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 of door]
Annual Shareholder Report
March 31, 1995
1
<PAGE>
<TABLE>
<CAPTION>
- - ----------------------------------------------------------------------------------------------------------------
Results for the year Dividends NAV Fund's If your The Federal
ending March 31, 1995. paid by per distribution combined after-tax Tax
Fund share rate Federal equivalent information*
at at & state yield
(During 3/31/95 3/31/95 tax you
period) rate would
is... need
is...
- - ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Arizona $0.149 $10.25 3.95% [graphic 40.42% 6.63% 99.17%
Limited Maturity Tax state of
Free Fund Arizona]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon California $0.436 $ 9.95 3.90% [graphic 43.04% 6.85% 99.99%
Limited Maturity state of
Tax Free Fund California]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Connecticut $0.402 $ 9.69 3.66% [graphic 38.88% 5.99% 99.62%
Limited Maturity Tax state of
Free Fund Connecticut]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Florida $0.436 $ 10.08 3.85% [graphic 39.32% 6.34% 99.99%
Limited Maturity state of
Tax Free Fund Florida]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Massachusetts $0.441 $ 9.98 3.94% [graphic 43.68% 6.99% 99.87%
Limited Maturity Tax state of
Free Fund Massachusetts]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Michigan $0.417 $ 9.63 3.85% [graphic 43.64% 6.83% 100.00%
Limited Maturity Tax state of
Free Fund Michigan]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon New Jersey $0.433 $10.02 3.84% [graphic 40.21% 6.42% 99.91%
Limited Maturity Tax state of
Free Fund New Jersey]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon New York $0.436 $10.03 3.87% [graphic 40.83% 6.54% 100.00%
Limited Maturity Tax state of
Free Fund New York]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon North Carolina $0.120 $10.21 3.97% [graphic 40.96% 6.72% 100.00%
Limited Maturity Tax state of
Free Fund North Carolina]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Ohio $0.417 $ 9.73 3.80% [graphic 40.80% 6.42% 99.98%
Limited Maturity Tax state of
Free Fund Ohio]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Pennsylvania $0.446 $10.09 3.93% [graphic 45.33% 7.19% 100.00%
Limited Maturity Tax state of
Free Fund Pennsylvania]
- - ---------------------------------------------------------------------------------------------------------------
EV Marathon Virginia $0.139 $10.34 3.92% [graphic 39.68% 6.50% 100.00%
Limited Maturity Tax state of
Free Fund Virginia]
- - ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Percentages represent the amounts of the total dividends paid by the Funds
from net investment income during the year that ended March 31, 1995, that
have been designated as tax-exempt interest dividends. Tax legislation
eliminated the exception to the market discount rules applicable to
tax-exempt obligations. As a result, certain tax-exempt obligations acquired
by the Portfolio at market discounts may generate a small amount of ordinary
taxable income.
2
<PAGE>
To Shareholders:
During 1994 the economy remained stronger than economists and money managers had
anticipated at the start of the year. In response to this strength, and in an
attempt to keep inflation in check, the Federal Reserve raised short-term
interest rates six times in 1994 and once again in 1995. Long-term rates moved
upward as well and, as a result, the prices of municipal bonds dropped.
But the market slide was not the only concern in 1994. Many shareholders of
Eaton Vance tax-free mutual funds may have wondered whether the problems that
surfaced in Orange County, California had in any way affected their investment
in our non-California tax-free funds. The answer is no, because the market
realized that this was a local problem. Other Eaton Vance portfolios were not
significantly impacted.
Despite the difficulties that beset the market in 1994, we feel optimistic about
the prospects for 1995. The market now appears convinced that the Federal
Reserve is, in fact, keeping a tight watch on inflation. And, while it is
impossible to predict the outcomes of government initiatives, it appears that
proposals put forth by the new Congress to cut spending and taxes could have an
overall positive effect if enacted.
This report features some changes which we hope will help you to better
understand your investment, and how your Portfolio's holdings help provide the
means for the Federal government, as well as state and local governments, to
fund such projects as roads, bridges, hospitals and schools. Each fund review
includes a Portfolio Overview, or snapshot, as well as comments from the
portfolio manager. In addition, we are profiling a specific bond holding.
Regardless of what lies ahead for the economy, the goal of your Fund remains the
same: to provide you with a competitive distribution of tax-free income from a
portfolio of high-quality municipal bonds.+
Sincerely,
[Signature of Thomas J. Fetter]
Thomas J. Fetter
President
May 19, 1995
[Photo of Thomas J. Fetter]
+ A portion of the Portfolios' income could be subject to Federal alternative
minimum tax.
3
<PAGE>
Management Discussion
[Photo: Raymond E. Hender]
An interview with Raymond E. Hender, Vice President, and William Ahern,
Assistant Vice President, Portfolio Managers of the Limited Maturity Tax Free
Portfolios.
Q. Ray, how would you describe the intermediate market of the past year?
R.H.: All municipal markets were battered in 1994, and the impact was felt in
the intermediate range of the market as well. According to Municipal
Market Data Inc., yields for 10-year municipal bonds rose from 5.35
percent in March 1994 to 6.30 percent in November 1994, a 95 basis point
increase. And five-year municipal yields rose from 4.80 percent to 5.75
percent, also a 95 basis point rise. From those peak levels in November
1994, 10-year yields have since fallen back to 5.35 percent, and 5-year
yields to 4.95 percent. Interestingly, in the period since bond yields
reached their peaks in November 1994, bonds have regained much of the
ground lost in the previous market sell-off.
Q. Have investors continued to embrace the intermediate market?
R.H.: The intermediate range of the market was very attractive to investors in
the midst of the market turbulence of last year. Many investors sought to
shorten their durations and protect the value of their portfolios. Another
factor at work during the market sell-off was an availability of higher
quality bonds in the intermediate sector. That brought many
quality-conscious investors to the intermediate market.
Q. How did the market volatility affect your strategy?
R.H.: The Portfolios have always been somewhat cautious in their investment
style, and hence, were relatively well-positioned when the market started
to deteriorate. The premium, or cushion, bond holdings in the Portfolios
were part of a defensive strategy that served us quite well. We maintained
a duration in the mid-to-lower part of our duration range - around 5 years
at March 31 - which limited the impact of rising rates on the Portfolios.
And finally, we took advantage of the opportunity to improve the quality
of the Portfolios as the market deteriorated.
Q. Bill, how does a shorter duration help to limit the Portfolios'
volatility?
W.A.: Because duration measures the timing of cash flows from coupon payments
over the life of a bond, it provides an approximation of the expected
change in price of a bond from a given change in interest rates. The
average duration of a municipal bond fund provides a similar approximation
of the fund's volatility. A fund with a short duration, such as our
Portfolios, will be less responsive to interest rate changes than a fund
with a long duration. That's an important consideration for investors who
want to limit volatility in their investments.
Q. As the market deteriorated, did you shift your strategy?
W.A.: As short-term interest rates rose, the yield curve - the difference in
yield between issues of varying maturities - flattened significantly. The
Portfolios were therefore able to "move down the yield curve," and
purchase short-term issues with little or no sacrifice in yield. That
offered a further measure of protection by shortening the Portfolios'
average maturity. Interestingly, in many cases we managed to increase the
Portfolios' average coupon while shortening duration and thereby picked up
additional yield.
Q. Did you make other adjustments?
R.H.: We made a deliberate effort during this period to consolidate our holdings
within the Portfolios. Normally, in the first several months following
inception, a Portfolio will be comprised of many small positions. That is
a function of the early growth phase of the Portfolios. Over time, we hope
to reduce the number of individual holdings. In recent months, we have
tried to consolidate some of our positions, resulting in fewer but larger
positions. That certainly helps to improve the Portfolios' liquidity.
Q. Did the sell-off provide any opportunities?
W.A.: Actually, yes. Toward the end of 1994, as the market decline was in full
swing, we took advantage of the deteriorating market conditions to realize
tax losses. By realizing tax losses and moving into other
4
<PAGE>
bonds we were able to raise the average coupon of the Portfolio. Equally
as important, the shift has potentially important tax considerations.
Tax losses can be carried forward for use against capital gains in the
future, and thus reduce future tax liabilities.
[Photo: William Ahern]
Q. What sectors offered special value?
R.H.: Insured bonds and escrowed bonds offered especially good value in this
market. Even though insured bonds - which are insured as to principal and
interest payments by one of the major municipal bond insurers - are top
quality issues, they tend to trade in the A-to-Aa range because of
unusually large volume. Therefore, these bonds offer especially attractive
yields as well as the added liquidity that comes with insurance. Of,
course, private insurance does not remove the market risks associated with
these investments.
Q. And what are escrowed bonds?
W.A.: Escrowed bonds are bonds that have been pre-refunded by the issuers to
take advantage of a lower rate environment. Refundings hit the market in
large supply in 1992 and 1993 as interest rates declined sharply. The
large number of refundings created a huge supply on the market and an
unusual opportunity in the intermediate range of the market. For example,
a bond with a maturity of 2020 that was refunded to its call date in 2000
will trade to that call date. That in effect adds supply to the
intermediate range of the market and creates an opportunity to gain yield
in that sector.
Q. How did escrowed bonds perform?
W.A.: Escrowed bonds performed well through-out the year. Escrowed bonds are
perceived as higher quality issues by investors because the escrow
agreements typically stipulate that the collateral consist of 100 percent
Treasury securities. In addition, since this debt was issued during
periods when rates were significantly higher, they have higher coupons.
Q. Was the California Limited Maturity Tax Free Portfolio affected by the
Orange County crisis?
R.H.: The California Portfolio did not own any direct obligations of Orange
County at the time of the bankruptcy filing and has not acquired any since
that event. The Portfolio did have a small investment in the securities of
two issuers that were participants in the pool. However, the municipal
bond rating agencies have consistently maintained the quality ratings of
those issues. Our independent research indicates that the issuers will be
able to comfortably continue with timely debt service payments.
Q. Looking ahead, what is your outlook for the intermediate-term market?
R.H.: While the economy has continued to grow and companies are registering
strong earnings reports, there have been some incremental signs of
weakening. First quarter GDP grew at a 2.8 percent annualized rate, the
slowest pace since 1993. Inventories are up and consumer spending is down.
As we noted earlier, the yield curve has flattened considerably. A weak
economy and a flat yield curve suggest that the intermediate-term segment
of the bond market offers value. Of course, there's no guarantee that past
trends will be repeated in the future. But for risk-averse investors who
want a competitive level of tax-free income, the intermediate range of the
market merits attention.
Included in the pages that follow are performance charts that compare your
Fund's total return with that of a broad-based securities market index. The
lines on the chart represent the total returns of $10,000 hypothetical
investments in your Fund and the unmanaged Lehman Brothers 7-year Municipal Bond
Index. The solid line on the chart represents the Fund's performance. The Fund's
total return figure reflects fund expenses and portfolio transaction costs, and
assumes the reinvestment of income dividends and capital gain distributions. The
dotted line represents the performance of the Lehman Brothers 7-Year Municipal
Bond Index, a broad-based, widely recognized unmanaged index of municipal bonds.
Whereas the Fund's portfolio is comprised principally of bonds solely from your
individual state, the Index is composed of bonds from all 50 states and many
jurisdictions. The Index's total return does not reflect any commissions or
expenses that would be incurred if an investor individually purchased or sold
the securities represented in the Index.
5
<PAGE>
EV Marathon Arizona Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Power lines]
Salt River Project
Electric Revenue Bonds
Salt River Project is the largest electric utility in Arizona and the
third largest public power utility in the U.S. Rated Aa/AA
by Moody's and S&P, the bonds are backed by revenues of the utility's
electric system. Bond proceeds are intended to fund the utility's
construction projects and the purchase of equipment to upgrade facilities.
Unlike the majority of utilities, the Salt River Project has an unusually
high degree of flexibility in setting rates. The bonds are among the most
actively traded bonds in the Arizona market, providing the Portfolio a high
quality bond and a cash surrogate.
Portfolio Overview
Based on market value as of March 31, 1995
[Graphic: Map of state of Arizona]
Number of issues............................ 29
Average quality............................. AA
Investment grade............................ 98.2%
Effective maturity.......................... 5.72 yrs.
Largest sectors:
Escrowed................................ 27.4%
General obligations..................... 15.2
Insured education....................... 12.4*
Insured general obligations............. 11.4*
Water & sewer revenue................... 7.7
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Arizona
Arizona continues to diversify its economy beyond an overdependence on the
state's traditional mainstays of mining, livestock and agriculture. The state's
rapid job growth has been concentrated primarily in the construction,
manufacturing, trade and services sectors. Construction industry employment has
been especially robust with housing permits and commercial construction awards
each posting strong, double-digit growth, according to the Federal Reserve Bank
of San Francisco. Service jobs represent 25 percent of total employment, while
trade comprises 21 percent, and government another 16 percent. Social spending
needs have increased with a growing urbanization. But, having met the fiscal
pressures of the 1980s through budget cuts, borrowings, and tax adjustments,
Arizona now appears to have created more breathing room through significant cuts
in expenditures. Moreover, in the recent fiscal year, the state's sales,
corporate income and individual income tax revenues have each improved
significantly. As a result, the state has managed to boost its general fund
balance to a more comfortable level of 2 percent of expenditures, providing a
more stable outlook for the state's finances.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Arizona
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From November 30, 1994, through March 31, 1995
- - --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN Life of Fund* Value of Investment at
3/31
- - --------------------------------------------------------------------------
With CDSC 1.0% $10,113
- - --------------------------------------------------------------------------
Without CDSC 4.0% $10,413
- - --------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Arizona Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
11/94+ 10,000 10,000
- - --------------------------------------------------------------------------
12/94 10,080 10,152
- - --------------------------------------------------------------------------
1/95 10,226 10,342
- - --------------------------------------------------------------------------
2/95 10,391 10,575
- - --------------------------------------------------------------------------
3/95 10,413 10,685
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 11/3/94. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
6
<PAGE>
EV Marathon California Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Mortarboard (hat)]
California Educational
Facilities Authority
Stanford University Revenue Bonds
Stanford University ranks among the most esteemed educational institutions in
the nation, boasting an eminent faculty and a highly selective and competitive
student population. The net proceeds of these bonds were used to pre-refund
outstanding principal and interest payments of previously issued Stanford
University project bonds of the Authority. The University has pledged its full
faith and credit to the payment of the bonds. The bonds, rated Aaa/AAA, have a
coupon of 5.9 percent, providing an attractive yield from a highly regarded
issuer.
Portfolio Overview
[Graphic: Map of state of California]
Based on market value as of March 31, 1995
Number of issues............................ 56
Average quality............................. AA
Investment grade.......................... 98.7%
Effective maturity......................... 5.87 yrs.
Largest sectors:
Escrowed/prerefunded.................. 22.4%
General obligations ................... 9.6
Electric utilities..................... 9.3
Insured hospital revenue............... 7.6*
Transportation......................... 5.4
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: California
The California economy continued to improve in 1994. While unemployment remains
well above national levels, the state's jobless rate has nonetheless improved to
the 7 percent range. In 1994, the state gained 150,000 jobs. Given the state's
population, that represents only a modest improvement. But following years of
job losses in the defense and technology sectors, the improvement may signal a
long-awaited turn in the state's economic fortunes. Despite the expectation of
continued downsizing in the defense industry, another 220,000 new jobs are
expected in 1995.
The construction industry remains a bright spot. While the level of housing
permits remains significantly lower than the peak year of 1986, housing permits
rose 15 percent in 1994.
While still debt-ridden, the state's financial outlook may brighten due to
tighter fiscal controls. Sales tax and personal income tax revenues have climbed
significantly. With the administration aiming for broad spending cuts and
containment over social spending, there is an increasing likelihood that
California credits may at last stabilize following years of deterioration.
Comparison of Change in Value of a $10,000 Investment in EV Marathon California
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From May 31, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment
at 3/31
- - -------------------------------------------------------------------------------
With CDSC 0.6% 3.9% $11,155
- - -------------------------------------------------------------------------------
Without CDSC 3.5% 4.6% $11,354
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
California Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
5/92+ 10,000 10,000
- - --------------------------------------------------------------------------
6/92 10,050 10,159
- - --------------------------------------------------------------------------
7/92 10,401 10,462
- - --------------------------------------------------------------------------
8/92 10,228 10,354
- - --------------------------------------------------------------------------
9/92 10,280 10,438
- - --------------------------------------------------------------------------
10/92 10,142 10,368
- - --------------------------------------------------------------------------
11/92 10,363 10,522
- - --------------------------------------------------------------------------
12/92 10,448 10,608
- - --------------------------------------------------------------------------
1/93 10,566 10,763
- - --------------------------------------------------------------------------
2/93 10,914 11,093
- - --------------------------------------------------------------------------
3/93 10,767 10,947
- - --------------------------------------------------------------------------
4/93 10,864 11,015
- - --------------------------------------------------------------------------
5/93 10,911 11,048
- - --------------------------------------------------------------------------
6/93 11,037 11,250
- - --------------------------------------------------------------------------
7/93 11,059 11,252
- - --------------------------------------------------------------------------
8/93 11,232 11,451
- - --------------------------------------------------------------------------
9/93 11,327 11,577
- - --------------------------------------------------------------------------
10/93 11,337 11,607
- - --------------------------------------------------------------------------
11/93 11,252 11,505
- - --------------------------------------------------------------------------
12/93 11,419 11,716
- - --------------------------------------------------------------------------
1/94 11,530 11,840
- - --------------------------------------------------------------------------
2/94 11,299 11,583
- - --------------------------------------------------------------------------
3/94 10,967 11,274
- - --------------------------------------------------------------------------
4/94 11,012 11,356
- - --------------------------------------------------------------------------
5/94 11,075 11,413
- - --------------------------------------------------------------------------
6/94 11,028 11,392
- - --------------------------------------------------------------------------
7/94 11,169 11,553
- - --------------------------------------------------------------------------
8/94 11,179 11,613
- - --------------------------------------------------------------------------
9/94 11,066 11,502
- - --------------------------------------------------------------------------
10/94 10,943 11,387
- - --------------------------------------------------------------------------
11/94 10,771 11,221
- - --------------------------------------------------------------------------
12/94 10,860 11,391
- - --------------------------------------------------------------------------
1/95 11,057 11,604
- - --------------------------------------------------------------------------
2/95 11,286 11,866
- - --------------------------------------------------------------------------
3/95 11,354 11,989
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 5/29/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
7
<PAGE>
EV Marathon Connecticut Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Capitol Building]
Town of Old Saybrook, CT
General Obligations
Old Saybrook, located on the south central coast of Long Island Sound, issued a
series of general obligation bonds in 1989 and 1990 with coupons in the 7
percent range. With rates significantly lower by early 1994, Old Saybrook issued
a new series of bonds to redeem the previous issued bonds on their scheduled
call dates. With coupons in the 4 percent range, the new issue resulted in major
savings for the Town. Because the new issues are insured as to principal and
interest payments by a private municipal bond insurer, they are deemed to be
very high quality by investors. Naturally, private insurance does not remove the
market risks associated with this investment.
Portfolio Overview
[Graphic: Map of state of Connecticut]
Based on market value as of March 31, 1995
Number of issues............................ 38
Average quality............................. AA
Investment grade........................... 100%
Effective maturity......................... 5.54 yrs.
Largest sectors:
Insured hospitals..................... 17.5%*
Special tax revenue................... 13.3
General obligations................... 11.0
Housing............................... 10.4
Solid waste............................ 7.5
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Connecticut
While significantly improved in the past year, Connecticut's economy continued
to lag national and regional trends. The state's deep recession exacted a heavy
toll in key industries such as finance, real estate, insurance and defense,
sectors 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 helped pace the Connecticut recovery. The
state's fiscal picture has brightened significantly with an improved economy.
Having encountered massive deficits earlier in the decade, Connecticut pursued a
series of fiscal and budgetary reforms, including instituting a 4 percent income
tax, lowering the state sales tax, eliminating taxes on capital gains, dividends
and interest, and instituting a constitutional expenditure cap, resulting in a
more stable tax revenue base. Having recorded operating surpluses in each of the
past three fiscal years, Connecticut should look forward to continued fiscal
stability and an improving financial future.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Connecticut
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From April 30, 1993, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.3% 1.3% $10,271
- - -------------------------------------------------------------------------------
Without CDSC 4.3% 2.5% $10,513
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Connecticut Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
4/93+ 10,000 10,000
- - --------------------------------------------------------------------------
5/93 9,970 10,030
- - --------------------------------------------------------------------------
6/93 10,103 10,213
- - --------------------------------------------------------------------------
7/93 10,108 10,215
- - --------------------------------------------------------------------------
8/93 10,287 10,396
- - --------------------------------------------------------------------------
9/93 10,384 10,510
- - --------------------------------------------------------------------------
10/93 10,388 10,537
- - --------------------------------------------------------------------------
11/93 10,302 10,444
- - --------------------------------------------------------------------------
12/93 10,483 10,636
- - --------------------------------------------------------------------------
1/94 10,595 10,749
- - --------------------------------------------------------------------------
2/94 10,381 10,516
- - --------------------------------------------------------------------------
3/94 10,083 10,235
- - --------------------------------------------------------------------------
4/94 10,154 10,310
- - --------------------------------------------------------------------------
5/94 10,189 10,361
- - --------------------------------------------------------------------------
6/94 10,142 10,343
- - --------------------------------------------------------------------------
7/94 10,273 10,488
- - --------------------------------------------------------------------------
8/94 10,301 10,543
- - --------------------------------------------------------------------------
9/94 10,212 10,442
- - --------------------------------------------------------------------------
10/94 10,102 10,337
- - --------------------------------------------------------------------------
11/94 9,978 10,187
- - --------------------------------------------------------------------------
12/94 10,095 10,341
- - --------------------------------------------------------------------------
1/95 10,257 10,535
- - --------------------------------------------------------------------------
2/95 10,440 10,772
- - --------------------------------------------------------------------------
3/95 10,513 10,884
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 4/16/93. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
8
<PAGE>
EV Marathon Florida Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Power lines]
City of St. Cloud, FL
Utility System
Revenue Refunding Bonds
The Electric Utility System serves a rapidly expanding population in the City
of St. Cloud, in central Florida, in a service area encompassing 150 square
miles. The proceeds of these bonds were used to refund outstanding debt of
the City. Rated AAA, the principal and interest payments of the bonds are
being paid by revenues generated by the Electric and Water Utility System.
With a 6.4 percent coupon, the bonds afford the Portfolio an attractive yield
in an insured bond. Naturally, private insurance does not remove the market
risks associated with this investment.
Portfolio Overview
[Graphic: Map of state of Florida]
Based on market value as of March 31, 1995
Number of issues............................ 98
Average quality............................ AA+
Investment grade.......................... 99.%
Effective maturity......................... 5.99 yrs.
Largest sectors:
Escrowed.............................. 21.9%
General obligations................... 11.2
Utilities............................. 10.1
Insured hospitals...................... 9.4*
Insured special tax ................... 7.1*
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Florida
The Florida economy posted positive results during 1994 and early 1995, with an
improving labor market. The state benefited from a strong national and regional
recovery, as evidenced by a sharply lower unemployment rate and a robust housing
market. However, Florida's important tourism industry registered its weakest
year for tourism since 1991. Tourist visits in 1994 declined by nearly 3 percent
to 39.9 million. While visitors traveling by air continued to increase, those
traveling by auto declined a significant 13 percent. State employment growth
was a strong 5.8 percent in 1994, which more than offset the recession job
losses of 1990-1992. Construction activity remained fairly strong in 1994, with
new housing starts rising more than 12 percent. But by year-end, rising interest
rates slowed construction growth somewhat. Meanwhile, growth continued in the
service and trade sectors. The state ended fiscal 1994 with capital reserves of
$296 million, benefiting from higher-than-anticipated corporate income and state
sales tax collections. State projections for 1995 suggest that the economy will
be generally stronger than in 1994, with a personal income growth in the 8
percent range.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Florida
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From May 31, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.8% 4.4% $11,301
- - -------------------------------------------------------------------------------
Without CDSC 4.8% 5.1% $11,501
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Florida Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
5/92+ 10,000 10,000
- - --------------------------------------------------------------------------
6/92 10,020 10,159
- - --------------------------------------------------------------------------
7/92 10,334 10,462
- - --------------------------------------------------------------------------
8/92 10,202 10,354
- - --------------------------------------------------------------------------
9/92 10,265 10,438
- - --------------------------------------------------------------------------
10/92 10,147 10,368
- - --------------------------------------------------------------------------
11/92 10,369 10,522
- - --------------------------------------------------------------------------
12/92 10,454 10,608
- - --------------------------------------------------------------------------
1/93 10,572 10,763
- - --------------------------------------------------------------------------
2/93 10,951 11,093
- - --------------------------------------------------------------------------
3/93 10,794 10,947
- - --------------------------------------------------------------------------
4/93 10,881 11,015
- - --------------------------------------------------------------------------
5/93 10,928 11,048
- - --------------------------------------------------------------------------
6/93 11,054 11,250
- - --------------------------------------------------------------------------
7/93 11,065 11,252
- - --------------------------------------------------------------------------
8/93 11,226 11,451
- - --------------------------------------------------------------------------
9/93 11,332 11,577
- - --------------------------------------------------------------------------
10/93 11,352 11,607
- - --------------------------------------------------------------------------
11/93 11,256 11,505
- - --------------------------------------------------------------------------
12/93 11,492 11,716
- - --------------------------------------------------------------------------
1/94 11,593 11,840
- - --------------------------------------------------------------------------
2/94 11,351 11,583
- - --------------------------------------------------------------------------
3/94 10,975 11,274
- - --------------------------------------------------------------------------
4/94 11,075 11,356
- - --------------------------------------------------------------------------
5/94 11,148 11,413
- - --------------------------------------------------------------------------
6/94 11,101 11,392
- - --------------------------------------------------------------------------
7/94 11,253 11,553
- - --------------------------------------------------------------------------
8/94 11,264 11,613
- - --------------------------------------------------------------------------
9/94 11,162 11,502
- - --------------------------------------------------------------------------
10/94 11,039 11,387
- - --------------------------------------------------------------------------
11/94 10,890 11,221
- - --------------------------------------------------------------------------
12/94 11,029 11,391
- - --------------------------------------------------------------------------
1/95 11,226 11,604
- - --------------------------------------------------------------------------
2/95 11,432 11,866
- - --------------------------------------------------------------------------
3/95 11,501 11,989
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 5/29/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
9
<PAGE>
EV Marathon Massachusetts Limited Maturity Tax Free Fund
[Graphic: Worker adjusting flow of water main]
Your investment at work
Massachusetts Water
Resources Authority
General Revenue Bonds
The Massachusetts Water Resources Authority is an independent authority of the
Commonwealth that controls water distribution and sewer systems for cities in
eastern Massachusetts. The proceeds of the bonds were used to pay outstanding
amounts of previously issued general obligations. The bonds' principal and
interest payments are paid by revenues derived from wholesale rates and charges
assessed on the cities and towns for water and sewer services.
Portfolio Overview
[Graphic: Map of state of Massachusetts]
Based on market value as of March 31, 1995
Number of issues............................ 83
Average quality............................. AA
Investment grade.......................... 98.5%
Effective maturity......................... 6.19 yrs.
Largest sectors:
Escrowed/prerefunded.................. 21.4%
Insured-general obligations........... 14.1*
Hospitals............................. 10.5
General obligations.................... 7.3
Education.............................. 6.8
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Massachusetts
Massachusetts has enjoyed consistent job growth in the past year as the service,
trade, and financial sectors continued to build momentum in 1994. As a result,
the commonwealth's 4.6 percent jobless rate in March 1995 remained well below
the national unemployment rate. Massachusetts' maintained its status as the
best-performing state economy in New England.
While the manufacturing sector registered further losses, the services, trade
and construction sectors demonstrated strength. Financial services, led by the
mutual fund industry, was especially strong. Commercial construction activity
increased as the stronger economy continued to reduce the overhang of commercial
office space created in the 1980s. Residential construction also showed
improvement although the rate of growth has slowed somewhat with higher interest
rates.
Debt levels in Massachusetts remain high, but the commonwealth's fiscal outlook
has benefited from a rebuilding of its financial reserves. Increased fiscal
responsibility together with reduced expenditures have added to the positive
outlook, as evidenced by a series of upgradings in the commonwealth's debt
ratings.
Comparison of Change in Value of a $10,000 Investment in EV Marathon
Massachusetts Limited Maturity Tax Free Fund (Including Sales Charge) and the
Lehman Brothers 7-Year Municipal Bond Index
From June 30, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment
at 3/31
- - -------------------------------------------------------------------------------
With CDSC 1.8% 4.1% $11,164
- - -------------------------------------------------------------------------------
Without CDSC 4.8% 4.8% $11,363
- - -------------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Massachusetts Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
6/92+ 10,000 10,000
- - --------------------------------------------------------------------------
7/92 10,278 10,298
- - --------------------------------------------------------------------------
8/92 10,136 10,192
- - --------------------------------------------------------------------------
9/92 10,178 10,275
- - --------------------------------------------------------------------------
10/92 10,070 10,205
- - --------------------------------------------------------------------------
11/92 10,270 10,358
- - --------------------------------------------------------------------------
12/92 10,355 10,442
- - --------------------------------------------------------------------------
1/93 10,462 10,595
- - --------------------------------------------------------------------------
2/93 10,798 10,919
- - --------------------------------------------------------------------------
3/93 10,652 10,776
- - --------------------------------------------------------------------------
4/93 10,739 10,843
- - --------------------------------------------------------------------------
5/93 10,786 10,875
- - --------------------------------------------------------------------------
6/93 10,900 11,074
- - --------------------------------------------------------------------------
7/93 10,911 11,076
- - --------------------------------------------------------------------------
8/93 11,094 11,272
- - --------------------------------------------------------------------------
9/93 11,180 11,396
- - --------------------------------------------------------------------------
10/93 11,201 11,425
- - --------------------------------------------------------------------------
11/93 11,117 11,325
- - --------------------------------------------------------------------------
12/93 11,300 11,533
- - --------------------------------------------------------------------------
1/94 11,399 11,655
- - --------------------------------------------------------------------------
2/94 11,180 11,402
- - --------------------------------------------------------------------------
3/94 10,838 11,098
- - --------------------------------------------------------------------------
4/94 10,917 11,179
- - --------------------------------------------------------------------------
5/94 10,979 11,234
- - --------------------------------------------------------------------------
6/94 10,933 11,214
- - --------------------------------------------------------------------------
7/94 11,085 11,372
- - --------------------------------------------------------------------------
8/94 11,107 11,432
- - --------------------------------------------------------------------------
9/94 10,995 11,322
- - --------------------------------------------------------------------------
10/94 10,884 11,209
- - --------------------------------------------------------------------------
11/94 10,746 11,045
- - --------------------------------------------------------------------------
12/94 10,903 11,213
- - --------------------------------------------------------------------------
1/95 11,077 11,423
- - --------------------------------------------------------------------------
2/95 11,295 11,680
- - --------------------------------------------------------------------------
3/95 11,363 11,802
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 6/1/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
10
<PAGE>
EV Marathon Michigan Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Capitol Building]
Grand Ledge, MI
General Obligations
Michigan School District
This issue is dedicated to public school funding in this small community west
of Lansing. Rated Aaa/AAA by Moody's and S&P, the bond came to market at a
significant premium. The bond was especially attractive due to its sound
credit quality and coupon of 7.875 percent. However, because the bond already
trades at its call price, it is likely to maintain low volatility, a strong
asset in an uncertain market.
Portfolio Overview
[Graphic: Map of the state of Michigan]
Based on market value as of March 31, 1995
Number of issues............................ 37
Average quality............................. AA-
Investment grade............................ 98.1%
Effective maturity.......................... 6.18 yrs.
Largest sectors:
Insured general obligations............. 13.7%*
Water & sewer revenue................... 11.3
Lease revenue/COP....................... 11.3
Special tax revenue..................... 10.2
Hospitals............................... 9.9
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Michigan
A strong surge in the cyclical economy and in domestic auto sales boosted
Michigan's economic output in 1994. Nearly 40 percent of the job growth has been
attributable to growth in the manufacturing sector, primarily autos, with
vehicle production exceeding 14 million units in 1994. Michigan's reliance on
manufacturing can lead to wide economic fluctuations. Yet the state has also
seen growth in the service and trade sectors, a partial buffer against future
cyclical downturns. Michigan continues to benefit from increasing demand from
the ongoing recovery in Europe and should be a major beneficiary from the
anticipated expansion in international trade.
On the fiscal front, Michigan has largely stabilized its finances in recent
years. Operating deficits have been eliminated through spending cuts, reduced
social spending, and the selective use of reserves. Michigan's efforts at
property tax reform to deal with public school funding have been applauded
nationally. Moreover, with a surge in the local economy, corporate and income
tax revenues have increased, restoring reserves and putting the state's finances
on a firmer footing.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Michigan
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From April 30, 1993, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.2% 1.1% $10,242
- - -------------------------------------------------------------------------------
Without CDSC 4.2% 2.3% $10,483
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Michigan Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
4/93+ 10,000 10,000
- - --------------------------------------------------------------------------
5/93 9,980 10,030
- - --------------------------------------------------------------------------
6/93 10,124 10,213
- - --------------------------------------------------------------------------
7/93 10,131 10,215
- - --------------------------------------------------------------------------
8/93 10,282 10,396
- - --------------------------------------------------------------------------
9/93 10,380 10,510
- - --------------------------------------------------------------------------
10/93 10,387 10,537
- - --------------------------------------------------------------------------
11/93 10,324 10,444
- - --------------------------------------------------------------------------
12/93 10,495 10,636
- - --------------------------------------------------------------------------
1/94 10,609 10,749
- - --------------------------------------------------------------------------
2/94 10,375 10,516
- - --------------------------------------------------------------------------
3/94 10,057 10,235
- - --------------------------------------------------------------------------
4/94 10,140 10,310
- - --------------------------------------------------------------------------
5/94 10,177 10,361
- - --------------------------------------------------------------------------
6/94 10,151 10,343
- - --------------------------------------------------------------------------
7/94 10,274 10,488
- - --------------------------------------------------------------------------
8/94 10,292 10,543
- - --------------------------------------------------------------------------
9/94 10,194 10,442
- - --------------------------------------------------------------------------
10/94 10,074 10,337
- - --------------------------------------------------------------------------
11/94 9,930 10,187
- - --------------------------------------------------------------------------
12/94 10,038 10,341
- - --------------------------------------------------------------------------
1/95 10,246 10,535
- - --------------------------------------------------------------------------
2/95 10,430 10,772
- - --------------------------------------------------------------------------
3/95 10,483 10,884
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 4/16/93. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
11
<PAGE>
EV Marathon New Jersey Limited Maturity Tax Free Fund
[Graphic: Worker adjusting flow of water main]
Your investment at work
Ocean County Utilities
Authority of New Jersey
Wastewater Revenue Bonds
An issue of the Ocean County Utilities Authority of New Jersey, these wastewater
revenue bonds provide financing for equipment and maintenance at waste water
treatment facilities. The bonds are popular with New Jersey residents and
environmentalists alike because they help bring sorely needed help to the
environment. Investors find the bonds attractive because they are rated Aaa/AAA,
are insured, and carry an attractive 6.7 percent coupon. The interest and
principal payments are backed by revenues of the County Utilities system.
Naturally, private insurance does not remove the market risks associated with
this investment.
Portfolio Overview
[Graphic: Map of state of New Jersey]
Based on market value as of March 31, 1995
Number of issues............................ 83
Average quality............................. AA
Investment grade............................ 99.4%
Effective maturity.......................... 6.38 yrs.
Largest sectors:
Transportation.......................... 14.6%
General obligations..................... 13.4
Housing................................. 13.3
Insured general obligations............. 10.3*
Water & sewer revenue................... 8.0
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: New Jersey
New Jersey continued along the road to recovery in 1994 with strong gains across
a wide range of industry sectors. According to the New Jersey Department of
Labor, net job gains since the bottom of the recession in March 1992 have
surpassed 100,000. Mirroring trends at the national level, the service sectors
accounted for the majority of employment gains, including health care
transportation, financial services, and temporary business service agencies.
Construction activity rebounded as well on the strength of rising housing
starts, non-residential building, and public works such as water, sewer, roads,
and communications systems. The financial condition of New Jersey deteriorated
throughout the first half of the 1990s due to declining revenues and sharply
rising social costs. As part of its recovery plan, the Whitman administration
has made lowering state taxes a major goal since it took office. In the short
term, balancing those revenue losses with spending cuts will prove challenging.
However, in the long run, these actions should lead to a better fiscal balance.
With an improving economic picture, New Jersey should gradually recognize the
benefits of having a more sound financial structure.
Comparison of Change in Value of a $10,000 Investment in EV Marathon New Jersey
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From June 30, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.5% 4.2% $11,187
- - -------------------------------------------------------------------------------
Without CDSC 4.5% 4.8% $11,387
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
New Jersey Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
6/92+ 10,000 10,000
- - --------------------------------------------------------------------------
7/92 10,358 10,298
- - --------------------------------------------------------------------------
8/92 10,215 10,192
- - --------------------------------------------------------------------------
9/92 10,257 10,275
- - --------------------------------------------------------------------------
10/92 10,118 10,205
- - --------------------------------------------------------------------------
11/92 10,328 10,358
- - --------------------------------------------------------------------------
12/92 10,422 10,442
- - --------------------------------------------------------------------------
1/93 10,540 10,595
- - --------------------------------------------------------------------------
2/93 10,896 10,919
- - --------------------------------------------------------------------------
3/93 10,739 10,776
- - --------------------------------------------------------------------------
4/93 10,825 10,843
- - --------------------------------------------------------------------------
5/93 10,871 10,875
- - --------------------------------------------------------------------------
6/93 11,006 11,074
- - --------------------------------------------------------------------------
7/93 11,016 11,076
- - --------------------------------------------------------------------------
8/93 11,167 11,272
- - --------------------------------------------------------------------------
9/93 11,250 11,396
- - --------------------------------------------------------------------------
10/93 11,249 11,425
- - --------------------------------------------------------------------------
11/93 11,174 11,325
- - --------------------------------------------------------------------------
12/93 11,345 11,533
- - --------------------------------------------------------------------------
1/94 11,455 11,655
- - --------------------------------------------------------------------------
2/94 11,225 11,402
- - --------------------------------------------------------------------------
3/94 10,894 11,098
- - --------------------------------------------------------------------------
4/94 10,971 11,179
- - --------------------------------------------------------------------------
5/94 11,033 11,234
- - --------------------------------------------------------------------------
6/94 10,985 11,214
- - --------------------------------------------------------------------------
7/94 11,115 11,372
- - --------------------------------------------------------------------------
8/94 11,136 11,432
- - --------------------------------------------------------------------------
9/94 11,045 11,322
- - --------------------------------------------------------------------------
10/94 10,922 11,209
- - --------------------------------------------------------------------------
11/94 10,773 11,045
- - --------------------------------------------------------------------------
12/94 10,941 11,213
- - --------------------------------------------------------------------------
1/95 11,125 11,423
- - --------------------------------------------------------------------------
2/95 11,308 11,680
- - --------------------------------------------------------------------------
3/95 11,387 11,802
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 6/1/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
12
<PAGE>
EV Marathon New York Limited Maturity Tax Free Fund
[Graphic: Capitol Building]
Your Investment at Work
New York Local Government
Assistance Corporation
Bonds issued by the NY Local Government Assistance Corporation (LGAC) have been
among the best performers in the New York market in recent months. Rated
Aaa/AAA, the pre-refunded bonds have a 7 percent coupon. Market dislocation in
late 1994 and early 1995 allowed the Portfolio to add to its LGAC position. The
bonds' security is based on 1 percent of the state's sales tax revenues, which
flows into a "locked box" available for debt service subject to appropriation.
The bonds are additionally prized by investors due to their limited supply.
Portfolio Overview
[graphic of the state of New York]
Based on market value as of March 31, 1995
Number of issues............................ 93
Average quality............................. AA
Investment grade............................ 100%
Effective maturity.......................... 6.02 yrs.
Largest sectors:
Escrowed/pre-refunded................... 20.0%
Special tax revenue..................... 9.0
Education............................... 8.4
Insured transportation.................. 8.3*
Transportation.......................... 7.4
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: New York
The Pataki administration took office in January with an agenda that included
reducing government bureaucracy and lowering taxes while fostering economic
development. That agenda has been hampered by economic setbacks. The state
economy has slowed under the weight of cutbacks in several sectors, including
the key financial services industry. S&P economic projections suggest that job
growth for 1995 will remain below 1 percent, following growth of just 0.4
percent in 1994. Personal income in New York rose just 4.7 percent in 1994,
slightly below the national average of 4.9 percent, according to the Commerce
Department. The state entered fiscal 1995 facing another large operating
deficit, burdened by Medicaid expenditures that total $10.1 billion. The
administration's fiscal 1996 budget calls for a 3.4 percent decline in spending,
including cuts in welfare and social spending. The proposed social cuts are
likely to provoke an intense political debate. However, if successfully
implemented, they could lead to ratings upgrades.
Comparison of Change in Value of a $10,000 Investment in EV Marathon New York
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From May 31, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment
at 3/31
- - -------------------------------------------------------------------------------
With CDSC 1.4% 4.2% $11,234
- - -------------------------------------------------------------------------------
Without CDSC 4.4% 4.8% $11,434
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
New York Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
5/92+ 10,000 10,000
- - --------------------------------------------------------------------------
6/92 10,010 10,159
- - --------------------------------------------------------------------------
7/92 10,312 10,462
- - --------------------------------------------------------------------------
8/92 10,220 10,354
- - --------------------------------------------------------------------------
9/92 10,274 10,438
- - --------------------------------------------------------------------------
10/92 10,135 10,368
- - --------------------------------------------------------------------------
11/92 10,368 10,522
- - --------------------------------------------------------------------------
12/92 10,464 10,608
- - --------------------------------------------------------------------------
1/93 10,603 10,763
- - --------------------------------------------------------------------------
2/93 10,962 11,093
- - --------------------------------------------------------------------------
3/93 10,795 10,947
- - --------------------------------------------------------------------------
4/93 10,871 11,015
- - --------------------------------------------------------------------------
5/93 10,908 11,048
- - --------------------------------------------------------------------------
6/93 11,055 11,250
- - --------------------------------------------------------------------------
7/93 11,076 11,252
- - --------------------------------------------------------------------------
8/93 11,258 11,451
- - --------------------------------------------------------------------------
9/93 11,342 11,577
- - --------------------------------------------------------------------------
10/93 11,351 11,607
- - --------------------------------------------------------------------------
11/93 11,265 11,505
- - --------------------------------------------------------------------------
12/93 11,437 11,716
- - --------------------------------------------------------------------------
1/94 11,548 11,840
- - --------------------------------------------------------------------------
2/94 11,305 11,583
- - --------------------------------------------------------------------------
3/94 10,952 11,274
- - --------------------------------------------------------------------------
4/94 11,030 11,356
- - --------------------------------------------------------------------------
5/94 11,103 11,413
- - --------------------------------------------------------------------------
6/94 11,078 11,392
- - --------------------------------------------------------------------------
7/94 11,208 11,553
- - --------------------------------------------------------------------------
8/94 11,218 11,613
- - --------------------------------------------------------------------------
9/94 11,106 11,502
- - --------------------------------------------------------------------------
10/94 10,983 11,387
- - --------------------------------------------------------------------------
11/94 10,788 11,221
- - --------------------------------------------------------------------------
12/94 10,952 11,391
- - --------------------------------------------------------------------------
1/95 11,149 11,604
- - --------------------------------------------------------------------------
2/95 11,366 11,866
- - --------------------------------------------------------------------------
3/95 11,434 11,989
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 5/29/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
13
<PAGE>
EV Marathon North Carolina Limited Maturity Tax Free Fund
Your investment at work
[Graphic: Capitol Building]
Greensboro, NC
General Obligation Bonds
Greensboro, N.C. has ranked among the top metropolitan areas in the nation in
attracting manufacturing facilities. The city received the National Civic
League's All America city designation in 1991, one of only ten cities to be so
honored. The city has maintained strong population growth and per capita income
growth well above the state average. The proceeds of these bonds funded
improvements to the city's public works and water system. The bonds are rated
AAA and have an attractive coupon of 6.25 percent.
Portfolio Overview
[Graphic: Map of the state of North Carolina]
Based on market value as of March 31, 1995
Number of issues............................ 13
Average quality............................. AA
Investment grade............................ 93.1%
Effective maturity.......................... 6.17 yrs.
Largest sectors:
General obligations..................... 51.8%
Insured general obligations............. 17.3*
Housing................................. 10.1
Insured lease revenue/COP............... 7.0*
Escrowed/prerefunded.................... 6.9
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: North Carolina
North Carolina's economy remained relatively strong during 1994, continuing a
pattern of growth that began in the 1980s. During that period, the state's
economy changed from dependence on textile, furniture and tobacco to a much more
diversified economic base. North Carolina emerged from the 1991 recession in
good condition compared to other states, stimulated by growth in the state's
high technology, service and pharmaceutical sectors. The financial services
industry also has strengthened in recent years, with major banking facilities
headquartered in Charlotte and Raleigh.
Despite an expected loss of jobs in the tobacco, textile and apparel industries,
the state's newly found economic diversity helps establish a foundation for
continued growth above the national average. State projections estimate that
employment growth in the nonmanufacturing sectors could exceed 2.5 percent
during the next several years. Growth in 1995 is likely to be helped in
particular by strength in the construction industry, which has been boosted by
residential construction as well as a number of major public works projects.
With a stronger economy and a traditionally conservative fiscal policy, North
Carolina's financial picture has brightened significantly.
Comparison of Change in Value of a $10,000 Investment in EV Marathon North
Carolina Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman
Brothers 7-Year Municipal Bond Index
From November 30, 1994, through March 31, 1995
- - --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN Life of Fund* Value of Investment at
3/31
- - --------------------------------------------------------------------------
With CDSC 0.3% $10,021
- - --------------------------------------------------------------------------
Without CDSC 3.3% $10,321
- - --------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
North Carolina Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
11/94+ 10,000 10,000
- - --------------------------------------------------------------------------
12/94 10,010 10,152
- - --------------------------------------------------------------------------
1/95 10,156 10,342
- - --------------------------------------------------------------------------
2/95 10,270 10,575
- - --------------------------------------------------------------------------
3/95 10,321 10,685
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 11/28/94. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
14
<PAGE>
EV Marathon Ohio Limited Maturity Tax Free Fund
[Graphic: Industrial buildings]
Your Investment at Work
Ohio Enterprise Bond Fund
Economic Development
Revenue Bonds
The Ohio Enterprise Bond Fund Program was initiated in 1980 to provide loans to
Ohio businesses that will provide jobs and tax revenues to Ohio communities. The
program maintains pooled reserves available to pay the debt service of
participating businesses delinquent on loans, enabling them to obtain interest
rates well below the rates available from other sources. To date, 41 Ohio
businesses have obtained loans, with no access yet needed to the pooled
reserves. The bonds have an attractive coupon of 6.8 percent.
Portfolio Overview
[Graphic: Map of the state of Ohio]
Based on market value as of March 31, 1995
Number of issues............................ 39
Average quality............................. AA-
Investment grade............................ 97.6%
Effective maturity.......................... 6.5 yrs.
Largest sectors:
Insured general obligation.............. 17.8%*
Education............................... 15.4
General obligations..................... 13.1
Water & sewer revenue................... 11.1
Escrowed................................ 10.2
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Ohio
An increasing economic diversity has improved Ohio's employment mix in the past
decade. Manufacturing has been especially robust in the past year as the
national economy continued to expand. The large automobile industry within the
state has benefited from a strong surge in 1994 auto sales. In addition, the
weak dollar has given an added boost to the state's exporters of durable goods.
While manufacturing still represents the lion's share of jobs - 21 percent
versus 17 percent for the nation - growth in the trade, services sectors has led
to greater economic stability for the state. Recent unemployment figures have
generally reflected national trends, with the Ohio jobless rate hovering near
the 4 percent level.
The Ohio financial outlook has strengthened with the stronger economy. Tax
receipts - especially auto sales tax and use taxes - have generally exceeded
expectations. Reduced Medicaid caseloads have led to a decrease in lower social
spending. The improved economic performance has enabled the state to expand its
financial reserves. The general fund balance was up sharply in the recent fiscal
year.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Ohio
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From April 30, 1993, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.4% 1.6% $10,315
- - -------------------------------------------------------------------------------
Without CDSC 4.4% 2.9% $10,558
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Ohio Limited Municipal Bond Index
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
4/93+ 10,000 10,000
- - --------------------------------------------------------------------------
5/93 9,990 10,030
- - --------------------------------------------------------------------------
6/93 10,149 10,213
- - --------------------------------------------------------------------------
7/93 10,176 10,215
- - --------------------------------------------------------------------------
8/93 10,348 10,396
- - --------------------------------------------------------------------------
9/93 10,446 10,510
- - --------------------------------------------------------------------------
10/93 10,452 10,537
- - --------------------------------------------------------------------------
11/93 10,389 10,444
- - --------------------------------------------------------------------------
12/93 10,561 10,636
- - --------------------------------------------------------------------------
1/94 10,674 10,749
- - --------------------------------------------------------------------------
2/94 10,431 10,516
- - --------------------------------------------------------------------------
3/94 10,113 10,235
- - --------------------------------------------------------------------------
4/94 10,206 10,310
- - --------------------------------------------------------------------------
5/94 10,253 10,361
- - --------------------------------------------------------------------------
6/94 10,217 10,343
- - --------------------------------------------------------------------------
7/94 10,350 10,488
- - --------------------------------------------------------------------------
8/94 10,369 10,543
- - --------------------------------------------------------------------------
9/94 10,260 10,442
- - --------------------------------------------------------------------------
10/94 10,140 10,337
- - --------------------------------------------------------------------------
11/94 9,996 10,187
- - --------------------------------------------------------------------------
12/94 10,136 10,341
- - --------------------------------------------------------------------------
1/95 10,322 10,535
- - --------------------------------------------------------------------------
2/95 10,484 10,772
- - --------------------------------------------------------------------------
3/95 10,558 10,884
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 4/16/93. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
15
<PAGE>
EV Marathon Pennsylvania Limited Maturity Tax Free Fund
[Graphic: Industrial buildings]
Your investment at work
PA Economic Development
Authority - Northampton
Resource Recovery
An issue of the Pennsylvania Economic Development Authority, this bond provides
funding for the Northampton Generating Project, an energy cogeneration facility.
The project is popular with industry because it is a cost-effective way to
produce energy, and popular with environmentalists because it averts further
environmental contamination by industrial by-products. While non-rated, the
bonds have a 6 1/2 percent coupon, but the Portfolio purchased them at a modest
discount for a yield above 7 percent. The bond is characteristic of the recent
efforts to increase the yield of the Portfolio.
Portfolio Overview
[graphic of the state of Pennsylvania]
Based on market value as of March 31, 1995
Number of issues............................ 90
Average quality............................. AA+
Investment grade............................ 98.7%
Effective maturity.......................... 6.24 yrs.
Largest sectors:
Escrowed................................ 25.0%
Insured general obligations............. 9.5*
Insured education....................... 8.9*
Hospitals............................... 8.8
Insured hospitals....................... 8.2*
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Pennsylvania
Pennsylvania registered another strong economic showing in 1994 with growth
especially robust in the service, retail and government sectors. In the
goods-producing sectors, construction and durable goods manufacturers also
managed gains, while mining remained an area of weakness.
Pennsylvania weathered the recession of the early 1990s better than its
neighbors in the Northeast because of a smaller dependence on the financial
services, real estate, and defense industries. Elsewhere, because the state's
manufacturers have focused on restructuring and modernizing industrial plants,
the manufacturing sector is now well-positioned to compete in an increasingly
global marketplace. Having suffered through operating deficits during the
recession, Pennsylvania made difficult budget decisions that paid dividends in
the past year in the form of larger-than-expected surpluses. Recent tax cuts
will provide a revenue challenge, especially in light of rising mandated social
and medical spending. But having instituted more effective spending controls,
Pennsylvania has significantly improved its budgetary disciplines and should
enjoy a much improved financial outlook.
Comparison of Change in Value of a $10,000 Investment in EV Marathon
Pennsylvania Limited Maturity Tax Free Fund (Including Sales Charge) and the
Lehman Brothers 7-Year Municipal Bond Index
From June 30, 1992, through March 31, 1995
- - -------------------------------------------------------------------------------
AVERAGE ANNUAL RETURNS 1 Year Life of Fund* Value of Investment at
3/31
- - -------------------------------------------------------------------------------
With CDSC 1.5% 4.5% $11,216
- - -------------------------------------------------------------------------------
Without CDSC 4.5% 5.1% $11,416
- - -------------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Pennsylvania Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
6/92+ 10,000 10,000
- - --------------------------------------------------------------------------
7/92 10,357 10,298
- - --------------------------------------------------------------------------
8/92 10,206 10,192
- - --------------------------------------------------------------------------
9/92 10,268 10,275
- - --------------------------------------------------------------------------
10/92 10,121 10,205
- - --------------------------------------------------------------------------
11/92 10,351 10,358
- - --------------------------------------------------------------------------
12/92 10,435 10,442
- - --------------------------------------------------------------------------
1/93 10,563 10,595
- - --------------------------------------------------------------------------
2/93 10,898 10,919
- - --------------------------------------------------------------------------
3/93 10,722 10,776
- - --------------------------------------------------------------------------
4/93 10,819 10,843
- - --------------------------------------------------------------------------
5/93 10,866 10,875
- - --------------------------------------------------------------------------
6/93 10,991 11,074
- - --------------------------------------------------------------------------
7/93 11,003 11,076
- - --------------------------------------------------------------------------
8/93 11,186 11,272
- - --------------------------------------------------------------------------
9/93 11,271 11,396
- - --------------------------------------------------------------------------
10/93 11,282 11,425
- - --------------------------------------------------------------------------
11/93 11,198 11,325
- - --------------------------------------------------------------------------
12/93 11,403 11,533
- - --------------------------------------------------------------------------
1/94 11,502 11,655
- - --------------------------------------------------------------------------
2/94 11,274 11,402
- - --------------------------------------------------------------------------
3/94 10,924 11,098
- - --------------------------------------------------------------------------
4/94 11,013 11,179
- - --------------------------------------------------------------------------
5/94 11,065 11,234
- - --------------------------------------------------------------------------
6/94 11,030 11,214
- - --------------------------------------------------------------------------
7/94 11,182 11,372
- - --------------------------------------------------------------------------
8/94 11,193 11,432
- - --------------------------------------------------------------------------
9/94 11,082 11,322
- - --------------------------------------------------------------------------
10/94 10,961 11,209
- - --------------------------------------------------------------------------
11/94 10,803 11,045
- - --------------------------------------------------------------------------
12/94 10,969 11,213
- - --------------------------------------------------------------------------
1/95 11,142 11,423
- - --------------------------------------------------------------------------
2/95 11,359 11,680
- - --------------------------------------------------------------------------
3/95 11,416 11,802
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 6/1/92. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
16
<PAGE>
EV Marathon Virginia Limited Maturity Tax Free Fund
[Graphic: Medical symbol, 2 snakes entwined on winged staff]
Your investment at work
Winchester, VA Medical Center
Revenue Bonds
The Winchester Industrial Development Authority develops public facilities
such as the Winchester Medical Center. The proceeds of the bonds have been
directed toward the purchase and maintenance of equipment for the Winchester
Medical Center, a local, non-profit hospital. The pre-refunded bonds are
backed by the pledged assets of the hospital, are insured by a major
municipal insurer, and carry an attractive coupon of 7.25 percent. Interest
and principal payments are made by the revenues generated by the hospital.
Naturally, private insurance does not remove the market risks associated with
this investment.
Portfolio Overview
[Graphic: Map of the state of Virginia]
Based on market value as of March 31, 1995
Number of issues............................ 15
Average quality............................. AA+
Investment grade............................ 100%
Effective maturity.......................... 5.84 yrs.
Largest sectors:
General obligations..................... 26.2%
Escrowed/prerefunded.................... 24.4
Lease revenue/COP....................... 11.8
Insured-lease revenue/COP............... 11.6*
Special tax ............................ 8.7
* Private insurance does not remove the market risk associated with
this investment.
The State of the State: Virginia
Virginia's economy has remained relatively strong, with the key to recovery
being its increasingly diverse economic base and greater-than-average income
levels. Virginia has maintained relatively low unemployment, though the rate of
job creation has slowed in recent years. The diversity of the commonwealth's
economy can be seen in its distinct economic regions. Northern Virginia benefits
from its nearness to Washington, D.C. and its relatively high-paying government
jobs. The Tidewater region's jobs revolve around the defense industry. The
western part of the state, while rural, has a strong concentration of
manufacturing facilities. Naturally, Virginia faces the continuing uncertainty
tied to defense cutbacks and may experience a further attrition of government
jobs as well as base closings. But those losses should be partially offset by
gains in the service and technology sectors.
State government has pursued a prudent fiscal course, benefiting from spending
cuts in state agency budgets. Based on its historically conservative financial
policies, low debt levels, and increasingly diverse economy, Virginia remains
among the few states to merit a triple-A credit rating from the major ratings
agencies.
Comparison of Change in Value of a $10,000 Investment in EV Marathon Virginia
Limited Maturity Tax Free Fund (Including Sales Charge) and the Lehman Brothers
7-Year Municipal Bond Index
From November 30, 1994, through March 31, 1995
- - --------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN Life of Fund* Value of Investment
at 3/31
- - --------------------------------------------------------------------------
With CDSC 1.8% $10,161
- - --------------------------------------------------------------------------
Without CDSC 4.8% $10,461
- - --------------------------------------------------------------------------
- - --------------------------------------------------------------------------
Date EV Marathon Lehman Brothers 7-Year
Virginia Municipal Bond Index
Limited
Maturity Tax
Free Fund
- - --------------------------------------------------------------------------
11/94+ 10,000 10,000
- - --------------------------------------------------------------------------
12/94 10,089 10,152
- - --------------------------------------------------------------------------
1/95 10,245 10,342
- - --------------------------------------------------------------------------
2/95 10,410 10,575
- - --------------------------------------------------------------------------
3/95 10,461 10,685
- - --------------------------------------------------------------------------
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD. *Investment operations commenced 11/11/94. +Index information is
available only at month-end, therefore, the line comparison begins at the next
month-end following the commencement of the Fund's investment operations.
17
<PAGE>
EV Marathon Limited Maturity Tax Free Funds
Financial Statements
Statements of Assets and Liabilities
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>
Assets:
Investments -
Identified cost $475,884 $73,728,647 $15,685,439 $149,290,609 $113,800,599 $25,762,312
Unrealized
appreciation
(depreciation) 10,262 617,506 (31,946) 1,087,707 (40,543) 408,815
-------- -------- -------- -------- -------- ----------
Total investment in
Portfolio, at value
(Note 1A) $486,146 $74,346,153 $15,653,493 $150,378,316 $113,760,056 $26,171,127
Receivable for Fund
shares sold 10,010 4,114 3,000 15,510 1,274 210
Receivable from the
Administrator
(Note 4) 1,359 -- 12,014 -- -- --
Deferred organization
expenses (Note 1D) 3,106 13,164 12,478 16,454 14,618 13,362
-------- -------- -------- -------- -------- ----------
Total assets $500,621 $74,363,431 $15,680,985 $150,410,280 $113,775,948 $26,184,699
-------- -------- -------- -------- -------- ----------
Liabilities:
Dividends payable $ 847 $ 127,542 $ 25,276 $ 254,267 $ 196,669 $ 44,351
Payable for Fund shares
redeemed -- 356,043 37,449 525,519 202,579 80,760
Payable to affiliates -
Trustees' fees -- 402 42 805 805 42
Custodian fees 101 308 33 571 431 29
Accrued expenses 985 22,290 5,274 47,686 37,286 11,282
-------- -------- -------- -------- -------- ----------
Total liabilities $ 1,933 $ 506,585 $ 68,074 $ 828,848 $ 437,770 $ 136,464
-------- -------- -------- -------- -------- ----------
Net Assets $498,688 $73,856,846 $15,612,911 $149,581,432 $113,338,178 $26,048,235
======== ======== ======== ======== ======== ==========
Sources of Net Assets:
Paid-in capital $488,494 $76,337,677 $16,104,107 $152,010,730 $115,551,916 $27,050,526
Accumulated net
realized loss on
investment and
financial futures
transactions (computed
on the basis of
identified cost) (8) (2,970,331) (504,056) (3,264,200) (1,978,784) (1,398,577)
Accumulated
undistributed
(distributions in
excess of) net
investment income (60) (128,006) 44,806 (252,805) (194,411) (12,529)
Unrealized appreciation
(depreciation) of
investments and
financial futures
contracts from
Portfolio (computed on
the basis of
identified cost) 10,262 617,506 (31,946) 1,087,707 (40,543) 408,815
-------- -------- -------- -------- -------- ----------
Total $498,688 $73,856,846 $15,612,911 $149,581,432 $113,338,178 $26,048,235
======== ======== ======== ======== ======== ==========
Shares of Beneficial
Interest Outstanding
(Class I) 48,666 7,423,534 1,611,373 14,842,206 11,359,537 2,704,327
======== ======== ======== ======== ======== ==========
Net Asset Value,
Offering Price and
Redemption Price Per
Share (net assets /
shares of beneficial
interest outstanding)
(Note 6) $10.25 $9.95 $9.69 $10.08 $9.98 $9.63
======== ======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements
18
<PAGE>
<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 $93,366,849 $167,952,891 $129,592 $33,770,415 $103,516,106 $112,484
Unrealized
appreciation
(depreciation) 627,047 (765,270) 2,496 435,173 356,253 2,711
-------- -------- -------- -------- -------- ----------
Total investment in
Portfolio, at value
(Note 1A) $93,993,896 $167,187,621 $132,088 $34,205,588 $103,872,359 $115,195
Receivable for Fund
shares sold 22,977 35,310 -- 130,000 33,416 --
Receivable from the
Administrator
(Note 4) -- -- 1,370 -- -- 1,284
Deferred organization
expenses (Note 1D) 14,510 16,295 5,673 11,966 15,144 3,513
-------- -------- -------- -------- -------- ----------
Total assets $94,031,383 $167,239,226 $139,131 $34,347,554 $103,920,919 $119,992
-------- -------- -------- -------- -------- ----------
Liabilities:
Dividends payable $ 158,551 $ 284,148 $ 211 $ 56,950 $ 179,315 $ 203
Payable for Fund shares
redeemed 481,560 206,237 -- 1,084 150,313 --
Payable to affiliates -
Trustees' fees 402 805 -- 42 805 --
Custodian fees 377 621 197 140 426 108
Accrued expenses 28,994 56,029 3,604 10,571 37,108 1,411
-------- -------- -------- -------- -------- ----------
Total liabilities $ 669,884 $ 547,840 $ 4,012 $ 68,787 $ 367,967 $ 1,722
-------- -------- -------- -------- -------- ----------
Net Assets $93,361,499 $166,691,386 $135,119 $34,278,767 $103,552,952 $118,270
======== ======== ======== ======== ======== ==========
Sources of Net Assets:
Paid-in capital $95,223,469 $170,529,807 $132,844 $35,441,076 $105,041,968 $115,617
Accumulated net
realized gain (loss)
on investment and
financial futures
transactions
(computed on the basis
of identified cost) (2,332,044) (2,790,252) 3 (1,652,296) (1,684,630) (32)
Accumulated
undistributed
(distributions in
excess of) net
investment income (156,973) (282,899) (224) 54,814 (160,639) (26)
Unrealized appreciation
(depreciation) of
investments and
financial futures
contracts from
Portfolio (computed on
the basis of
identified cost) 627,047 (765,270) 2,496 435,173 356,253 2,711
-------- -------- -------- -------- -------- ----------
Total $93,361,499 $166,691,386 $135,119 $34,278,767 $103,552,952 $118,270
======== ======== ======== ======== ======== ==========
Shares of Beneficial
Interest Outstanding
(Class I) 9,314,616 16,621,229 13,229 3,523,846 10,259,190 11,434
======== ======== ======== ======== ======== ==========
Net Asset Value,
Offering Price and
Redemption Price Per
Share (net assets /
shares of beneficial
interest outstanding)
(Note 6) $10.02 $10.03 $10.21 $9.73 $10.09 $10.34
======== ======== ======== ======== ======== ==========
</TABLE>
See notes to financial statements
19
<PAGE>
Statements of Operations
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>
Investment Income
(Note 1B):
Interest income
allocated from
Portfolio $ 6,929 $ 4,211,657 $ 786,796 $ 8,454,224 $ 6,250,676 $ 1,457,421
Expenses allocated from
Portfolio -- (426,712) (25,527) (837,347) (625,794) (130,309)
-------- -------- -------- -------- -------- ----------
Net investment income
from Portfolio $ 6,929 $ 3,784,945 $ 761,269 $ 7,616,877 $ 5,624,882 $ 1,327,112
-------- -------- -------- -------- -------- ----------
Expenses -
Compensation of
Trustees not members
of the
Administrator's
organization $ -- $ 1,673 $ 650 $ 3,411 $ 2,489 $ 513
Distribution costs
(Note 5) 1,139 656,034 123,356 1,325,677 953,401 222,717
Custodian fees
(Note 4) 251 8,287 8,395 13,434 9,998 5,323
Transfer and dividend
disbursing agent fees 38 56,426 9,218 118,241 82,381 20,529
Printing and postage 742 43,562 14,825 63,600 62,317 19,929
Legal and accounting
services 25 12,156 10,439 14,238 12,753 8,596
Amortization of
organization expenses
(Note 1D) 276 6,088 4,070 7,613 6,712 4,078
Registration costs 4 17,253 -- 7,711 24,355 2,678
Miscellaneous 23 11,361 5,050 18,625 15,329 5,860
-------- -------- -------- -------- -------- ----------
Total expenses $ 2,498 $ 812,840 $ 176,003 $ 1,572,550 $ 1,169,735 $ 290,223
Deduct allocation of
expenses to the
Administrator (Note 4) 1,359 -- 12,014 -- -- --
-------- -------- -------- -------- -------- ----------
Net expenses $ 1,139 $ 812,840 $ 163,989 $ 1,572,550 $ 1,169,736 $ 290,223
-------- -------- -------- -------- -------- ----------
Net investment
income $ 5,790 $ 2,972,105 $ 597,280 $ 6,044,327 $ 4,455,147 $ 1,036,889
-------- -------- -------- -------- -------- ----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain
(loss) from
Portfolio -
Investment
transactions
(identified cost
basis) $ (8) $(2,960,550) $(495,277) $(3,230,818) $(1,958,795) $(1,395,765)
Financial futures
contracts -- (18,312) 15,014 (36,364) (24,535) 28,990
-------- -------- -------- -------- -------- ----------
Net realized loss $ (8) $(2,978,862) $(480,263) $(3,267,182) $(1,983,330) $(1,366,775)
Change in unrealized
appreciation of
investments and
financial futures
contracts 10,262 2,562,176 508,802 4,182,568 2,697,659 1,411,445
-------- -------- -------- -------- -------- ----------
Net realized and
unrealized gain
(loss) $10,254 $ (416,686) $ 28,539 $ 915,386 $ 714,329 $ 44,670
-------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $16,044 $ 2,555,419 $ 625,819 $ 6,959,713 $ 5,169,476 $ 1,081,559
======== ======== ======== ======== ======== ==========
</TABLE>
* For the period from the start of business, November 3, 1994, to March 31,
1995.
See notes to financial statements
20
<PAGE>
<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>
Investment Income
(Note 1B):
Interest income
allocated from
Portfolio $ 5,200,108 $ 9,337,124 $1,219 $ 1,834,475 $ 5,767,053 $1,385
Expenses allocated from
Portfolio (534,765) (910,268) -- (156,896) (579,905) --
-------- -------- -------- -------- -------- ----------
Net investment income
from Portfolio $ 4,665,343 $ 8,426,856 $1,219 $ 1,677,579 $ 5,187,148 $1,385
-------- -------- -------- -------- -------- ----------
Expenses -
Compensation of
Trustees not members
of the
Administrator's
organization $ 2,118 $ 3,348 $ -- $ 512 $ 3,411 $ --
Distribution costs
(Note 5) 816,151 1,465,384 239 270,115 909,868 220
Custodian fees
(Note 4) 10,895 12,296 251 9,392 8,295 252
Transfer and dividend
disbursing agent fees 68,671 130,230 18 23,884 83,487 17
Printing and postage 63,915 79,671 652 20,906 60,529 739
Legal and accounting
services 12,734 14,524 25 9,462 14,876 25
Amortization of
organization expenses
(Note 1D) 6,691 7,541 413 3,998 6,975 293
Registration costs 906 3,483 -- 1,747 18,477 --
Miscellaneous 14,684 18,851 12 4,403 17,629 11
-------- -------- -------- -------- -------- ----------
Total expenses $ 996,765 $ 1,735,328 $1,610 $ 344,419 $ 1,123,547 $1,557
Deduct allocation of
expenses
to the Administrator
(Note 4) -- -- 1,370 -- -- 1,284
-------- -------- -------- -------- -------- ----------
Net expenses $ 996,765 $ 1,735,328 $ 240 $ 344,419 $ 1,123,547 $ 273
-------- -------- -------- -------- -------- ----------
Net investment
income $ 3,668,578 $ 6,691,528 $ 979 $ 1,333,160 $ 4,063,601 $1,112
-------- -------- -------- -------- -------- ----------
Realized and Unrealized
Gain (Loss) on
Investments:
Net realized gain
(loss) from
Portfolio -
Investment
transactions
(identified
cost basis) $(2,309,554) $(2,753,280) $ 3 $(1,573,243) $(1,669,897) $ (32)
Financial futures
contracts (23,616) (42,638) -- 31,855 (26,922) --
-------- -------- -------- -------- -------- ----------
Net realized gain
(loss) $(2,333,170) $(2,795,918) $ 3 $(1,541,388) $(1,696,819) $ (32)
Change in unrealized
appreciation of
investments and
financial futures
contracts 2,832,889 3,210,944 2,496 1,628,473 2,245,269 2,711
-------- -------- -------- -------- -------- ----------
Net realized and
unrealized gain $ 499,719 $ 415,026 $2,499 $ 87,085 $ 548,450 $2,679
-------- -------- -------- -------- -------- ----------
Net increase in net
assets from
operations $ 4,168,297 $ 7,106,554 $3,478 $ 1,420,245 $ 4,612,051 $3,791
======== ======== ======== ======== ======== ==========
</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.
See notes to financial statements
21
<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
22
<PAGE>
<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
24
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1994*
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon
California Connecticut Florida Massachusetts Marathon
Limited Limited Limited Limited Michigan
Fund Fund Fund Fund Limited Fund
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From operations -
Net investment income $ 2,277,828 $ 269,836 $ 4,822,037 $ 3,388,084 $ 611,222
Net realized gain
(loss) on investments 138,559 (12,135) 299,462 226,598 (31,802)
Change in unrealized
depreciation of
investments (2,572,293) (540,748) (5,020,302) (3,661,511) (1,002,630)
-------- -------- -------- -------- ----------
Net increase
(decrease) in net
assets from
operations $ (155,906) $ (283,047) $ 101,197 $ (46,829) $ (423,210)
-------- -------- -------- -------- ----------
Distributions to
shareholders
(Note 2) -
From net investment
income $(2,277,828) $ (269,836) $ (4,822,037) $ (3,388,084) $ (611,222)
In excess of net
investment income (580,706) (44,105) (1,161,189) (839,613) (126,275)
From net realized gain
on investment
transactions (103,886) -- (115,782) (194,628) --
In excess of net
realized gain on
investments -- (11,658) -- -- --
-------- -------- -------- -------- ----------
Total distributions
to shareholders $(2,962,420) $ (325,599) $ (6,099,008) $ (4,422,325) $ (737,497)
-------- -------- -------- -------- ----------
Transactions in shares
of beneficial interest
(Note 3) -
Proceeds from sales of
shares $52,917,271 $15,708,510 $ 86,219,460 $ 69,780,329 $28,458,058
Net asset value of
shares issued to
shareholders in
payment of
distributions
declared 1,434,198 201,917 2,980,387 2,488,646 432,862
Cost of shares
redeemed (5,996,356) (550,018) (10,412,796) (8,415,494) (941,888)
-------- -------- -------- -------- ----------
Increase in net
assets from Fund
share transactions $48,355,113 $15,360,409 $ 78,787,051 $ 63,853,481 $27,949,032
-------- -------- -------- -------- ----------
Net increase in net
assets $45,236,787 $14,751,763 $ 72,789,240 $ 59,384,327 $26,788,325
Net Assets:
At beginning of period 37,213,868 10 90,209,817 55,736,597 10
-------- -------- -------- -------- ----------
At end of period $82,450,655 $14,751,773 $162,999,057 $115,120,924 $26,788,335
======== ======== ======== ======== ==========
Accumulated
distributions in
excess of net
investment income
included in net assets
at end of period $ (162,939) $ -- $ (324,020) $ (234,911) $ --
======== ======== ======== ======== ==========
</TABLE>
* For the Marathon Connecticut Limited Fund and the Marathon Michigan Limited
Fund the Statement of Changes in Net Assets is for the period from the
start of business, April 16, 1993, to March 31, 1994.
See notes to financial statements
24
<PAGE>
<TABLE>
<CAPTION>
Marathon Marathon Marathon
New Jersey New York Ohio Marathon
Limited Limited Limited Pennsylvania
Fund Fund Fund Limited Fund
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From operations -
Net investment income $ 2,931,350 $ 5,195,959 $ 599,890 $ 3,364,253
Net realized gain
(loss) on investments 288,540 175,322 (110,908) 237,598
Change in unrealized
depreciation of
investments (3,281,322) (5,726,715) (1,193,300) (3,256,706)
------------- ------------- ------------- -------------
Net increase
(decrease) in net
assets from
operations $ (61,432) $ (355,434) $ (704,318) $ 345,145
------------- ------------- ------------- -------------
Distributions to
shareholders
(Note 2) -
From net investment
income $ (2,931,350) $ (5,195,959) $ (599,890) $ (3,364,253)
In excess of net
investment income (721,426) (1,255,243) (118,002) (779,131)
From net realized gain
on investment
transactions (116,207) (108,435) -- (151,359)
------------- ------------- ------------- -------------
Total distributions
to shareholders $ (3,768,983) $ (6,559,637) $ (717,892) $ (4,294,743)
------------- ------------- ------------- -------------
Transactions in shares
of beneficial interest
(Note 3) -
Proceeds from sales of
shares $ 52,189,444 $ 98,825,668 $ 33,722,408 $ 51,798,337
Net asset value of
shares issued to
shareholders in
payment of
distributions
declared 2,372,541 4,136,566 450,959 2,461,635
Cost of shares
redeemed (9,515,606) (11,615,468) (748,756) (5,800,263)
------------- ------------- ------------- -------------
Increase in net
assets from Fund
share transactions $ 45,046,379 $ 91,346,766 $ 33,424,611 $ 48,459,709
------------- ------------- ------------- -------------
Net increase in net
assets $ 41,215,964 $ 84,431,695 $ 32,002,401 $ 44,510,111
Net Assets:
At beginning of period 58,526,848 93,819,046 10 65,004,954
------------- ------------- ------------- -------------
At end of period $ 99,742,812 $ 178,250,741 $ 32,002,411 $ 109,515,065
============= ============= ============= =============
Accumulated
undistributed
(distributions in
excess of) net
investment income
included in net assets
at end of period $ (197,806) $ (353,543) $ 9,021 $ (205,033)
============= ============= ============= =============
</TABLE>
* For the Marathon Ohio Limited Fund the Statement of Changes in Net Assets
is for the period from the start of business, April 16, 1993, to March 31,
1994.
See notes to financial statements
25
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Marathon
Arizona Marathon Marathon
Limited California Limited Connecticut Limited
---------- -------------------------------------- --------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------------- --------------------------
Period
Ended
March 31,
1995*** 1995 1994 1993* 1995 1994**
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $10.000 $10.050 $10.340 $10.000 $ 9.690 $10.000
-------- -------- -------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.155 $ 0.367 $ 0.380 $ 0.333 $ 0.373 $ 0.343
Net realized and
unrealized gain (loss)
on investments 0.253 (0.027) (0.180) 0.443 0.026 (0.243)
-------- -------- -------- -------- -------- ----------
Total income from
operations $ 0.408 $ 0.340 $ 0.200 $ 0.776 $ 0.399 $ 0.100
-------- -------- -------- -------- -------- ----------
Less distributions:
From net investment
income $(0.155) $(0.367) $(0.380) $(0.333) $(0.373) $(0.343)
In excess of net
investment income (0.003) (0.066) (0.096) -- (0.026) (0.056)
From net realized gain
on investment
transactions -- (0.007) (0.014) -- -- --
In excess of net
realized gain on
investments -- -- -- -- -- (0.011)
From paid-in capital -- -- -- (0.103) -- --
-------- -------- -------- -------- -------- ----------
Total distributions $(0.158) $(0.440) $(0.490) $(0.436) $(0.399) $(0.410)
-------- -------- -------- -------- -------- ----------
Net asset value, end of
period $10.250 $ 9.950 $10.050 $10.340 $ 9.690 $ 9.690
======== ======== ======== ======== ======== ==========
Total Return (1) 4.02% 3.53% 1.86% 7.67% 4.27% 0.73%
Ratios/Supplemental
Data****:
Net assets, end of
period (000 omitted) $ 499 $73,857 $82,451 $37,124 $15,613 $14,752
Ratio of net expenses
to average daily net
assets (2) 0.75%+ 1.55% 1.40% 1.33%+ 1.23% 0.86%+
Ratio of net investment
income to average
daily net assets 3.78%+ 3.72% 3.55% 3.77%+ 3.89% 3.50%+
Portfolio Turnover (3) -- -- 0% 24% -- --
</TABLE>
* 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.
*** For the period from the start of business, November 3, 1994, to
March 31, 1995.
**** 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:
<TABLE>
<S> <C> <C> <C> <C> <C>
Net investment income
per share $ 0.066 $ 0.377 $ 0.299 $ 0.317 $ 0.229
======== ======== ======== ======== ==========
Ratios (As a percentage
of average daily net assets):
Expenses (2) 2.92%+ 1.48% 1.72%+ 1.81% 2.02%+
Net investment income 1.61%+ 3.47% 3.38%+ 3.31% 2.34%+
</TABLE>
+ Annualized.
(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 the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
Portfolio Turnover rate for the period since the Fund 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
26
<PAGE>
<TABLE>
<CAPTION>
Marathon Florida Limited Marathon Massachusetts Limited
-------------------------------------- ---------------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------------- ---------------------------------------
1995 1994 1993* 1995 1994 1993**
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.060 $ 10.360 $10.000 $ 9.960 $ 10.270 $10.000
-------- -------- -------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.375 $ 0.387 $ 0.333 $ 0.383 $ 0.385 $ 0.334
Net realized and
unrealized gain (loss)
on investments 0.090 (0.200) 0.469 0.082 (0.197) 0.368
-------- -------- -------- -------- -------- ----------
Total income from
operations $ 0.465 $ 0.187 $ 0.802 $ 0.465 $ 0.188 $ 0.702
-------- -------- -------- -------- -------- ----------
Less distributions:
From net investment
income $ (0.375) $ (0.387) $(0.333) $ (0.383) $ (0.385) $(0.334)
In excess of net
investment income (0.058) (0.092) -- (0.055) (0.095) --
From net realized gain
on investment
transactions (0.012) (0.008) -- (0.007) (0.018) --
From paid-in capital -- -- (0.109) -- -- (0.098)
-------- -------- -------- -------- -------- ----------
Total distributions $ (0.445) $ (0.487) $(0.442) $ (0.445) $ (0.498) $(0.432)
-------- -------- -------- -------- -------- ----------
Net asset value, end of
period $ 10.080 $ 10.060 $10.360 $ 9.980 $ 9.960 $10.270
======== ======== ======== ======== ======== ==========
Total Return (1) 4.79% 1.68% 7.94% 4.84% 1.75% 6.95%
Ratios/Supplemental
Data***:
Net assets, end of
period (000 omitted) $149,581 $162,999 $90,210 $113,338 $115,121 $55,737
Ratio of net expenses
to average daily net
assets (2) 1.50% 1.42% 1.24%+ 1.57% 1.46% 1.24%+
Ratio of net investment
income to average
daily net assets 3.77% 3.57% 3.73%+ 3.89% 3.61% 3.88%+
Portfolio Turnover (3) -- 0% 11% -- 2% 21%
</TABLE>
*** For the following periods, the operating expenses of the Funds reflect a
reduction of the investment adviser fee. Had such actions not been taken,
net investment income per share and the ratios would have been:
<TABLE>
<S> <C> <C>
Net investment income
per share $ 0.311 $ 0.307
======== ==========
Ratios (As a percentage
of average daily net
assets):
Expenses 1.49%+ 1.55%+
Net investment income 3.48%+ 3.57%+
</TABLE>
+ Annualized.
(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 the 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 each Fund 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.
* For the period from the start of business, May 29, 1992, to March 31,
1993.
** For the period from the start of business, June 1, 1992, to March 31,
1993.
See notes to financial statements
27
<PAGE>
<TABLE>
<CAPTION>
Marathon Michigan
Limited Marathon New Jersey Limited
------------------------ ---------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------ ---------------------------------------
1995 1994** 1995 1994 1993*
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 9.650 $10.000 $10.030 $10.350 $10.000
-------- -------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.364 $ 0.345 $ 0.370 $ 0.374 $ 0.325
Net realized and
unrealized gain (loss)
on investments 0.030 (0.279) 0.068 (0.216)++ 0.453
-------- -------- -------- -------- ----------
Total income from
operations $ 0.394 $ 0.066 $ 0.438 $ 0.158 $ 0.778
-------- -------- -------- -------- ----------
Less distributions:
From net investment
income $(0.364) $(0.345) $(0.370) $(0.374) $(0.325)
In excess of net
investment income (0.050) (0.071) (0.060) (0.092) --
From net realized gain
on investment
transactions -- -- (0.018) (0.012) --
From paid-in capital -- -- -- -- (0.103)
-------- -------- -------- -------- ----------
Total distributions $(0.414) $(0.416) $(0.448) $(0.478) $(0.428)
-------- -------- -------- -------- ----------
Net asset value, end of
period $ 9.630 $ 9.650 $10.020 $10.030 $10.350
======== ======== ======== ======== ==========
Total Return (1) 4.24% 0.37% 4.53% 1.44% 7.71%
Ratios/Supplemental
Data***:
Net assets, end of
period
(000 omitted) $26,048 $26,788 $93,361 $99,743 $58,527
Ratio of net expenses
to average daily net
assets (2) 1.55% 0.91%+ 1.56% 1.51% 1.25%+
Ratio of net investment
income to average
daily net assets 3.82% 3.56%+ 3.73% 3.50% 3.71%+
Portfolio Turnover (3) -- -- -- 0% 9%
</TABLE>
*** 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:
<TABLE>
<S> <C> <C> <C>
Net investment income
per share $ 0.354 $ 0.275 $ 0.299
======== ======== ==========
Ratios (As a percentage of average
daily net assets):
Expenses (2) 1.66% 1.63%+ 1.55%+
Net investment income 3.71% 2.84%+ 3.41%+
</TABLE>
+ Annualized.
* For the period from the start of business, June 1, 1992, to March 31,
1993.
** For the period from the start of business, April 16, 1993, to March 31,
1994.
++ 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.
(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 the 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 each Fund 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.
28
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
Marathon
North
Carolina
Marathon New York Limited Limited Marathon Ohio Limited
-------------------------------------- ---------- --------------------------
Period
Year Ended March 31, Ended Year Ended March 31,
-------------------------------------- --------------------------
March 31,
1995 1994 1993* 1995*** 1995 1994**
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.040 $ 10.360 $10.000 $10.000 $ 9.730 $10.000
-------- -------- -------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.378 $ 0.387 $ 0.327 $ 0.112 $ 0.382 $ 0.354
Net realized and
unrealized gain (loss)
on investments 0.049 (0.219) 0.475 0.236 0.032 (0.194)
-------- -------- -------- -------- -------- ----------
Total income from
operations $ 0.427 $ 0.168 $ 0.802 $ 0.348 $ 0.414 $ 0.160
-------- -------- -------- -------- -------- ----------
Less distributions:
From net investment
income $ (0.378) $ (0.387) $(0.327) $(0.112) $(0.382) $(0.354)
In excess of net
investment income (0.055) (0.093) -- (0.026) (0.032) (0.076)
From net realized gain
on investments (0.004) (0.008) -- -- -- --
From paid-in capital -- -- (0.115) -- -- --
-------- -------- -------- -------- -------- ----------
Total distributions $ (0.437) $ (0.488) $(0.442) $(0.138) $(0.414) $(0.430)
-------- -------- -------- -------- -------- ----------
Net asset value, end of
period $ 10.030 $ 10.040 $10.360 $10.210 $ 9.730 $ 9.730
======== ======== ======== ======== ======== ==========
Total Return (1) 4.41% 1.46% 7.95% 3.31% 4.41% 1.23%
Ratios/Supplemental
Data****:
Net assets, end of
period
(000 omitted) $166,691 $178,251 $93,819 $ 135 $34,279 $32,002
Ratio of net expenses
to average daily net
assets (2) 1.51% 1.40% 1.21%+ 0.75%+ 1.49% 1.03%+
Ratio of net investment
income to average
daily net assets 3.81% 3.56% 3.69%+ 3.04%+ 3.95% 3.53%+
Portfolio Turnover (3) -- -- 11% -- -- --
</TABLE>
**** 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:
<TABLE>
<S> <C> <C> <C> <C>
Net investment income
(loss) per share $ 0.305 $(0.045) $ 0.371 $ 0.293
======== ======== ======== ==========
Ratios (As a percentage
of average daily net
assets):
Expenses (2) 1.47%+ 5.00%+ 1.60% 1.63%+
Net investment
income (loss) 3.43%+ (1.21)%+ 3.84% 2.93%+
</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.
*** 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 the 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 each Fund 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
29
<PAGE>
<TABLE>
<CAPTION>
Marathon
Virginia
Marathon Pennsylvania Limited Limited
-------------------------------------- ------------
Period Ended
Year Ended March 31,
--------------------------------------
March 31,
1995 1994 1993** 1995*
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period $ 10.100 $ 10.390 $10.000 $10.000
-------- -------- -------- ----------
Income (loss) from
operations:
Net investment income $ 0.374 $ 0.399 $ 0.336 $ 0.149
Net realized and
unrealized gain (loss)
on investments 0.065 (0.195) 0.490 0.344
-------- -------- -------- ----------
Total income from
operations $ 0.439 $ 0.204 $ 0.826 $ 0.493
-------- -------- -------- ----------
Less distributions:
From net investment
income $ (0.374) $ (0.399) $(0.336) $(0.149)
In excess of net
investment income (0.069) (0.083) -- (0.004)
From net realized gain
on investment
transactions (0.006) (0.012) -- --
From paid-in capital -- -- (0.100) --
-------- -------- -------- ----------
Total distributions $ (0.449) $ (0.494) $(0.436) $(0.153)
-------- -------- -------- ----------
Net asset value, end of
period $ 10.090 $ 10.100 $10.390 $10.340
======== ======== ======== ==========
Total Return (1) 4.50% 1.89% 8.19% 4.82%
Ratios/Supplemental
Data***:
Net assets, end of
period (000 omitted) $103,553 $109,515 $65,005 $ 118
Ratio of net expenses
to average daily net
assets (2) 1.57% 1.45% 1.29%+ 0.93%+
Ratio of net investment
income to average
daily net assets 3.75% 3.63% 3.88%+ 3.77%+
Portfolio Turnover (3) -- 0% 18% --
</TABLE>
*** For the following periods, the operating expenses of the Fund and
Portfolio 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:
<TABLE>
<S> <C> <C>
Net investment income
(loss) per share $ 0.315 $(.0117)
======== ==========
Ratios (As a percentage of average
daily net assets):
Expenses (2) 1.53%+ 7.66%+
Net investment
income (loss) 3.64%+ (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 the 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 each Fund 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
30
<PAGE>
Notes to Financial Statements
(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-nine 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%,
90.3%, 90.4%, 91.4%, 95.5%, 78.8%, 96.6%, 96.3%, 56%, 86.7%, 91.4%, and 52.2%
at March 31, 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 Fund 723,340 March 31, 2003
Marathon Connecticut Limited Fund 232,805 March 31, 2003
Marathon Florida Limited Fund 645,653 March 31, 2003
Marathon Massachusetts Limited Fund 595,115 March 31, 2003
31
<PAGE>
(1) Significant Accounting Policies (cont'd)
Fund Amount Expires
- - ----------------------------------- ---------- ----------------
Marathon Michigan Limited Fund $513,947 March 31, 2003
Marathon New Jersey Limited Fund 574,422 March 31, 2003
Marathon New York Limited Fund 901,272 March 31, 2003
Marathon Ohio Limited Fund 817,971 March 31, 2003
3,600 March 31, 2002
Marathon Pennsylvania Limited Fund 574,393 March 31, 2003
Marathon Virginia Limited Fund 25 March 31, 2003
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. Distribution Costs-- For book purposes, commissions paid on the sale of a
Fund's shares and other distribution costs are charged to operations. As a
result of a recent Internal Revenue Service ruling, the Fund's changed their
tax accounting for commissions paid from charging the expenses to paid-in
capital to charging the expense to operations. The change had no effect on
either the Fund's current yield or total return (Notes 2 and 5).
F. Other-- Investment transactions are accounted for on a trade date basis.
(2) Distributions to Shareholders
The net income of a Fund is determined daily and substantially all of the net
income so determined is declared as a dividend to shareholders of record at
the time of declaration. In addition, each Fund, for Class I shares, declares
each day an amount equal to the excess of tax basis net income over book net
income, which amount is reported for financial statement purposes as a
distribution in excess of net investment income. Distributions are paid
monthly. Distributions of allocated realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of a Fund at the net asset value as of the ex-dividend
date. Distributions are paid in the form of additional shares or, at the
election of the shareholder, in cash. The Funds distinguish between
distributions on a tax basis and a financial reporting basis. Generally
accepted accounting principles require that only distributions in excess of
tax basis earnings and profits be reported in the financial statements as a
return of capital. Differences in the recognition or classification of income
between the financial statements and tax earnings and profits which result in
temporary over distributions for financial statement purposes are classified
as distributions in excess of net investment income or accumulated net
realized gains. Permanent differences between book and tax accounting
relating to distributions are reclassified to paid-in capital. During the
period ended March 31, 1995, $49, $573,067, $85,980, $1,014,907, $676,795,
$130,139, $633,515, $1,043,260, $--, $158,666, $788,196 and $2, was
reclassified from distributions in excess of net investment income to paid in
capital, due to permanent differences between book and tax accounting for
distribution costs for the Marathon Arizona Limited Fund, 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 North Carolina Limited Fund, Marathon Ohio Limited Fund, Marathon
Pennsylvania Limited Fund, and Marathon Virginia Limited Fund, respectively.
Net investment income, net realized gains and net assets were not affected by
these reclassifications.
32
<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 Marathon California Marathon Connecticut
Limited Fund Limited Fund Limited Fund
------------------------ ------------------------ --------------------------
Period Ended March 31, Year Ended March 31, Year Ended March 31,
------------------------ ------------------------ --------------------------
1995** 1995 1994 1995 1994*
------------------------ ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Sales 48,211 763,993 5,046,420 257,528 1,557,493
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 454 175,833 136,544 44,233 19,977
Redemptions -- (1,723,245) (573,917) (213,238) (54,621)
---------------------- --------- ---------- ---------- -----------
Net increase (decrease) 48,665 (783,419) 4,609,047 88,523 1,522,849
====================== ========= ========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
Marathon Florida Marathon Massachusetts
Limited Fund Limited Fund
------------------------ --------------------------
Year Ended March 31, Year Ended March 31,
------------------------ --------------------------
1995 1994 1995 1994
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Sales 1,669,969 8,210,536 1,204,290 6,700,815
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 344,557 283,197 309,056 238,885
Redemptions (3,377,776) (995,492) (1,707,818) (810,511)
---------- ---------- ----------- -----------
Net increase (decrease) (1,363,250) 7,498,241 (194,472) 6,129,189
========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Marathon Michigan Marathon New Jersey
Limited Fund Limited Fund
------------------------ --------------------------
Year Ended March 31, Year Ended March 31,
------------------------ --------------------------
1995 1994* 1995 1994
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Sales 399,248 2,828,009 977,485 4,976,775
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 76,499 42,874 285,382 226,195
Redemptions (548,744) (93,559) (1,896,701) (907,288)
-------- ---------- ----------- -----------
Net increase (decrease) (72,997) 2,777,324 (633,834) 4,295,682
======== ========== =========== ===========
</TABLE>
<PAGE>
(3) Shares of Beneficial Interest (cont'd)
33
<TABLE>
<CAPTION>
Marathon
North
Carolina
Marathon New York Limited
Limited Fund Fund Marathon Ohio Limited Fund
------------------------ ---------- --------------------------
Period
Ended
Year Ended March 31, March 31, Year Ended March 31,
------------------------ ---------- --------------------------
1995 1994 1995*** 1995 1994*
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Sales 1,445,280 9,418,233 18,400 513,206 3,319,626
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 507,842 393,306 88 99,878 44,318
Redemptions (3,091,008) (1,109,748) (5,260) (379,292) (73,891)
---------- ---------- -------- --------- ------------
Net increase (decrease) (1,137,886) 8,701,791 13,228 233,792 3,290,053
========== ========== ======== ========= ============
</TABLE>
<TABLE>
<CAPTION>
Marathon Pennsylvania Marathon Virginia
Limited Fund Limited Fund
------------------------ -------------------
Period Ended
Year Ended March 31, March 31,
------------------------ -------------------
1995 1994 1995****
---------- ---------- -------------------
<S> <C> <C> <C>
Sales 832,585 4,913,157 14,326
Issued to shareholders
electing to receive
payments of
distributions in Fund
shares 286,093 233,104 89
Redemptions (1,707,934) (551,469) (2,982)
---------- ---------- -----------------
Net increase (decrease) (589,256) 4,594,792 11,433
========== ========== =================
</TABLE>
There were no transactions involving shares of any other class.
* For the period from the start of business, April 16, 1993, to March 31,
1994.
** 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 Connecticut Limited Fund, Marathon North
Carolina Limited Fund, and Marathon Virginia Limited Fund, $1,359, $12,014,
$1,370 and $1,284, respectively, of expenses related to the operation of the
Funds were allocated to EVM. Except as to Trustees of the Funds and the
Portfolios who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their services to each Fund out of such
investment adviser fee. Investors Bank & Trust Company (IBT), an affiliate of
EVM, serves as custodian to the Funds and the Portfolios. Pursuant to the
respective custodian agreements, IBT receives a fee reduced by credits which
are determined based on the average cash balances the Funds or the Portfolios
maintain with IBT. Certain of the officers and Trustees of the Funds and
Portfolios are officers and directors/trustees of the above organizations
(Note 5).
(5) Distribution Plan
Each Fund has adopted a distribution plan (the 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,
34
<PAGE>
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 period ended March 31, 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 $1,139, $599,338, $115,258, $1,204,269,
$859,720, $203,665, $736,863, $1,316,016, $239, $252,885, $812,606 and $220,
respectively, to or payable to EVD representing 0.75% (annualized) of average
daily net assets. At March 31, 1995, the amount of Uncovered Distribution
Charges of EVD calculated under the Plans for 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 $16,831, $1,496,539, $445,972, $2,844,726, $2,146,730,
$734,600, $1,749,374, $3,137,537, $5,546, $973,394, $1,838,484, and $4,001,
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 period ended
March 31, 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 $--, $56,696, $8,098, $121,408,
$93,681, $19,052, $79,288, $149,368, $--, $17,230, $97,262, 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 $283,558, $33,483, $585,779, $278,752, $111,776,
$363,579, $590,906, $0, $72,204, $334,414, and $316, respectively, of CDSC
paid by shareholders of 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 period ended March 31, 1995.
35
<PAGE>
(7) Investment Transactions
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the period ended March 31, 1995 were as follows:
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida
Limited Limited Limited Limited
Fund Fund Fund Fund
----------------- -------------- --------------- -----------------
<S> <C> <C> <C> <C>
Increases $ 477,295 $ 9,684,887 $ 2,780,455 $18,476,189
Decreases 8,342 20,030,699 2,518,179 39,082,539
</TABLE>
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon
Massachusetts Michigan New Jersey New York
Limited Limited Limited Limited
Fund Fund Fund Fund
--------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C>
Increases $12,688,338 $ 4,243,701 $10,585,591 $16,721,325
Decreases 20,639,097 6,127,412 21,714,287 36,295,010
</TABLE>
<TABLE>
<CAPTION>
Marathon Marathon Marathon Marathon
North Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited
Fund Fund Fund Fund
--------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C>
Increases $ 184,597 $ 5,078,714 $ 9,637,419 $ 144,732
Decreases 56,238 4,572,772 21,243,106 33,611
</TABLE>
36
<PAGE>
Independent Auditors' Report
To the Trustees and Shareholders of Eaton Vance Investment Trust:
We have audited the accompanying statements of assets and liabilities of EV
Marathon Arizona Limited Maturity Tax Free Fund, EV Marathon California
Limited Maturity Tax Free Fund, EV Marathon Connecticut Limited Maturity Tax
Free Fund, EV Marathon Florida Limited Maturity Tax Free Fund, EV Marathon
Massachusetts Limited Maturity Tax Free Fund, EV Marathon Michigan Limited
Maturity Tax Free Fund, EV Marathon New Jersey Limited Maturity Tax Free
Fund, EV Marathon New York Limited Maturity Tax Free Fund, EV Marathon North
Carolina Limited Maturity Tax Free Fund, EV Marathon Ohio Limited Maturity
Tax Free Fund, EV Marathon Pennsylvania Limited Maturity Tax Free Fund and EV
Marathon Virginia Limited Maturity Tax Free Fund (the Funds) (series of the
Eaton Vance Investment Trust) as of March 31, 1995, and the related
statements of operations for the year then ended, the statements of changes
in net assets for the years ended March 31, 1995 and 1994, and the financial
highlights for each of the years in the three-year period ended March 31,
1995. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
aforementioned funds of Eaton Vance Investment Trust at March 31, 1995, the
results of their operations, the changes in their net assets and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 5, 1995
37
<PAGE>
Arizona Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 2.9%
A1 AA $15 Arizona State University Revenue Bonds, 6.50%, 7/1/01 $ 16,025
--------
Escrowed - 27.4%
Aaa AAA $20 Arizona State Municipal Financing Authority, Certificates of
Participation, (BIGI), Prerefunded to 8/1/96, 8.125%, 8/1/17 $ 21,135
Aaa AAA 10 Maricopa County, Arizona, Hospital Revenue, Escrowed to
Maturity, 6.50%, 1/1/97 10,159
Aaa AAA 20 Maricopa County, Arizona, School District #28, (Kyrene
Elementary), (FGIC), Prerefunded to 7/1/01, 6.00%, 7/1/13 20,949
NR AA+ 20 Phoenix, Arizona, Prerefunded to 7/1/98, 6.50%, 7/1/01 21,317
NR AAA 15 Phoenix, Arizona, Civic Improvement Corporation, Prerefunded to
7/1/03, 6.125%, 7/1/14 16,115
NR AA+ 20 Scottsdale, Arizona, Prerefunded to 7/1/00, 6.00%, 7/1/10 21,076
NR AA- 15 Tuscon, Arizona, Prerefunded to 7/1/01, 6.75%, 7/1/15 16,373
Aaa AAA 20 University of Arizona Medical Center Corporation, (MBIA),
Prerefunded to 7/1/01, 7.00%, 7/1/11 22,354
--------
$149,478
--------
General Obligations - 15.2%
Aa AA $15 Phoenix, Arizona, 5.90%, 7/1/00 $ 15,670
Aa A+ 25 Pima County, Arizona, 6.20%, 7/1/99 26,256
Baa1 A 20 Commonwealth of Puerto Rico, 6.00%, 7/1/05 20,443
A1 A+ 20 Tempe Union High School District #213, (Maricopa County,
Arizona), 5.90%, 7/1/03 20,711
--------
$ 83,080
--------
Insured Education - 12.4%
Aaa AAA $25 Arizona Educational Loan Marketing Corporation, (MBIA), 6.80%,
9/1/98 (1) $ 26,413
Aaa AAA 20 East Valley, Arizona, Institute of Technology, District 401,
(AMBAC), 5.90%, 7/1/03 20,702
Aaa AAA 20 Northern Arizona University, (AMBAC), 6.00%, 6/1/06 20,430
--------
$ 67,545
--------
Insured General Obligations - 11.4%
Aaa AAA $20 Maricopa County, Arizona, School District #40, (AMBAC), 5.75%,
7/1/03 $ 20,593
Aaa AAA 20 Maricopa County, Arizona, (FGIC), 6.25%, 7/1/00 21,043
Aaa AAA 20 Yavapai County, Arizona, School District, (AMBAC), 6.00%, 7/1/01 20,776
--------
$ 62,412
--------
Insured Special Tax Revenue - 3.0%
Aaa AAA $15 Arizona State Transportation Board Excise Tax, (Maricopa County
Regional Area Road Fund), (MBIA), 6.90%, 7/1/99 $ 16,133
--------
Lease Revenue/Certificates of Participation - 4.9%
Baa1 A $25 Puerto Rico Public Building Authority, 6.50%, 7/1/03 $ 26,703
--------
Special Tax Revenue - 7.5%
A A- $25 Glendale, Arizona Improvement District #59, 6.00%, 1/1/03 $ 25,618
A1 AA+ 15 Tempe, Arizona, Municipal Property Corporation, 5.55%, 7/1/03 15,117
--------
$ 40,735
--------
Transportation - 2.9%
A A+ $15 Phoenix, Arizona Street & Highway User Bonds, 6.10%, 7/1/01 $ 15,766
--------
Utilities - 4.7%
Baa1 A $10 Puerto Rico Electric Power Authority, 6.75%, 1/1/01 $ 10,022
Aa AA 15 Salt River, Project, Arizona, Agricultural Improvement & Power
District Electric System, 6.75%, 1/1/97 15,502
--------
$ 25,524
--------
Water & Sewer - 7.7%
A1 AA- $15 Central Arizona Water Conservation District, 6.00%, 5/1/98 $ 15,477
38
<PAGE>
Water & Sewer (continued)
Baa1 A 15 Puerto Rico Aqueduct & Sewer Authority, 7.875%, 7/1/17 16,325
Aa AA- 10 Scottsdale, Arizona, Water & Sewer, 5.75%, 7/1/03 10,363
--------
$ 42,165
--------
Total Investments (identified cost, $529,349) $545,566
========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
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 March 31, 1995, 38.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 7.7% to 15.1% of total
investments.
See notes to financial statements
39
<PAGE>
California Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Cogeneration - 1.9%
NR BBB- $1,500 Central Valley Finance Authority, Carson Ice-Gen. Project,
5.20%, 7/1/99 $ 1,475,310
----------
Education - 4.7%
Aaa AAA $1,500 California Educational Facilities Authority, Stanford
University, 5.90%, 11/1/03 $ 1,575,450
Aaa AAA 2,000 California Educational Facilities Authority, California
Institute of Technology, 6.375%, 1/1/08 2,097,140
----------
$ 3,672,590
----------
Escrowed/Prerefunded - 22.4%
Aaa AAA $1,700 California Educational Facilities Authority, National
University, Prerefunded to 5/1/01, 7.15%, 5/1/21 $ 1,904,850
Aaa AAA 2,300 California State Public Works Board, Department of Corrections,
Prerefunded to 9/1/01, 6.50%, 9/1/19 2,520,363
Aaa AAA 1,500 East Bay Municipal Utility District, Water System Bonds,
(AMBAC), Prerefunded to 12/1/01, 6.375%, 6/1/21 1,636,950
Aaa AAA 5,700 Los Angeles County Commission Authority, Sales Tax Bonds,
Prerefunded to 7/1/01, 6.75%, 7/1/18 6,311,781
Aaa AAA 1,500 Puerto Rico Highway, Prerefunded to 7/1/00, 7.75%, 7/1/16 1,722,105
NR AAA 3,000 San Bernadino, California, Certificates of Participation,
Prerefunded to 8/1/01, 7.00%, 8/1/28 3,365,190
----------
$17,461,239
----------
Electric Utilities - 9.3%
A2 A+ $ 500 California Pollution Control Financing Authority, Southern
California Edison Company, 6.85%, 12/1/08 $ 527,160
A2 A+ 1,000 California Pollution Control Financing Authority, Southern
California Edison Company, 6.85%, 12/1/08 1,054,320
Aa AA 1,700 Department of Water and Power of the City of Los Angeles,
Electric Plant Revenue Bonds, 5.75%, 11/15/02 1,762,322
Aa AA 1,000 Department of Water and Power of the City of Los Angeles,
Electric Plant Revenue Bonds, 9.00%, 9/1/01 1,202,130
Aa AA- 1,500 Pasadena Electric Works Revenue Bonds, 7.00%, 8/1/09 1,596,210
Aa NR 1,000 Southern California Public Power Authority, Transportation
Project, 7.00%, 7/1/00 1,071,930
----------
$ 7,214,072
----------
General Obligations - 9.6%
A1 A $1,625 State of California, 6.80%, 10/1/02 $ 1,778,140
A1 A+ 800 The City of Los Angeles, California, Adult and Juvenile
Detention Center, 7.30%, 6/1/99 867,488
Aa AA- 1,000 Palos Verdes Library District, 6.70%, 8/1/11 1,050,500
Baa1 A- 750 Puerto Rico Municipal Finance Agency, 5.60%, 7/1/02 757,470
A1 AA- 1,870 City and County of San Francisco, 6.50%, 12/15/03 1,984,425
A1 AA- 1,000 City and County of San Francisco, Public Schools Facilities
Improvement Project, 7.60%, 9/1/06 1,073,450
----------
$ 7,511,473
----------
Housing - 5.0%
NR AAA $ 100 Redevelopment Agency of the City of Azusa, SFMR, 6.40%, 10/1/02 $ 105,773
Aa A+ 1,000 Department of Veterans Affairs of the State of California, Home
Purchase Revenue Bonds, (AMT), 7.50%, 8/1/98 1,030,460
A2 NR 1,000 Orange County, California, Apartment Development Revenue Bonds,
Villa La Paz, LOC Tokai Bank, 4.50%, 8/15/07 986,340
40
<PAGE>
Housing (continued)
NR AAA 750 Housing Authority of the County of Santa Clara, Orchard Glen
Apartments, 5.25%, 11/1/97 751,748
NR AA+ 1,000 The City of Palmdale, California, Oasis at Palmdale Apartments,
(FNMA), 5.60%, 12/1/22 993,470
----------
$3,867,791
----------
Hospitals - 3.3%
A1 AA- $2,400 California Health Facilities Financing Authority, Sisters of
Providence, 7.50%, 10/1/10 $2,607,816
----------
Industrial Development Revenue - 2.2%
Aaa AAA $1,700 California Pollution Control Financing Authority, North County
Recycling Center, 6.00%, 7/1/00 $1,752,037
----------
Insured Education - 2.7%
Aaa AAA $1,000 The Regents of the University of California, (MBIA), 6.10%
9/1/00 $1,050,950
Aaa AAA 1,000 The Regents of the University of California, (MBIA), 6.00%,
9/1/02 1,047,930
----------
$2,098,880
----------
Insured Electric Utilities - 5.3%
Aaa AAA $1,000 California Pollution Control Financing Authority, Southern
California Edison Company, (MBIA), 6.85%, 12/1/08 $1,066,570
Aaa AAA 1,900 Northern California Power Agency, (MBIA), 6.00%, 8/1/03 1,993,556
Aaa AAA 1,000 Sacramento Municipal Utility District, (MBIA), 6.20%, 8/15/05 1,061,080
----------
$4,121,206
----------
Insured General Obligations - 4.4%
Aaa AAA $1,245 The City and County of San Francisco, School District Facilities
Improvement Projects, (FGIC), 6.00%, 6/15/01 $1,297,688
Aaa AAA 1,925 Moulton Niguel, California Water District, (AMBAC), 7.30%,
4/1/12 2,152,766
----------
$3,450,454
----------
Insured Hospital Revenue - 7.6%
Aaa AAA $1,750 ABAG Finance Authority, Certificates of Participation, Stanford
University Hospital, (MBIA), 4.90%, 11/1/03 $1,660,610
Aaa AAA 1,000 ABAG Finance Authority, Certificates of Participation, Stanford
University Hospital, (MBIA), 5.125%, 11/1/05 942,660
Aaa AAA 1,075 California Health Facilities Financing Authority, Centinela
Hospital Medical Center, (MBIA), 6.00%, 9/1/01 1,129,588
Aaa AAA 500 Desert Hospital District, Certificates of Participation, Desert
Hospital Corporation Project, (CGIC), 6.15%, 7/1/02 524,905
Aaa AAA 1,485 The Regents of the University of California, UCLA Medical
Center, (MBIA), 8.00%, 12/1/99 1,663,735
----------
$5,921,498
----------
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 $1,276,513
Aaa AAA 160 San Bernadino County, California, Certificates of Participation,
West Valley Detention Center Refinancing Project, (MBIA),
5.75%, 11/1/00 166,470
----------
$1,442,983
----------
Insured Special Tax - 1.4%
Aaa AAA $1,000 Riverside County Transportation Commission, (AMBAC), 6.50%,
6/1/01 $1,080,690
----------
Insured Transportation -1.4%
Aaa AAA $1,000 San Francisco Bay Area Rapid Transit District, (AMBAC), 6.75%,
7/1/09 $1,057,770
----------
41
<PAGE>
Insured Water & Sewer Revenue - 3.3%
Aaa AAA $1,000 Los Angeles Wastewater System, (MBIA), 9.00%, 6/1/00 $ 1,171,610
Aaa AAA 585 Sweetwater Authority, Water Revenue Bonds, (AMBAC), 7.00%,
4/1/10 621,966
Aaa AAA 750 City of Vallejo, California, Water Improvement Project, (FGIC),
6.00%, 11/1/00 789,368
----------
$ 2,582,944
----------
Lease Revenue/Certificates of Participation - 1.0%
A A- $ 250 State Public Works Board of the State of California, State
Prison-Madera County, 6.90%, 9/1/99 $ 264,795
Baa1 A 475 Puerto Rico Public Building Authority, 6.50%, 7/1/03 507,357
----------
$ 772,152
----------
Special Tax Revenue - 2.6%
Aa AA $2,000 Orange County Local Transportation Authority, Sales Tax Revenue
Bonds, 5.70%, 2/15/03 $ 2,026,340
----------
Transportation - 5.4%
A1 A+ $1,000 Contra Costa, California Transportation Authority, 6.40%, 3/1/01 $ 1,065,450
A1 AA- 1,500 Los Angeles County Transportation Commission, 7.40%, 7/1/15 1,594,260
Aa AA- 1,500 Los Angeles Department of Airports, 7.40%, 5/1/10 1,578,675
----------
$ 4,238,385
----------
Water & Sewer Revenue - 4.6%
A NR $ 700 Coachella Valley Water District, Flood Control Project,
Certificates of Participation, 5.75%,
10/1/00 $ 697,718
A1 A 2,000 The City of Los Angeles Wastewater System, 6.90%, 6/1/08 (1) 2,109,940
Baa1 A 750 Puerto Rico Aqueduct and Sewer Authority, 7.875%, 7/1/17 816,225
----------
$ 3,623,883
----------
Total Investments (identified cost, $77,371,691) $77,979,513
==========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1995, 30.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 2.7% to 16.6% of total
investments.
See notes to financial statements
42
<PAGE>
Connecticut Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 6.6%
NR A $ 345 State of Connecticut HEFA, The Taft School Issue, 4.50%, 7/1/01 $ 329,074
Baa1 A 750 State of Connecticut HEFA, Fairfield University Issue, 6.90%,
7/1/14 775,140
--------
$1,104,214
--------
Electric Revenue - 3.2%
Baa1 A- $ 500 Puerto Rico Electric Power Authority, 7.125%, 7/1/14 $ 529,025
--------
Escrowed/Prerefunded - 3.3%
Aaa AAA $ 500 South Central Connecticut Regional Water Authority, (AMBAC),
Prerefunded to 8/1/01, 6.50%, 8/1/07 $ 546,045
--------
General Obligations - 11.0%
NR BBB $ 300 Government of Guam, 4.80%, 11/15/03 $ 283,083
A1 NR 125 Town of Killingly, Connecticut, 6.80%, 9/15/07 132,926
A1 NR 125 Town of Newtown, Connecticut, 4.60%, 6/15/02 122,002
Aa1 AA+ 150 City of Norwalk, Connecticut, 4.65%, 1/15/01 146,577
Baa1 A 100 Commonwealth of Puerto Rico, 4.90%, 7/1/00 97,694
Aa AA- 500 State of Connecticut, 5.95%, 11/15/00 524,930
Aa AA- 500 State of Connecticut, 6.50%, 3/1/03 538,955
--------
$1,846,167
--------
Health Care - 0.1%
A1 AA- $ 25 State of Connecticut HEFA, Noble Horizon Nursing Home, 4.40%,
11/1/98 $ 24,723
--------
Housing - 10.4%
Aa AA $ 120 Connecticut Housing Finance Authority, 5.45%, 5/15/04 $ 119,566
Aa AA 350 Connecticut Housing Finance Authority, (AMT), 6.90%, 11/15/98 366,499
Aa AA 200 Connecticut Housing Finance Authority, 6.95%, 11/15/01 211,446
Aa AA 1,000 Connecticut Housing Finance Authority, 6.90%, 11/15/99 1,049,570
--------
$1,747,081
--------
Insured Transportation - 5.2%
Aaa AAA $ 750 Connecticut State Airport Bonds, Bradley International Airport,
(FGIC), 7.40%, 10/1/04 $ 869,235
--------
Insured Hospitals - 17.5%
Aaa AAA $ 750 Connecticut Development Authority, Hartford Hospital Real Estate
Corporation Project, (MBIA), (AMT), 6.875%, 10/1/06 $ 800,017
Aaa AAA 750 Connecticut HEFA, Bristol Hospital Issue, (MBIA), 7.00%, 7/1/09 801,502
Aaa AAA 500 Connecticut HEFA, Waterbury Hospital Issue, (FSA), 7.00% 7/1/20 527,730
Aaa AAA 500 Connecticut HEFA, Stamford Hospital Issue, (MBIA), 6.50%, 7/1/06
(1) 532,695
Aaa AAA 250 Connecticut HEFA, Stamford Hospital Issue, (MBIA), 6.50%, 7/1/06 266,347
--------
$2,928,291
--------
Insured General Obligations - 5.8%
Aaa AAA $ 500 Old Saybrook, Connecticut, (AMBAC), 4.10%, 8/15/01 $ 456,560
Aaa AAA 100 Town of Oxford, Connecticut, (FGIC), 6.90%, 2/1/06 107,647
Aaa AAA 300 City of Waterbury, Connecticut, (FGIC), 4.80%, 4/15/01 294,009
Aaa AAA 125 Town of Windham, Connecticut, (AMBAC), 4.50%, 8/15/01 120,046
--------
$ 978,262
--------
Insured Miscellaneous - 4.7%
Aaa AAA $ 725 Woodstock, Connecticut, Special Obligation Bonds, (AMBAC),
7.00%, 3/1/07 $ 784,508
--------
Insured Special Tax - 4.0%
Aaa AAA $ 700 Connecticut Special Assessment Unemployment Compensation Advance
Fund Revenue Bonds, (AMBAC), 4.60%, 5/15/00 $ 676,473
--------
43
<PAGE>
Insured Utility - 0.7%
Aaa AAA $ 125 Puerto Rico Telephone Authority, (MBIA), 4.50%, 1/1/00 $ 121,768
--------
Miscellaneous - 6.7%
A1 AA- $ 500 Connecticut State Development Authority, 4.60%, 11/15/01 $ 479,605
A2 NR 625 Connecticut State Development Authority, Frito-Lay Incorporated
Project, 6.375%, 7/1/04 637,781
--------
$ 1,117,386
--------
Solid Waste - 7.5%
A A $ 600 Connecticut State Resource Recovery Authority, Bridgeport,
Connecticut, RESCO Co., 7.625%,
1/1/09 $ 630,762
Baa1 NR 350 Connecticut State Resource Recovery Authority, 4.50%, 7/1/97 345,086
NR A 300 Eastern Connecticut Resource Recovery Authority, Wheelabrator
Lisbon Project, (AMT), 4.90%, 1/1/02 275,046
--------
$ 1,250,894
--------
Special Tax Revenue - 13.3%
A1 AA- $ 100 State of Connecticut, Special Tax Obligation Refunding Bonds,
4.625%, 9/1/00 $ 97,685
A1 AA- 500 State of Connecticut, Special Tax Obligation Bonds, 6.55%,
12/1/98 528,765
A1 AA- 1,300 State of Connecticut, Special Tax Obligation Bonds, 7.00%,
10/1/99 1,407,965
Baa1 A 200 Puerto Rico Commonwealth Highway and Transportation Authority,
4.80%, 7/1/00 193,695
--------
$ 2,228,110
--------
Total Investments (identified cost,
$16,798,633) $16,752,182
========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
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 March 31, 1995, 41.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 7.6% to 15.4% of total
investment.
See notes to financial statements
44
<PAGE>
Florida Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Escrowed - 21.9%
Aaa AAA $1,000 Canaveral FL Port Authority, (FGIC), ETM, 6.30%,
6/1/02 $ 1,067,970
Aaa AAA 1,015 Dade County FL, Educational Facilities Authority, (MBIA),
Prerefunded to 10/1/01, 7.00%, 10/1/08 1,137,957
Aaa AAA 1,000 Dunnedin FL Hospital, Mease Health Care, (MBIA), Prerefunded to
11/15/01, 6.75%, 11/15/21 1,108,800
Aaa AAA 4,100 Florida Board of Education Capital Outlay, Prerefunded to
6/1/00, 7.25%, 6/1/23 4,577,486
Aaa AAA 1,000 Florida MPA, All Requirements Power Supply Project, (AMBAC),
Prerefunded to 10/1/02, 6.25%, 10/1/21 1,084,500
Aaa AAA 1,500 Florida MPA, Stanton II Project, (AMBAC), Prerefunded to
10/1/02, 6.50%, 10/1/20 1,649,850
Aaa AAA 1,780 Hollywood FL Water & Sewer, (FGIC), Prerefunded to 10/1/01,
6.375%, 10/1/02 1,934,753
Aaa AAA 1,500 Jacksonville Beach Utilities, (MBIA), Prerefunded to 10/1/01,
6.50%, 10/1/12 1,640,670
Aaa AAA 2,500 Jacksonville Electric Authority, Bulk Power Supply System,
Prerefunded to 10/1/00, 6.75%, 10/1/21 2,736,125
Aaa AAA 4,485 Jacksonville Electric Authority, Bulk Power Supply System,
Prerefunded to 10/1/00, 6.75%, 10/1/16 4,908,608
Aaa AAA 1,400 Jacksonville Electric Authority, St John's River Power Park,
Prerefunded to 10/1/95, 7.00%, 10/1/02 1,439,452
Aaa AAA 1,665 Kissimmee Utility Authority, (FGIC), Prerefunded to 10/1/01,
6.50%, 10/1/17 1,821,144
Aaa AAA 1,000 Manatee County Public Utilities, (MBIA), Prerefunded to 10/1/01,
6.80%, 10/1/05 1,110,190
Aaa AAA 3,250 Orlando Utility Community Water & Electric, Prerefunded to
10/1/01, 6.50%, 10/1/20 3,554,785
Aaa AAA 2,000 Palm Bay FL Utility, Palm Bay Utility Corporation, (MBIA)
Prerefunded to 10/1/02, 6.20%, 10/1/17 2,156,360
Aaa AAA 2,805 Palm Beach County Criminal Justice Facilities, (FGIC),
Prerefunded to 6/1/00, 7.00%, 6/1/01 3,100,198
--------
$35,028,848
--------
General Obligations - 11.2%
Aa AA $1,500 Florida State Board of Education, 6.25%, 6/1/01 $ 1,600,545
Aa AA 1,500 Florida State Board of Education, 6.75%, 6/1/12 1,591,215
Aa AA 2,000 Florida State Board of Education, 6.75%, 6/1/00 2,169,280
Aa AA 1,000 Florida State Board of Education, 6.125%, 6/1/12 1,020,770
Aa AA 1,295 Florida State Board of Education, 6.75%, 6/1/04 1,398,458
NR A 350 Hillsborough County, (Environmentally Sensitive Lands
Acquisition and Protection Program), 6.00%, 7/1/03 359,327
Baa1 A- 2,000 Puerto Rico Municipal Finance Agency, 5.50%, 7/1/01 2,017,640
Baa1 A- 775 Puerto Rico Municipal Finance Agency, 5.60%, 7/1/02 782,719
Baa1 A- 5,400 Puerto Rico Municipal Finance Agency, 5.875%, 7/1/05 5,454,972
NR NR 1,500 Virgin Islands Public Finance Authority, 6.80%, 10/1/00 1,588,590
--------
$17,983,516
--------
Hospitals - 4.6%
NR BBB $ 470 Escambia County Health Facilities Authority, (Baptist Hospital
Inc., and Baptist Manor Inc.) 5.00%, 10/1/95 470,122
NR BBB 490 Escambia County Health Facilities Authority, (Baptist Hospital
Inc., and Baptist Manor Inc.) 5.50%, 10/1/96 491,857
45
<PAGE>
Hospitals (continued)
NR BBB 515 Escambia County Health Facilities Authority, (Baptist Hospital
Inc., and Baptist Manor Inc.) 6.00%, 10/1/97 520,062
NR BBB 545 Escambia County Health Facilities Authority, (Baptist Hospital
Inc., and Baptist Manor Inc.) 6.25%, 10/1/98 553,311
Baa1 NR 425 Jacksonville Health Facilities Authority, (National Benevolent
Association- Cypress Village Project), 6.00%, 12/1/98 424,273
Baa1 NR 450 Jacksonville Health Facilities Authority, (National Benevolent
Association- Cypress Village Project), 6.25%, 12/1/99 450,850
Baa1 NR 480 Jacksonville Health Facilities Authority, (National Benevolent
Association- Cypress Village Project), 6.50%, 12/1/00 480,840
NR A- 1,635 Palm Beach County Health Facilities Authority, Good Samaritan
Health Systems Inc., 5.60%, 10/1/01 1,627,087
A BBB+ 620 St. Johns County Industrial Development Authority, (Flagler
Hospital Project), 5.20%, 8/1/98 618,642
A BBB+ 740 St. Johns County Industrial Development Authority, (Flagler
Hospital Project), 5.35%, 8/1/99 739,371
A BBB+ 780 St. Johns County Industrial Development Authority, (Flagler
Hospital Project), 5.50%, 8/1/00 780,998
A BBB+ 290 St. Johns County Industrial Development Authority, (Flagler
Hospital Project), 5.60%, 8/1/01 290,432
--------
$7,447,845
--------
Housing - 1.2%
Baa BBB $2,000 Puerto Rico Housing Bank and Finance Agency, 5.10%, 12/1/03 $1,860,560
--------
Industrial Development Revenue - 0.9%
Baa2 BBB $1,470 Nassau County PCR, (ITT Rayonier Incorporated Project), 5.60%,
6/1/00 $1,476,394
--------
Insured General Obligation - 4.0%
Aaa AAA $2,475 Dade County Local School District, (MBIA), 6.40%, 8/1/00 $2,647,879
Aaa AAA 1,500 Dade County Local School District, (MBIA), 6.00%, 8/1/06 1,544,250
Aaa AAA 500 Duval County Local School District, (AMBAC), 6.00%, 8/1/03 529,800
Aaa AAA 1,580 Sarasota County FL, (FGIC), 6.25%, 10/1/05 1,680,362
--------
$6,402,291
--------
Insured Health Care - 2.7%
Aaa AAA $4,000 Jacksonville Health Facilities Authority, (Baptist Medical
Center Project), (MBIA), 7.25%, 6/1/05 $4,341,800
--------
Insured Hospitals - 9.4%
Aaa AAA $1,050 Hillsborough County Hospital Authority, (Tampa General Hospital
Project), (FSA), 5.875%, 10/1/00 $1,094,593
Aaa AAA 1,000 City of Lakeland, (Lakeland Regional Medical Center Project),
(FGIC), 5.40%, 11/15/01 1,018,270
Aaa AAA 2,000 North Broward Hospital District, (MBIA), 5.80%, 1/1/00 2,074,180
Aaa AAA 1,910 North Broward Hospital District, (MBIA), 6.00%, 1/1/01 1,998,204
Aaa AAA 1,200 North Broward Hospital District, (MBIA), 5.95%, 1/1/01 1,254,888
Aaa AAA 1,360 North Broward Hospital District, (MBIA), 6.20%, 1/1/04 1,443,572
Aaa AAA 1,000 Orange County Health Facilities Authority, (Adventist Health
System/ Sunbelt Inc.) (CGIC), 5.50%, 11/15/02 1,021,100
46
<PAGE>
Insured Hospitals (continued)
Aaa AAA 4,500 South Broward Hospital District, (AMBAC), 7.50%, 5/1/08 5,090,535
--------
$14,995,342
--------
Insured Housing - 1.3%
Aaa AAA $2,000 Florida Housing Finance Agency, Multi-Family Housing,
(Lantana-Oxford Project), (FSA), 5.50%,
11/1/07 $ 2,004,820
--------
Insured Lease/Certificates of Participation - 0.9%
Aaa AAA $1,150 City of Collier County, Certificate of Participation, (FSA),
5.35%, 2/15/02 $ 1,151,219
Aaa AAA 315 Santa Rosa County, Florida, (FSA), 5.90%, 2/1/01 328,646
--------
$ 1,479,865
--------
Insured Miscellaneous - 2.1%
Aaa AAA $2,000 City of Jacksonville, Guaranteed Entitlement, (AMBAC), 5.50%
10/1/02 $ 2,051,720
Aaa AAA 500 Lee County Capital Revenue, (MBIA), 7.30%, 10/1/07 549,445
Aaa AAA 755 Miami Sports and Exhibition Authority, Special Obligation,
(FGIC), 5.65%, 10/1/02 779,605
--------
$ 3,380,770
--------
Insured Electric - 1.3%
Aaa AAA $2,910 City of St. Cloud Utility System, (MBIA), 6.40%, 8/1/06 $ 2,128,240
--------
Insured Solid Waste - 0.4%
Aaa AAA $ 535 Pinellas County Resource Recovery, (MBIA), 6.85%, 10/1/03 $ 584,712
--------
Insured Special Tax - 7.1%
Aaa AAA $1,500 Florida Department of Natural Resources, Preservation 2000,
(MBIA), 7.25%, 7/1/08 $ 1,610,100
Aaa AAA 1,525 Florida Department of Natural Resources, Preservation 2000,
(AMBAC), 6.70%, 7/1/05 1,660,344
Aaa AAA 2,400 Florida Department of Natural Resources, Preservation 2000,
(MBIA), 5.75%, 7/1/00 (1) 2,491,824
Aaa AAA 5,150 Tampa FL Utility Tax, (AMBAC), 6.50%, 10/1/02 5,547,374
--------
$11,309,642
--------
Insured Transportation - 7.0%
Aaa AAA $1,700 Hillsborough County Aviation Authority, Tampa International
Airport, (FGIC), 6.60%, 10/1/03 $ 1,818,966
Aaa AAA 2,000 Hillsborough County Aviation Authority, Tampa International
Airport, (FGIC), 6.80%, 10/1/05 2,144,960
Aaa AAA 3,120 Hillsborough County Aviation Authority, Tampa International
Airport, (FGIC), 6.85%, 10/1/06 3,345,826
Aaa AAA 1,000 Port Everglades Authority FL, Port Facilities, (FGIC), 7.00%,
9/1/00 1,094,550
Aaa AAA 2,500 Palm Beach County, Florida, Airport, (MBIA), 7.75%, 10/1/10 2,853,150
--------
$11,257,452
--------
Insured Water & Sewer - 5.3%
Aaa AAA $ 600 Cape Coral FL Wastewater, (FSA), 5.75%, 7/1/01 $ 620,220
Aaa AAA 790 Cape Coral FL Wastewater, (FSA), 6.10%, 7/1/05 824,460
Aaa AAA 1,000 Manatee County FL, Public Utilities, (MBIA), 6.50%, 10/1/04 1,083,940
Aaa AAA 2,000 Manatee County FL, Public Utilities, (MBIA), 6.75%, 10/1/04 2,210,800
Aaa AAA 1,005 Northern Palm Beach County FL Water Control District, (MBIA),
7.15%, 11/1/02 1,087,129
Aaa AAA 1,080 Northern Palm Beach County FL Water Control District, (MBIA),
7.20%, 11/1/03 1,170,731
Aaa AAA 1,000 Pasco County FL, Water & Sewer Revenue, (FGIC), 5.40%, 10/1/03 1,016,990
Aaa AAA 500 Port Orange FL Water & Sewer Revenue, (AMBAC), 6.50%, 10/1/04 531,630
--------
$ 8,545,900
--------
47
<PAGE>
Lease Revenue/Certificates
of Participation - 0.7%
Baa1 A $1,000 Puerto Rico Public Building Authority, 6.50%, 7/1/03 $ 1,068,120
--------
Miscellaneous - 0.6%
Baa BBB $1,000 Puerto Rico Housing Bank & Finance Agency, 5.00%, 12/1/02 $ 935,200
--------
Solid Waste - 0.7%
A NR $1,165 Brevard County, Florida, Solid Waste Management System, 5.00%,
4/1/01 $ 1,132,730
--------
Special Tax Revenue - 0.9%
A1 AA- $1,000 Broward County FL, Gas Tax Revenue Bonds, 6.20%, 9/1/01 $ 1,058,800
Baa1 BBB+ 400 Puerto Rico Infrastructure Financing Authority, 7.60%, 7/1/00 432,720
--------
$ 1,491,520
--------
Transportation - 2.9%
Aa A $2,980 Dade County FL, Aviation, Miami International Airport, 7.20%,
10/1/00 $ 3,098,515
A A 500 Florida Department of Transportation, Turnpike Revenue Bonds,
7.50%, 7/1/01 549,375
A A 925 Florida Sunshine Skyway Revenue Bonds, 6.40%, 7/1/04 965,617
--------
$ 4,613,507
--------
Utilities - 10.1%
Aa1 AA $3,000 Jacksonville Electric Authority, St. John's River Power Park,
6.50%, 10/1/03 $ 3,288,450
Aa1 AA 2,700 Jacksonville Electric Authority, 7.50%, 10/1/02 2,909,979
Aa1 AA 4,000 Jacksonville Electric Authority, St. John's River Power Park,
Crossover Refunding, 6.95%, 10/1/04 4,351,120
Aa AA- 1,700 City of St. Petersburg, Florida Public Utility, 6.65%, 10/1/03 1,840,063
Aa AA- 2,000 City of Tallahassee, Electric Refunding Bonds, 5.90%, 10/1/05 2,096,100
Aa AA- 1,500 City of Tallahassee, Consolidated Utility Systems, 6.60%,
10/1/03 1,618,725
--------
$ 16,104,437
--------
Water & Sewer Revenue - 2.8%
A3 A+ $ 330 Dunes Community Development District, (Flagler County, Water &
Sewer Project), 5.40%, 10/1/00 $ 331,703
A3 A+ 345 Dunes Community Development District, (Flagler County, Water &
Sewer Project), 5.50%, 10/1/01 347,988
A3 A+ 365 Dunes Community Development District, (Flagler County, Water &
Sewer Project), 5.60%, 10/1/02 369,665
A3 A+ 380 Dunes Community Development District, (Flagler County,
Water & Sewer Project), 5.70%, 10/1/03 386,893
A1 A+ 1,110 Pinellas County FL, Water Revenue Certificates, 5.90%, 10/1/01 1,135,774
Baa1 A 1,750 Puerto Rico Aqueduct & Sewer Authority, 7.875%, 7/1/17 1,904,525
--------
$ 4,476,548
--------
Total Investments (identified cost,
$159,193,575) $160,050,059
===========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1995, 52.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 11.3% to 22.9% of total
investments.
See notes to financial statements
48
<PAGE>
Massachusetts Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 6.8%
A1 A+ $1,200 Massachusetts Health and Education Finance Authority, Tufts
University Issue, 7.40%, 8/1/18 $ 1,287,792
A A- 1,000 Massachusetts Industrial Finance Agency, Clark University Issue,
6.80%, 7/01/06 1,070,460
Aaa NR 5,450 The New England Education Loan Marketing Corporation, 5.80%,
3/1/02 (1) 5,586,468
--------
$ 7,944,720
--------
Electric Utilities - 2.6%
A BBB+ $ 500 Massachusetts Municipal Wholesale Electric Company, 6.50%,
7/1/02 $ 534,680
A BBB+ 500 Massachusetts Municipal Wholesale Electric Company, 5.70%,
7/1/01 510,985
A BBB+ 1,000 Massachusetts Municipal Wholesale Electric Company, 5.70%,
7/1/01 1,021,970
A BBB+ 900 Massachusetts Municipal Wholesale Electric Company, 6.75%,
7/1/05 971,154
--------
$ 3,038,789
--------
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 $ 1,845,639
Aaa AAA 1,175 Boston, Massachusetts, Prerefunded to 7/1/01, 6.75%, 7/1/11 1,297,776
Aaa A+ 1,500 The Commonwealth of Massachusetts, Prerefunded to 12/1/01,
7.50%, 12/1/07 1,705,155
Aaa A+ 1,000 The Commonwealth of Massachusetts, Prerefunded to 10/1/96,
7.125%, 10/1/05 1,056,710
Aaa A+ 470 The Commonwealth of Massachusetts, Prerefunded to 12/15/98,
7.375%, 12/1/04 517,945
Aaa A+ 1,000 The Commonwealth of Massachusetts, Prerefunded to 8/1/01, 6.75%,
8/1/06 1,105,460
Aaa NR 1,000 Lowell, Massachusetts, Prerefunded to 2/15/01, 7.625%, 2/15/10 1,151,440
Aaa AAA 2,000 Lynn, Massachusetts Water and Sewer Commission, (MBIA),
Prerefunded to 12/1/00, 7.25%, 12/1/10 2,249,200
Aaa BBB+ 1,245 Massachusetts Municipal Wholesale Electric System, Prerefunded
to 7/1/02, 6.75%, 7/1/17 1,385,137
NR A+ 1,700 Massachusetts Health and Educational Facilities Authority,
Baystate Medical Center, Prerefunded to 7/1/99, 7.375%, 7/1/08 1,879,724
NR AAA 1,095 Massachusetts Health and Educational Facilities Authority,
Jordan Hospital Issue, (FHA), Prerefunded to 8/15/98, 7.85%,
8/15/28 1,217,749
Aaa AAA 1,750 Massachusetts Industrial Finance Agency, Museum of Science
Issue, (FSA), Prerefunded to 11/1/99, 7.30%, 11/1/09 1,947,960
Aaa AAA 6,750 Massachusetts Water Resource Authority, Prerefunded to 4/1/00,
7.50%, 4/1/09 7,591,725
--------
$24,951,620
--------
General Obligations - 7.3%
Baa NR $ 750 Greater New Bedford Regional Refuse Management District,
Landfill Bonds, (AMT), 5.00%, 5/1/99 $ 729,292
Baa NR 750 Greater New Bedford Regional Refuse Management District,
Landfill Bonds, (AMT), 5.10%, 5/1/00 720,532
Baa A- 1,000 City of Lawrence, Massachusetts, State Qualified Bonds, 5.00%,
9/15/02 968,580
Baa A- 500 City of Lawrence, Massachusetts, State Qualified Bonds, 5.25%,
9/15/04 483,725
Baa1 NR 500 City of Lowell, Massachusetts, State Qualified Bonds, 5.50%,
8/15/97 507,340
Baa1 NR 650 City of Lowell, Massachusetts, State Qualified Bonds, 5.75%,
8/15/98 665,041
49
<PAGE>
General Obligations (continued)
A1 A+ 730 The Commonwealth of Massachusetts Dedicated Income Tax Bonds,
7.875%, 6/1/97 777,106
A1 A+ 1,240 The Commonwealth of Massachusetts, 6.10%, 6/1/02 1,299,048
Baa1 A- 750 Puerto Rico Municipal Finance Agency, 5.60%, 7/1/02 757,470
A NR 210 Taunton, Massachusetts, 8.00%, 2/1/01 233,929
Baa BBB+ 1,275 Worcester, Massachusetts, 5.85%, 8/1/01 1,295,706
--------
$ 8,437,769
--------
Hospitals - 10.5%
Aa AA- $2,180 City of Boston, Massachusetts, Boston City Hospital, (FHA
Insured Mortgage), 5.00%, 2/15/00 $ 2,162,167
Aa AA- 2,160 City of Boston, Massachusetts, Boston City Hospital, (FHA
Insured Mortgage), 5.15%, 2/15/01 2,140,711
A1 A+ 1,000 Massachusetts Health and Educational Facilities Authority,
Brigham and Women's Hospital Issue, 6.05%, 7/1/99 1,035,280
A A- 1,225 Massachusetts Health and Educational Facilities Authority,
Charlton Memorial Hospital Issue, 7.00%, 7/1/00 1,301,146
A A- 610 Massachusetts Health and Educational Facilities Authority,
Charlton Memorial Hospital Issue, 7.10%, 7/1/01 653,871
Aa AA 750 Massachusetts Health and Educational Facilities Authority,
Children's Hospital Issue, 5.50%,
10/1/02 749,985
Aa AA 500 Massachusetts Health and Educational Facilities Authority,
Children's Hospital Issue, 5.60%,
10/1/03 501,330
Aa NR 3,000 Massachusetts Health and Educational Facilities Authority,
Daughters of Charity Issue, 5.75%, 7/1/02 3,054,690
A A 650 Massachusetts Health and Educational Facilities Authority, New
England Deaconess Hospital Issue, 6.50%, 4/1/04 671,846
--------
$12,271,026
--------
Housing - 0.2%
NR BBB+ $ 180 Massachusetts Housing Finance Agency, (AMT), 8.10%, 8/1/23 $ 188,632
--------
Industrial Development Revenue - 0.3%
A2 NR $ 350 Canton, Massachusetts, Industrial Development Finance Authority,
General Signal Corporation, 5.625%, 12/1/02 $ 343,479
--------
Insured Education - 3.4%
Aaa AAA $ 655 Massachusetts Educational Financing Authority, (AMBAC), (AMT),
6.40%, 1/1/99 $ 678,147
Aaa AAA 710 Massachusetts Educational Financing Authority, (AMBAC), (AMT),
6.65%, 1/1/01 746,401
Aaa AAA 2,365 Massachusetts Educational Financing Authority, (MBIA), (AMT),
7.35%, 1/1/99 2,485,354
--------
$ 3,909,902
--------
Insured General Obligations - 14.1%
Aaa AAA $2,000 City of Boston, Massachusetts, (MBIA), 6.375%, 7/1/02 $ 2,147,440
Aaa AAA 1,000 City of Boston, Massachusetts, (AMBAC), 5.20%, 2/1/04 993,640
Aaa AAA 1,000 Chelsea, Massachusetts, (AMBAC), 6.00%, 6/15/02 1,048,600
Aaa AAA 1,500 The Commonwealth of Massachusetts, (FGIC), 7.20%, 3/1/02 1,657,695
50
<PAGE>
Insured General Obligations (continued)
Aaa AAA 2,500 The Commonwealth of Massachusetts, (FGIC), 6.50%, 6/1/01 2,681,200
Aaa AAA 1,340 Lawrence, Massachusetts, State Qualified Bonds, (AMBAC), 5.375%,
2/15/04 1,338,499
Aaa AAA 4,000 City of Lowell, Massachusetts, State Qualified Bonds, (FSA),
5.10%, 1/15/04 3,933,120
Aaa AAA 1,000 Town of Palmer, Massachusetts, (MBIA), 5.50%, 10/1/01 1,011,380
Aaa AAA 1,000 Town of Rockport, Massachusetts, (AMBAC), 6.80%, 12/15/04 1,089,740
Aaa AAA 440 City of Worcester, Massachusetts, (MBIA), 6.80%, 5/15/00 473,422
--------
$16,374,736
--------
Insured Hospitals - 4.0%
Aaa AAA $1,060 Massachusetts Health and Educational Facilities Authority,
Berkshire Health Systems, (MBIA), 6.75%, 10/1/19 $ 1,084,973
Aaa AAA 400 Massachusetts Health and Educational Facilities Authority, Metro
West Health, (AMBAC), 5.80%, 11/15/02 416,164
Aaa AAA 700 Massachusetts Health and Educational Facilities Authority,
Massachusetts General Hospital Issue, (AMBAC), 4.65%, 7/1/02 663,621
Aaa AAA 1,000 Massachusetts Health and Educational Facilities Authority,
Massachusetts General Hospital Issue, (AMBAC), 4.85%, 7/1/04 949,180
Aaa AAA 1,000 Massachusetts Health and Educational Facilities Authority,
Central Massachusetts Medical Center, (AMBAC), 5.50%, 7/1/99 1,022,990
Aaa AAA 540 Massachusetts Health and Educational Facilities Authority,
Central Massachusetts Medical Center, (AMBAC), 5.70%, 7/1/00 559,429
--------
$ 4,696,357
--------
Insured Housing - 3.5%
Aaa AAA $1,900 Massachusetts Housing Finance Agency, (AMBAC), (AMT), 5.90%,
1/1/03 $ 1,938,760
Aaa AAA 1,840 Massachusetts Housing Finance Agency, (AMBAC), (AMT), 6.00%,
7/1/04 1,882,982
Aaa AAA 215 Massachusetts Housing Finance Agency, (MBIA), (AMT), 7.50%,
12/1/06 224,698
--------
$ 4,046,440
--------
Insured Miscellaneous - 0.6%
Aaa AAA $ 665 Massachusetts Industrial Finance Agency, Museum of Fine Arts,
(MBIA), 6.20%, 1/1/00 $ 690,802
--------
Insured Solid Waste - 4.1%
Aaa AAA $1,980 Massachusetts Industrial Finance Agency, REFUSETECH, Inc.
Project, (FSA), 5.35%,
7/1/00 $ 1,994,176
Aaa AAA 2,735 Massachusetts Industrial Finance Agency, REFUSETECH Inc.
Project, (FSA), 5.45%, 7/1/01 2,757,727
--------
$ 4,751,903
--------
Insured Transportation - 0.8%
Aaa AAA $ 900 Massachusetts Port Authority, (FGIC), (AMT), 7.10%, 7/1/01 $ 985,941
--------
Insured Utilities - 3.0%
Aaa AAA $2,000 Massachusetts Municipal Wholesale Electric Company, (AMBAC),
6.625%, 7/1/03 $ 2,166,420
Aaa AAA 1,225 Massachusetts Municipal Wholesale Electric Company, (MBIA),
6.40%, 7/1/02 1,304,955
--------
$ 3,471,375
--------
Insured Water and Sewer - 0.9%
Aaa AAA $1,000 Lynn Water and Sewer Commission, (FGIC), 5.50%, 6/1/99 $ 1,022,210
--------
51
<PAGE>
Special Tax Revenue - 4.5%
A AA- $3,050 The Commonwealth of Massachusetts, 7.00%, 6/1/02 $ 3,372,141
NR NR 1,750 Virgin Islands Public Finance Authority, 6.70%, 10/1/99 1,823,955
--------
$ 5,196,096
--------
Transportation - 6.1%
A1 A+ $1,500 Massachusetts Bay Transportation Authority, 5.10%, 3/1/02 $ 1,493,025
A1 A+ 1,000 Massachusetts Bay Transportation Authority, 5.30%, 3/1/04 992,950
Baa1 A 2,000 Puerto Rico Highway and Transportation Authority, 4.90%, 7/1/01 1,931,080
Baa1 A 1,500 Puerto Rico Highway Authority, 6.75%, 7/1/05 1,593,030
A1 A+ 1,000 Woods Hole, Marthas Vineyard and Nantucket Steamship Authority,
6.60%, 3/1/03 1,074,280
--------
$ 7,084,365
--------
Water & Sewer Revenue - 5.9%
Aa AA- $1,500 Massachusetts Water Pollution Abatement Trust, 4.90%, 2/1/01 $ 1,472,385
Aa A+ 1,500 Massachusetts Water Pollution Abatement Trust, 4.75%, 8/1/04 1,409,340
A A 1,975 Massachusetts Water Resources Authority, 5.875%, 11/1/04 2,033,874
A A 500 Massachusetts Water Resources Authority, 6.30%, 12/1/01 528,820
Baa1 A 1,300 Puerto Rico Aqueduct and Sewer Authority, 7.875%, 7/1/17 1,414,804
--------
$ 6,859,223
--------
Total Investments (identified cost, $116,297,486) $116,265,385
===========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1995, 40.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 5.5% to 13.3% of total
investments.
See notes to financial statements
52
<PAGE>
Michigan Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Escrowed/Prerefunded - 8.6%
Aaa AAA $1,500 Dearborn Michigan Economic Development Corporation, Prerefunded
to 8/15/01, 6.95%, 8/15/21 $1,675,020
Aaa AAA 1,000 Lansing Michigan Tax Increment Bonds, Escrowed to Maturity,
6.20%, 10/1/04 1,070,960
--------
$2,745,980
--------
General Obligations - 4.8%
A1 AA $ 500 Oakland County Michigan Building Authority, 4.75%, 4/1/01 $ 484,805
A1 AA 1,000 Oakland County Michigan Evergreen-Farmington Sewage Disposal
System, 6.50%, 11/1/05 1,052,240
--------
$1,537,045
--------
Hospitals - 9.9%
A A $1,000 Kent County, Michigan Hospital Finance Authority, Blodgett
Memorial Medical Center, 7.25%, 7/1/05 $1,068,140
A NR 535 Marquette Michigan Hospital Finance Authority, 6.625%, 4/1/07 538,922
A A- 500 Michigan State Hospital Finance Authority, The Detroit Medical
Center Obligated Group, 5.00%, 8/15/02 478,590
Aa AA 1,000 Royal Oak, Michigan Hospital Finance Authority, William Beaumont
Hospital, 7.75%, 1/1/03 1,085,460
--------
$3,171,112
--------
Housing - 3.2%
NR A+ $1,000 Michigan State Housing Development Authority, 6.00%, 4/1/01 $1,018,560
--------
Industrial Development Revenue - 6.4%
NR A+ $ 250 The Economic Development Corporation of the City of Farmington
Hills, North Valley Office Project, 5.40%, 12/1/06 $ 241,603
NR NR 600 State of Michigan Job Development Authority, Chrysler
Corporation Project, 5.70%, 11/1/99 611,298
NR A+ 750 Michigan Strategic Fund, Welch Foods Incorporated Project,
6.75%, 7/1/01 794,588
NR BBB 405 Richmond, Michigan Economic Development Corporation, K-MART
Project, 6.30%, 1/1/99 406,279
--------
$2,053,768
--------
Insured Education - 0.9%
Aaa AAA $ 300 Michigan Higher Education Student Loan Authority, (AMT),
(AMBAC), 4.30%, 10/1/98 $ 292,983
--------
Insured General Obligations - 13.7%
Aaa AAA $1,000 Comstock, Michigan Public Schools, (CGIC), 6.80%, 5/1/02 $1,081,640
Aaa AAA 1,500 Grand Ledge, Michigan Public Schools, (MBIA), 7.875%, 5/1/11 1,760,475
Aaa AAA 225 Jackson County, Michigan, Wastewater Disposal Facilities-Clark
Lake, (MBIA), 8.00%, 4/1/01 256,540
Aaa AAA 425 Jackson County, Michigan, Wastewater Disposal Facilities-Clark
Lake, (MBIA), 8.00%, 4/1/02 485,346
Aaa AAA 250 State of Michigan Municipal Bond Authority, Local Government
Loan Project, (FGIC), 6.80%, 5/1/98 264,308
Aaa AAA 500 State of Michigan Municipal Bond Authority, Local Government
Loan Project, (MBIA), 7.25%, 5/1/20 542,690
--------
$4,390,999
--------
Insured Hospitals - 4.4%
Aaa AAA $ 355 Michigan State Hospital Finance Authority, Oakwood Hospital
Obligated Group, (FGIC), 4.70%, 11/1/00 $ 348,180
Aaa AAA 1,000 Michigan State Hospital Finance Authority, Sinai Hospital,
(FGIC), 7.00%, 1/1/03 1,050,720
--------
$1,398,900
--------
53
<PAGE>
Insured Industrial
Development Revenue - 5.1%
Aaa AAA $1,000 Monroe County, Michigan, The Detroit Edison Company, (AMBAC),
(AMT), 6.35%, 12/1/04 (1) $ 1,060,590
Aaa AAA 500 Monroe County, Michigan, The Detroit Edison Company, (AMBAC),
(AMT), 7.50%, 12/1/19 551,925
--------
$ 1,612,515
--------
Insured Lease Revenue/ Certificate of Participation - 3.9%
Aaa AAA $1,175 Michigan State Building Authority, (MBIA), 6.40%, 10/1/04 $ 1,255,758
--------
Insured Utility - 3.3%
Aaa AAA $1,000 Western Townships Michigan, Sewer Disposal System, (CGIC),
6.70%, 1/1/06 $ 1,061,460
--------
Lease Revenue/ Certificates of Participation - 11.3%
A AA- $1,395 State of Michigan Building Authority, 6.40%, 10/1/04 $ 1,481,127
A AA- 1,000 State of Michigan Building Authority, 6.10%, 10/1/01 1,048,980
Baa1 A 1,000 Puerto Rico Public Building Authority, 6.60%, 7/1/04 1,071,220
--------
$ 3,601,327
--------
Miscellaneous - 1.5%
Baa BBB $ 500 Puerto Rico Housing Bank and Finance Agency, 5.00%, 12/1/02 $ 467,600
--------
Special Tax Revenue - 10.2%
NR A $ 250 Detroit, Michigan, Cobo Hall Expansion Project, 4.75%, 9/30/00 $ 241,570
A1 AA- 1,375 State of Michigan, Comprehensive Transportation Refunding Bonds,
7.625%, 5/1/11 1,487,324
NR BBB+ 1,500 Battle Creek, Michigan Downtown Development Authority, 6.65%,
5/1/02 1,537,200
--------
$ 3,266,094
--------
Transportation - 1.5%
Baa1 A $ 500 Puerto Rico Highway and Transportation Authority, 5.00%, 7/1/02 $ 481,160
--------
Water & Sewer Revenue - 11.3%
Aa AA $1,000 Michigan Municipal Bond Authority, 7.00%, 10/1/02 $ 1,115,640
A A+ 1,350 Midland, Michigan Water Supply System, 7.20%, 4/1/10 1,444,405
Baa1 A 950 Puerto Rico Aqueduct and Sewer Authority, 7.875%, 7/1/17 1,033,885
--------
$ 3,593,930
--------
Total Investments (identified cost, $31,435,798) $31,949,191
==========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
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 March 31, 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 ranged from 5.2% to 13.5% of total
investments.
See notes to financial statements
54
<PAGE>
New Jersey Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 3.5%
NR A- $ 380 New Jersey Educational Facilities Authority, Drew University,
5.875%, 7/1/03 $ 390,306
NR A+ 380 Higher Education Assistance Authority, (State of New Jersey),
(AMT), NJ Class Loan Program, 5.70%,
1/1/02 377,032
A1 AA 1,895 Rutgers, The State University (The State of New Jersey) 6.20%,
5/1/04 2,017,834
A AA 250 University of Medicine and Dentistry of New Jersey Bonds, Series
B, 7.05%, 12/1/00 263,300
A A 300 University of Puerto Rico, University System Revenue Refunding
Bonds, Series K, 6.50%, 6/1/04 308,190
--------
$ 3,356,662
--------
Escrowed - 1.9%
Aaa AAA $1,635 Commonwealth of Puerto Rico, Prerefunded to 7/1/99, (FGIC),
7.375%, 7/1/04 $ 1,817,777
--------
General Obligations - 13.4%
NR A+ $1,000 Hudson County, New Jersey, Fiscal Year Adjustment Bonds, 4.60%,
8/1/01 $ 953,980
Aaa AAA 1,280 County of Morris, New Jersey, 6.50%, 8/1/02 1,391,424
Aa AA 1,000 The Township of Morris, New Jersey, 6.55%, 7/1/02 1,082,920
Aa1 AA+ 1,000 State of New Jersey, 6.20%, 1/15/00 1,058,110
Aa1 AA+ 1,000 State of New Jersey, 7.25%, 4/15/01 1,086,280
Aa NR 1,490 Township of North Brunswick, (Middlesex County), New Jersey,
6.125%, 5/15/02 1,574,528
Aa NR 1,000 County of Ocean, New Jersey, 6.75%, 7/13/01 1,081,330
Aa NR 1,000 County of Ocean, New Jersey, 6.75%, 7/13/02 1,088,910
Aa NR 1,000 County of Ocean, New Jersey, 6.375%, 4/15/01 1,062,190
Baa1 A- 750 Puerto Rico Municipal Finance Agency, 5.60%, 7/1/02 757,470
Baa1 A 440 Commonwealth of Puerto Rico, 8.00%, 7/1/06 476,370
Aa AA 1,000 South Brunswick, New Jersey, 7.125%, 7/15/02 1,121,000
--------
$12,734,512
--------
Health Care - 1.5%
A A- $1,000 New Jersey Health Care Facilities Financing Authority,
(Atlantic City Medical Care Center), 6.45%, 7/1/02 $ 1,035,450
A A- 340 New Jersey Health Care Facilities Financing Authority,
(Atlantic City Medical Care Center), 6.25%, 7/1/00 350,802
--------
$ 1,386,252
--------
Housing - 13.3%
A1 A+ $1,115 State of New Jersey Housing Finance Agency Special Pledge
Revenue, 8.25%, 11/1/00 $ 1,175,444
NR AA+ 2,220 New Jersey Housing Finance Agency, 6.30%, 11/1/00 2,325,694
NR AA+ 1,500 New Jersey Housing Finance Agency, 6.60%, 11/1/03 1,616,880
NR A+ 2,500 New Jersey Housing and Mortgage Finance Agency, 6.30%, 11/1/01 2,671,250
NR A+ 1,000 New Jersey Housing and Mortgage Finance Agency, 6.40%, 11/1/02 1,062,670
NR A+ 2,570 New Jersey Housing and Mortgage Finance Agency, 6.50%, 11/1/03 2,716,593
NR A+ 1,000 New Jersey Housing and Mortgage Finance Agency, 6.00%, 11/1/02 1,032,430
--------
$12,600,961
--------
Industrial Development Revenue - 0.8%
Aa3 NR $ 765 New Jersey Economic Development Authority, LOC: Bank of Paris,
(AMT), 6.00%, 12/1/02 $ 773,805
--------
Insured Education - 1.5%
Aaa AAA $ 335 New Jersey State Educational Facilities, Seton Hall University,
6.00%, 7/1/00 $ 353,854
55
<PAGE>
Insured Education - (continued)
Aaa AAA 1,000 New Jersey State Educational Facilities, Seton Hall University,
6.10%, 7/1/01 1,065,350
--------
$1,419,204
--------
Insured General Obligation - 10.3%
Aaa AAA $1,000 Atlantic City, New Jersey, Board of Education, (AMBAC), 6.00%,
12/1/02 $1,050,520
Aaa AAA 1,175 Edison, New Jersey, (AMBAC), 4.70%, 1/1/04 1,122,172
Aaa AAA 500 City of Elizabeth, Union County, New Jersey, (MBIA), 6.10%,
11/15/99 522,555
Aaa AAA 500 City of Elizabeth, Union County, New Jersey, (MBIA), 6.20%,
11/15/01 530,770
Aaa AAA 500 City of Elizabeth, Union County, New Jersey, (MBIA), 6.20%,
11/15/02 532,985
Aaa AAA 1,200 Jackson Township, New Jersey, Local School District, (FGIC),
6.60%, 6/1/02 1,296,168
Aaa AAA 1,200 Jackson Township, New Jersey, Local School District, (FGIC),
6.60%, 6/1/03 1,302,876
Aaa AAA 1,200 Kearney, New Jersey, (FSA), 6.50%, 2/1/04 1,291,728
Aaa AAA 850 Roselle, New Jersey, (MBIA), 4.65%, 10/15/03 790,933
Aaa AAA 1,000 South Brunswick Township, New Jersey, Board of Education,
(FGIC), 6.40%, 8/1/03 1,073,810
Aaa AAA 270 Union County, New Jersey, (FSA), 6.375%, 11/1/01 289,148
--------
$9,803,665
--------
Insured Health Care - 2.3%
Aaa AAA $1,910 New Jersey Health Care Facilities & Financing Authority, (Dover
General Hospital & Medical Center), (MBIA), 7.00%, 7/1/04 $2,137,061
--------
Insured Housing - 2.0%
Aaa AAA $1,485 New Jersey State Housing and Mortgage Finance Agency, (MBIA),
7.25%, 10/1/15 $1,551,617
Aaa AAA 300 Puerto Rico Housing Bank and Finance Agency, Special Obligation,
(FSA), 5.95%, 10/1/01 310,578
--------
$1,862,195
--------
Insured Industrial
Development Revenue - 2.0%
Aaa AAA $1,715 Warren County New Jersey Pollution Control Finance Authority,
Resource Recovery, (MBIA), 5.95%, 12/1/01 $1,820,009
Aaa AAA 100 Warren County New Jersey Pollution Control Finance Authority,
Resource Recovery, (MBIA), 6.55%, 12/1/06 108,713
--------
$1,928,722
--------
Insured Solid Waste - 1.7%
Aaa AAA $1,315 The Bergen County Utilities Authority, Solid Waste System,
(FGIC), 5.80%, 6/15/00 $1,376,503
Aaa AAA 250 The Bergen County Utilities Authority, Solid Waste System,
(FGIC), 6.00%, 6/15/02 265,385
--------
$1,641,888
--------
Insured Transportation - 6.6%
Aaa AAA $2,000 New Jersey Turnpike Authority, (AMBAC), 5.90%, 1/1/04 $2,082,820
Aaa AAA 1,500 New Jersey Turnpike Authority, (AMBAC), 5.90%, 1/1/03 1,555,380
Aaa AAA 2,325 Port Authority of New York & New Jersey, (AMBAC), 7.40%, 10/1/12 2,600,884
--------
$6,239,084
--------
Insured Utilities - 3.2%
Aaa AAA $1,900 Middlesex County, New Jersey, Utility Authority, (FGIC), 6.00%,
12/1/00 $1,991,409
Aaa AAA 1,000 Middlesex County, New Jersey, Utility Authority, (FGIC), 6.10%,
12/1/01 1,057,450
--------
$3,048,859
--------
56
<PAGE>
Insured Water & Sewer - 3.7%
Aaa AAA $ 870 The Ocean County Utilities Authority of New Jersey, Wastewater
Revenue Bonds, (FGIC), 6.40%, 1/1/01 $ 910,907
Aaa AAA 2,460 The Ocean County Utilities Authority of New Jersey, Wastewater
Revenue Bonds, (FGIC), 6.70%, 1/1/07 (1) 2,579,384
--------
$ 3,490,291
--------
Lease Revenue/Certificates of Participation - 4.1%
Aa AA- $1,000 Mercer County Improvement Authority, (Richard J. Hughes Justice
Complex), 5.15%, 1/1/03 $ 988,620
Aa AA- 1,000 Mercer County Improvement Authority, (Richard J. Hughes Justice
Complex), 5.15%, 1/1/05 984,140
Aa AA- 1,000 Mercer County Improvement Authority, (Richard J. Hughes Justice
Complex), 5.15%, 1/1/06 974,980
A1 A+ 875 State of New Jersey, Certificates of Participation, 5.90%,
4/1/99 897,715
--------
$ 3,845,455
--------
Solid Waste - 3.4%
Baa NR $ 300 The Atlantic County Utilities Authority (New Jersey), Solid
Waste System, 7.00%, 3/1/08 $ 293,997
A1 AA- 500 Gloucester County Improvement Authority of New Jersey, (Landfill
Project), 5.20%, 9/1/99 503,095
A1 AA- 500 Gloucester County Improvement Authority of New Jersey, (Landfill
Project), 5.40%, 9/1/00 506,035
A1 NR 300 The Passaic County Utilities Authority (New Jersey), Solid Waste
Disposal, 5.70%, 3/1/98 298,008
NR A 1,625 The Union County Utilities Authority (New Jersey), Solid Waste
System, (AMT), 6.85%, 6/15/02 1,660,766
--------
$ 3,261,901
--------
Special Tax Revenue - 2.2%
Aa1 AA $1,600 The Monmouth County, New Jersey, Improvement Authority (Monmouth
County Project), 6.70%, 12/1/01 $ 1,732,048
Baa1 BBB+ 300 Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, 7.60%, 7/1/00 324,540
--------
$ 2,056,588
--------
Transportation - 14.6%
Aa A+ $1,350 New Jersey Transportation Trust Fund Authority, 6.00%, 6/15/01 $ 1,417,325
Aa A+ 2,300 New Jersey Transportation Trust Fund Authority, 6.00%, 6/15/02 2,416,012
A1 AA- 500 New Jersey Highway Authority, (Garden State Parkway), 5.90%,
1/1/04 522,485
A1 AA- 250 New Jersey Highway Authority, (Garden State Parkway), 6.10%,
1/1/06 261,148
A A 2,500 New Jersey Turnpike Authority, 6.10%, 1/1/99 2,587,200
A A 895 New Jersey Turnpike Authority, 6.40%, 1/1/02 952,128
A1 AA- 500 The Port Authority of New York and New Jersey, 5.50%, 8/1/05 501,125
A1 AA- 480 The Port Authority of New York and New Jersey, 6.90%, 7/1/08 506,813
Baa1 A 2,100 Puerto Rico Highway Authority, 6.75%, 7/1/05 2,230,242
NR A+ 755 South Jersey Port Corporation (An Instrumentality of the State
of New Jersey), (AMT), 4.75%, 1/1/00 740,534
NR A+ 830 South Jersey Port Corporation (An Instrumentality of the State
of New Jersey), (AMT), 4.95%, 1/1/02 807,706
NR A+ 910 South Jersey Port Corporation (An Instrumentality of the State
of New Jersey), (AMT), 5.15%, 1/1/04 886,222
--------
$13,828,940
--------
57
<PAGE>
Water & Sewer Revenue - 8.0%
Aa AA $1,515 New Jersey Wastewater Treatment Trust, 6.70%, 6/15/01 $ 1,638,609
Aa AA 2,000 New Jersey Wastewater Treatment Trust, 6.875%, 6/15/03 2,167,700
Aa AA 1,000 New Jersey Wastewater Treatment Trust, 7.00%, 5/15/09 1,066,580
A A+ 500 New Jersey Water Supply Authority, (Delaware and Raritan
System), (AMT), 7.875%. 11/1/13 546,195
Baa1 A 1,985 Puerto Rico Aqueduct & Sewer Authority, 7.875%, 7/1/17 2,160,275
--------
$ 7,579,359
--------
Total Investments (identified cost, $94,130,013) $94,813,181
==========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
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 March 31, 1995, 35.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 6.6% to 14.4% of total
investments.
See notes to the financial statements
58
<PAGE>
New York Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 8.4%
Aaa AA+ $ 500 Dormitory Authority of the State of New York, Columbia
University, 5.10%, 7/1/01 $ 502,875
Aa AA 2,250 Dormitory Authority of the State of New York, Cornell
University, 7.375%, 7/1/20 2,445,322
Aa AA 1,000 Dormitory Authority of the State of New York, Cornell
University, 7.375%, 7/1/30 1,083,970
NR AA 750 Dormitory Authority of the State of New York, Manhattan College,
6.00%, 7/1/03 792,270
NR AA 1,000 Dormitory Authority of the State of New York, Manhattan College,
6.10%, 7/1/04 1,061,470
A1 A+ 5,955 Dormitory Authority of the State of New York, University of
Rochester, 6.50%, 7/1/09 (1) 6,151,575
Baa1 BBB+ 1,000 Dormitory Authority of the State of New York, State University,
7.25%, 5/15/99 1,063,830
Baa1 BBB+ 1,000 Dormitory Authority of the State of New York, State University,
5.20%, 5/15/03 952,870
--------
$14,054,182
--------
Electric Utilities - 5.1%
Aa AA- $3,125 Power Authority of the State of New York, 6.60%, 1/1/02 $ 3,389,000
Aa AA- 970 Power Authority of the State of New York, 7.875%, 1/1/07 1,056,476
Aa AA- 2,750 Power Authority of the State of New York, 8.00%, 1/1/17 2,997,198
Aa AA- 1,000 Power Authority of the State of New York, 7.60%, 1/1/03 1,083,550
--------
$ 8,526,224
--------
Escrowed/Prerefunded - 20.0%
Aaa AAA $4,000 Battery Park City Authority, Prerefunded to 5/1/99, 7.70%,
5/1/15 $ 4,481,800
Aaa AAA 1,710 The City of New York, Escrowed to Maturity, (AMBAC), 6.25%,
8/1/02 1,834,060
Aaa AAA 2,625 The City of New York, Prerefunded to 8/1/02, (MBIA), 6.375%,
8/1/07 2,862,641
Baa1 BBB+ 2,250 Dormitory Authority of the State of New York, State University,
Prerefunded to 5/15/02, 6.75%, 5/15/21 2,493,158
Aaa AAA 5,000 New York Local Government Assistance Corporation, Prerefunded to
4/1/01, 7.00%, 4/1/16 5,586,000
Aaa AAA 2,000 New York State Housing Finance Agency, Escrowed to Maturity,
6.80%, 5/1/01 2,186,300
Aaa AAA 900 New York State Housing Finance Authority, State University,
Escrowed to Maturity, 7.80%, 5/1/01 1,030,428
Aaa AAA 1,000 New York State Medical Care Facilities Finance Agency, St.
Luke's-Roosevelt Hospital Center, (MBIA), Prerefunded to
2/15/00, 7.45%, 2/15/29 1,122,410
Aaa AA- 2,275 Power Authority of the State of New York, Prerefunded to 1/1/96,
7.375%, 1/1/18 2,370,527
Aaa AAA 1,000 Suffolk County, New York Water Authority, (AMBAC), Prerefunded
to 7/15/97, 6.50%, 7/15/12 1,059,610
Aaa AAA 2,500 Suffolk County, New York Water Authority, (AMBAC), Prerefunded
to 6/1/02, 6.00%, 6/1/17 2,668,075
Aaa AAA 1,505 Suffolk County, New York Water Authority, (AMBAC), Prerefunded
to 6/1/00, 6.90%, 6/1/09 1,660,241
Aaa AAA 1,610 Suffolk County, New York Water Authority, (AMBAC), Prerefunded
to 6/1/00, 6.90%, 6/1/10 1,776,072
Aaa A+ 1,900 Triborough Bridge and Tunnel Authority,
7.00%, 1/1/21 2,108,658
--------
$33,239,980
--------
59
<PAGE>
General Obligations - 7.2%
Baa1 A- $1,500 The City of New York, 6.00%, 8/1/00 $ 1,510,680
Baa1 A- 500 The City of New York, 6.875%, 2/1/02 521,570
Baa1 A- 1,000 The City of New York, 6.375%, 8/1/05 998,760
Baa1 A- 1,500 The City of New York, 6.375%, 8/1/06 1,492,065
A A- 1,500 State of New York, 7.50%, 11/15/00 1,671,945
A A- 2,500 State of New York, 7.50%, 11/15/01 2,808,875
A A- 2,000 State of New York, 7.00%, 11/15/02 2,209,080
Baa1 A- 775 Puerto Rico Municipal Finance Agency, 5.60%, 7/1/02 782,719
--------
$11,995,694
--------
Hospitals - 7.0%
Baa1 BBB $ 500 Cortland County Industrial Development Agency, Courtland
Memorial Hospital Inc. Project, 6.15%, 7/1/02 $ 499,075
NR AAA 2,500 New York State Medical Care Facilities Finance Agency, Mount
Sinai Hospital, 5.40%, 8/15/00 2,526,425
NR AAA 4,000 New York State Medical Care Facilities Finance Agency, Mount
Sinai Hospital, 5.50%, 8/15/01 4,068,280
Baa1 BBB+ 1,415 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home Revenue Bonds, 7.625%, 2/15/08 1,495,966
Aa AA 1,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home Revenue Bonds, 7.50%, 2/15/09 1,084,390
Aa AAA 2,000 New York State Medical Care Facilities Finance Agency, St.
Luke's Hospital Center, 4.65%, 2/15/01 1,916,700
--------
$11,590,836
--------
Housing - 0.7%
NR AAA $1,050 New York City Housing Development Corporation, 6.70%, 6/1/00 $ 1,110,070
--------
Industrial Development Revenue - 0.6%
A NR $1,045 United Nations Development Corporation, 5.70%, 7/1/02 $ 1,059,714
--------
Insured Education - 0.7%
Aaa AAA $1,075 Dormitory Authority of the State of New York, Mt. Sinai School
of Medicine, (MBIA), 6.75%, 7/1/09 $ 1,144,595
--------
Insured General Obligations - 2.3%
Aaa AAA $ 765 Brookhaven, New York, (MBIA), 5.50%, 5/1/02 $ 786,588
Aaa AAA 2,090 Buffalo, New York, (MBIA), 4.75%, 4/1/03 2,039,819
Aaa AAA 1,000 Suffolk County, New York Water Authority, (AMBAC), 4.70%, 4/1/03 950,710
--------
$ 3,777,117
--------
Insured Hospital - 2.8%
Aaa AAA $4,450 New York State Medical Care Facilities Finance Agency, New York
State Hospital, (AMBAC), 6.10%, 2/15/04 $ 4,663,422
--------
Insured Miscellaneous - 0.6%
Aaa AAA $1,000 New York State Municipal Bond Bank Agency, (AMBAC), 6.625%,
3/15/06 $ 1,074,930
--------
Insured Solid Waste - 0.7%
Aaa AAA $1,000 Dutchess County Resource Recovery Agency, (FGIC), 7.20%, 1/1/02 $ 1,104,750
--------
Insured Special Tax - 1.2%
Aaa AAA $ 435 New York State Urban Development Corporation, (MBIA), 5.40%,
4/1/05 $ 436,327
Aaa AAA 1,500 Municipal Assistance Corporation for the City of New York,
(MBIA), 6.875%, 7/1/01 1,597,935
--------
$ 2,034,262
--------
60
<PAGE>
Insured Transportation - 8.3%
Aaa AAA $ 905 Metropolitan Transportation Authority for the City of New York,
(MBIA), 5.60%, 7/1/01 $ 932,720
Aaa AAA 1,135 Metropolitan Transportation Authority for the City of New York,
(MBIA), 5.80%, 7/1/03 1,178,493
Aaa AAA 900 Metropolitan Transportation Authority for the City of New York,
(MBIA), 5.30%, 7/1/98 913,527
Aaa AAA 3,500 The Port Authority of New York and New Jersey, (MBIA), 6.375%,
10/15/17 3,603,005
Aaa AAA 2,500 The Port Authority of New York and New Jersey, (AMBAC), 7.40%,
10/1/12 2,796,650
Aaa AAA 2,000 Triborough Bridge and Tunnel Authority, (MBIA), 6.20%, 1/1/01 2,110,020
Aaa AAA 2,290 Triborough Bridge and Tunnel Authority, (FGIC), 5.80%, 1/1/02 2,363,051
--------
$13,897,466
--------
Insured Utility - 4.5%
Aaa AAA $5,280 New York State Energy Research and Development Authority,
Central Hudson Gas, (FGIC), 7.35%,
10/1/14 $ 5,722,306
Aaa AAA 1,600 New York State Power Authority, (MBIA), 7.875%, 1/1/13 1,738,784
--------
$ 7,461,090
--------
Insured Water and Sewer - 2.4%
Aaa AAA $1,000 Buffalo New York Sewer Authority, (FGIC), 5.00%, 7/1/03 $ 978,800
Aaa AAA 1,000 New York City Municipal Water Finance Authority, (FGIC), 6.00%,
6/15/19 994,840
Aaa AAA 1,000 New York City Municipal Water Finance Authority, (AMBAC), 5.55%,
6/15/01 1,039,120
Aaa AAA 1,000 New York City Municipal Water Finance Authority, (AMBAC), 5.80%,
6/15/03 1,052,450
--------
$ 4,065,210
--------
Lease Revenue/ Certificates of Participation - 4.6%
A1 AA $3,000 Battery Park City Authority, 6.00%, 11/1/03 $ 3,086,790
A1 AA 3,500 Housing New York Corporation, 6.00%, 11/1/03 3,649,660
Baa1 BBB 250 New York State Urban Development Corporation, 7.40%, 1/1/01 270,125
Baa1 BBB 250 New York State Urban Development Corporation, 7.25%, 4/1/99 265,640
Baa1 A 310 Puerto Rico Public Buildings Authority, 6.00%, 7/1/99 322,865
--------
$ 7,595,080
--------
Special Tax Revenue - 9.0%
Aa AA- $1,475 Municipal Assistance Corporation for the City of New York,
6.75%, 7/1/06 $ 1,542,393
Aa AA- 1,530 Municipal Assistance Corporation for the City of New York,
6.875%, 7/1/07 1,603,868
Aa AA- 2,975 Municipal Assistance Corporation for the City of New York,
5.75%, 7/1/08 2,988,893
Aa AA- 2,500 Municipal Assistance Corporation for the City of New York,
7.30%, 7/1/08 2,722,175
A A 1,750 New York Local Government Assistance Corporation, 7.00%, 4/1/04 1,926,418
A A 2,120 New York Local Government Assistance Corporation, 7.20%, 4/1/04 2,356,359
A A 750 New York Local Government Assistance Corporation, 5.90%, 4/1/05 775,860
Baa1 BBB+ 660 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities, 7.10%, 8/15/01 706,781
Baa1 BBB+ 350 Puerto Rico Infrastructure Financing Authority, 7.60%, 7/1/00 378,630
--------
$15,001,377
--------
Transportation - 7.4%
Baa1 BBB $1,000 Metropolitan Transportation Authority, 5.375%, 7/1/02 $ 972,780
61
<PAGE>
Transportation - (continued)
A1 A 1,750 New York State Thruway Authority, 5.375%, 1/1/02 1,766,065
Baa1 BBB 1,500 New York State Thruway Authority, 5.80%, 4/1/00 1,521,960
Baa1 BBB 2,000 New York State Thruway Authority, 6.00%, 4/1/02 2,030,680
Baa1 BBB 1,000 New York State Thruway Authority, 6.00%, 4/1/03 994,980
Baa1 A 2,850 Puerto Rico Highway Authority, 6.75%, 7/1/05 3,026,757
Baa1 A 2,000 Puerto Rico Highway and Transportation Authority, 4.90%, 7/1/01 1,931,080
--------
$ 12,244,302
--------
Water & Sewer Revenue - 6.5%
A A- $1,825 New York City Municipal Water Finance Authority, 5.70%, 6/15/02 $ 1,857,083
Aa AA- 1,000 New York State Environmental Facilities Corporation, 7.50%,
3/15/11 1,082,360
Aa A 1,000 New York State Environmental Facilities Corporation, 6.90%,
6/15/02 1,099,520
Aa A 1,200 New York State Environmental Facilities Corporation, 6.80%,
6/15/01 1,308,984
Aa AAA 1,000 New York State Environmental Facilities Corporation, 6.40%,
9/15/01 1,070,550
Aa A 1,125 New York State Environmental Facilities Corporation, 6.50%,
6/15/04 1,204,200
Aaa AAA 1,000 New York State Environmental Facilities Corporation, County of
Westchester Project, 6.30%, 9/15/05 1,063,090
Aa A 2,000 New York State Environmental Facilities Corporation, New York
City Municipal Water Finance Authority, 6.60%, 6/15/05 2,145,740
--------
$ 10,831,527
--------
Total Investments (identified cost, $167,253,911) $166,471,828
==========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 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 ranged from 6.7% to 12.3% of total
investments.
See notes to financial statements
62
<PAGE>
North Carolina Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Escrowed/Prerefunded - 6.9%
NR A $10 Newton, North Carolina, Prerefunded to 6/1/96, 7.30%, 6/1/99 $ 10,458
--------
General Obligations - 51.8%
Aaa AAA $15 Durham County, North Carolina, 5.80%, 4/1/02 $ 15,637
Aa1 AA+ 10 Forsyth County, North Carolina, 6.20%, 3/1/04 10,587
Aa1 AAA 10 Greensborough, North Carolina Public Improvements, 6.25%, 3/1/07 10,580
Aaa AAA 10 Mecklenberg County, North Carolina, 5.75%, 3/1/02 10,379
Baa1 A 10 Puerto Rico, 6.00%, 7/1/05 10,221
A A+ 10 Rocky Mount, North Carolina, 5.75%, 5/1/00 10,228
A1 A+ 10 Union County, North Carolina, 6.50%, 4/1/05 10,701
--------
$ 78,333
--------
Housing - 10.1%
Aaa AAA $15 Durham, North Carolina New Public Housing, 5.75%, 10/1/00 $ 15,300
--------
Insured General Obligations - 17.3%
Aaa AAA $15 Gaston County, North Carolina, (MBIA), 5.70%, 3/1/02 $ 15,597
Aaa AAA 10 Lincoln County, North Carolina, (MBIA), 6.10%, 6/1/01 10,543
--------
$ 26,140
--------
Insured Lease Revenue/
Certificate of
Participation - 7.0%
Aaa AAA $10 Harnett County, North Carolina COP, (AMBAC), 6.00%, 12/1/01 $ 10,536
--------
Lease Revenue - 6.9%
Baa1 A $10 Puerto Rico Public Building Authority, 6.10%, 7/1/00 $ 10,385
--------
Total Investments (identified cost, $146,358) $151,152
========
</TABLE>
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 March 31, 1995, 24.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 7.0% to 17.3% of total
investments.
See notes to financial statements
63
<PAGE>
Ohio Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 15.4%
A1 A+ $2,345 Ohio State Public Facilities Commission, Higher Education
Facilities, 7.00%, 6/1/04 $2,464,735
A1 A+ 1,000 Ohio State Higher Educational Facilities Revenue Bonds, 6.50%,
5/1/01 1,044,100
A NR 660 The Student Loan Funding Corporation, 6.875%, 8/1/98 690,148
A1 A+ 500 The Student Loan Funding Corporation, 5.75%, 8/1/03 503,235
A1 NR 1,200 The Student Loan Funding Corporation, 5.95%, 8/1/05 1,207,692
--------
$5,909,910
--------
Escrowed - 10.2%
NR AAA $ 500 Akron, Bath and Copley Joint, Township Hospital District,
(Children's Hospital Medical Center of Akron), Prerefunded to
11/15/00, 7.45%, 11/15/20 $ 566,785
Aaa AAA 650 Clermont County, Ohio, Water Works, (AMBAC), Prerefunded to
12/1/01, 6.625%, 12/1/16 716,495
Aaa AAA 500 Franklin County, Ohio, Hospital Revenue, (Mt. Carmel Health),
(AMBAC), Prerefunded to 12/1/00, 7.25%, 6/1/03 558,230
NR AAA 1,900 Franklin County, Ohio, Prerefunded to 12/1/01, 6.375%, 12/1/20 2,067,827
--------
$3,909,337
--------
General Obligations - 13.1%
NR A+ $1,250 City of Cincinnati School District, (Hamilton County, Ohio)
Revenue Anticipation Notes, 6.05%, 6/15/00 $1,292,500
AA1 AA+ 1,090 Columbus, Ohio, 6.30%, 1/1/05 1,159,814
NR NR 300 Kings County, Ohio, Local School District, 7.60%, 12/1/10 331,362
Aa AA 200 State of Ohio, Infrastructure Improvement Bonds, 6.50%, 8/1/04 219,762
A NR 1,000 Wauseon, Ohio School District, 7.25%, 12/1/10 1,081,870
NR NR 924 Youngstown, Ohio, County School District, 6.40%, 7/1/00 934,496
--------
$5,019,804
--------
Health Care - 8.1%
Aa2 NR $1,250 Hamilton County, Ohio Hospital Facilities, (Episcopal Retirement
Homes, Inc.), 6.80%, 1/1/08 $1,340,200
NR BBB- 680 Marion County, Ohio, Health Care Facilities, (United Church
Homes Project), 5.25%, 11/15/98 657,662
Aa2 NR 1,000 Warren County, Ohio, Hospital Facilities, (Otterbein Homes
Project), 7.20%, 7/1/11 1,091,180
--------
$3,089,042
--------
Industrial Development Revenue - 2.4%
NR A- $ 855 Ohio Economic Development Commission, (Ohio Enterprise Bond
Fund-Progress Plastics Products), 6.80%, 12/1/01 $ 910,737
--------
Insured Education - 3.4%
Aaa AAA $ 350 Ohio State Public Facilities Commission, (Higher Educational
Facilities), (AMBAC), 6.50%, 12/1/01 $ 374,811
Aaa AAA 1,000 Ohio State Public Facilities Commission, (Higher Educational
Facilities), (AMBAC), 4.70%, 6/1/05 933,900
--------
$1,308,711
--------
Insured General Obligations - 17.8%
Aaa AAA $1,615 Cleveland, Ohio, (MBIA), 6.50%, 11/15/01 $1,745,039
Aaa AAA 750 Fairfield County, Ohio, School District, (AMBAC), 7.75%, 12/1/09 830,482
Aaa AAA 1,000 Lakota, Ohio, School District, (AMBAC), 6.40%, 12/1/00 1,058,510
Aaa AAA 1,350 Mt. Vernon County, Ohio, Local School District, (FGIC), 7.50%,
12/1/14 1,525,405
See notes to financial statements
64
<PAGE>
Insured General Obligations (continued)
Aaa AAA 1,000 Toledo, Ohio, (AMBAC), 7.625%, 12/1/04 (1) 1,170,470
Aaa AAA 400 West Geauga, Ohio, Local School District, (AMBAC), 8.10%,
11/1/03 475,084
--------
$ 6,804,990
--------
Insured Hospitals - 6.3%
Aaa AAA $1,080 Portage County Ohio Hospital Revenue Bonds, (Robinson Hospital
Project), (MBIA), 6.50%, 11/15/03 $ 1,176,336
Aaa AAA 1,150 Portage County Ohio Hospital Revenue Bonds, (Robinson Hospital
Project), (MBIA), 6.50%, 11/15/04 1,252,752
--------
$ 2,429,088
--------
Insured Utilities - 3.2%
Aaa AAA $ 500 Clevelend, Ohio, Public Power System, (MBIA), 6.10%, 11/15/03 $ 523,100
Aaa AAA 650 Clevelend, Ohio, Public Power System, (MBIA), 7.00%, 11/15/17 708,643
--------
$ 1,231,743
--------
Lease Revenue/Certificates
of Participation - 5.5%
A1 A+ $1,000 Ohio Building Authority, (James Rhodes Project), 6.50%, 10/1/04 $ 1,073,640
A1 A+ 1,000 Ohio Building Authority, (State Correctional Facilities),
6.375%, 6/1/07 1,050,060
--------
$ 2,123,700
--------
Miscellaneous - 2.6%
NR A- $1,000 Ohio State Economic Development Commission, (ABS Industries,
Inc. Project), 5.45%, 6/1/99 $ 1,012,200
--------
Utilities - 0.9%
NR BBB $ 350 Guam Power Authority, 5.10%, 10/1/03 $ 333,760
--------
Water & Sewer Revenue - 11.1%
A1 AA- $1,200 City of Columbus, Ohio, Water System Revenue Refunding Bonds,
Issue of 1991, 6.10%, 11/1/03 $ 1,261,980
A1 AA- 900 Hamilton County Ohio Sewer System, (The Metropolitan District of
Greater Cincinnati), 6.40%, 12/1/02 975,636
A1 A 850 Ohio State Water Development Authority, Pollution Control
Facilities, (Phillip Morris Project), 7.25%, 12/1/08 899,317
Baa1 A 1,000 Puerto Rico Aqueduct & Sewer Authority, 7.875%, 7/1/17 1,088,306
--------
$ 4,225,239
--------
Total Investments (identified cost, $37,781,415) $38,308,261
==========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1995, 30.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 4.0% to 16.0% of total
investments.
See notes to financial statements
65
<PAGE>
Pennsylvania Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Education - 3.5%
NR AAA $ 700 Montgomery County Higher Education and Health Authority, (Saint
Joseph's University), 6.00%, 12/15/02 $ 736,414
Aa A+ 1,500 Pennsylvania Higher Educational Facilities Authority, (Thomas
Jefferson University), 5.90%, 8/15/00 1,568,355
Baa1 BBB 500 Pennsylvania Higher Educational Facilities Authority, (The
Medical College of Pennsylvania), 7.25%, 3/1/05 519,090
A1 AA- 1,000 The Pennsylvania State University Bonds, 6.25%, 3/1/06 1,062,270
--------
$3,886,129
--------
Escrowed - 25.0%
Aaa AAA $1,000 Allegheny County, Pennsylvania, Sanitation Authority, (FGIC)
Prerefunded to 12/1/01, 6.50%, 12/1/16 $1,080,960
AAA A- 520 Chester County Health and Education Facilities Authority, (Bryn
Mawr Rehabilitation Hospital), Escrowed to Maturity, 6.50%,
7/1/02 560,269
Aaa AAA 500 Dauphin County Hospital Authority, (Polyclinic Medical Center of
Harrisburg), (MBIA), Prerefunded to 8/15/99, 6.90%, 8/15/11 538,750
Aaa AAA 1,000 Harrisburg, Pennsylvania Water Revenue Authority, (FGIC),
Prerefunded to 7/15/01, 7.00%, 7/15/06 1,103,610
Aaa AAA 1,355 Manheim Boro, Pennsylvania, Water & Sewer Authority, (MBIA),
Prerefunded to 9/1/01, 6.65%, 9/1/05 1,472,221
Aaa AAA 1,000 Pennsylvania Convention Center Authority, (FGIC), Escrowed to
Maturity, 6.60%, 9/1/00 1,074,840
Aaa AAA 500 Pennsylvania Turnpike Commission, (FGIC), Escrowed to Maturity,
6.50%, 12/1/01 540,480
Aaa AAA 2,000 The School District of Philadelphia, Pennsylvania, (AMBAC),
Prerefunded to 5/15/02, 6.50%, 5/15/05 2,175,500
Aaa AAA 3,200 Philadelphia Municipal Authority, Justice Lease Revenue Bonds,
(FGIC), Prerefunded to 11/15/01, 7.10%, 11/15/11 3,610,368
Aaa NR 2,500 Philadelphia, Pennsylvania, Hospital & Higher Education,
(Children's Hospital), Prerefunded to 2/15/02, 6.50%, 2/15/21 2,735,550
Aaa AAA 2,000 The Pittsburgh Water and Sewer Authority, (FGIC), Prerefunded to
9/1/01, 6.75%, 9/1/10 2,212,900
Aaa AAA 1,185 The Pittsburgh Water and Sewer Authority, (FGIC), Prerefunded to
9/1/01, 6.50%, 9/1/14 1,295,122
Aaa AAA 2,000 Pleasant Valley School District (Monroe County, Pennsylvania)
(AMBAC), Prerefunded to 3/15/01, 5.85%, 3/1/05 2,075,940
Aaa AAA 1,095 Schuykill County, Pennsylvania, Redevelopment Authority, (FGIC),
Prerefunded to 6/1/01, 6.75%, 6/1/02 1,196,539
Aaa AAA 1,500 Somerset County, Pennsylvania, General Authority, (FGIC),
Escrowed to Maturity, 6.50%, 10/15/01 1,619,565
Aaa AAA 1,000 Somerset County, Pennsylvania, General Authority, (FGIC),
Prerefunded to 10/15/01, 7.00%, 10/15/13 1,107,200
Aa AA+ 500 Temple University of the Commonwealth System, Hospital & Higher
Education, Prerefunded to 8/1/98, 6.90%, 8/1/99 532,580
66
<PAGE>
Escrowed (continued)
Aaa AAA 3,000 County of Westmoreland, Pennsylvania, (AMBAC), Prerefunded to
8/1/01, 6.70%, 8/1/09 3,264,570
--------
$28,196,964
--------
General Obligations - 4.4%
Aa NR $ 325 Chester County, Pennsylvania, 6.50%, 12/15/02 $ 345,062
A1 AA- 1,220 Hatboro-Horsham School District of Montgomery County,
Pennsylvania, 6.70%, 4/1/08 1,302,082
A1 AA- 1,500 Commonwealth of Pennsylvania, 6.00%, 9/15/01 1,580,805
Baa1 A 1,000 The Commonwealth of Puerto Rico, Public Improvement Refunding
Bonds, 5.50%, 7/1/01 1,010,930
Baa1 A- 750 Puerto Rico Municipal Finance Agency, Series
1992 A, 5.60%, 7/1/02 757,470
--------
$ 4,996,349
--------
Health Care - 2.9%
Aa AA $1,030 Geisinger, Pennsylvania, Health System, 6.00%, 7/1/01 (2) $ 1,064,433
Aa AA 2,000 Geisinger, Pennsylvania, Health System, 7.375%, 7/1/02 2,170,660
--------
$ 3,235,093
--------
Hospitals - 8.8%
NR AAA $1,030 Indiana County, Pennsylvania, Hospital Authority, (Indiana
Hospital Project), (Connie Lee), 5.75%, 7/1/00 $ 1,059,365
NR AAA 825 Indiana County, Pennsylvania, Hospital Authority, (Indiana
Hospital Project), (Connie Lee), 5.875%, 7/1/01 853,355
A NR 500 New Castle Area Hospital Authority, (St. Francis Hospital of New
Castle), 5.90%, 11/15/00 506,375
NR BBB 500 Northampton County Hospital Authority, (Easton Hospital) 6.90%,
1/1/02 504,200
Baa1 BBB+ 1,640 The Hospitals and Higher Education Facilities Authority of
Philadelphia, (Graduate Health System), 6.70%, 7/1/98 1,687,609
Baa1 BBB+ 1,250 The Hospitals and Higher Education Facilities Authority of
Philadelphia, (Graduate Health System), 6.90%, 7/1/00 1,288,425
Baa1 BBB+ 2,475 The Hospital and Higher Education Facilities Authority of
Philadelphia, (Temple University Hospital), 6.00%, 11/15/00 2,478,291
Aa NR 1,650 Pottsville, PA, Hospital Authority, (Daughters of Charity),
4.75%, 8/15/03 1,560,471
--------
$ 9,938,091
--------
Housing - 2.2%
Aaa AAA $2,450 Pennsylvania Housing Finance Agency, (FNMA), 5.70%, 7/1/02 $ 2,485,966
--------
Industrial Development Revenue - 1.8%
NR A- $1,100 Butler County, PA Industrial Development Authority, (Sherwood
Oaks Project), 5.10%, 6/1/01 $ 1,049,070
A3 A- 1,000 Clinton County, PA, Industrial Development Authority,
(International Paper Company), 5.375%, 5/1/04 975,120
--------
$ 2,024,190
--------
Insured Education - 8.9%
Aaa AAA $2,280 Lycoming County Authority, Pennsylvania, College Revenue Bonds,
(AMBAC), 6.00%, 11/1/01 $ 2,402,276
Aaa AAA 1,000 Northampton County Higher Education Authority, University
(Lehigh University), (MBIA), 7.10%, 11/15/09 1,082,370
67
<PAGE>
Insured Education - (continued)
Aaa AAA 250 Pennsylvania Higher Educational Facilities Authority (Bryn Mawr
College), (FGIC), 6.75%, 12/1/01 269,200
Aaa AAA 6,000 Pennsylvania State Higher Education Assistance Agency, (FGIC),
6.80%, 12/1/00 (1) 6,314,400
--------
$10,068,246
--------
Insured General Obligations - 9.5%
Aaa AAA $ 600 Allegheny County, Pennsylvania, (MBIA), 6.80%, 4/1/00 $ 647,388
Aaa AAA 915 Conestoga Valley School District of Lancaster County,
Pennsylvania, (FGIC), 6.80%, 5/1/03 985,858
Aaa AAA 1,235 Dauphin County, Pennsylvania, (MBIA), 6.00%, 8/1/02 1,291,316
Aaa AAA 265 Greensburg Salem School District, (Westmoreland County,
Pennsylvania), (MBIA), 5.80%, 9/15/01 273,739
Aaa AAA 1,000 Commonwealth of Pennsylvania, (MBIA), 6.60%, 1/1/01 1,077,770
Aaa AAA 385 Pennsylvania Finance Authority, (South Side Area School
District, Beaver County Project), (AMBAC), 5.40%, 9/1/01 388,287
Aaa AAA 1,000 Pennsylvania Public School District Building Authority,
(Hazelton Area School District Project), (FGIC), 6.50%, 3/1/08 1,042,580
Aaa AAA 275 The School District of Philadelphia, Pennsylvania, (AMBAC),
6.35%, 5/15/02 293,400
Aaa AAA 750 Pocono Mountain School District, Monroe County, Pennsylvania,
(AMBAC), 5.90%, 10/1/02 780,847
Aaa AAA 1,315 City of Pittsburgh, Pennsylvania, (MBIA), 5.875%, 9/1/00 1,366,271
Aaa AAA 1,385 City of Pittsburgh, Pennsylvania, (MBIA), 6.00%, 9/1/01 1,449,180
Aaa AAA 1,185 City of Reading, Pennsylvania, (Berks County), School Authority
(MBIA), 4.80%, 7/15/04 1,130,241
--------
$10,726,877
--------
Insured Health Care - 2.9%
Aaa AAA $2,050 Sayre Health Care Facilities Authority, (Guthrie Medical
Center), (AMBAC), 6.50%, 3/1/00 $ 2,187,534
Aaa AAA 1,000 Scranton-Lackawanna Health and Welfare Authority, (Mercy Health
System), (MBIA), 6.90%, 1/1/09 1,061,380
--------
$ 3,248,914
--------
Insured Hospitals - 8.2%
Aaa AAA $2,215 The Hospital Authority of Beaver County, Pennsylvania, (The
Medical Center of Beaver, PA), (AMBAC), 5.90%, 7/1/00 $ 2,309,735
Aaa AAA 500 Delaware County Authority of Pennsylvania, (Crozer- Chester
Medical Center), (MBIA), 7.10%, 12/15/99 540,535
Aaa AAA 1,505 Delaware County Authority of Pennsylvania, (Crozer- Chester
Medical Center), (MBIA), 4.65%, 12/15/02 1,414,745
Aaa AAA 1,000 Erie County, Pennsylvania, Hospital Authority, (Hamot Health
System), (AMBAC), 7.10%, 2/15/10 1,079,520
Aaa AAA 400 Franklin County Industrial Development Authority, (The
Chambersburg Hospital Project), (FGIC), 5.80%, 7/1/02 414,764
Aaa AAA 500 Lancaster County Hospital Authority, (The Lancaster General
Hospital Project), (AMBAC), 5.80%, 7/1/01 518,710
68
<PAGE>
Insured Hospitals (continued)
Aaa AAA 525 Lehigh County General Purpose Authority, (St. Luke's Hospital of
Bethlehem, Pennsylvania Project), (AMBAC), 5.70%, 7/1/01 539,054
Aaa AAA 250 Mt. Lebanon Hospital Authority (Allegheny County, Pennsylvania)
(St. Clair Memorial Hospital), (FGIC), 5.90%, 7/1/02 260,567
Aaa AAA 2,100 Washington County Hospital Authority, (Shadyside Hospital
Project), (AMBAC), 5.80%, 12/15/02 2,180,178
--------
$9,257,808
--------
Insured Lease Revenue/ Certificates of Participation - 4.5%
Aaa AAA $ 500 The Harrisburg Authority (Dauphin County, Pennsylvania), Lease
Revenue Bonds, (FGIC), 6.25%, 6/1/01 $ 529,985
Aaa AAA 1,000 Northumberland County Authority, Pennsylvania, Lease Revenue
Bonds, (MBIA), 6.50%, 10/15/01 1,079,710
Aaa AAA 2,150 Commonwealth of Pennsylvania, Certificates of Participation,
(AMBAC), 4.90%, 7/1/02 2,091,154
Aaa AAA 500 The Philadelphia Municipal Authority, Justice Lease Revenue
Bonds, (MBIA), 6.40%, 11/15/98 521,630
Aaa AAA 810 The Philadelphia Municipal Authority, Justice Lease Revenue
Bonds, (MBIA), 6.60%, 11/15/00 861,240
--------
$5,083,719
--------
Insured Special Tax - 4.6%
Aaa AAA $ 900 Pennsylvania Intergovernmental Cooperation Authority, (City of
Philadelphia Funding Program), (FGIC), 5.60%, 6/15/98 $ 917,784
Aaa AAA 2,000 Pennsylvania Intergovernmental Cooperation Authority, (City of
Philadelphia Funding Program), (FGIC), 6.00%, 6/15/00 2,079,120
Aaa AAA 2,070 Pennsylvania Intergovernmental Cooperation Authority, (City of
Philadelphia Funding Program), (FGIC), 6.00%, 6/15/02 2,165,551
--------
$5,162,455
--------
Insured Utilities - 1.9%
Aaa AAA $2,270 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds,
(AMBAC), 4.40%, 8/1/01 $2,127,716
--------
Insured Water & Sewer - 1.6%
Aaa AAA $ 800 Delaware County Industrial Development Authority, (Philadelphia
Suburban Water Company Project), (FGIC), 5.95%, 6/1/02 $ 838,296
Aaa AAA 1,000 City of Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, (FSA), 4.875%, 6/15/01 963,950
--------
$1,802,246
--------
Lease Revenue/Certificates of Participation - 0.5%
Baa1 A $ 500 Puerto Rico Buildings Authority, Public Education and Health
Facilities Bonds, 6.00%, 7/1/99 $ 520,750
--------
Solid Waste - 2.7%
Baa A- $ 500 Greater Lebanon Refuse Authority of Lebanon County,
Pennsylvania, Solid Waste Revenue, 6.20%, 5/15/99 $ 510,645
Baa A- 500 Greater Lebanon Refuse Authority of Lebanon County,
Pennsylvania, Solid Waste Revenue, 6.20%, 11/15/99 511,790
69
<PAGE>
Solid Waste (continued)
Baa A- 300 Greater Lebanon Refuse Authority of Lebanon County,
Pennsylvania, Solid Waste Revenue, 6.40%, 5/15/00 308,364
Baa A- 500 Greater Lebanon Refuse Authority of Lebanon County,
Pennsylvania, Solid Waste Revenue, 6.40%, 11/15/00 515,105
NR NR 1,200 Pennsylvania Economic Development Financing Authority, (Resource
Recovery for Northampton), 6.75%, 1/1/07 1,169,544
--------
$ 3,015,448
--------
Special Tax Revenue - 0.5%
Baa1 BBB+ $ 250 Puerto Rico Infrastructure Financing Authority, Special Tax
Revenue Bonds, 7.60%, 7/1/00 $ 270,450
NR NR 250 Virgin Islands Public Finance Authority, (V.I. General
Obligation/Matching Fund Loan Notes), 6.70%, 10/1/99 260,565
--------
$ 531,015
--------
Transportation - 3.2%
Aa3 AA- $2,550 Southeastern Pennsylvania Transportation Authority, LOC:
Canadian Imperial Bank of Commerce, 6.00%, 6/1/99 $ 2,606,941
Aa3 AA- 1,000 Southeastern Pennsylvania Transportation Authority, LOC:
Canadian Imperial Bank of Commerce, 6.00%, 6/1/01 1,026,750
--------
$ 3,633,691
--------
Utility - 0.9%
NR NR $1,000 Virgin Island Water & Power Authority, 7.40%, 7/1/11 $ 1,053,090
--------
Water & Sewer - 1.5%
NR AA $1,600 Pennsylvania Infrastructure Investment Authority, (Pennvest Pool
Program), 6.45%, 9/1/04 $ 1,726,922
--------
Total Investments (identified cost, $112,552,704) $112,721,679
===========
</TABLE>
(1) Security has been segregated to cover margin requirements for open
financial futures contracts.
(2) When-issued security. At March 31, 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 March 31, 1995, 63.7% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 0.9% to 27.2% of total
investments.
See notes to financial statements
70
<PAGE>
Virginia Limited Maturity Tax Free Portfolio
Portfolio of Investments - March 31, 1995
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
------------------
Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
------- --------- --------------- ---------------------------------------------------------------- ---------
<S> <C> <C> <C> <C>
Escrowed/Prerefunded - 24.4%
Aaa AAA $10 Prince William County, Virginia Water and Sewer, Prerefunded to
7/1/02, 6.50%, 7/1/21 $ 10,913
Aaa AAA 10 Roanoke Hospital, Prerefunded to 7/1/00, 6.50%, 7/1/25 10,682
Aaa AAA 20 Winchester Medical Center, Prerefunded to 1/1/00, (AMBAC),
7.25%, 1/1/15 22,190
--------
$ 43,785
--------
General Obligations - 26.2%
A1 A+ $10 Botetourt County, Virginia, 5.70%, 7/15/03 $ 10,298
A1 A 10 Montgomery County, Virginia, 6.25%, 11/1/97 10,392
Aa AA- 15 Newport News, Virginia, 6.20%, 12/1/01 15,767
Aaa AAA 10 State of Virginia, 6.00%, 6/1/01 10,523
--------
$ 46,980
--------
Insured General Obligation - 5.7%
Aaa AAA $10 Franklin County, Virginia, (FGIC), 6.00%, 7/15/07 $ 10,274
--------
Insured Lease Revenue/ Certificates of Participation - 11.6%
Aaa AAA $10 Frederick County, Virginia COP, (MBIA), 5.85%,
12/1/03 $ 10,490
Aaa AAA 10 Louden County, Virginia COP, (FSA), 5.90%, 3/1/00 10,307
--------
$ 20,797
--------
Insured Miscellaneous - 5.7%
Aaa AAA $10 Richmond Redevelopment and Housing Authority, Old Manchester
Project, (CGIC), 5.70%, 3/1/01 $ 10,328
--------
Lease Revenue/Certificates
of Participation - 11.8%
Aa AA $10 Henrico County, Virginia Industrial Development Authority,
6.50%, 8/1/06 $ 10,877
Baa1 A 10 Puerto Rico Public Building Authority, 6.10%, 7/1/00 10,385
--------
$ 21,262
--------
Miscellaneous - 5.9%
Aa AA $10 Virginia Public Building Authority, 6.25%, 8/1/01 $ 10,686
--------
Special Tax - 8.7%
Aa AA $15 Virginia Public Schools, 6.60%, 6/1/00 $ 15,678
--------
Total Investments (identified cost, $173,447) $179,790
========
</TABLE>
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 March 31, 1995, 35.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 5.7% to 12.3% of total
investments.
See notes to financial statements
71
<PAGE>
Limited Maturity Tax Free Portfolios
Financial Statements Statements of Assets and Liabilities
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>
Assets:
Investments -
Identified cost $529,349 $77,371,691 $16,798,633 $159,193,575 $116,297,486 $31,435,798
Unrealized
appreciation
(depreciation) 16,217 607,822 (46,451) 856,484 (32,101) 513,393
-------- -------- -------- -------- -------- ----------
Total investments, at
value (Note 1A) $545,566 $77,979,513 $16,752,182 $160,050,059 $116,265,385 $31,949,191
Cash 32,441 1,070,826 253,941 685,471 980,641 1,583,334
Receivable for
investments sold -- 3,005,286 -- 1,684,454 -- 30,000
Interest receivable 8,187 1,378,360 312,099 3,844,054 1,869,231 703,855
Receivable from the
Investment Adviser
(Note 2) 1,640 -- 8,932 -- -- --
Deferred organization
expenses
(Note 1D) 4,081 4,665 4,928 13,004 12,629 6,494
-------- -------- -------- -------- -------- ----------
Total assets $591,915 $83,438,650 $17,332,082 $166,277,042 $119,127,886 $34,272,874
-------- -------- -------- -------- -------- ----------
Liabilities:
Payable for investments
purchased $ -- $ 1,091,135 $ 15,514 $ 1,689,935 $ -- $ 1,072,510
Payable to affiliates -
Trustees' fee -- 1,003 27 1,767 1,331 273
Custodian fees -- 1,235 -- 3,829 5,110 1,004
Accrued expenses 1,459 1,552 923 2,596 1,903 1,071
-------- -------- -------- -------- -------- ----------
Total liabilities $ 1,459 $ 1,094,925 $ 16,464 $ 1,698,127 $ 8,344 $ 1,074,858
-------- -------- -------- -------- -------- ----------
Net Assets applicable
to investors' interest
in Portfolio $590,456 $82,343,725 $17,315,618 $164,578,915 $119,119,542 $33,198,016
======== ======== ======== ======== ======== ==========
Sources of Net Assets:
Net proceeds from
capital contributions
and withdrawals $577,639 $81,805,606 $17,375,669 $163,865,237 $119,251,947 $32,711,824
Unrealized appreciation
(depreciation)
of investments and
financial futures
contracts (computed on
the basis of
identified cost) 12,817 538,119 (60,051) 713,678 (132,405) 486,192
-------- -------- -------- -------- -------- ----------
Total $590,456 $82,343,725 $17,315,618 $164,578,915 $119,119,542 $33,198,016
======== ======== ======== ======== ======== ==========
</TABLE>
72
<PAGE>
Statements of Assets and Liabilities
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>
Assets:
Investments -
Identified cost $94,130,013 $167,253,911 $146,358 $37,781,415 $112,552,704 $173,447
Unrealized
appreciation
(depreciation) 683,168 (782,083) 4,794 526,846 168,975 6,343
-------- -------- -------- -------- -------- ----------
Total investments, at
value (Note 1A) $94,813,181 $166,471,828 $151,152 $38,308,261 $112,721,679 $179,790
Cash 683,461 1,610,687 78,195 482,147 243,522 34,006
Receivable for
investments sold 1,087,042 3,102,308 -- 1,052,397 -- --
Interest receivable 1,791,795 3,172,087 2,655 861,001 1,702,306 3,096
Receivable from the
Investment Adviser
(Note 2) -- -- 1,083 -- -- 1,160
Deferred organization
expenses (Note 1D) 5,475 7,935 4,078 5,126 8,263 3,989
-------- -------- -------- -------- -------- ----------
Total assets $98,380,954 $174,364,845 $237,163 $40,708,932 $114,675,770 $222,041
-------- -------- -------- -------- -------- ----------
Liabilities:
Payable for investments
purchased $ 1,094,769 $ 723,659 $ -- $ 1,271,764 $ 1,062,785 $ --
Payable to affiliates -
Trustees' fee 1,331 1,767 -- 273 1,331 --
Custodian fees 3,285 4,378 -- 501 3,500 --
Accrued expenses 1,894 2,617 1,404 1,020 2,109 1,413
-------- -------- -------- -------- -------- ----------
Total liabilities $ 1,101,279 $ 732,421 $ 1,404 $ 1,273,558 $ 1,069,725 $ 1,413
-------- -------- -------- -------- -------- ----------
Net Assets applicable
to investors' interest
in Portfolio $97,279,675 $173,632,424 $235,759 $39,435,374 $113,606,045 $220,628
======== ======== ======== ======== ======== ==========
Sources of Net Assets:
Net proceeds from
capital contributions
and withdrawals $96,678,111 $174,562,413 $230,965 $38,940,829 $113,532,274 $214,285
Unrealized appreciation
(depreciation)
of investments and
financial futures
contracts (computed on
the basis of
identified cost) 601,564 (929,989) 4,794 494,545 73,771 6,343
-------- -------- -------- -------- -------- ----------
Total $97,279,675 $173,632,424 $235,759 $39,435,374 $113,606,045 $220,628
========== =========== ======== ========== =========== ==========
</TABLE>
73
<PAGE>
Statements of Operations
Year Ended March 31, 1995
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts Michigan New Jersey
Limited Limited Limited Limited Limited Limited Limited
Portfolio* Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income $ 8,686 $ 4,804,758 $ 903,585 $ 9,416,263 $ 6,570,429 $ 1,900,442 $ 5,395,521
------- ------- ------- ------- --------- ------- ---------
Expenses -
Investment
adviser fee
(Note 2) $ 829 $ 418,800 $ 80,031 $ 821,095 $ 559,365 $ 163,811 $ 468,562
Compensation of
Trustees not
members of the
Investment
Adviser's
organization -- 5,688 126 10,020 5,526 1,544 5,489
Custodian fees
(Note 2) -- 11,626 9,588 35,497 29,628 10,848 26,901
Printing and
postage -- 3,262 2,791 2,985 3,756 2,324 3,281
Legal and
accounting
services -- 19,144 14,328 21,962 18,364 13,507 18,006
Bond pricing 823 16,118 6,779 17,906 14,823 8,093 14,749
Amortization of
organization
expenses
(Note 1D) 346 1,511 2,212 4,204 4,088 2,746 1,789
Miscellaneous 471 10,845 2,604 18,736 22,047 7,245 16,105
------- ------- ------- ------- --------- ------- ---------
Total expenses $ 2,469 $ 486,994 $ 118,459 $ 932,405 $ 657,597 $ 210,118 $ 554,882
------- ------- ------- ------- --------- ------- ---------
Deduct -
Reduction of
investment
adviser fee
(Note 2) $ 829 $ -- $ 80,031 $ -- $ -- $ 40,822 $ --
Allocation of
expenses to the
Investment
Adviser
(Note 2) 1,640 -- 8,932 -- -- -- --
------- ------- ------- ------- --------- ------- ---------
Total $ 2,469 $ -- $ 88,963 $ -- $ -- $ 40,822 $ --
------- ------- ------- ------- --------- ------- ---------
Net expenses $ -- $ 486,994 $ 29,496 $ 932,405 $ 657,597 $ 169,296 $ 554,882
------- ------- ------- ------- --------- ------- ---------
Net
investment
income $ 8,686 $ 4,317,764 $ 874,089 $ 8,483,858 $ 5,912,832 $ 1,731,146 $ 4,840,639
------- ------- ------- ------- --------- ------- ---------
Realized and
Unrealized Gain
(Loss) on
Investments:
Net realized gain
(loss) -
Investment
transactions
(identified cost
basis) $ (10) $(3,519,469) $(578,837) $(4,033,759) $(2,073,644) $(1,928,641) $(2,408,584)
Financial
futures
contracts -- (22,154) 16,812 (38,678) (27,308) 38,909 (24,401)
------- ------- ------- ------- --------- ------- ---------
Net realized
loss $ (10) $(3,541,623) $(562,025) $(4,072,437) $(2,100,952) $(1,889,732) $(2,432,985)
------- ------- ------- ------- --------- ------- ---------
Change in
unrealized
appreciation
(depreciation) -
Investments $16,217 $ 3,056,891 $ 603,425 $ 5,210,496 $ 2,892,913 $ 1,976,443 $ 3,014,662
Financial
futures
contracts (3,400) (69,703) (29,499) (142,806) (100,304) (62,974) (81,604)
------- ------- ------- ------- --------- ------- ---------
Net unrealized
appreciation
of investments $12,817 $ 2,987,188 $ 573,926 $ 5,067,690 $ 2,792,609 $ 1,913,469 $ 2,933,058
------- ------- ------- ------- --------- ------- ---------
Net realized
and
unrealized
gain (loss) $12,807 $ (554,435) $ 11,901 $ 995,253 $ 691,657 $ 23,737 $ 500,073
------- ------- ------- ------- --------- ------- ---------
Net increase
in net
assets from
operations $21,493 $ 3,763,329 $ 885,990 $ 9,479,111 $ 6,604,489 $ 1,754,883 $ 5,340,712
======= ======= ======= ======= ========= ======= =========
</TABLE>
* For the period from the start of business, November 3, 1994, to March 31,
1995.
74
<PAGE>
Statements of Operations
Year Ended March 31, 1995
<TABLE>
<CAPTION>
North
New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited
Portfolio Portfolio** Portfolio Portfolio Portfolio***
--------- --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest income $ 9,774,315 $2,582 $ 2,174,340 $ 6,406,100 $3,160
------- ------- ------- ------- ----------
Expenses -
Investment
adviser fee
(Note 2) $ 845,836 $ 273 $ 185,368 $ 554,521 $ 300
Compensation of
Trustees not
members of the
Investment
Adviser's
organization 10,020 -- 1,543 7,552 --
Custodian fees
(Note 2) 36,810 -- 11,030 29,811 --
Printing and
postage 2,496 -- 2,773 2,750 --
Legal and
accounting
services 19,299 -- 13,808 18,010 --
Bond pricing 22,059 775 8,989 16,937 834
Amortization of
organization
expenses
(Note 1D) 2,570 298 2,237 2,671 326
Miscellaneous 13,619 10 5,289 11,789 --
------- ------- ------- ------- ----------
Total expenses $ 952,709 $1,356 $ 231,037 $ 644,041 $1,460
------- ------- ------- ------- ----------
Deduct -
Reduction of
investment
adviser fee
(Note 2) $ -- $ 273 $ 44,856 $ -- $ 300
Allocation of
expenses to
Investment
Adviser
(Note 2) -- 1,083 -- -- 1,160
------- ------- ------- ------- ----------
Total $ -- $1,356 $ -- $ -- $1,460
------- ------- ------- ------- ----------
Net expenses $ 952,709 $ -- $ 186,181 $ 644,041 $ --
------- ------- ------- ------- ----------
Net
investment
income $ 8,821,606 $2,582 $ 1,988,159 $ 5,762,059 $3,160
------- ------- ------- ------- ----------
Realized and
Unrealized Gain
(Loss) on
Investments:
Net realized gain
(loss) -
Investment
transactions
(identified cost
basis) $(2,924,669) $ 14 $(1,886,650) $(1,961,065) $ (6)
Financial
futures
contracts (45,618) -- 37,751 (28,867) --
------- ------- ------- ------- ----------
Net realized
gain (loss) $(2,970,287) $ 14 $(1,848,899) $(1,989,932) $ (6)
------- ------- ------- ------- ----------
Change in
unrealized
appreciation
(depreciation) -
Investments $ 3,465,809 $4,794 $ 2,007,555 $ 2,658,874 $6,343
Financial
futures
contracts (147,906) -- (68,074) (95,204) --
------- ------- ------- ------- ----------
Net unrealized
appreciation
of
investments $ 3,317,903 $4,794 $ 1,939,481 $ 2,563,670 $6,343
------- ------- ------- ------- ----------
Net realized
and
unrealized
gain $ 347,616 $4,808 $ 90,582 $ 573,738 $6,337
------- ------- ------- ------- ----------
Net
increase
in net
assets
from
operations $ 9,169,222 $7,390 $ 2,078,741 $ 6,335,797 $9,497
======= ======= ======= ======= ==========
</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.
75
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
Arizona California Connecticut Florida Massachusetts
Limited Limited Limited Limited Limited
Portfolio* Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ --------------
<S> <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
Net realized loss
on investments (10) (3,541,623) (562,025) (4,072,437) (2,100,952)
Net unrealized
appreciation of
investments 12,817 2,987,188 573,926 5,067,690 2,792,609
---------- ---------- ---------- ---------- ------------
Net increase in
net assets from
operations $ 21,493 $ 3,763,329 $ 885,990 $ 9,479,111 $ 6,604,489
---------- ---------- ---------- ---------- ------------
Capital
transactions -
Contributions $477,295 $ 14,449,584 $ 4,383,626 $ 29,535,670 $ 17,263,223
Withdrawals (8,342) (31,573,058) (4,720,895) (60,412,518) (24,520,587)
---------- ---------- ---------- ---------- ------------
Increase
(decrease) in
net assets
resulting from
capital
transactions $468,953 $(17,123,474) $ (337,269) $(30,876,848) $ (7,257,364)
---------- ---------- ---------- ---------- ------------
Total increase
(decrease) in
net assets $490,446 $(13,360,145) $ 548,721 $(21,397,737) $ (652,875)
Net Assets:
At beginning of
year 100,010 95,703,870 16,766,897 185,976,652 119,772,417
---------- ---------- ---------- ---------- ------------
At end of year $590,456 $ 82,343,725 $17,315,618 $164,578,915 $119,119,542
========== ========== ========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
Michigan New Jersey
Limited Limited
Portfolio Portfolio
------------ --------------
<S> <C> <C>
Increase (Decrease)
in Net Assets:
From operations -
Net investment
income $ 1,731,146 $ 4,840,639
Net realized loss
on investments (1,889,732) (2,432,985)
Net unrealized
appreciation of
investments 1,913,469 2,933,058
---------- ------------
Net increase in
net assets from
operations $ 1,754,883 $ 5,340,712
---------- ------------
Capital
transactions -
Contributions $ 8,180,397 $ 13,706,598
Withdrawals (12,345,746) (24,715,358)
---------- ------------
Increase
(decrease) in
net assets
resulting from
capital
transactions $ (4,165,349) $(11,008,760)
---------- ------------
Total increase
(decrease) in
net assets $ (2,410,466) $ (5,668,048)
Net Assets:
At beginning of
year 35,608,482 102,947,723
---------- ------------
At end of year $ 33,198,016 $ 97,279,675
========== ============
</TABLE>
* For the period from the start of business, November 3, 1994, to March 31,
1995.
76
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1995
<TABLE>
<CAPTION>
North
New York Carolina Ohio Pennsylvania Virginia
Limited Limited Limited Limited Limited
Portfolio Portfolio** Portfolio Portfolio Portfolio***
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Increase
(Decrease) in Net
Assets:
From operations -
Net investment
income $ 8,821,606 $ 2,582 $ 1,988,159 $ 5,762,059 $ 3,160
Net realized
gain (loss) on
investments (2,970,287) 14 (1,848,899) (1,989,932) (6)
Net unrealized
appreciation of
investments 3,317,903 4,794 1,939,481 2,563,670 6,343
---------- ---------- ---------- ---------- ------------
Net increase in
net assets
from
operations $ 9,169,222 $ 7,390 $ 2,078,741 $ 6,335,797 $ 9,497
---------- ---------- ---------- ---------- ------------
Capital
transactions -
Contributions $ 23,864,886 $184,597 $ 8,548,567 $ 15,664,244 $144,732
Withdrawals (43,169,334) (56,238) (9,169,484) (32,013,516) (33,611)
---------- ---------- ---------- ---------- ------------
Increase
(decrease) in
net assets
resulting from
capital
transactions $(19,304,448) $128,359 $ (620,917) $(16,349,272) $111,121
---------- ---------- ---------- ---------- ------------
Total increase
(decrease) in
net assets $(10,135,226) $135,749 $ 1,457,824 $(10,013,475) $120,618
Net Assets:
At beginning of
year 183,767,650 100,010 37,977,550 123,619,520 100,010
---------- ---------- ---------- ---------- ------------
At end of year $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.
77
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1994*
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From operations -
Net investment income $ 2,802,105 $ 354,621 $ 5,946,799 $ 4,057,072 $ 843,622
Net realized gain
(loss) on investment
transactions 129,629 (17,294) 296,913 217,716 (57,075)
Net unrealized
depreciation of
investments (3,284,957) (633,977) (6,680,426) (4,096,978) (1,427,277)
---------- ---------- ---------- ---------- ------------
Net increase
(decrease) in net
assets from
operations $ (353,223) $ (296,650) $ (436,714) $ 177,810 $ (640,730)
---------- ---------- ---------- ---------- ------------
Capital transactions -
Contributions $105,261,603 $17,919,749 $211,148,713 $132,347,508 $38,455,113
Withdrawals (9,304,530) (956,212) (24,835,367) (12,852,921) (2,305,911)
---------- ---------- ---------- ---------- ------------
Increase in net
assets resulting
from capital
transactions $ 95,957,073 $16,963,537 $186,313,346 $119,494,587 $36,149,202
---------- ---------- ---------- ---------- ------------
Total increase in
net assets $ 95,603,850 $16,666,887 $185,876,632 $119,672,397 $35,508,472
Net Assets:
At beginning of period 100,020 100,010 100,020 100,020 100,010
---------- ---------- ---------- ---------- ------------
At end of period $ 95,703,870 $16,766,897 $185,976,652 $119,772,417 $35,608,482
========== ========== ========== ========== ============
</TABLE>
* For the California Limited Portfolio, Connecticut Limited Portfolio,
Florida Limited Portfolio, Massachusetts Limited Portfolio, and Michigan
Limited Portfolio, the Statement of Changes in Net Assets is for the period
from the start of business May 3, 1993, April 16, 1993, May 3, 1993, May 3,
1993 and April 16, 1993, respectively, to March 31, 1994.
78
<PAGE>
Statements of Changes in Net Assets
Year Ended March 31, 1994*
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Increase (Decrease) in
Net Assets:
From operations -
Net investment income $ 3,526,614 $ 6,189,145 $ 837,038 $ 4,067,028
Net realized gain
(loss) on investment
transactions 285,340 168,212 (131,010) 206,170
Net unrealized
depreciation of
investments (3,695,086) (6,400,987) (1,444,936) (4,176,636)
---------- ---------- ---------- ------------
Net increase
(decrease) in net
assets from
operations $ 116,868 $ (43,630) $ (738,908) $ 96,562
---------- ---------- ---------- ------------
Capital transactions -
Contributions $114,051,083 $197,911,959 $41,021,920 $133,644,656
Withdrawals (11,320,248) (14,200,699) (2,405,472) (10,221,718)
---------- ---------- ---------- ------------
Increase in net
assets resulting
from capital
transactions $102,730,835 $183,711,260 $38,616,448 $123,422,938
---------- ---------- ---------- ------------
Total increase in
net assets $102,847,703 $183,667,630 $37,877,540 $123,519,500
Net Assets:
At beginning of period 100,020 100,020 100,010 100,020
---------- ---------- ---------- ------------
At end of period $102,947,723 $183,767,650 $37,977,550 $123,619,520
========== ========== ========== ============
</TABLE>
* For the New Jersey Limited Portfolio, New York Limited Portfolio, Ohio
Limited Portfolio, and Pennsylvania Limited Portfolio, the Statement of
Changes in Net Assets is for the period from the start of business May 3,
1993, May 3, 1993, April 16, 1993, and May 3, 1993, respectively, to
March 31, 1994.
79
<PAGE>
Supplementary Data
<TABLE>
<CAPTION>
Arizona
Limited California Connecticut
Portfolio Limited Portfolio Limited Portfolio
---------- ------------------------ --------------------------
Period
Ended Year Ended March 31, Year Ended March 31,
March 31,
1995*** 1995 1994** 1995 1994*
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net
assets)++:
Net expenses 0.00%+ 0.53% 0.46%+ 0.17% 0.00%+
Net investment income 4.60%+ 4.72% 4.50%+ 4.95% 4.53%+
Portfolio Turnover 1% 56% 6% 73% 39%
Net assets, end of
period (000 omitted) $ 590 $82,344 $95,704 $17,316 $16,767
++ 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):
Net expenses 1.31%+ 0.52%+ 0.67% 0.62%+
Net investment income 3.29%+ 4.44%+ 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.
Florida Massachusetts
Limited Portfolio Limited Portfolio
------------------------ -------------------------
Year Ended March 31, Year Ended March 31,
1995 1994* 1995 1994*
---------- ---------- ---------- -----------
Ratios (As a percentage
of average daily net
assets):
Net expenses 0.52% 0.49%+ 0.54% 0.52%+
Net investment income 4.73% 4.53%+ 4.90% 4.57%+
Portfolio Turnover 44% 8% 46% 8%
Net assets, end of
period (000 omitted) $164,579 $185,977 $119,120 $119,772
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
80
<PAGE>
Supplementary Data
Michigan New Jersey
Limited Portfolio Limited Portfolio
----------------------- --------------------------
Year Ended March 31, Year Ended March 31,
1995 1994* 1995 1994**
---------- ---------- ---------- ------------
Ratios (As a percentage
of average daily net
assets)++:
Net expenses 0.48% 0.00%+ 0.54% 0.54%+
Net investment income 4.88% 4.62%+ 4.73% 4.53%+
Portfolio Turnover 111% 30% 44% 10%
Net assets, end of
period (000 omitted) $33,198 $35,608 $97,280 $102,948
++ 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):
Net expenses 0.59% 0.54%+
Net investment income 4.77% 4.08%+
+ 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.
<TABLE>
<CAPTION>
North
Carolina
New York Limited Ohio
Limited Portfolio Portfolio Limited Portfolio
------------------------ ---------- --------------------------
Period
Year Ended March 31, Ended Year Ended March 31,
March 31,
1995 1994** 1995*** 1995 1994*
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net
assets)++:
Net expenses 0.52% 0.47%+ 0.00%+ 0.46% 0.00%+
Net investment income 4.79% 4.50%+ 3.98%+ 4.96% 4.68%+
Portfolio Turnover 31% 5% 21% 120% 33%
Net assets, end of
period (000 omitted) $173,632 $183,768 $ 236 $39,435 $37,978
</TABLE>
++ 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:
<TABLE>
<S> <C> <C> <C>
Ratios (As a percentage
of average daily net
assets):
Net expenses 2.09%+ 0.58% 0.54%+
Net investment income 1.89%+ 4.84% 4.14%+
</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 28, 1994, to
March 31, 1995.
81
<PAGE>
Supplementary Data
Pennsylvania Virginia
Limited Portfolio Limited Portfolio
------------------------ -------------------
Year Ended March 31, Period Ended
1995 1994** March 31, 1995***
---------- ---------- -------------------
Ratios (As a percentage
of average daily net
assets)++:
Net expenses 0.53% 0.50%+ 0.00%+
Net investment income 4.77% 4.59%+ 4.69%+
Portfolio Turnover 39% 12% 33%
Net assets, end of
period (000 omitted) $113,606 $123,620 $ 221
++ 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):
Net expenses 2.17%+
Net investment income 2.52%+
+ Annualized.
** 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.
82
<PAGE>
Notes to Financial Statements
(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 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.
83
<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 period ended March 31, 1995, each Portfolio paid
advisory fees as follows:
Period Ended March 31, 1995
------------------------------
Portfolio Amount Effective Rate*
- - ------------------------ --------- -----------------
Arizona Limited $ 829 0.44%
California Limited 418,800 0.46%
Connecticut Limited 80,031 0.45%
Florida Limited 821,095 0.46%
Massachusetts Limited 559,365 0.46%
Michigan Limited 163,811 0.46%
New Jersey Limited 468,562 0.46%
New York Limited 845,836 0.46%
North Carolina Limited 273 0.42%
Ohio Limited 185,368 0.46%
Pennsylvania Limited 554,521 0.46%
Virginia Limited 300 0.45%
To enhance the net income of the Arizona Limited Portfolio, Connecticut
Limited Portfolio, Michigan Limited Portfolio, North Carolina Limited
Portfolio, Ohio Limited Portfolio, and Virginia Limited Portfolio, BMR made a
reduction of its fees in the amounts of $829, $80,031, $40,822, $273, $44,856
and $300, respectively, for the period ended March 31, 1995. In addition,
$1,640, $8,932, $1,083, and $1,160 of expenses related to the operation of
the Arizona Limited Portfolio, Connecticut Limited Portfolio, North Carolina
Limited Portfolio, and Virginia Limited Portfolio were allocated to BMR for
the period ended March 31, 1995.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolios. Pursuant to the custodian agreements, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances each
Portfolio maintains with IBT. Certain of the officers and Trustees of the
Portfolios are officers and directors/trustees of the above organizations.
Trustees of the 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
year ended March 31, 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 period ended March 31, 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 $534,824 $49,423,074 $11,938,912 $76,240,441 $49,735,461 $35,718,992
Sales 5,000 66,171,820 11,617,088 97,800,247 51,252,061 37,226,706
</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 $45,114,351 $56,299,534 $172,442 $48,849,849 $32,023,630 $230,768
Sales 51,961,803 68,916,661 26,013 46,855,409 42,994,261 57,136
</TABLE>
84
<PAGE>
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 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 $529,349 $77,371,691 $16,798,633 $159,193,575 $116,297,486 $31,435,798
========== ========== ========== ========== ========== ============
Gross
unrealized
appreciation $ 16,217 $ 855,715 $ 166,927 $ 2,073,789 $ 972,467 $ 625,757
Gross
unrealized
depreciation -- 247,893 213,378 1,217,305 1,004,568 112,364
---------- ---------- ---------- ---------- ---------- ------------
Net
unrealized
appreciation
(depreciation) $ 16,217 $ 607,822 $ (46,451) $ 856,484 $ (32,101) $ 513,393
========== ========== ========== ========== ========== ============
</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 $94,130,013 $167,253,911 $146,358 $37,781,415 $112,552,704 $173,447
========== ========== ========== ========== ========== ============
Gross
unrealized
appreciation $ 1,321,485 $ 1,177,544 $ 4,794 $ 612,289 $ 1,402,132 $ 6,343
Gross
unrealized
depreciation 638,318 1,959,627 -- 85,443 1,233,157 --
---------- ---------- ---------- ---------- ---------- ------------
Net
unrealized
appreciation
(depreciation) $ 1,321,486 $ (782,083) $ 4,794 $ 526,846 $ 168,975 $ 6,343
========== ========== ========== ========== ========== ============
</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 year.
(6) Financial Instruments
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include written options and futures contracts and may involve, to a varying
degree, elements of risk in excess of the amounts recognized for financial
statement purposes. The notional or contractual amounts of these instruments
represent the investment a Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting transactions
are considered. A summary of obligations under these financial instruments at
March 31, 1995 is as follows:
<TABLE>
<CAPTION>
Futures
Contract
Expiration Net Unrealized
Portfolio Date Contracts Position Depreciation
-------------------- ------------ ------------------------ ----------- --------------
<S> <C> <C> <C> <C>
Arizona Limited 6/95 2 US Treasury Bonds Short $ 3,400
California Limited 6/95 41 US Treasury Bonds Short 69,703
Connecticut Limited 6/95 8 US Treasury Bonds Short 13,600
Florida Limited 6/95 84 US Treasury Bonds Short 142,806
Massachusetts
Limited 6/95 59 US Treasury Bonds Short 100,304
Michigan Limited 6/95 16 US Treasury Bonds Short 27,201
New Jersey Limited 6/95 48 US Treasury Bonds Short 81,604
New York Limited 6/95 87 US Treasury Bonds Short 147,906
Ohio Limited 6/95 19 US Treasury Bonds Short 32,301
Pennsylvania Limited 6/95 56 US Treasury Bonds Short 95,204
</TABLE>
At March 31, 1995, each Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
85
<PAGE>
Independent Auditors' Report
To the Trustees and Investors of:
Arizona Limited Maturity Tax Free Portfolio
California Limited Maturity Tax Free Portfolio
Connecticut Limited Maturity Tax Free Portfolio
Florida Limited Maturity Tax Free Portfolio
Massachusetts Limited Maturity Tax Free Portfolio
Michigan Limited Maturity Tax Free Portfolio
New Jersey Limited Maturity Tax Free Portfolio
New York Limited Maturity Tax Free Portfolio
North Carolina Limited Maturity Tax Free Portfolio
Ohio Limited Maturity Tax Free Portfolio
Pennsylvania Limited Maturity Tax Free Portfolio
Virginia Limited Maturity Tax Free Portfolio
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Arizona Limited Maturity Tax Free
Portfolio, California Limited Maturity Tax Free Portfolio, Connecticut
Limited Maturity Tax Free Portfolio, Florida Limited Maturity Tax Free
Portfolio, Massachusetts Limited Maturity Tax Free Portfolio, Michigan
Limited Maturity Tax Free Portfolio, New Jersey Limited Maturity Tax Free
Portfolio, New York Limited Maturity Tax Free Portfolio, North Carolina
Limited Maturity Tax Free Portfolio, Ohio Limited Maturity Tax Free
Portfolio, Pennsylvania Limited Maturity Tax Free Portfolio, and Virginia
Limited Maturity Tax Free Portfolio as of March 31, 1995, and the related
statements of operations for the year then ended, and the statements of
changes in net assets and the supplementary data for each of the years in the
two-year period ended March 31, 1995. These financial statements and
supplementary data are the responsibility of the Trusts' management. Our
responsibility is to express an opinion on the financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned at March 31, 1995, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
audit procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present
fairly, in all material respects, the financial position of Arizona Limited
Maturity Tax Free Portfolio, California Limited Maturity Tax Free Portfolio,
Connecticut Limited Maturity Tax Free Portfolio, Florida Limited Maturity Tax
Free Portfolio, Massachusetts Limited Maturity Tax Free Portfolio, Michigan
Limited Maturity Tax Free Portfolio, New Jersey Limited Maturity Tax Free
Portfolio, New York Limited Maturity Tax Free Portfolio, North Carolina
Limited Maturity Tax Free Portfolio, Ohio Limited Maturity Tax Free
Portfolio, Pennsylvania Limited Maturity Tax Free Portfolio, and Virginia
Limited Maturity Tax Free Portfolio at March 31, 1995, the results of their
operations, the changes in their net assets and their supplementary data for
the respective stated periods in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 5, 1995
86
<PAGE>
Investment Management
<TABLE>
<CAPTION>
<S> <C> <C>
Funds Officers Independent Trustees
Thomas J. Fetter Donald R. Dwight
President President, Dwight Partners, Inc.
Chairman, Newspaper of
James B. Hawkes New England, Inc.
Vice President, Trustee
Samuel L. Hayes, III
Robert B. MacIntosh Jacob H. Schiff Professor of
Vice President Investment Banking, Harvard University
Graduate School of Business Administration
James L. O'Connor
Treasurer Norton H. Reamer
President and Director,
Thomas Otis United Asset Management Corporation
Secretary
John L. Thorndike
James F. Alban Director, Fiduciary Company Incorporated
Assistant Treasurer
Jack L. Treynor
Douglas C. Miller Investment Adviser
Assistant Treasurer and Consultant
Janet E. Sanders
Assistant Treasurer and
Assistant Secretary
A. John Murphy
Assistant Secretary
Portfolios Officers Independent Trustees
Thomas J. Fetter Donald R. Dwight
President President, Dwight Partners, Inc.
Chairman, Newspaper of
James B. Hawkes New England, Inc.
Vice President, Trustee
Samuel L. Hayes, III
Robert MacIntosh Jacob H. Schiff Professor of
Vice President Investment Banking, Harvard University
Graduate School of Business Administration
James L. O'Connor
Treasurer Norton H. Reamer
President and Director,
Thomas Otis United Asset Management Corporation
Secretary
John L. Thorndike
James F. Alban Director, Fiduciary Company Incorporated
Assistant Treasurer
Jack L. Treynor
Janet E. Sanders Investment Adviser
Assistant Treasurer and and Consultant
Assistant Secretary
A. John Murphy
Assistant Secretary
Portfolio Manager
William H. Ahern
Connecticut, Michigan, New
Jersey, North
Carolina, Ohio and Virginia
Limited Maturity
Tax-Free Portfolios
Raymond E. Hender
Arizona, California, Florida,
Massachusetts,
New York, and Pennsylvania
Limited
Maturity Tax Free Portfolios
</TABLE>
87
<PAGE>
Portfolios Investment Adviser
Boston Management and Research
24 Federal Street
Boston, MA 02110
Funds Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
Transfer Agent
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
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
88 M-12LTFCSRC
