<PAGE> 1
EATON VANCE INVESTMENT TRUST
FOR THE FUNDS:
* EV Traditional Florida Limited Maturity Tax Free Fund
* EV Traditional New York Limited Maturity Tax Free Fund
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[GRAPHIC LOGO]
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SEMI-ANNUAL SHAREHOLDER REPORT
SEPTEMBER 30, 1995
<PAGE> 2
<TABLE>
INFORMATION ABOUT YOUR MUTUAL FUND INVESTMENT
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESULTS FOR THE SIX MONTHS Dividends paid NAV Fund's If your combined The after-tax
ENDING SEPTEMBER 30, 1995. by Fund per share distribution Federal & state yield you would
(During period) at 9/30/95 rate at 9/30/95 tax rate is... need is...
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EV Traditional Florida
Limited Maturity Tax Free Fund $0.236 $10.25 4.59% [STATE MAP] 38.79% 7.50%
- ----------------------------------------------------------------------------------------------------------------------
EV Traditional New York
Limited Maturity Tax Free Fund $0.236 $10.23 4.59% [STATE MAP] 40.86% 7.76%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE> 3
TO SHAREHOLDERS
The global economy continues to demonstrate a pattern of slow growth with low
inflation. The U.S. economy is no exception, as Gross Domestic Product should
grow only modestly during 1995 at between 2% and 3%, with inflation of less
than 3%. These characteristics bode well for all capital markets and
particularly fixed-income markets, including municipal bonds.
Indeed, municipal bonds performed well during the first nine months of 1995
by realizing strong capital appreciation as a result of this favorable
investment environment. However, during this period, the tax-exempt market
underperformed the taxable market because of concern about the potential
passage of major tax reform (e.g., flat tax, value added tax or consumption
tax) legislation.
Were major tax reform to become law, municipal bonds would probably be
underperformers relative to taxable bonds because the current tax-advantaged
status of municipal bonds likely would be eliminated.
However, for many reasons, we at Eaton Vance believe there is little chance
of major tax reform legislation being enacted. For example, the inherent
regressivity of the various flat tax proposals will provoke much opposition,
as will proposals to eliminate such tax breaks as deductions for mortgage
interest and state and local taxes. Also, such proposals could seriously
depress entire sectors of the U.S. economy.
Accordingly, we view this recent underperformance by municipal bonds (because
of fears of tax reform) as a potential buying opportunity. Municipal bonds
could represent an attractive asset class at these current relative trading
relationships, with the potential for future outperformance for those
investors willing to adopt a patient, long-term investment horizon.
In addition, proposals are now circulating in both Congress and the White House
to reduce the nation's budget deficit by severely cutting expenditures over the
next decade. If enacted, such a concept would drastically reduce the federal
government's borrowing needs and, as a result, would exert a meaningful
downward influence on interest rates across the entire yield curve. All
fixed-income instruments, including municipal bonds, would benefit.
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DESPITE TAX POLICY UNCERTAINTIES TAX-EXEMPT BONDS YIELD MORE THAN 89% OF
TREASURY YIELDS
BAR CHART DEPICTING THE FOLLOWING:
30-YR. AA GENERAL OBLIGATION (GO) BONDS* 5.90%
TAXABLE EQUIVALENT YIELD OF INVESTMENT
FOR COUPLE IN 36% TAX BRACKET 9.21%
30-YR. TREASURY BONDS 6.50%
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
* GO yield is a compilation of a representative variety of general obligation
bonds and is not necessarily represented by the Fund's yield.
Statistics as of September 30, 1995.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
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We will continue to monitor changes in economic and political conditions and
to pursue the goal of your Fund: to provide you with a competitive
distribution of tax free income from a portfolio of quality municipal bonds.+
[PHOTO OF THOMAS J. FETTER] Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
November 20, 1995
+ A portion of the Portfolios' income could be subject to Federal alternative
minimum tax.
3
<PAGE> 4
[PHOTO OF RAYMOND E. HENDER]
MANAGEMENT DISCUSSION
An interview with Raymond E. Hender, Vice President, and Portfolio Manager of
the Limited Maturity Tax Free Portfolios.
Q. RAY, HOW WOULD YOU DESCRIBE THE MARKET CLIMATE IN RECENT MONTHS?
R.H.: The economy has given a lot of mixed signals in recent months, and
that has added some uncertainty to the market. On one hand, the economy
continues to expand a bit. On the other hand, there is evidence that the
economy is reaching a mature phase. Consumers appear to have nearly
exhausted their borrowing power, and auto and home sales have flagged
somewhat. Importantly, inflation has remained in check, in the 2% range.
With inflation posing little threat, we feel interest rates should be
stable-to-modestly lower for the foreseeable future.
Q. WHAT CHANGES HAVE YOU MADE TO THE PORTFOLIOS?
R.H.: The Portfolios' objective of seeking to maximize income while
limiting net asset volatility has remained unchanged. We did, however,
slightly alter the make-up of the Portfolios to take advantage of a
changing market.
From a credit standpoint, we've added to our holdings of non-rated bonds,
which should provide some new opportunities for the Portfolios. We've
also positioned the Portfolios' investments more evenly along the yield
curve to take advantage of a flatter curve. That's preferable to
concentating on one area of the curve. In some cases, focusing on the
short end alone results in minimizing income, while focusing on the long
end may provide too much volatility. Given a flatter yield curve, we've
been able to spread our investment and to offer a measure of protection
against getting caught at the wrong end.
With a more constructive outlook for the market, we were comfortable in
slightly increasing the Portfolios' exposure to interest rate changes.
Accordingly, we've sold bonds with the lowest book yield and lowest
durations and slightly increased the Portfolios' average durations.
Finally, from a quality standpoint, the Portfolios have maintained an
average rating of AA. While the ratings mix within the Portfolios is
changing, our credit standards remain the same.
Q. WHAT IS THE ADVANTAGE OF INVESTING IN NON-RATED BONDS?
R.H.: Non-rated bonds may provide some unusual opportunties for
investors. Eaton Vance has added to its analytical staff in recent
months and has thereby enhanced its research capabilities. We can now
provide the intensive research and constant monitoring that non-rated
issues demand. In addition to providing opportunities to enhance the
Portfolios' yields, investing in non-rated bonds represents a further
diversification of the Portfolios. For example, insured issues - which
now represent 40% of the market - are insured by only five major
insurance companies. By including bonds with so-called "stand-alone
ratings" - those without third-party ratings - we are diversifying away
from these monoline insurers. I think that's a positive development for
the Portfolios.
Q. WHAT CHANGES HAVE YOU MADE FROM A SECTOR STANDPOINT?
R.H.: As just mentioned, we've lightened up on the insured sector a bit.
We've also somewhat reduced the Portfolios' exposure to solid waste
bonds and electric utilities. Finally, we have become more selective
with respect to hospitals and the healthcare sector.
The solid waste sector tends to be very project-specific. Recent court
rulings have eliminated floor supports for some of these projects, so
there will be winners and losers in the resource recovery field. We're
focusing on projects we believe will benefit from these rulings. In
the electric utility sector, the onset of wholesale wheeling has reduced
the credit quality of some utilities, as large customers choose less
costly alternatives.
4
<PAGE> 5
Q. WHY HAVE YOU BEEN REDUCING YOUR HOSPITAL EXPOSURE?
R.H.: The hospital sector has become more competitive with shifting
demographics and rising pressure to reduce health care costs. In a
tougher competitive environment, some hospitals will emerge with a
larger market share, while others will face a bleak future. We've tried
to focus on those hospitals and alternative health care facilities, such
as assisted living centers, that will be among the beneficiaries of the
newly competitive climate.
Q. WHAT KIND OF HOSPITALS ARE YOU LOOKING AT?
R.H.: We look for hospitals that have especially favorable demographics.
Others may have a unique market niche, such as rehabilitation or organ
transplant. Finally, we look for hospitals that have formed strategic
alliances with health maintenace organizations (HMOs). It's clear that
HMOs represent the wave of the future for health care. The hospitals
that have formed these alliances, or have merged with other
institutions, have managed to sharply reduce their cost structures. As a
result, we believe they can deliver health care more efficiently.
Q. EARLIER YOU MENTIONED MAINTAINING STRICT CREDIT STANDARDS. COULD YOU
EXPAND A BIT ON THAT THEME?
R.H.: Certainly. At Eaton Vance, we have established very rigorous credit
standards. We follow a credit-intensive approach and monitor issuers
very closely for any change in their creditworthiness. We try to detect
early any sign of deteriorating conditions that might adversely affect
an issuer's cash flows or compromise its ability to comfortably meet
interest payments. Unless a bond issuer can meet our strict credit
criteria, we reject it as a candidate for investment and direct our
investments elsewhere. That is true regardless of the market climate.
Q. WE KEEP HEARING ABOUT THE PROPOSALS FOR A FLAT TAX. ARE THEY LIKELY TO
PASS IN YOUR VIEW?
R.H.: At first blush, the flat tax is very appealing to voters. Who,
after all, doesn't like the idea of lower tax rates? However, the closer
people look at these proposals and their likely ramifications, the less
enthusiastic they become. The dimensions of such large scale changes in
the tax code are far-reaching. Such changes would affect many special
interests, not to mention the possibility of eliminating the
deductibility of mortgage interest. Moreover, by reducing the
attractiveness of tax-free bonds, such legislation would compromise the
ability of states and municipalities to raise money for much-needed
projects such as health care facilities, roads and infrastructure
repairs. In my view, that simply will not be tolerated by the American
public. While it's very likely that tax reform will pass in some form,
municipal bonds will likely retain their tax-advantaged status.
Q. LOOKING AHEAD, WHAT IS YOUR OUTLOOK FOR THE MARKET?
R.H.: Because of investors' flat tax concerns - which are greatly
exaggerated in my view - the municipal market has lagged the Treasury
market in 1995. But 10-year municipal bonds still offer yields that are
nearly 83% of 30-year muni yields, according to Bloomberg Financial,
representing good value in the intermediate range. As we noted earlier,
the economy shows signs of maturing, usually a favorable time to
consider bonds. And, a flat yield curve typically signals value in the
intermediate range. If the Federal Reserve chooses to lower interest
rates, as has been rumored for many months, the outlook for bonds could
improve further. Naturally, past trends don't always provide a clue to
future performance. But, in my view, fixed-income investors who want to
limit their volatility while enjoying a competitive level of tax-free
income, should consider the intermediate-term market.
5
<PAGE> 6
EV TRADITIONAL FLORIDA LIMITED MATURITY TAX FREE FUND
The Florida economy has been slightly weaker than expected in 1995, as job
growth has slowed and income growth has leveled off. Current state forecasts
call for per capita income to grow 6.5% in 1995, following a 7.4% rise in
1994. The slowdown reflects a slightly slower growth in population, which is
expected to rise by 1.8% in 1995. An increase in tourism has been generally
offset by a decline in residential construction spending of $200 million in
the first six months of the year. Single family home construction has been
hurt by a bias toward less costly multi-family projects. Commercial
construction, on the other hand, has risen $80 million above state forecasts.
Predictably, given the state's large retirement and tourist-based economy,
service industry job growth continues at a fast pace.
<TABLE>
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<S> <C>
[STATE MAP] PORTFOLIO OVERVIEW
Based on market value as of September 30, 1995
Number of issues............................ 83
Average quality............................. AA
Investment grade............................ 98.9%
Effective maturity.......................... 5.82 yrs.
Largest sectors:
Escrowed/prerefunded.................................... 22.8%
General obligations..................................... 13.2
Insured hospitals....................................... 8.7*
Insured transportation.................................. 8.2*
Utilities .............................................. 7.1
<FN>
* Private insurance does not remove the risk of loss of principal due to
changes in market conditions that is associated with this investment.
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</TABLE>
EV TRADITIONAL NEW YORK LIMITED MATURITY TAX FREE FUND
The state economy has suffered from cutbacks in key industries, with job growth
remaining flat. Moreover, New York is nearing a critical juncture, facing
rising social costs at a time when the administration is proposing tax cuts.
Governor Pataki's goal of matching spending to ongoing revenue resources is
positive for the state's long-term credit standing but may produce near-term
turmoil. The 1996-97 budget talks are likely to be especially contentious given
the need to balance tax reductions with spending cuts. The state anxiously
awaits the outcome of the Medicaid funding debate in Congress, given its $10
billion Medicaid bill. New Yorkers also face the issue of debt reform, which,
if passed by voters, could lead to a more responsible borrowing process.
<TABLE>
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<S> <C>
[STATE MAP] PORTFOLIO OVERVIEW
Based on market value as of September 30, 1995
Number of issues............................ 81
Average quality............................. AA
Investment grade............................ 100%
Effective maturity.......................... 5.73 yrs.
Largest sectors:
Escrowed/prerefunded.................................... 15.5%
Education............................................... 9.5
Insured transportation.................................. 8.6*
Special tax revenue..................................... 8.5
General obligations..................................... 8.1
<FN>
* Private insurance does not remove the risk of loss of principal due to
changes in market conditions that is associated with this investment.
- --------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 7
EV Traditional Limited Maturity Tax Free Funds
Financial Statements
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
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September 30, 1995 (Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA TRADITIONAL NEW YORK
LIMITED FUND LIMITED FUND
------------------- --------------------
<S> <C> <C>
ASSETS:
Investments-
Identified cost $ 604,144 $ 821,480
Unrealized appreciation 11,422 18,488
---------- ----------
Total investment in Portfolio, at value (Note 1A) $ 615,566 $ 839,968
Receivable from the Administrator (Note 4) 10,623 9,876
Deferred organization expenses (Note 1D) 6,595 8,399
---------- ----------
Total assets $ 632,784 $ 858,243
---------- ----------
LIABILITIES:
Dividends payable $ 2,331 $ 3,221
Payable to affiliates -
Custodian fee 84 84
Accrued expenses 11,604 2,070
---------- ----------
Total liabilities $ 14,019 $ 5,375
---------- ----------
NET ASSETS applicable to investors' interest in Portfolio $ 618,765 $ 852,868
========== ==========
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $ 609,129 $ 838,260
Accumulated net realized loss on investment and financial
futures transactions (computed on the basis of identified cost) (1,345) (3,271)
Accumulated distributions in excess of net investment income (441) (609)
Unrealized appreciation of investments
from Portfolio (computed on the basis on identified cost) 11,422 18,488
---------- ----------
Total $ 618,765 $ 852,868
========== ==========
SHARES OF BENEFICIAL INTEREST OUTSTANDING 60,352 83,364
========== ==========
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets / shares of beneficial interest outstanding) $10.25 $10.23
========== ==========
COMPUTATION OF OFFERING PRICE PER SHARE
(100/97.50 of net asset value per share) $10.51 $10.49
========== ==========
<FN>
On sales of $100,000 or more the offering price is reduced.
</TABLE>
See notes to financial statements
7
<PAGE> 8
FINANCIAL STATEMENTS (continued)
<TABLE>
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
Six Months Ended September 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA TRADITIONAL NEW YORK
LIMITED FUND LIMITED FUND
------------------- --------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest income allocated from Portfolio $ 9,548 $ 25,020
Expenses allocated from Portfolio (1,070) (2,554)
--------- ---------
Net investment income from Portfolio $ 8,478 $ 22,466
--------- ---------
Expenses-
Compensation of Trustees not members of the
Investment Adviser's organization (Note 4) $ 113 $ 295
Distribution costs (Note 5) 11 8
Transfer and dividend disbursing agent fees 155 410
Custodian fees (Note 4) 1,502 1,491
Printing and postage 3,239 3,291
Legal and accounting services 2,742 2,921
Amortization of organization expenses (Note 1D) 2,075 1,275
Miscellaneous 993 524
--------- ---------
Total expenses $ 10,830 $ 10,215
Deduct preliminary allocation of expenses to the
Administrator (Note 4) 10,623 9,876
--------- ---------
Net expenses $ 207 $ 339
--------- ---------
Net investment income $ 8,271 $ 22,127
--------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from Portfolio-
Investment transactions (identified cost basis) $ 253 $ 1,338
Financial futures contracts (1,083) (4,202)
--------- ---------
Net realized loss $ (830) $ (2,864)
Change in unrealized appreciation of investments 6,993 16,635
--------- ---------
Net realized and unrealized gain $ 6,163 $ 13,771
--------- ---------
Net increase in net assets from operations $ 14,434 $ 35,898
========= =========
</TABLE>
See notes to financial statements
8
<PAGE> 9
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------------
Six Months Ended September 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA TRADITIONAL NEW YORK
LIMITED FUND LIMITED FUND
------------------- --------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 8,271 $ 22,127
Net realized loss on investments (830) (2,864)
Change in unrealized appreciation of investments 6,993 16,635
--------- ----------
Net increase in net assets from operations $ 14,434 $ 35,898
--------- ----------
Distributions to shareholders (Note 2) -
From net investment income $ (8,271) $ (22,127)
In excess of net investment income (193) (415)
--------- ----------
Total distributions to shareholders $ (8,464) $ (22,542)
--------- ----------
Transactions in shares of beneficial interest (Note 3) -
Proceeds from sales of shares $ 395,810 $1,297,670
Net asset value of shares issued to shareholders in
payment of distributions declared 4,658 7,485
Cost of shares redeemed (28,418) (645,159)
--------- ----------
Increase in net assets from Fund share transactions $ 372,050 $ 659,996
--------- ----------
Net increase in net assets $ 378,020 $ 673,352
NET ASSETS:
At beginning of period 240,745 179,516
--------- ----------
At end of period $ 618,765 $ 852,868
========= ==========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD $ (441) $ (609)
========= ==========
</TABLE>
See notes to financial statements
9
<PAGE> 10
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
Period Ended March 31, 1995*
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA TRADITIONAL NEW YORK
LIMITED FUND LIMITED FUND
------------------- --------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
From operations -
Net investment income $ 4,534 $ 2,962
Net realized loss on investments (515) (407)
Unrealized appreciation of investments 4,429 1,853
--------- ---------
Net increase in net assets from operations $ 8,448 $ 4,408
--------- ---------
Distributions to shareholders (Note 3) -
From net investment income $ (4,534) $ (2,962)
In excess of net investment income (248) (194)
--------- ---------
Total distributions to shareholders $ (4,782) $ (3,156)
--------- ---------
Transactions in shares of beneficial interest (Note 3) -
Proceeds from sales of shares $ 253,115 $ 190,691
Net asset value of shares issued to shareholders in
payment of distributions declared 4,329 1,557
Cost of shares redeemed (20,375) (13,994)
--------- ---------
Increase in net assets from Fund share transactions $ 237,069 $ 178,254
--------- ---------
Net increase in net assets $ 240,735 $ 179,506
NET ASSETS:
At beginning of period 10 10
--------- ---------
At end of period $ 240,745 $ 179,516
========= =========
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME
INCLUDED IN NET ASSETS AT END OF PERIOD $ (248) $ (194)
========= =========
<FN>
* For the Traditional Florida and New York Limited Maturity Tax Free Funds, the Statements of Changes in Net Assets
are for the period from the start of business, July 5, 1994, and July 6, 1994, respectively, to March 31, 1995.
</TABLE>
See notes to financial statements
10
<PAGE> 11
FINANCIAL STATEMENTS (continued)
<TABLE>
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA TRADITIONAL NEW YORK
LIMITED FUND LIMITED FUND
---------------------------------------- ----------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, 1995 PERIOD ENDED SEPTEMBER 30, 1995 PERIOD ENDED
(UNAUDITED) MARCH 31, 1995* (UNAUDITED) MARCH 31, 1995*
-------------------- ----------------- -------------------- ------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period $ 10.070 $ 10.000 $ 10.030 $ 10.000
--------- --------- --------- ---------
INCOME FROM OPERATIONS:
Net investment income $ 0.230 $ 0.321 $ 0.231 $ 0.325
Net realized and unrealized gain
on investments 0.185 0.088 0.204 0.051
--------- --------- --------- ---------
Total income from operations $ 0.415 $ 0.409 $ 0.435 $ 0.376
--------- --------- --------- ---------
LESS DISTRIBUTIONS:
From net investment income $ (0.230) $ (0.321) $ (0.231) $ (0.325)
In excess of net investment income (0.005) (0.018) (0.004) (0.021)
--------- --------- --------- ---------
Total distributions $ (0.235) $ (0.339) $ (0.235) $ (0.346)
--------- --------- --------- ---------
NET ASSET VALUE, end of period $ 10.250 $ 10.070 $ 10.230 $ 10.030
========= ========= ========= =========
TOTAL RETURN (1) 4.17% 4.19% 4.39% 3.87%
RATIOS/SUPPLEMENTAL DATA++:
Net assets, end of period (000 omitted) $ 619 $ 241 $ 853 $ 180
Ratio of net expenses to average
daily net assets (2) 0.68%+ 0.74%+ 0.59%+ 0.98%+
Ratio of net investment income to
average daily net assets 4.40%+ 4.52%+ 4.52%+ 5.96%+
<FN>
++ For the period from the start of business for the Traditional Florida and New York Limited Maturity Tax Free Funds, July 5,
1994, and July 6, 1994, respectively, to March 31, 1995, and for the six months ended September 30, 1995, the operating
expenses of the Funds reflect an allocation of expenses to the Administrator. Had such actions not been taken, net investment
loss per share and the ratios would have been as follows:
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS) PER SHARE $ (0.065) $ (0.506) $ 0.128 $ (1.178)
========= ========= ========= =========
RATIOS (as a percentage of average daily net assets):
Expenses (2) 6.33%+ 12.20%+ 2.61%+ 28.54%+
Net investment income (loss) (1.25%)+ (6.94%)+ 2.50%+ (21.60%)+
* For the Traditional Florida and New York Limited Maturity Tax Free Funds, Financial Highlights are for the period from the
start of business, July 5, 1994, and July 6, 1994, respectively, to March 31, 1995.
+ Computed on an annualized basis.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the payable date. Total return is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
</TABLE>
See notes to financial statements
11
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- -------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Eaton Vance Investment Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-six Funds, two of
which are included in these financial statements. They include EV Traditional
Florida Limited Maturity Tax Free Fund, ("Traditional Florida Limited Fund"),
and EV Traditional New York Limited Maturity Tax Free Fund ("Traditional New
York 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 Traditional Florida Limited Fund invests its
assets in the Florida Limited Maturity Tax Free Portfolio, and the
Traditional New York Limited Fund invests its assets in the New York 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 (0.4%, and 0.5% at September 30, 1995 for the
Traditional Florida Limited Fund and Traditional New York 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 Traditional Florida Limited Fund and Traditional New York Limited Fund,
for Federal income tax purposes, had capital loss carryovers of $86 and $120,
respectively, 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 distributions
to shareholders which will otherwise be necessary to relieve each Fund of any
liability for Federal income taxes. Such capital loss carryovers will expire
on March 31, 2003. 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 each Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years beginning on the date each Fund
commenced operations.
E. OTHER - Investment transactions are accounted for on a trade date basis.
F. INTERIM FINANCIAL INFORMATION - The interim financial statements relating
to September 30, 1995 and for the six-month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Fund's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
- -------------------------------------------------------------------------------
(2) DISTRIBUTIONS TO SHAREHOLDERS
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest capital gain distributions in additional shares of
a Fund at the net asset value as of the ex-dividend date. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. The Funds distinguish between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles require
that only distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital. Differences in
the recognition or classification of income between the financial statements
and tax earnings and profits which result in temporary over distributions for
financial statements purposes are classified as distributions in excess of
net investment income or accumulated net realized gains. Permanent
differences between book and tax accounting relating to distributions are
reclassified to paid-in capital.
12
<PAGE> 13
- --------------------------------------------------------------------------------
<TABLE>
(3) SHARES OF BENEFICIAL INTEREST
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
<CAPTION>
TRADITIONAL FLORIDA LIMITED FUND TRADITIONAL NEW YORK LIMITED FUND
----------------------------------- -----------------------------------
Six Months Ended Six Months Ended
September 30, 1995 September 30, 1995
(Unaudited) March 31, 1995* (Unaudited) March 31, 1995*
------------------ -------------- ------------------ --------------
<S> <C> <C> <C> <C>
Sales 38,785 25,560 128,499 19,146
Issued to shareholders electing to receive
payments of distributions in Fund shares 457 437 736 157
Redemptions (2,805) (2,083) (63,777) (1,398)
------ ------ ------- ------
Net increase 36,437 23,917 65,458 17,905
====== ====== ======= ======
<FN>
* For the Traditional Florida Limited and the Traditional New York Limited
Funds, the period is from the commencement of operations, July 5, 1994, and
July 6, 1994, respectively, to March 31, 1995.
</TABLE>
- --------------------------------------------------------------------------------
(4) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the administrator of each Fund, but
receives no compensation. The Portfolios have engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolios' Notes to Financial Statements, which are
included elsewhere in this report. To enhance the net income of the Funds,
$10,623 and $9,876 of expenses related to the operation of the Traditional
Florida Limited Fund and Traditional New York Limited Fund, respectively,
were allocated, on a preliminary basis, to EVM. Except as to Trustees of the
Funds and the Portfolios who are not members of EVM's or BMR's organization,
officers and Trustees receive remuneration for their services to each Fund
out of such investment adviser fee. Investors Bank & Trust Company (IBT), an
affiliate of EVM, serves as custodian to the Funds and the Portfolios.
Pursuant to the respective custodian agreements, IBT receives a fee reduced
by credits which are determined based on the average cash balances the Funds
or the Portfolios maintain with IBT. Certain of the officers and Trustees of
the Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 5).
- --------------------------------------------------------------------------------
(5) SERVICE PLAN
Each Fund has adopted a Service Plan designed to meet the requirements of
Rule 12b-1 under the Investment Company Act of 1940 and the service fee
requirements of the revised sales charge rule of The National Association of
Securities Dealers, Inc. The Plans provide that the Fund may make service fee
payments to the Principal Underwriter, Eaton Vance Distributors, Inc., a
subsidiary of Eaton Vance Management, Authorized Firms or other persons in amo
unts not exceeding 0.25% of the Fund's average daily net assets for each
fiscal year. The Trustees have initially implemented the Plans by authorizing
the Fund to make quarterly service fee payments to the Principal Underwriter
and Authorized Firms in amounts not exceeding 0.15% of each Fund's average
daily net assets for any fiscal year which is attributable to shares of a
Fund sold by such persons and remaining outstanding for at least one year.
Service fee payments are made for personal services and/or the maintenance of
shareholder accounts. Traditional Florida Limited Fund and Traditional New
York Limited Fund paid or accrued service fees to or payable to EVD in the
amount of $11 and $8, respectively, for the six months ended September 30,
1995.
Certain of the officers and Trustees of the Funds are officers or directors
of EVD.
- --------------------------------------------------------------------------------
<TABLE>
(6) INVESTMENT TRANSACTIONS
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended September 30, 1995 were
as follows:
<CAPTION>
TRADITIONAL TRADITIONAL
FLORIDA NEW YORK
LIMITED FUND LIMITED FUND
------------ ------------
<S> <C> <C>
Increases $408,145 $1,312,898
Decreases 39,745 678,432
</TABLE>
13
<PAGE> 14
Florida Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ESCROWED/PREREFUNDED - 22.8%
Aaa AAA $ 1,015 Dade County FL, Educational
Facilities Authority,(MBIA),
Prerefunded to 10/1/01,
7.00%, 10/1/08 $ 1,162,510
Aaa AAA 1,000 Dunnedin FL Hospital,
Mease Health Care,(MBIA),
Prerefunded to 11/15/01,
6.75%, 11/15/211,134,270
Aaa AAA 3,000 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/00, 7.25%, 6/1/23 3,405,330
Aaa AAA 1,500 Florida Department of
Natural Resources, Preservation
2000, (MBIA), 7.25%, 7/1/08 1,650,120
Aaa AAA 1,000 Florida MPA, All Require-
ments Power Supply Project,
(AMBAC), Prerefunded to
10/1/02, 6.25%, 10/1/21 1,112,240
Aaa AAA 1,500 Florida MPA, Stanton II
Project, (AMBAC), Prerefunded
to 6/1/02, 6.50%, 10/1/20 1,690,575
Aaa AAA 1,780 Hollywood FL Water &
Sewer, (FGIC), Prerefunded
to 10/1/02, 6.375%, 10/1/02 1,980,837
Aaa AAA 1,500 Jacksonville Beach Utilities,
(MBIA), Prerefunded to
10/1/01, 6.50%, 10/1/12 1,678,995
Aaa AAA 2,500 Jacksonville Electric Authority,
Bulk Power Supply System,
Prerefunded to 10/1/00,
6.75%, 10/1/21 2,790,875
Aaa AAA 4,485 Jacksonville Electric Authority,
Bulk Power Supply System,
Prerefunded to 10/1/00,
6.75%, 10/1/16 5,006,830
Aaa AAA 1,000 Manatee County Public
Utilities, (MBIA), Prerefunded
to 10/1/01, 6.80%, 10/1/05 1,134,930
Aaa AAA 3,250 Orlando Utility Community
Water & Electric, Prerefunded
to 10/1/01, 6.50%, 10/1/20 3,637,823
Aaa AAA 2,000 Palm Bay FL Utility, Palm Bay
Utility Corporation, (MBIA),
Prerefunded to 10/1/02,
6.20%, 10/1/17 2,218,560
Aaa AAA 2,805 Palm Beach County Criminal
Justice Facilities, (FGIC),
Prerefunded to 6/1/00,
7.00%, 6/1/01 3,154,727
-----------
$31,758,622
-----------
GENERAL OBLIGATIONS - 13.2%
Aa AA $ 1,500 Florida State Board of
Education, 6.25%, 6/1/01 $ 1,635,990
Aa AA 1,500 Florida State Board of
Education, 6.75%, 6/1/12 1,670,535
Aa AA 2,000 Florida State Board of
Education, 6.75%, 6/1/00 2,207,360
Aa AA 1,295 Florida State Board of
Education, 6.75%, 6/1/04 1,423,412
NR A 350 Hillsborough County,
(Environmentally Sensitive
Lands Acquisition and
Protection Program), 6.00%,
7/1/03 370,136
Baa1 A 1,000 Puerto Rico Public Building
Authority, 6.50%, 7/1/03 1,097,230
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency, 5.50%,
7/1/01 2,057,240
Baa1 A- 775 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 798,134
Baa1 A- 5,400 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/05 5,587,704
NR NR 1,500 Virgin Islands Public
Finance
Authority, 6.80%, 10/1/00 1,602,960
-----------
$18,450,701
-----------
HOSPITALS - 3.9%
NR BBB $ 470 Escambia County
Health Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.), 5.00%,
10/1/95 $ 470,005
NR BBB 490 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.), 5.50%, 10/1/96 493,278
NR BBB 515 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.), 6.00%, 10/1/97 523,276
</TABLE>
14
<PAGE> 15
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR BBB 545 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.), 6.25%,
10/1/98 558,690
Baa1 NR 425 Jacksonville Health Facilities
Authority, (National Benevolent
Association-Cypress Village
Project), 6.00%, 12/1/98 429,573
Baa1 NR 450 Jacksonville Health Facilities
Authority, (National Benevolent
Association-Cypress Village
Project), 6.25%, 12/1/99 457,839
Baa1 NR 480 Jacksonville Health Facilities
Authority, (National Benevolent
Association-Cypress Village
Project), 6.50%, 12/1/00 489,821
NR A- 1,635 Palm Beach County Health
Facilities Authority, Good
Samaritan Health Systems
Inc., 5.60% 10/1/01 1,670,807
A BBB+ 290 St. Johns County Industrial
Development Authority,
(Flagler Hospital Project),
5.60%, 8/1/01 296,911
-----------
$ 5,390,200
-----------
HOUSING - 1.4%
Baa BBB $ 2,000 Puerto Rico Housing Bank
and Finance Agency, 5.10%,
12/1/03 $ 1,961,960
-----------
INDUSTRIAL DEVELOPMENT REVENUE - 2.6%
Baa2 BBB $ 1,470 Nassau County PCR, (ITT
Rayonier Incorporated
Project), 5.60%, 6/1/00 $ 1,492,109
B1 BB+ 2,000 Polk County, Florida,
Industrial Development
Authority, (IMC Fertilizer),
7.525%, 1/1/15 2,089,640
-----------
$ 3,581,749
-----------
INSURED GENERAL OBLIGATIONS - 5.4%
Aaa AAA $ 2,475 Dade County Local School
District, (MBIA), 6.40%,
8/1/00 $ 2,705,868
Aaa AAA 1,500 Dade County Local School
District, (MBIA), 6.00%,
8/1/06 1,573,320
Aaa AAA 1,000 Dade County Local School
District, (MBIA), 5.20%,
8/1/07 1,007,330
Aaa AAA 500 Duval County Local
School District, (AMBAC),
6.00%, 8/1/03 542,790
Aaa AAA 1,580 Sarasota County FL,
(FGIC), 6.25%,10/1/05 1,707,222
-----------
$ 7,536,530
-----------
INSURED HEALTH CARE - 3.2%
Aaa AAA $ 4,000 Jacksonville Health Facilities
Authority, (Baptist Medical
Center Project), (MBIA),
7.25%, 6/1/05 $ 4,436,280
-----------
INSURED HOSPITALS - 8.7%
Aaa AAA $ 1,050 Hillsborough County
Hospital Authority, (Tampa
General Hospital Project),
(FSA), 5.875%, 10/1/00 $ 1,126,493
Aaa AAA 2,000 Hillsborough County
Hospital Authority, (Tampa
General Hospital Project),
(FSA), 6.375%, 10/1/13 2,081,100
Aaa AAA 1,000 City of Lakeland, (Lakeland
Regional Medical Center
Project), (FGIC), 5.40%,
11/15/01 1,057,980
Aaa AAA 1,360 North Broward Hospital
District, (MBIA), 6.20%,
1/1/04 1,480,972
Aaa AAA 1,000 Orange County Health Facilities
Authority, (Adventist Health
System/Sunbelt Inc,) (CGIC),
5.50%, 11/15/02 1,063,370
Aaa AAA 4,500 South Broward Hospital
District, (AMBAC), 7.50%,
5/1/08 5,260,725
-----------
$12,070,640
-----------
INSURED HOUSING - 1.4%
Aaa AAA $ 2,000 Florida Housing Finance
Agency, Multi-Family
Housing, (Lantana-Oxford
Project),(FSA), 5.50%,
11/1/07 $ 2,006,920
-----------
INSURED LEASE REVENUE/
CERTIFICATES OF PARTICIPATION - 1.1%
Aaa AAA $ 1,150 City of Collier County,
Certificate of Participation,
(FSA), 5.35%, 2/15/02 $ 1,193,827
Aaa AAA 315 Santa Rosa County, Florida,
(FSA), 5.90%, 2/1/01 338,118
-----------
$ 1,531,945
-----------
</TABLE>
15
<PAGE> 16
FLORIDA LIMITED MATURITY TAX FREE PORTFOLIO (CONTINUED)
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED MISCELLANEOUS - 2.5%
Aaa AAA $ 2,000 City of Jacksonville,
Guaranteed Entitlement,
(AMBAC), 5.50%,
10/1/02 $ 2,134,880
Aaa AAA 500 Lee County Capital
Revenue, (MBIA), 7.30%,
10/1/07 557,640
Aaa AAA 755 Miami Sports and Exhibition
Authority, Special Obligation,
(FGIC), 5.65%, 10/1/02 809,858
-----------
$ 3,502,378
-----------
INSURED SOLID WASTE - 0.4%
Aaa AAA $ 535 Pinellas County Resource
Recovery, (MBIA), 6.85%,
10/1/03 $ 599,216
-----------
INSURED SPECIAL TAX - 5.3%
Aaa AAA $ 1,525 Florida Department of
Natural Resources,
Preservation 2000,
(AMBAC), 6.70%, 7/1/05 $ 1,713,277
Aaa AAA 5,150 Tampa FL Utility Tax,
(AMBAC), 6.50%, 10/1/02 5,703,419
-----------
$ 7,416,696
-----------
INSURED TRANSPORTATION - 8.2%
Aaa AAA $ 1,700 Hillsborough County
Aviation Authority, Tampa
International Airport, (FGIC),
6.60%, 10/1/03 $ 1,855,601
Aaa AAA 2,000 Hillsborough County
Aviation Authority, Tampa
International Airport, (FGIC),
6.80%, 10/1/05 2,186,000
Aaa AAA 3,120 Hillsborough County
Aviation Authority, Tampa
International Airport, (FGIC),
6.85%, 10/1/06 3,408,600
Aaa AAA 1,000 Port Everglades Authority FL,
Port Facilities, (FGIC), 7.00%,
9/1/00 1,119,680
Aaa AAA 2,500 Palm Beach County, Florida,
Airport, (MBIA), 7.75%,
10/1/10 2,917,700
-----------
$11,487,581
-----------
INSURED WATER & SEWER - 5.5%
Aaa AAA $ 600 Cape Coral FL Wastewater,
(FSA), 5.75%, 7/1/01 $ 640,026
Aaa AAA 790 Cape Coral FL Wastewater,
(FSA), 6.10%, 7/1/05 845,087
Aaa AAA 2,000 Manatee County FL, Public
Utilities, (MBIA), 6.75%,
10/1/04 2,291,520
Aaa AAA 1,005 Northern Palm Beach
County FL, Water Control
District, (MBIA), 7.15%,
11/1/02 1,107,329
Aaa AAA 1,080 Northern Palm Beach County
FL Water Control District,
(MBIA), 7.15%, 11/1/03 1,188,875
Aaa AAA 1,000 Pasco County FL, Water &
Sewer Revenue,(FGIC),
5.40%, 10/1/03 1,060,530
Aaa AAA 500 Port Orange FL Water &
Sewer Revenue,(AMBAC), 6.50%, 10/1/04 541,210
-----------
$ 7,674,577
-----------
MISCELLANEOUS - 0.7%
Baa BBB $ 1,000 Puerto Rico Housing Bank
& Finance Agency, 5.00%,
12/1/02 $ 982,830
-----------
SOLID WASTE - 0.8%
A NR $ 1,165 Brevard County, Florida,
Solid Waste Management
System, 5.00%, 4/1/01 $ 1,174,448
-----------
SPECIAL TAX REVENUE - 0.3%
Baa1 BBB+ $ 400 Puerto Rico Infrastructure
Financing Authority, 7.60%,
7/1/00 $ 437,924
-----------
TRANSPORTATION - 0.7%
A A $ 925 Florida Sunshine Skyway
Revenue Bonds, 6.40%,
7/1/04 $ 994,856
-----------
UTILITIES - 7.1%
Aa1 AA $ 3,000 Jacksonville Electric
Authority, St. John's River
Power Park, 6.50%,
10/1/03 $ 3,362,670
Aa1 AA 4,000 Jacksonville Electric
Authority, St. John's River
Power Park, Crossover
Refunding, 6.95%, 10/1/04 4,420,080
Aa AA- 2,000 City of Tallahassee, Electric
Refunding Bonds, 5.90%,
10/1/05 2,151,560
-----------
$ 9,934,310
-----------
</TABLE>
16
<PAGE> 17
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER & SEWER REVENUE - 4.6%
A3 A+ $ 330 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project), 5.40%,
10/1/00 $ 342,695
A3 A+ 345 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project), 5.50%,
10/1/01 360,180
A3 A+ 365 Dunes Community Develop-
ment District, (Flagler County,
Water & Sewer Project), 5.60%,
10/1/02 382,166
A3 A+ 380 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project), 5.70%,
10/1/03 400,155
A1 A+ 1,110 Pinellas County FL, Water
Revenue Certificates, 5.90%,
10/1/01 1,139,126
Aa AA- 1,700 St. Petersburg FL, Public
Utility Revenue, 6.65%,
10/1/03 1,941,625
Baa1 A 1,750 Puerto Rico Aqueduct &
Sewer Authority, 7.875%,
7/1/17 1,871,136
------------
$ 6,437,083
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST, $134,625,228) $139,367,446
============
</TABLE>
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 41.7% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 0.8% to 15.1% of total
investments.
See notes to financial statements
17
<PAGE> 18
New York Limited Maturity Tax Free Portfolio
Portfolio of Investments - September 30, 1995 (Unaudited)
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS- 100%
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 9.5%
Aaa AA+ $ 500 Dormitory Authority of the
State of New York, Columbia
University, 5.10%, 7/1/01 $ 516,525
Aa AA 2,250 Dormitory Authority of the
State of New York, Cornell
University, 7.375%, 7/1/20 2,539,035
Aa AA 1,000 Dormitory Authority of the
State of New York, Cornell
University, 7.375%, 7/1/30 1,128,460
NR AA 1,000 Dormitory Authority of the
State of New York, Manhattan
College, 6.10%, 7/1/04 1,094,020
A1 A+ 5,955 Dormitory Authority of the
State of New York, University of
Rochester, 6.50%, 7/1/09 6,179,444
Baa1 BBB 1,000 Dormitory Authority of the
State of New York, City
University, 6.10%, 7/1/01 1,053,200
Baa1 BBB+ 1,000 Dormitory Authority of the
State of New York, State
University, 7.25%, 5/15/99 1,083,430
Baa1 BBB+ 1,000 Dormitory Authority of the
State of New York, State
University, 5.20%, 5/15/03 999,310
-----------
$14,593,424
-----------
ELECTRIC UTILITY - 2.9%
Aa AA- $ 3,125 Power Authority of the
State of New York, 6.60%,
1/1/02 $ 3,469,406
Aa AA- 970 Power Authority of the State
of New York, 7.875%, 1/1/07 1,056,301
-----------
$ 4,525,707
-----------
ESCROWED/PREREFUNDED - 15.5%
Aaa AAA $ 1,710 The City of New York,
Escrowed to Maturity,
(AMBAC), 6.25%, 8/1/02 $ 1,873,527
Aaa NR 2,250 Dormitory Authority of the
State of New York, State
University, Prerefunded to
5/15/02, 6.75%, 5/15/21 2,556,338
Aaa AAA 5,000 New York Local Government
Assistance Corporation,
Prerefunded to 4/1/01, 7.00%,
4/1/16 5,680,500
Aaa AAA 2,000 New York State Housing
Finance Agency, Escrowed to
Maturity, 6.80%, 5/15/01 2,224,480
Aaa AAA 900 New York State Housing
Finance Authority, State
University, Escrowed to Maturity,
7.80%, 5/1/01 1,044,954
Aaa AA- 2,275 Power Authority of the
State of New York,
Prerefunded to 1/1/96,
7.375%, 1/1/18 2,339,724
NR AA- 2,750 Power Authority of the State
of New York, Prerefunded
to 1/1/98, 8.00%, 1/1/17 3,019,280
Aaa AAA 2,500 Suffolk County, New York Water
Authority, (AMBAC), Prerefund-
ed to 6/1/02, 6.00%, 6/1/17 2,735,525
Aaa A+ 1,900 Triborough Bridge and Tunnel
Authority, Prerefunded to
1/1/95, 7.25%, 1/1/06 2,141,984
-----------
$23,616,312
-----------
GENERAL OBLIGATIONS - 8.1%
Baa1 BBB+ $ 500 The City of New York,
6.875%, 2/1/02 $ 533,510
Baa1 BBB+ 1,000 The City of New York,
6.375%, 8/1/05 1,028,740
Baa1 BBB+ 3,000 The City of New York,
6.40%, 8/1/03 3,130,770
Baa1 BBB+ 1,500 The City of New York,
6.375%, 8/1/06 1,527,660
A A- 1,500 State of New York,
7.50%, 11/15/00 1,710,765
A A- 1,000 State of New York,
7.50%, 11/15/01 1,155,830
A A- 2,000 State of New York,
7.00%, 11/15/02 2,277,880
Baa1 A 1,000 Puerto Rico Commonwealth,
6.35%, 7/1/10 1,055,680
-----------
$12,420,835
-----------
HOSPITALS - 5.4%
Baa BBB $ 500 Cortland County Industrial
Development Agency,
Cortland Memorial Hospital
Inc. Project, 6.15%, 7/1/02 $ 510,710
NR AAA 2,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai Hospital,
5.40%, 8/15/00 2,056,600
NR AAA 3,000 New York State Medical Care
Facilities Finance Agency,
Mount Sinai Hospital, 5.50%,
8/15/01 3,112,230
Baa1 BBB+ 1,415 New York State Medical Care
Facilities Finance Agency, Hospital
and Nursing Home Revenue
Bonds, 7.625%, 2/15/08 1,523,219
</TABLE>
18
<PAGE> 19
<TABLE>
- --------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------------------
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aa AA 1,000 New York State Medical Care
Facilities Finance Agency, Hospital
and Nursing Home Revenue
Bonds, 7.50%, 2/15/09 1,094,350
-----------
$ 8,297,109
-----------
HOUSING - 0.7%
NR AAA $ 1,050 New York City Housing
Development Corporation,
6.70%, 6/1/00 $ 1,109,430
-----------
INDUSTRIAL DEVELOPMENT REVENUE - 0.7%
A NR $ 1,045 United Nations Develop-
ment Corporation, 5.70%,
7/1/02 $ 1,099,152
-----------
INSURED EDUCATION - 2.8%
Aaa AAA $ 1,075 Dormitory Authority of the
State of New York, Mt. Sinai
School of Medicine, (MBIA),
6.75%, 7/1/09 $ 1,163,763
Aaa AAA 2,000 Dormitory Authority of the
State of New York, (FGIC),
7.00% 7/1/13 2,173,660
Aaa AAA 1,000 Dormitory Authority of the
State of New York, City
University, (FGIC), 5.25%,
7/1/06 1,015,510
-----------
$ 4,352,933
-----------
INSURED GENERAL OBLIGATIONS - 2.3%
Aaa AAA $ 765 Brookhaven, New York,
(MBIA), 5.50%, 5/1/02 $ 800,557
Aaa AAA 2,750 Nassau County, New York,
(FGIC), 5.10%, 8/1/04 2,790,783
-----------
$ 3,591,340
-----------
INSURED HOSPITAL - 4.9%
Aaa AAA $ 4,450 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC), 6.10%,
2/15/04 $ 4,815,657
Aaa AAA 2,500 New York State Medical Care
Facilities Finance Agency,
New York State Hospital,
(AMBAC), 6.20%, 2/15/05 2,723,900
-----------
$ 7,539,557
-----------
INSURED HOUSING - 1.3%
Aa AA $ 2,000 New York City Housing
Development Corporation,
(FHA), 5.40%, 11/1/05 $ 1,998,360
-----------
INSURED MISCELLANEOUS - 0.7%
Aaa AAA $ 1,000 New York State Municipal
Bond Bank Agency,
(AMBAC), 6.625%,
3/15/06 $ 1,089,480
-----------
INSURED SOLID WASTE - 0.7%
Aaa AAA $ 1,000 Duchess County Resource
Recovery Agency, (FGIC),
7.20%, 1/1/02 $ 1,114,730
-----------
INSURED SPECIAL TAX - 0.7%
Aaa AAA $ 1,500 Municipal Assistance
Corporation for the City
of New York, (MBIA),
6.875%, 7/1/01 $ 1,060,030
-----------
INSURED TRANSPORTATION - 8.6%
Aaa AAA $ 905 Metropolitan Transportation
Authority for the City of
New York, (MBIA),
5.60%, 7/1/01 $ 951,065
Aaa AAA 1,135 Metropolitan Transportation
Authority for the City of
New York, (MBIA), 5.80%,
7/1/03 1,209,081
Aaa AAA 3,500 The Port Authority of
New York and New Jersey,
(MBIA), 6.375%, 10/15/17 3,632,020
Aaa AAA 2,500 The Port Authority of
New York and New Jersey,
(AMBAC), 7.40%, 10/1/12 2,806,725
Aaa AAA 2,000 Triborough Bridge and
Tunnel Authority, (MBIA),
6.20%, 1/1/01 2,157,980
Aaa AAA 2,290 Triborough Bridge and
Tunnel Authority, (FGIC),
5.80%, 1/1/02 2,432,324
-----------
$13,189,195
-----------
INSURED UTILITY - 5.0%
Aaa AAA $ 5,280 New York State Energy
Research and Development
Authority, Central Hudson
Gas, (FGIC), 7.375%,
10/1/14 $ 5,955,365
Aaa AAA 1,600 New York State Power
Authority, (MBIA), 7.875%,
1/1/13 1,755,344
-----------
$ 7,710,709
-----------
INSURED WATER & SEWER - 2.7%
Aaa AAA $ 1,000 Buffalo New York Sewer
Authority, (FGIC), 5.00%,
7/1/03 $ 1,014,020
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(FGIC), 6.00%, 6/15/19 1,003,170
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.55%, 6/15/01 1,045,530
</TABLE>
19
<PAGE> 20
NEW YORK LIMITED MATURITY TAX FREE PORTFOLIO (CONTINUED)
<TABLE>
TAX-EXEMPT INVESTMENTS (CONTINUED)
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.80%, 6/15/03 1,060,340
------------
$ 4,123,060
------------
LEASE REVENUE/CERTIFICATES
OF PARTICIPATION - 5.8%
A1 AA $ 3,000 Battery Park City Authority,
6.00%, 11/1/03 $ 3,223,950
A1 AA 3,500 Housing New York Corp-
oration, 6.00%, 11/1/03 3,659,075
Baa1 A 2,000 Puerto Rico Public Buildings
Authority, 5.30%, 7/1/03 2,033,200
------------
$ 8,916,225
------------
SPECIAL TAX REVENUE - 8.5%
Aa AA- $ 2,975 Municipal Assistance Corp-
oration for the City of New
York, 5.75%, 7/1/08 $ 3,047,412
Aa AA- 2,500 Municipal Assistance Corp-
oration for the City of New
York, 7.30%, 7/1/08 2,786,175
Aa AA- 1,000 Municipal Assistance Corp-
oration for the City of New
York, 6.75%, 7/1/96 1,058,650
A A 1,750 New York Local Government
Assistance Corporation,
7.00%, 4/1/04 1,945,615
A A 2,120 New York Local Government
Assistance Corporation,
7.20%, 4/1/04 2,378,237
A A 750 New York Local Government
Assistance Corporation,
5.90%, 4/1/05 791,985
Baa1 BBB+ 660 New York State Medical Care
Facilities Finance Agency,
Mental Health Services Facilities,
7.10%, 8/15/01 717,783
Baa1 BBB+ 350 Puerto Rico Infrastructure
Financing Authority, 7.60%,
7/1/00 383,184
------------
$ 13,109,041
------------
TRANSPORTATION - 7.6%
Baa1 BBB $ 1,000 Metropolitan Transportation
Authority, 5.375%, 7/1/02 $ 1,017,140
A1 A 1,750 New York State Thruway
Authority, 5.375%, 1/1/02 1,809,290
Baa1 BBB 1,500 New York State Thruway
Authority, 5.80%, 4/1/00 1,553,220
Baa1 BBB 2,000 New York State Thruway
Authority, 6.00% ,4/1/02 2,086,060
Baa1 BBB 1,000 New York State Thruway
Authority, 6.00%, 4/1/03 1,039,050
Baa1 A 2,850 Puerto Rico Highway
Authority, 6.75%, 7/1/05 3,087,918
Aa A+ 1,000 Triborough Bridge and Tunnel
Authority, 6.75%, 1/1/02 1,090,630
------------
$ 11,683,308
------------
WATER & SEWER REVENUE - 5.6%
A A- $ 1,825 New York City Municipal
Water Finance Authority,
5.70%, 6/15/02 $ 1,909,461
Aa AA- 1,000 New York State Environmental
Facilities Corporation,
7.50%, 3/15/11 1,105,490
Aa A 1,000 New York State Environmental
Facilities Corporation,
6.90%, 6/15/02 1,128,390
Aa A 1,125 New York State Environmental
Facilities Corporation,
6.50%, 6/15/04 1,224,641
Aaa AAA 1,000 New York State Environmental
Facilities Corporation, County
of Westchester Project, 6.30%,
9/15/05 1,095,127
Aa A 2,000 New York State Environmental
Facilities Corporation, New York
City Municipal Water Finance
Authority, 6.60%, 6/15/05 2,181,740
------------
$ 8,644,849
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST, $150,966,523) $153,784,786
============
</TABLE>
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1995, 29.7% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 9.0% to 11.4% of total
investments.
See notes to financial statements
20
<PAGE> 21
Limited Maturity Tax Free Portfolios
Financial Statements
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------
September 30, 1995 (Unaudited)
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
ASSETS:
Investments-
Identified cost $134,625,228 $150,966,523
Unrealized appreciation 4,742,218 2,818,263
------------ ------------
Total investments, at value (Note 1A) $139,367,446 $153,784,786
Cash 717,672 621,235
Interest receivable 3,327,349 2,769,529
Deferred organization expenses (Note 1D) 10,895 6,647
------------ ------------
Total assets $143,423,362 $157,182,197
------------ ------------
LIABILITIES:
Payable to affiliates -
Trustees' fee $ 2,590 $ 2,590
Custodian fees 2,618 3,034
Accrued expenses 2,693 2,750
------------ ------------
Total liabilities $ 7,901 $ 8,374
------------ ------------
NET ASSETS applicable to investors' interest in Portfolio $143,415,461 $157,173,823
============ ============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $138,673,243 $154,355,560
Unrealized appreciation of investments
(computed on the basis of identified cost) 4,742,218 2,818,263
------------ ------------
Total $143,415,461 $157,173,823
============ ============
</TABLE>
See notes to financial statements
21
<PAGE> 22
FINANCIAL STATEMENTS (Continued)
<TABLE>
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------
Six Months Ended September 30, 1995 (Unaudited)
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Interest income $4,047,304 $4,335,568
---------- ----------
Expenses-
Investment adviser fee (Note 2) $ 351,182 $ 379,668
Compensation of Trustees not members of the
Investment Adviser's organization 6,248 6,248
Custodian fees (Note 2) 39,730 43,155
Legal and accounting services 28,228 28,628
Amortization of organization expenses (Note 1D) 2,108 1,288
Miscellaneous 12,432 10,041
---------- ----------
Total expenses $ 439,928 $ 469,028
Deduct reduction of custodian fees (Note 2) 12,321 25,625
---------- ----------
Net expenses $ 427,607 $ 443,403
---------- ----------
Net investment income $3,619,697 $3,892,165
---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) -
Investment transactions (identified cost basis) $ (9,718) $ 268,341
Financial futures contracts (785,149) (834,507)
---------- ----------
Net realized loss $ (794,867) $ (566,166)
Change in unrealized appreciation of investments 4,028,540 3,748,252
---------- ----------
Net realized and unrealized gain $3,233,673 $3,182,086
---------- ----------
Net increase in net assets from operations $6,853,370 $7,074,251
========== ==========
</TABLE>
See notes to financial statements
22
<PAGE> 23
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Six Months Ended September 30, 1995 (Unaudited)
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 3,619,697 $ 3,892,165
Net realized loss on investments (794,867) (566,166)
Change in unrealized appreciation of investments 4,028,540 3,748,252
------------ ------------
Net increase in net assets from operations $ 6,853,370 $ 7,074,251
------------ ------------
Capital transactions -
Contributions $ 4,437,740 $ 5,054,457
Withdrawals (32,454,564) (28,587,309)
------------ ------------
Decrease in net assets resulting from capital transactions $(28,016,824) $(23,532,852)
------------ ------------
Total decrease in net assets $(21,163,454) $(16,458,601)
NET ASSETS:
At beginning of period 164,578,915 173,632,424
------------ ------------
At end of period $143,415,461 $157,173,823
============ ============
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Year Ended March 31, 1995
- ---------------------------------------------------------------------------------------------------------------
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
From operations -
Net investment income $ 8,483,858 $ 8,821,606
Net realized loss on investment transactions (4,072,437) (2,970,287)
Change in unrealized appreciation of investments 5,067,690 3,317,903
------------ ------------
Net increase in net assets from operations $ 9,479,111 $ 9,169,222
------------ ------------
Capital transactions -
Contributions $ 29,535,670 $ 23,864,886
Withdrawals (60,412,518) (43,169,334)
------------ ------------
Decrease in net assets resulting from capital transactions $(30,876,848) $(19,304,448)
------------ ------------
Total decrease in net assets $(21,397,737) $(10,135,226)
NET ASSETS:
At beginning of year 185,976,652 183,767,650
------------ ------------
At end of year $164,578,915 $173,632,424
============ ============
</TABLE>
See notes to financial statements
23
<PAGE> 24
FINANCIAL STATEMENTS (Continued)
<TABLE>
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FLORIDA LIMITED PORTFOLIO
----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1995 -----------------------------
(UNAUDITED) 1995 1994*
------------------ -------- --------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF AVERAGE NET ASSETS):
Net expenses 0.57%+ 0.52% 0.49%+
Net investment income 4.71%+ 4.73% 4.53%+
PORTFOLIO TURNOVER 3% 44% 8%
NET ASSETS, END OF PERIOD (000 OMITTED) $143,415 $164,579 $185,977
</TABLE>
<TABLE>
<CAPTION>
NEW YORK LIMITED PORTFOLIO
----------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1995 -----------------------------
(UNAUDITED) 1995 1994*
------------------ -------- --------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF AVERAGE NET ASSETS):
Net expenses 0.56%+ 0.52% 0.47%+
Net investment income 4.65%+ 4.79% 4.50%+
PORTFOLIO TURNOVER 12% 31% 5%
NET ASSETS, END OF PERIOD (000 OMITTED) $157,174 $173,632 $183,768
<FN>
+ Computed on an annualized basis.
* For the period from the start of business, May 3, 1994, to March 31, 1994.
</TABLE>
See notes to financial statements
24
<PAGE> 25
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Florida Limited Maturity Tax Free Portfolio ("Florida Limited Portfolio") and
New York Limited Maturity Tax Free Portfolio ("New York 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, deductions
or credit. Interest income received by the Portfolios on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from Federal income tax
when allocated to the Portfolios' investors. The portion of such interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D. DEFERRED ORGANIZATION EXPENSES - Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years, beginning on the date each Portfolio commenced
operations.
E. FINANCIAL FUTURES CONTRACTS - Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS - The Portfolios may engage
in When-issued and Delayed Delivery Transactions. The Portfolios record
When-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a When-issued or Delayed
Delivery basis are marked to market daily and begin earning interest on
settlement date.
G. OTHER - Investment transactions are accounted for on a trade date basis.
H. INTERIM FINANCIAL INFORMATION - The interim financial statements relating
to September 30, 1995 and for the six-month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Portfolio's management, reflect all adjustments, consisting only of
normal recurring adjustments, necessary for the fair presentation of the
financial statements.
- --------------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the 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).
25
<PAGE> 26
- --------------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES (CONTINUED)
<TABLE>
For the six months ended September 30, 1995 each portfolio paid advisory fees
as follows:
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
- ----------- ---------- ---------------
<S> <C> <C>
Florida Limited Portfolio $351,182 0.46%
New York Limited Portfolio 379,668 0.45%
<FN>
* Advisory fees paid as a percentage of average daily net assets (annualized).
</TABLE>
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolios. Pursuant to the custodian agreements, IBT receives a fee reduced
by credits which are determined based on the average daily cash balances each
Portfolio maintains with IBT. For the six months ended September 30, 1995,
credits used to reduce custodian fees amounted to $12,321 and $25,625 for the
Florida Limited Portfolio and New York Limited Portfolio, respectively.
Certain of the officers and Trustees of the Portfolios are officers and direct
ors/trustees of the above organizations. Trustees of the Portfolios who are
not affiliated with the Investment Adviser may elect to defer receipt of all
or a portion of their annual fees in accordance with the terms of the Trustee
Deferred Compensation Plan. For the six months ended September 30, 1995, no
significant amounts have been deferred.
- --------------------------------------------------------------------------------
<TABLE>
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, were as follows:
<CAPTION>
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
Purchases $ 5,162,750 $18,971,165
Sales 29,275,564 34,910,838
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned by each Portfolio at September 30, 1995, as computed on a Federal
income tax basis, are as follows:
<CAPTION>
FLORIDA NEW YORK
LIMITED PORTFOLIO LIMITED PORTFOLIO
----------------- -----------------
<S> <C> <C>
Aggregate cost $134,625,228 $150,966,523
============ ============
Gross unrealized appreciation $ 4,948,721 $ 3,131,891
Gross unrealized depreciation 206,503 313,628
------------ ------------
Net unrealized appreciation $ 4,742,218 $ 2,818,263
============ ============
</TABLE>
- --------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Portfolios participate with other Portfolios and Funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The
line of credit consists of a $20 million committed facility and a $100
million discretionary facility. Borrowings will be made by the Portfolios
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each Portfolio or Fund based on its
borrowings at an amount above either the bank's adjusted certificate of
deposit rate, a variable adjusted certificate of deposit rate, or a Federal
funds effective rate. In addition, a fee computed at an annual rate of 1\4 of
1% on the $20 million committed facility and on the daily unused portion of
the $100 million discretionary facility is allocated among the participating
Funds and Portfolios at the end of each quarter. The Portfolios did not have
any significant borrowings or allocated fees during the period.
- --------------------------------------------------------------------------------
(6) FINANCIAL INSTRUMENTS
The Portfolios regularly trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options and futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Portfolios' have in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered. The Portfolios had
no such obligations outstanding at September 30, 1995.
26
<PAGE> 27
INVESTMENT ADVISER OF LIMITED MATURITY TAX FREE PORTFOLIOS
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF EV TRADITIONAL LIMITED MATURITY TAX FREE FUNDS
Eaton Vance Management
24 Federal Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
27
<PAGE> 28
(THIS SPACE INTENTIONALLY LEFT BLANK.)
28
<PAGE> 29
(THIS SPACE INTENTIONALLY LEFT BLANK.)
29
<PAGE> 30
(THIS SPACE INTENTIONALLY LEFT BLANK.)
30
<PAGE> 31
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
T-CSRC
