MA 02110
M-12LTFCSRC
