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Previous: EATON VANCE INVESTMENT TRUST, N-30D, 1996-06-03 |
Next: EATON VANCE INVESTMENT TRUST, N-30D, 1996-06-03 |
Eaton Vance Investment Trust
For the Funds:
(bullet) EV Marathon Arizona Limited Maturity Municipals Fund
(bullet) EV Marathon California Limited Maturity Municipals Fund
(bullet) EV Marathon Connecticut Limited Maturity Municipals Fund
(bullet) EV Marathon Florida Limited Maturity Municipals Fund
(bullet) EV Marathon Massachusetts Limited Maturity Municipals Fund
(bullet) EV Marathon Michigan Limited Maturity Municipals Fund
(bullet) EV Marathon New Jersey Limited Maturity Municipals Fund
(bullet) EV Marathon New York Limited Maturity Municipals Fund
(bullet) EV Marathon Ohio Limited Maturity Municipals Fund
(bullet) EV Marathon Pennsylvania Limited Maturity Municipals Fund
[LOGO]
Annual Shareholder Report
March 31, 1996
<TABLE>
<CAPTION>
Results for the six months ending March 31, 1996
The
Dividends If Your after-tax
paid Fund's combined equivalent
Total return by fund NAV distribution Federal & yield
(excl. sales (during per share rate state tax you would Tax
charge) period) at 3/31/96 at 3/31/96 rate is... need is... Information*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EV Marathon Arizona
Limited Maturity
Municipals Fund 4.8% $0.406 $10.33 3.92% 39.58% 6.49% 99.41%
EV Marathon California
Limited Maturity
Municipals Fund 5.3% $0.389 $10.08 3.85% 43.04% 6.75% 99.60%
EV Marathon Connecticut
Limited Maturity
Municipals Fund 5.5% $0.368 $9.85 3.76% 38.88% 6.12% 99.88%
EV Marathon Florida
Limited Maturity
Municipals Fund 4.8% $0.389 $10.17 3.82% 42.76% 6.66% 99.99%
EV Marathon Massachusetts
Limited Maturity
Municipals Fund 5.1% $0.382 $10.10 3.69% 43.68% 6.56% 99.93%
EV Marathon Michigan
Limited Maturity
Municipals Fund 5.0% $0.373 $9.73 3.92% 40.58% 6.59% 100.0%
EV Marathon New Jersey
Limited Maturity
Municipals Fund 4.8% $0.386 $10.11 3.81% 40.08% 6.53% 99.68%
EV Marathon New York
Limited Maturity
Municipals Fund 5.1% $0.389 $10.15 3.82% 40.56% 6.43% 99.98%
EV Marathon Ohio
Limited Maturity
Municipals Fund 5.1% $0.379 $9.84 3.86% 40.80% 6.52% 99.82%
EV Marathon Pennsylvania
Limited Maturity
Municipals Fund 5.0% $0.398 $10.19 3.90% 47.49% 7.42% 99.93%
[GRAPHICS OMITTED IN COL 5 OF ARIZONA, CALIFORNIA, CONNECTICUT, FLORIDA, MASSACHUSETTS, MICHIGAN,
NEW JERSEY, NEW YORK, OHIO AND PENNSYLVANIA]
* Percentages represent the portions of the total dividends paid by the
Funds from net investment income during the year ended March 31, 1996,
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.
</TABLE>
To Shareholders:
Municipal bond yields fell sharply in 1995, gaining back most of the
losses of the previous year. Twice during the year, the Federal Reserve
lowered short-term interest rates, further buoying the market.
Realistically, it may be difficult for the market to match last year's
gains. Still, there are many reasons to be optimistic about the
municipal bond market in 1996 and to believe that an investment in
municipal bonds represents very good value and should be a part of a
wise investor's fixed-income portfolio.+
The U.S. economy continues in its favorable pattern of slow growth and
low inflation, which is a good environment for the municipal bond
market.
During 1995 the municipal market underperformed the taxable market
because of concern about the possible passage of major tax reform
legislation. While such concerns are likely to persist this year, we at
Eaton Vance continue to believe there is little chance that significant
reform, in the form of a flat tax, consumption tax or value-added tax,
will be enacted in the forseeable future. While flat tax and other
reform proposals will be debated, especially during the Presidential
campaigns, they are so controversial and sweeping that we believe the
process needed to secure agreement and subsequent passage of a plan is,
at best, years away.
At the same time, the Presidential campaigns could provide impetus to
proposals that should prove favorable to the bond market. Any positive
result in this area is likely to provide additional momentum to the bond
market through fiscal restraint and, therefore, lower yields.
These factors have combined to produce a significant opportunity for
municipal bond investors. To the extent that fears about tax reform
depress prices, investors can enter the market at a discount. To the
extent that budget reform measures lessen the Federal government's
borrowing needs, investors may be expected to reap the rewards through a
strengthening bond market. As always, achieving investment rewards may
depend on an investor's willingness to adopt a long-term investment
horizon. That's one reason we at Eaton Vance believe patience is a key
to successful investing.
[PHOTO OF THOMAS J. FETTER OMITTED]
Sincerely,
/S/Thomas J. Fetter
Thomas J. Fetter
President
May 19, 1996
+ A portion of the Portfolios' income could be subject to Federal
alternative minimum tax.+ A portion of the Portfolios' income could be
subject to Federal alternative minimum tax.
Management Discussion
An interview with Raymond E. Hender, Vice President, and William H.
Ahern, Vice President, Portfolio Managers of the Limited Maturity
Municipals Portfolios.
Q. Ray, interest rates have been on a rollercoaster in the past year.
What's behind the fluctuations in interest rates?
R.H.: This has been an extraordinarily volatile period for the bond
markets in general. From March through December 1995, the bond market
enjoyed a significant decline in interest rates as the economy showed
signs of weakness and the Federal Reserve pursued an accommodative
monetary policy. In addition, the markets held out hope throughout 1995
that the budget negotiations would produce an agreement aimed at
significant deficit reduction.
After the first of the year, it appeared that the economy was somewhat
stronger than expected, which pushed rates a little higher. In addition,
the budget talks ended in a political stalemate. Although economic
growth has remained relatively modest for quite some time now - in the
2.5% range - those developments contributed to a more defensive market
in the first quarter.
Q. Bill, how has the intermediate sector of the market responded to the
rate changes?
W.A.: The intermediate sector has felt significantly less volatility
than the longer-term market. Predictably, the intermediate segment of
the market underperformed during the long rate decline, but has
outperformed during the rate hike of the past several months.
Importantly, the intermediate universe has performed in line with
expectations, which makes it very attractive to conservative investors
who want to limit their exposure to market turbulence.
Q. You referred to a prolonged period of relatively modest economic
growth. What's keeping the economy within such a narrow range?
R.H.: Clearly, the Federal Reserve has taken a more activist role in the
economy in recent years. By making periodic minor adjustments in
interest rates, the Fed has been careful to keep the economy from
growing too fast on one hand, or tipping into recession on the other.
Some have called this the "Goldilocks" economy: neither too hot nor too
cold.
Q. Did market volatility affect your strategy to a great degree?
W.A.: With a flat-to-mildly lower interest rate scenario, we have
increased the Portfolios' average maturities and durations over the past
six months to reflect our longer-term positive outlook on the market.
From the outset, the Portfolios have pursued a conservative investment
style, and hence, were relatively well-positioned when the market
started to deteriorate. We have remained consistent with our prospectus
mandate and have maintained a duration in the middle of our allowable
duration range - around 6-to-6.5 years at March 31, 1996. That has
limited the impact of rising rates on the Portfolios.
[PHOTO OF RAYMOND E. HENDER OMITTED]
Caption reads: Raymond E. Hender
Q. Where else have you focused?
R.H.: We've found some good values in the non-rated segment of the
intermediate market. Eaton Vance has increasingly made the non-rated
sector a specialty in recent years. These bonds require an especially
rigorous analysis, but we are able to find selective situations that add
incrementally to the Funds' current yield as well as afford the
potential for capital appreciation.
We've also focused on consolidating positions within the Portfolios. In
so doing, we have increased the average size of our holdings, while
reducing the number of total holdings.Consolidating holdings helps
improve liquidity, an important element in structuring the Portfolios,
especially in periods of volatility. And finally, we sought to take
advantage of the recent market correction as an opportunity to improve
the quality of the Portfolios.
Q. Is there a lesson that investors can learn from the past year's
volatility?
W.A.: I believe that in today's markets, discipline is more important
than ever. There are so many influences on the markets, both
domestically and abroad, that at first blush appear unrelated to the
fundamentals of the bond market. Yet, they may have a short-term impact
nonetheless. In such a climate, the unsophisticated investor may be
cowed into abandoning a reasonable market view by short-term influences.
In this market it is more important than ever to remain focused on
fundamentals. That's the approach that we take in
the Portfolios, and we believe it is especially appropriate today.
Q. How is that discipline evidenced in
the Portfolios?
R.H.: In the short-term, the bond market has been jarred by reports of
grain shortages, or by foreign currency fluctuations, or by
international events. However, we've maintained our focus on economic
fundamentals and haven't been sidetracked by what we regard as
extraneous, short-term events.
Despite the rise in interest rates of the first quarter, we believe that
there is very little inflation in the economy. As most bond investors
know, inflation is the main nemesis of the fixed-income markets. But in
recent years, because of a vigilant posture by the Federal Reserve, a
large labor supply, a better managment of inventories by business, and
the impact of an increasing global competition, inflation has generally
been put to rest.
Q. So, you feel there is still good value in bonds?
W.A.: Absolutely. From a long-term point of view, bonds currently offer
very high real rates of return - that is, yield minus the rate of
inflation. For example, the typical 5-year AAA-rated municipal bond
yielded 4.38% at March 31, 1996 according to Bloomberg Financial. For a
taxpayer in the 36% tax bracket, that represents a taxable equivalent
yield of 6.84%. With inflation running at 2.3%, the real rate of return
is more than 4.5%. Given the fact that real rates of return on U.S.
Treasury bonds have historically been in the 3% range, the recent
benchmarks suggest that there is uncommon value in municipal bonds.
Q. Looking ahead, what is your outlook for the intermediate-term market?
R.H.: We remain positive on the bond market over the long term. First
quarter GDP grew at a 2.8% annualized rate, according to preliminary
Commerce Department figures. While that was well above estimates, it
still does not indicate a booming economy. So the economy continues to
advance at a modest pace, and that is good news for bond investors.
However, as we've seen in the first quarter of 1996, there may be bumps
along the way. That draws many investors to the intermediate sector,
which typically garners a good percentage of the yield of long-term
bonds, with roughly half of their volatility. Naturally, past
performance does not guarantee future trends. But for investors whose
primary investment goals include tax-free income and relative stability
of principal, there is a continuing strong case to be made for
intermediate-term municipal bonds.
[PHOTO OF WILLIAM H. AHERN OMITTED]
Caption reads: William H. Ahern
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. It is not possible to invest in the Index.
EV Marathon Arizona Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF GRADUATION CAP OMITTED]
Maricopa County, AZ
School District #28
Kyrene Elementary
These local school improvement bonds were issued in 1992, with the
proceeds used to acquire land for District school facilities, to
construct and equip new schools, and to make improvements to existing
facilities within the District. This issue is an example of the
Portfolio's use of prerefunded bonds.These bonds have been prerefunded
to July, 2001, and will trade to that earlier date rather than to their
stated maturity of 2013, thus remaining less volatile than longer-
maturity bonds. In addition to carrying an attractive 6% coupon, the
bond is FGIC-insured, and therefore enjoys exceptional liquidity.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF ARIZONA OMITTED]
Number of issues 25
Average quality AA
Investment grade 96.9%
Effective maturity (years) 6.32
Largest sectors:
General obligations 21.9%
Escrowed/pre-refunded 21.0
Insured general obligations 14.5*
Special tax revenue 8.6
Insured education 8.6*
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Arizona
Arizona's economy has mirrored that of the U.S. in the past year. While
the rate of expansion has moderated, the state's economy continues to
post respectable, non-inflationary growth, with unemployment remaining
below the national average. Arizona has enjoyed employment gains in
recent months, with total employment growing at a 4% annual rate in the
final quarter of 1995. The Phoenix-Mesa area continued to generate the
strongest growth in the state. For the full year, Arizona posted 5% job
growth, slower than the robust 6.8% pace set in 1994, but strong enough
to rank the state third in the nation. More than one-half of the new
jobs were created in the services sector. However, economically-
sensitive cyclical industries were under pressure, exemplified by a
slower retail sales environment and a decline in commercial and
residential contruction.
Moreover, Arizona appears well-positioned for the future, with an
economy that is increasingly diversified from its traditional mainstays
of mining and agriculture. Having cut taxes, the state could face
challenges if the national economy slows dramatically in the coming
year. However, Arizona's conservative financial practices should provide
the comfort margin to keep the state on firm financial footing.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Arizona Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From November 30, 1994, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 1.8% 4.6%
Without CDSC 4.8% 6.3%
EV Marathon Lehman
Arizona Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
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
4/95 10,378 10,714
5/95 10,573 10,999
6/95 10,557 10,989
7/95 10,624 11,129
8/95 10,719 11,260
9/95 10,755 11,303
10/95 10,832 11,401
11/95 10,939 11,527
12/95 10,985 11,588
1/96 11,073 11,701
2/96 11,004 11,660
3/96 10,911 11,547
EV Marathon Arizona Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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
EV Marathon California Limited Maturity Municipals Fund
Your investment at work
California Health
Facilities Finance Authority
Sisters of Providence
[GRAPHIC OF HEALTH CARE SYMBOL OMITTED]
The Sisters of Providence is a charitible religious order of the
Catholic Church. A portion of the proceeds of this bond were used to
finance the cost of the acquisition, construction, and equipping of a
five-story tower and central plant facility for St. Joseph Medical
Center in Burbank. Another portion was devoted to the funding of
construction and renovation projects at Providence Hospital in Oakland.
This bond is a good example of a relatively high-coupon investment in a
well-regarded issuer that provided the Portfolio defensive
characteristics as well as an incremental yield advantage.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF CALIFORNIA OMITTED]
Number of issues 35
Average quality AA
Investment grade 100%
Effective maturity (years) 7.92
Largest sectors:
Escrowed/pre-refunded 19.5%
General obligations 11.1
Insured hospital revenue 10.9*
Insured utilities 7.9*
Lease revenue/certificates of
participation 6.5
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: California
California's economy seems to be continuing its slow improvement from
the recession that began in 1990. The state benefits from a growing
population and diverse employment base. Despite the loss of high-paying
aerospace jobs in recent years, the state's job growth is expected to be
twice that at the national level in 1996.
Overall, job increases have been led by gains in construction,
electronics, tourism, business services, international trade and
entertainment.
Despite the state's recent problems, the economic outlook is generally
favorable. The economic turnaround is expected to be created in part by
growth in the state's sizable high-technology sector. For example, it is
predicted that personal income will rise significantly during the mid
1990s, which should continue to elevate state revenue collections.
Revenues have already improved significantly, running 3% above estimates
for the current fiscal year. That is likely to produce a
$1 billion surplus at fiscal year-end. While California still has
hurdles to overcome, it's clear the state is on the comeback trail.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon California Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From May 31, 1992, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.3% 4.5%
Without CDSC 5.3% 4.8%
EV Marathon Lehman
California Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
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 10,288 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
4/95 11,360 12,021
5/95 11,589 12,341
6/95 11,523 12,330
7/95 11,643 12,487
8/95 11,725 12,634
9/95 11,774 12,683
10/95 11,871 12,793
11/95 11,978 12,934
12/95 12,039 13,003
1/96 12,125 13,129
2/96 12,081 13,084
3/96 11,952 12,956
EV Marathon California Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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
EV Marathon Connecticut Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF GRADUATION CAP OMITTED]
CT Health & Education
Finance Authority
Fairfield University
These revenue bonds were issued in 1995 to finance the acquisition of
property and construction costs of renovations to several facilities of
Fairfield University, a well-regarded institution founded in 1942 and
located in Fairfield, CT. Interest payments on the bond are secured by a
lien on college tuition payments. The bonds, rated Baa1/BBB by Moody's
and Standard & Poor's, respectively, carry an attractive 6.9% coupon.
They are an example of the Porfolio's strong research efforts during the
past year to find good value in lower-rated investment-quality bonds.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF CONNECTICUT OMITTED]
Number of issues 31
Average quality AA
Investment grade 100%
Effective maturity (years) 8.12
Largest sectors:
Insured general obligations 15.8%*
General obligations 15.7
Housing 14.0
Miscellaneous 7.4
Insured hospitals 6.6*
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Connecticut
Connecticut has not yet fully recovered from the last recession and,
accordingly, continues to experience economic duress in several key
economic sectors. Job growth remains moderate and is not expected to
reach pre-recession levels until the end of the decade. Construction
activity and the trade and service sectors have generated some momentum,
but the state's manufacturing sector continues to decline. Connecticut's
defense industry, which ranked sixth in the nation in defense contracts
in 1989, declined to twelfth place in 1995. Finally, the insurance
sector, long an important segment in the state's financial industry, saw
further downsizing. The industry restructured to meet the challenges of
increasing competition and the likely prospect of health care reforms in
coming years. Despite its slow recovery, Connecticut enjoys very high
wealth levels and maintains generally satisfactory financial results. In
the state's 1996-97 biennial budget, the administration and legislature
are attempting to control the costs of social services. The budget
provides structural changes that should lead to long-term savings.
Meanwhile, while ongoing budgetary pressures remain, fiscal 1996
revenues should receive a boost from the recent tax amnesty on income,
sales, and corporate taxes.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Connecticut Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From April 3, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.5% 2.9%
Without CDSC 5.5% 3.5%
EV Marathon Lehman
Connecticut Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 10,537 10,913
5/95 10,719 11,204
6/95 10,687 11,194
7/95 10,800 11,336
8/95 10,898 11,470
9/95 10,944 11,514
10/95 11,045 11,614
11/95 11,156 11,742
12/95 11,201 11,804
1/96 11,270 11,919
2/96 11,215 11,878
3/96 11,091 11,762
EV Marathon Connecticut Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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
EV Marathon Florida Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF FACTORY OMITTED]
Polk County FL
Industrial Development Authority
IMC Fertilizer
IMC Fertilizer Group is one of the world's largest producers of potash,
phosphate, and phosphate fertilizer. Issued under the aegis of Polk
County IDA, the proceeds of these bonds were used to finance a 415-acre
containment basin for the storage of phosphogypsum, a chemical
manufacturing by-product. The project is popular with environmentalists
because it averts environmental contamination by industrial by-products.
The bonds have a 7.525% coupon and represent an opportunity to add yield
to the Portfolio through an investment in an industry leader.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF FLORIDA OMITTED]
Number of issues 64
Average quality AA
Investment grade 97.0%
Effective maturity (years) 7.88
Largest sectors:
Escrowed 22.6%
General obligations 13.9
Utilities 8.4
Insured Transportation 8.3*
Insured Hospitals 7.7*
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Florida
Florida continues to rank among the southeastern region's growth
leaders. Despite a slight slowdown in economic activity in 1995, the
state's economy expanded at a faster pace than the national rate,
resulting in good employment growth.
While Florida's population gains have eased from the blistering 2.9%
pace of the 1980s, the state remains a favorite retirement destination
and continues to benefit from a large migration from northern states.
The tourism industry performed erratically in 1995, but has strengthened
in recent months and remains a major source of service sector
employment. The service, trade and construction sectors together account
for 64% of the state's employment.
Like many states, the lack of a federal budget and growing social
service expeditures add a degree of uncertainty to the financial
picture. However, rising investment returns in 1995 and 1996 have
boosted the state's per capita income growth. And, importantly, Florida
has benefited from a growing revenue base, especially from rising
corporate, sales and use-tax revenues. Moreover, the state's well-
managed financial program and excellent economic performance have
contributed to credit stability.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Florida Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From May 31, 1992, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 1.8% 4.8%
Without CDSC 4.8% 5.0%
EV Marathon Lehman
Florida Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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 11,592 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 11,433 11,866
3/95 11,501 11,989
4/95 11,506 12,021
5/95 11,723 12,341
6/95 11,715 12,330
7/95 11,835 12,487
8/95 11,940 12,634
9/95 11,967 12,683
10/95 12,051 12,793
11/95 12,136 12,934
12/95 12,208 13,003
1/96 12,282 13,129
2/96 12,203 13,084
3/96 12,050 12,956
EV Marathon Florida Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon Massachusetts Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF WORKER TURNING VALVE ON WATER PIPE OMITTED]
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. Approximately 44% of the
Commonwealth's population is served by the Authority. 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. Given the essential nature of its services, the
Authority enjoys very stable cash flows. The bonds are also highly
valued for their good liquidity.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF MASSACHUSETTS OMITTED]
Number of issues 65
Average quality AA
Investment grade 96.0%
Effective maturity (years) 7.37
Largest sectors:
Escrowed/pre-refunded 15.6%
Insured general obligations 13.7*
Hospitals 11.9
Insured housing 8.7*
General obligations 8.5
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Massachusetts
The Massachusetts economic recovery that began in 1992 has continued
through the middle of the decade. Like many other states, Massachusetts
lost manufacturing jobs, but gained jobs in the service sector,
including the finance, real estate and insurance industries.
The overall state economy has shown considerable strength. For example,
the Commonwealth announced a February 1996 unemployment rate of 5.0%,
down from 5.1% in January, and better than the national rate of 5.5% in
February. The Massachusetts payroll survey in February showed an
increase of more than 48,000 jobs from February 1995.
Changes in the high technology and health care industries, both of which
are part of the core of the Massachusetts economy, could cause growth in
the Commonwealth's economy to fall behind the national pace through the
remainder of the decade. However, it is expected that job gains will be
seen in the software, education and biotechnology sectors. Massachusetts'
finances continue to be stable, though still burdened
with high debt levels. However, as a measure of the progress made in
recent years, Massachusetts now enjoys a rating of A1/A+, a major
improvement from the Baa/BBB ratings of 1991.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Massachusetts Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From June 30, 1992 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.1% 4.6%
Without CDSC 5.1% 4.9%
EV Marathon Lehman
Massachusetts Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 11,369 11,833
5/95 11,575 12,148
6/95 11,533 12,137
7/95 11,641 12,292
8/95 11,747 12,437
9/95 11,795 12,484
10/95 11,878 12,593
11/95 11,996 12,732
12/95 12,043 12,799
1/96 12,116 12,923
2/96 12,058 12,879
3/96 11,940 12,753
EV Marathon Massachusetts Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon Michigan Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF FACTORY OMITTED]
Monroe County MI
Detroit Edison Company
This industrial development revenue bond was issued by Monroe County to
finance the construction of pollution control projects at Edison's Fermi
2 Power Plant as well as its Monroe Power Plant. Proceeds of the
offering were used to purchase land, pollution control equipment and
solid waste disposal facilities. The bonds are popular with Michigan
residents because, in addition to offering an attractive yield, they
help construct equipment needed to protect the local environment. The
bonds are insured and are rated triple-A by major rating agencies.
Naturally, private insurance does not remove the market risk associated
with this investment.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF MICHIGAN OMITTED]
Number of issues 26
Average quality AA-
Investment grade 98.5%
Effective maturity (years) 8.65
Largest sectors:
Escrowed/pre-refunded 19.0%
Insured general obligations 15.3*
Hospitals 14.9
General obligations 13.5
Special tax revenue 10.3
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Michigan
After benefiting from a strong recovery in the auto and durable goods
industries in 1994, the Michigan economy slowed somewhat in 1995.
Nonetheless, the state's job growth exceeded that of the nation.
Michigan's jobless rate, which last year fell below the national average
for the first time since 1966, was 5.3% at year end.The manufacturing
boom was accompanied by a surge in service jobs, including such areas as
finance and outsourcing, which helped to boost total employment. While
Michigan has enjoyed a strong resurgence, the state remains heavily
reliant on national economic trends. On the fiscal front, the 1994-95
fiscal year marked the third consecutive year of stronger-than-expected
revenue growth, with sizable balances for both the General Fund and
School Aid Fund. A slower economy will likely mean lower revenue growth
in 1996, although the state's financial condition should remain sound
due to budgetary restraints and cost-containment measures enacted in
1991. The state has managed to replenish its financial reserves to the
highest level in state history. That should provide Michigan with an
extra measure of safety and stability as it faces significantly higher
costs for education in coming years.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Michigan Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From April 30, 1993 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.0% 2.6%
Without CDSC 5.0% 3.2%
EV Marathon Lehman
Michigan Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 10,486 10,913
5/95 10,681 11,204
6/95 10,639 11,194
7/95 10,719 11,336
8/95 10,818 11,470
9/95 10,863 11,514
10/95 10,998 11,614
11/95 11,099 11,742
12/95 11,133 11,804
1/96 11,225 11,919
2/96 11,136 11,878
3/96 11,001 11,762
EV Marathon Michigan Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon New Jersey Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF HEALTHCARE SYMBOL OMITTED]
New Jersey Health Care Facilities
and Financing Authority
Dover General Hospital
These bonds were issued to finance renovations to certain facilities of
Dover Hospital and Medical Center, including the construction of a
parking facility, an endoscopic treatment suite and other treatment
rooms, and equipment and furniture used in the operation of the
Hospital. Interest and principal payments are backed by revenues of the
Medical Center. The bonds have a very attractive 7% coupon and are rated
triple-A by major rating agencies. The bonds are insured by MBIA, one of
the nation's largest municipal bond insurers. Naturally, private
insurance does not remove the market risk associated with this
investment.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF NEW JERSEY OMITTED]
Number of issues 68
Average quality AA
Investment grade 97.4%
Effective maturity (years) 8.93
Largest sectors:
Insured general obligations 16.9%*
Housing 11.4
Insured Transportation 10.8*
General obligations 8.3
Transportation 6.4
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: New Jersey
New Jersey registered mediocre economic growth in 1995, especially when
compared to the robust gains of the previous year. Sluggish consumer
spending, a lackluster real estate market, and weak demand in the
manufacturing sector combined to dampen the economy. Despite a
significant decline in interest rates, home construction showed little
sign of rebounding, with only about 23,000 new housing units authorized
in 1995, the lowest number since 1992. Weakness was especially evident
in manufacturing, financial services, and utilities. Fortunately, job
losses in those sectors were offset by additions among retail trade,
business services, and healthcare providers. Employment gains totalled
over 40,000 in 1995, well short of the 71,000 increase in 1994, but
enough to push the state unemployment rate below 6% at year end. New
Jersey has felt the impact of income tax cuts that threaten revenues and
push many expenditures to the local level. While the state budgets have
been generally successful, tighter budgets have left little margin for
error, especially with social spending rising. To ease these pressures,
the administration has targeted savings, including the possibility of
outsourcing selected human services.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon New Jersey Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From June 30, 1992 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 1.8% 4.6%
Without CDSC 4.8% 4.8%
EV Marathon Lehman
New Jersey Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 11,381 11,833
5/95 11,597 12,148
6/95 11,531 12,137
7/95 11,639 12,292
8/95 11,720 12,437
9/95 11,781 12,484
10/95 11,888 12,593
11/95 12,030 12,732
12/95 12,079 12,799
1/96 12,152 12,923
2/96 12,073 12,879
3/96 11,932 12,753
EV Marathon New Jersey Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon New York Limited Maturity Municipals Fund
Your Investment at Work
[GRAPHIC OF GRADUATION CAP OMITTED]
Dormitory Authority of the State of New York
Cornell University
The Authority is a public-benefit corporation created to finance and
construct a variety of public-purpose facilities for educational and
not-for-profit use. The proceeds of these 1990 bonds were directed as a
loan to finance the costs of capital improvements of university
facilities, including the construction costs of renovations to several
dormitory and dining facilities, as well as improvements to classrooms
and faculty office space. Backed by a pledge of the school's revenues,
the bonds carry a premium coupon of 7.375% and are rated Aa/AA by
Moody's and Standard & Poor's, respectively.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF NEW YORK OMITTED]
Number of issues 66
Average quality AA-
Investment grade 97.8%
Effective maturity (years) 7.32
Largest sectors:
Education 12.8%
Escrowed/pre-refunded 11.5
Lease revenues/Certificates
of participation 10.8
General obligations 8.7
Transportation 8.5
The State of the State: New York
The New York economy continues to grow, albeit at a slower pace than the
nation as a whole. The recession of the early 1990s claimed more than a
half-million jobs in the state. New York employment is not expected to
reach pre-recession levels until 1998, according to Standard & Poor's.
Job growth has been stagnant, increasing at 1.1% annually compared to
national job growth of 1.6% a year. Unemployment rates have fallen,
although they remain higher than the national average. The sluggish
state economy has intensified the difficult fiscal choices
facing the state. Because a high state tax burden appears to have
impaired the state's competitive position, Governor Pataki's goal is to
reduce New Yorkers' tax bite. Consequently, the Pataki administration's
current budget proposals aim to make further cuts in social spending.
These cuts are highly problematic in that they are very dependent on
actions at the federal level. In addition, cuts in social spending are
likely to trigger a fierce partisan debate with the state legislature.
But the proposals nonetheless represent a bold attempt by the
administration to reform the state's past budget procedures and
strengthen the state's competitive position.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon New York Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From May 31, 1992 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.1% 4.7%
Without CDSC 5.1% 4.9%
EV Marathon Lehman
New York Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 11,440 12,021
5/95 11,657 12,341
6/95 11,626 12,330
7/95 11,734 12,487
8/95 11,839 12,634
9/95 11,866 12,683
10/95 11,974 12,793
11/95 12,093 12,934
12/95 12,154 13,003
1/96 12,228 13,129
2/96 12,148 13,084
3/96 12,019 12,956
EV Marathon New York Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon Ohio Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF HEALTHCARE SYMBOL OMITTED]
Hamilton County OH
Hospital Facilities
Episcopal Retirement Home
The Episcopal Retirement Home, Inc. is a non-profit corporation that
owns and operates a series of hospital facilities specializing in
nursing care, assisted living and independent living. These bonds were
issued in 1992 to refinance earlier debt used to acquire and construct
several facilities. Rated Aa2 by Moody's and non-rated by Standard &
Poor's, these bonds carry an attractive 6.8% coupon. In addition to
providing a good stream of income to the Portfolio, they are an example
of the Portfolio's efforts to find attractive special situations in
well-regarded, non-rated issuers.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF OHIO OMITTED]
Number of issues 38
Average quality AA-
Investment grade 88.8%
Effective maturity (years) 7.86
Largest sectors:
Insured general obligations 25.8%*
General obligations 16.5
Industrial development revenue 8.9
Health care 8.6
Hospitals 7.8
* Private insurance does not remove the market risks that are
associated with these investments.
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% versus 17% for the nation - growth in the
trade and 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% 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 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.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Ohio Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From April 30, 1993 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.1% 3.0%
Without CDSC 5.1% 3.6%
EV Marathon Lehman
Ohio Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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 10,430 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
4/95 10,551 10,913
5/95 10,767 11,204
6/95 10,715 11,194
7/95 10,784 11,336
8/95 10,894 11,470
9/95 10,952 11,514
10/95 11,065 11,614
11/95 11,166 11,742
12/95 11,224 11,804
1/96 11,271 11,919
2/96 11,217 11,878
3/96 11,094 11,762
EV Marathon Ohio Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon Pennsylvania Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF GRADUATION CAP OMITTED]
Northampton County PA
Higher Education Authority Lehigh University
These bonds were issued in 1989 to refund an earlier bond issue that
financed a variety of capital projects on the campus of Lehigh
University. Those projects included: the renovation of two buildings on
the Mountaintop Campus; the acquisition of computer systems and
software; the renovation of some classrooms, laboratories, and offices;
and the construction of Goodman Stadium. The insured bonds are rated
triple-A by Moody's and Standard & Poor's and carry an attractive coupon
of 7.1%. Naturally, private insurance does not remove the market risk
associated with this investment.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF PENNSYLVANIA OMITTED]
Number of issues 66
Average quality AA
Investment grade 95.5%
Effective maturity (years) 6.85
Largest sectors:
Escrowed to maturity 23.2%
Hospitals 16.8
Insured hospitals 10.4*
Insured transportation 4.9*
Healthcare 4.8
* Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Pennsylvania
Pennsylvania's economy advanced unevenly in 1995, with unemployment
hovering well above the national level. The commonwealth continued to
lose manufacturing jobs while gaining in the service sectors.
Manufacturing shed 14,000 jobs during the year while the various service
sectors added 19,500. Pennsylvania manufacturing continues to suffer
from the common-wealth's reputation as a high cost region. The area's
defense industry was dealt numerous setbacks, with the Pentagon's
closure of the Philadelphia Naval Shipyard as well as the job cuts
resulting from the Lockheed-Martin merger. Meanwhile, technology and
services were responsible for creating the majority of new jobs.
Interestingly, while growth in the major metropolitan areas of
Pittsburgh and Philadelphia lagged the nation, lower-cost regions, such
as central Pennsylvania, matched the growth of the industrial states.
Despite being caught in a changing global economy, Pennsylvania has
maintained relatively stable finances. The common-wealth has benefited
from sound fiscal management and conservative financial practices.
Moreover, Pennsylvania maintains a moderate debt burden, which, together
with budgetary controls, will help weather challenges if the economy
weakens in the coming year.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Marathon Pennsylvania Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From June 30, 1992 through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.0% 4.9%
Without CDSC 5.0% 5.1%
EV Marathon Lehman
Pennsylvania Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- --------------------------------------
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
4/95 11,434 11,833
5/95 11,650 12,148
6/95 11,609 12,137
7/95 11,705 12,292
8/95 11,799 12,437
9/95 11,838 12,484
10/95 11,934 12,593
11/95 12,053 12,732
12/95 12,103 12,799
1/96 12,166 12,923
2/96 12,100 12,879
3/96 11,984 12,753
EV Marathon Pennsylvania Limited Maturity Municipals Fund
Assumes entire investment was redeemed on 3/31/96 and maximum
applicable contingent deferred sales charge (CDSC) was
deducted from redemption proceeds
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.
EV Marathon Limited Maturity Municipals Funds
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $384,770 $53,421,833 $12,826,683 $114,818,192 $90,488,747
Unrealized appreciation 15,762 992,153 207,812 2,407,263 1,616,876
-------- ----------- ----------- ------------ -----------
Total investment in Portfolio, at value
(Note 1A) $400,532 $54,413,986 $13,034,495 $117,225,455 $92,105,623
Receivable for Fund shares sold -- -- -- 700 76,742
Receivable from the Administrator
(Note 5) 15,627 -- -- -- --
Deferred organization expenses (Note 1D) 2,428 7,059 8,401 8,819 7,887
-------- ----------- ----------- ------------ -----------
Total assets $418,587 $54,421,045 $13,042,896 $117,234,974 $92,190,252
-------- ----------- ----------- ------------ -----------
Liabilities:
Dividends payable $712 $91,915 $21,570 $196,658 $148,718
Payable for Fund shares redeemed -- 61,873 -- 208,388 191,264
Payable to affiliate --
Trustees' fees -- 412 41 825 --
Accrued expenses 2,245 25,363 7,204 47,754 41,632
-------- ----------- ----------- ------------ -----------
Total liabilities $2,957 $179,563 $28,815 $453,625 $381,614
-------- ----------- ----------- ------------ -----------
Net Assets $415,630 $54,241,482 $13,014,081 $116,781,349 $91,808,638
======== =========== =========== ============ ===========
Sources of Net Assets:
Paid-in capital $398,733 $55,626,150 $13,222,198 $117,366,061 $92,346,843
Accumulated net realized loss on
investment and financial futures
transactions (computed on the basis of
identified cost) (8) (2,283,972) (466,241) (2,795,278) (2,006,364)
Accumulated undistributed (distributions
in excess of) net investment income 1,143 (92,849) 50,312 (196,697) (148,717)
Unrealized appreciation of investments and
financial futures contracts from Portfolio
(computed on the basis of identified cost) 15,762 992,153 207,812 2,407,263 1,616,876
-------- ----------- ----------- ------------ -----------
Total $415,630 $54,241,482 $13,014,081 $116,781,349 $91,808,638
======== =========== =========== ============ ===========
Shares of Beneficial Interest
Outstanding (Class I) 40,242 5,381,621 1,320,737 11,480,142 9,088,483
======== =========== =========== ============ ===========
Net Asset Value, Offering Price and
Redemption Price (Note 7) Per Share
(net assets (divided by) shares of
beneficial interest outstanding) $10.33 $10.08 $9.85 $10.17 $10.10
====== ====== ===== ====== ======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996
- ------------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Michigan New Jersey New York Ohio Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $18,304,150 $76,840,855 $132,888,121 $29,269,656 $82,793,509
Unrealized appreciation 443,278 1,445,544 1,394,002 590,475 1,945,122
----------- ----------- ------------ ----------- -----------
Total investment in Portfolio, at value
(Note 1A) $18,747,428 $78,286,399 $134,282,123 $29,860,131 $84,738,631
Receivable for Fund shares sold -- 15,003 10,243 -- 15,048
Deferred organization expenses
(Note 1D) 9,322 7,802 8,734 7,947 8,149
----------- ----------- ------------ ----------- -----------
Total assets $18,756,750 $78,309,204 $134,301,100 $29,868,078 $84,761,828
----------- ----------- ------------ ----------- -----------
Liabilities:
Dividends payable $32,085 $131,097 $225,055 $50,404 $144,432
Payable for Fund shares redeemed 9,922 102,899 167,409 47,336 169,739
Payable to affiliate --
Trustees' fees 41 412 826 41 412
Accrued expenses 9,347 35,775 61,647 11,524 40,450
----------- ----------- ------------ ----------- -----------
Total liabilities $51,395 $270,183 $454,937 $109,305 $355,033
----------- ----------- ------------ ----------- -----------
Net Assets $18,705,355 $78,039,021 $133,846,163 $29,758,773 $84,406,795
=========== =========== ============ =========== ===========
Sources of Net Assets:
Paid-in capital $19,372,004 $78,954,099 $135,202,967 $30,498,462 $84,605,867
Accumulated net realized loss on
investment and financial futures
transactions (computed on the basis of
identified cost) (1,128,341) (2,229,508) (2,525,751) (1,450,681) (1,999,760)
Accumulated undistributed (distributions
in excess of) net investment income 18,414 (131,114) (225,055) 120,517 (144,434)
Unrealized appreciation of investments and
financial futures contracts from Portfolio
(computed on the basis of identified cost) 443,278 1,445,544 1,394,002 590,475 1,945,122
----------- ----------- ------------ ----------- -----------
Total $18,705,355 $78,039,021 $133,846,163 $29,758,773 $84,406,795
=========== =========== ============ =========== ===========
Shares of Beneficial Interest
Outstanding (Class I) 1,922,502 7,722,280 13,190,261 3,025,422 8,282,643
=========== =========== ============ =========== ===========
Net Asset Value, Offering Price and
Redemption Price (Note 7) Per Share
(net assets (divided by) shares of
beneficial interest outstanding) $9.73 $10.11 $10.15 $9.84 $10.19
===== ====== ====== ===== ======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
Year Ended March 31, 1996
- -------------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $26,270 $3,444,451 $777,151 $7,087,002 $5,529,976
Expenses allocated from Portfolio -- (355,309) (51,611) (729,873) (576,784)
------- ---------- -------- ---------- ----------
Net investment income from Portfolio $26,270 $3,089,142 $725,540 $6,357,129 $4,953,192
------- ---------- -------- ---------- ----------
Expenses --
Compensation of Trustees not
members of the Administrator's
organization $ -- $1,637 $162 $3,274 $2,861
Distribution costs (Note 6) 3,831 556,223 126,191 1,158,173 916,016
Custodian fees (Note 5) 2,984 7,385 2,967 13,558 11,340
Transfer and dividend disbursing
agent fees 426 47,106 11,968 94,088 74,645
Printing and postage 7,167 20,414 11,697 34,434 29,046
Legal and accounting services 5,105 11,818 8,322 13,024 12,523
Registration costs -- 1,760 -- -- 3,041
Amortization of organization expenses
(Note 1D) 677 6,105 4,077 7,635 6,731
Miscellaneous 1,716 8,121 3,813 28,509 19,221
------- ---------- -------- ---------- ----------
Total expenses $21,906 $660,569 $169,197 $1,352,695 $1,075,424
Deduct --
Allocation of expenses to the
Administator (Note 5) $15,627 $ -- $ -- $ -- $ --
Reduction of custodian fee (Note 5) 53 1,713 579 -- --
------- ---------- -------- ---------- ----------
Total $15,680 $1,713 $579 $ -- $ --
------- ---------- -------- ---------- ----------
Net expenses $6,226 $658,856 $168,618 $1,352,695 $1,075,424
------- ---------- -------- ---------- ----------
Net investment income $20,044 $2,430,286 $556,922 $5,004,434 $3,877,768
------- ---------- -------- ---------- ----------
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from Portfolio --
Investment transactions (identified
cost basis) $5,911 $1,050,453 $117,076 $1,214,243 $532,964
Financial futures contracts (5,020) (364,563) (79,521) (746,783) (562,800)
------- ---------- -------- ---------- ----------
Net realized gain (loss) $891 $685,890 $37,555 $467,460 ($29,836)
Change in unrealized appreciation 5,500 374,647 239,758 1,319,556 1,657,419
------- ---------- -------- ---------- ----------
Net realized and unrealized gain $6,391 $1,060,537 $277,313 $1,787,016 $1,627,583
------- ---------- -------- ---------- ----------
Net increase in net assets
from operations $26,435 $3,490,823 $834,235 $6,791,450 $5,505,351
======= ========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
Year Ended March 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Michigan New Jersey New York Ohio Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $1,278,895 $4,635,173 $7,924,354 $1,839,281 $5,132,494
Expenses allocated from Portfolio (144,767) (476,989) (808,026) (199,266) (532,880)
---------- ---------- ---------- ---------- ----------
Net investment income from Portfolio $1,134,128 $4,158,184 $7,116,328 $1,640,015 $4,599,614
---------- ---------- ---------- ---------- ----------
Expenses --
Compensation of Trustees not
members of the Administrator's
organization $162 $1,637 $3,274 $162 $2,052
Distribution costs (Note 6) 192,199 760,050 1,329,352 267,899 835,979
Custodian fees (Note 5) 2,922 9,694 13,677 4,235 9,717
Transfer and dividend disbursing
agent fees 18,759 58,903 117,053 24,181 82,931
Printing and postage 14,284 16,669 39,449 15,449 31,534
Legal and accounting services 10,263 11,597 13,248 10,086 12,790
Registration costs -- -- -- 2,480 --
Amortization of organization expenses
(Note 1D) 4,040 6,709 7,561 4,019 6,995
Miscellaneous 6,790 24,728 24,075 4,999 11,168
---------- ---------- ---------- ---------- ----------
Total expenses $249,419 $889,987 $1,547,689 $333,510 $993,166
Deduct --
Reduction of custodian fee (Note 5) -- 917 -- -- --
---------- ---------- ---------- ---------- ----------
Net expenses $249,419 $889,070 $1,547,689 $333,510 $993,166
---------- ---------- ---------- ---------- ----------
Net investment income $884,709 $3,269,114 $5,568,639 $1,306,505 $3,606,448
---------- ---------- ---------- ---------- ----------
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from Portfolio--
Investment transactions (identified
cost basis) $415,814 $589,426 $1,087,479 $395,924 $181,071
Financial futures contracts (139,764) (488,468) (824,227) (194,309) (514,877)
---------- ---------- ---------- ---------- ----------
Net realized gain (loss) $276,050 $100,958 $263,252 $201,615 ($333,806)
Change in unrealized appreciation 34,463 818,497 2,159,272 155,302 1,588,869
---------- ---------- ---------- ---------- ----------
Net realized and unrealized gain $310,513 $919,455 $2,422,524 $356,917 $1,255,063
---------- ---------- ---------- ---------- ----------
Net increase in net assets
from operations $1,195,222 $4,188,569 $7,991,163 $1,663,422 $4,861,511
========== ========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- ------------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $20,044 $2,430,286 $556,922 $5,004,434 $3,877,768
Net realized gain (loss) on investments 891 685,890 37,555 467,460 (29,836)
Change in unrealized appreciation
of investments 5,500 374,647 239,758 1,319,556 1,657,419
-------- ----------- ---------- ----------- -----------
Net increase in net assets from
operations $26,435 $3,490,823 $834,235 $6,791,450 $5,505,351
-------- ----------- ---------- ----------- -----------
Distributions to shareholders (Note 3) --
From net investment income ($19,732) ($2,430,286) ($551,156) ($5,004,434) ($3,877,768)
In excess of net investment income -- (25,299) -- (78,461) (58,748)
Total distributions to shareholders ($19,732) ($2,455,585) ($551,156) ($5,082,895) ($3,936,516)
-------- ----------- ---------- ----------- -----------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $90,835 $1,279,875 $804,443 $6,589,116 $3,102,845
Net asset value of shares issued to
shareholders in payment
of distributions declared 16,349 1,169,614 355,300 2,390,452 2,315,310
Cost of shares redeemed (196,945) (23,100,091) (4,041,652) (43,488,206) (28,516,530)
-------- ----------- ---------- ----------- -----------
Decrease in net assets from
Fund share transactions ($89,761) ($20,650,602) ($2,881,909) ($34,508,638) ($23,098,375)
-------- ----------- ---------- ----------- -----------
Net decrease in net assets ($83,058) ($19,615,364) ($2,598,830) ($32,800,083) ($21,529,540)
At beginning of year 498,688 73,856,846 15,612,911 149,581,432 113,338,178
-------- ----------- ---------- ----------- -----------
At end of year $415,630 $54,241,482 $13,014,081 $116,781,349 $91,808,638
======== =========== =========== ============ ===========
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of year $1,143 ($92,849) $50,312 ($196,697) ($148,717)
====== ======= ======= ======== ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- -----------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Michigan New Jersey New York Ohio Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $884,709 $3,269,114 $5,568,639 $1,306,505 $3,606,448
Net realized gain (loss) on investments 276,050 100,958 263,252 201,615 (333,806)
Change in unrealized appreciation
of investments 34,463 818,497 2,159,272 155,302 1,588,869
---------- ---------- ----------- ---------- ----------
Net increase in net assets from
operations $1,195,222 $4,188,569 $7,991,163 $1,663,422 $4,861,511
---------- ---------- ----------- ---------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($861,813) ($3,269,114) ($5,568,639) ($1,240,802) ($3,606,448)
In excess of net investment income -- (23,528) (226,436) -- (93,394)
---------- ---------- ----------- ---------- ----------
Total distributions to shareholders ($861,813) ($3,292,642) ($5,795,075) ($1,240,802) ($3,699,842)
---------- ---------- ----------- ---------- ----------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $435,247 $1,519,569 $4,503,742 $823,945 $3,135,022
Net asset value of shares issued to
shareholders in payment
of distributions declared 486,147 2,124,271 3,728,559 820,409 2,153,945
Cost of shares redeemed (8,597,683) (19,862,245) (43,273,612) (6,586,968) (25,596,793)
---------- ---------- ----------- ---------- ----------
Decrease in net assets from
Fund share transactions ($7,676,289) ($16,218,405) ($35,041,311) ($4,942,614) ($20,307,826)
---------- ---------- ----------- ---------- ----------
Net decrease in net assets ($7,342,880) ($15,322,478) ($32,845,223) ($4,519,994) ($19,146,157)
Net Assets:
At beginning of year 26,048,235 93,361,499 166,691,386 34,278,767 103,552,952
---------- ---------- ----------- ---------- ----------
At end of year $18,705,355 $78,039,021 $133,846,163 $29,758,773 $84,406,795
=========== =========== ============ =========== ===========
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of year $18,414 ($131,114) ($225,055) $120,517 ($144,434)
=========== =========== ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- --------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida Massachusetts
Limited Fund* Limited Fund Limited Fund Limited Fund Limited Fund
------------- ------------ ------------ ------------ -------------
<S> <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
Net realized loss on investments (8) (2,978,862) (480,263) (3,267,182) (1,983,330)
Change in unrealized appreciation
of investments 10,262 2,562,176 508,802 4,182,568 2,697,659
----------- ----------- ----------- ------------ ------------
Net increase in net assets from
operations $16,044 $2,555,419 $625,819 $6,959,713 $5,169,476
----------- ----------- ----------- ------------ ------------
Distributions to shareholders (Note 3) --
From net investment income ($5,790) ($2,972,105) ($597,280) ($6,044,327) ($4,455,147)
In excess of net investment income (109) (538,134) (41,174) (943,692) (636,296)
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)
----------- ----------- ----------- ------------ ------------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $483,928 $7,606,720 $2,473,534 $16,763,286 $11,925,643
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
Cost of shares redeemed -- (16,931,148) (2,024,546) (33,409,181) (16,760,396)
----------- ----------- ----------- ------------ ------------
Increase (decrease) in net assets
from Fund share transactions $488,533 ($7,583,862) $873,773 ($13,202,050) ($1,781,606)
----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets $498,678 ($8,593,809) $861,138 ($13,417,625) ($1,782,746)
Net Assets:
At beginning of year 10 82,450,655 14,751,773 162,999,057 115,120,924
----------- ----------- ----------- ------------ ------------
At end of year $498,688 $73,856,846 $15,612,911 $149,581,432 $113,338,178
=========== =========== =========== ============ ============
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of year ($60) ($128,006) $44,806 ($252,805) ($194,411)
=========== =========== =========== ============ ============
* For the period from the start of business, November 3, 1994, to March 31, 1995.
Year Ended March 31, 1995
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- --------------------------------------------------------------------------------------------------------------
Marathon Marathon Marathon Marathon Marathon
Michigan New Jersey New York Ohio Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $1,036,889 $3,668,578 $6,691,528 $1,333,160 $4,063,601
Net realized loss on investments (1,366,775) (2,333,170) (2,795,918) (1,541,388) (1,696,819)
Change in unrealized appreciation
of investments 1,411,445 2,832,889 3,210,944 1,628,473 2,245,269
----------- ----------- ------------ ----------- -----------
Net increase in net assets from
operations $1,081,559 $4,168,297 $7,106,554 $1,420,245 $4,612,051
----------- ----------- ------------ ----------- -----------
Distributions to shareholders (Note 3) --
From net investment income ($1,036,889) ($3,668,578) ($6,691,528) ($1,333,160) ($4,063,601)
In excess of net investment income (142,668) (592,682) (972,616) (112,873) (743,802)
From net realized gain on investments -- (174,045) (62,560) -- (66,305)
----------- ----------- ------------ ----------- -----------
Total distributions to shareholders ($1,179,557) ($4,435,305) ($7,726,704) ($1,446,033) ($4,873,708)
----------- ----------- ------------ ----------- -----------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $3,836,020 $9,758,792 $14,454,440 $4,957,796 $8,386,853
Net asset value of shares issued to
shareholders in payment
of distributions declared 731,314 2,834,405 5,053,629 964,246 2,865,689
Cost of shares redeemed (5,209,436) (18,707,502) (30,447,274) (3,619,898) (16,952,998)
----------- ----------- ------------ ----------- -----------
Increase (decrease) in net assets from
Fund share transactions ($642,102) ($6,114,305) ($10,939,205) $2,302,144 ($5,700,456)
----------- ----------- ------------ ----------- -----------
Net increase (decrease) in net
assets ($740,100) ($6,381,313) ($11,559,355) $2,276,356 ($5,962,113)
Net Assets:
At beginning of year 26,788,335 99,742,812 178,250,741 32,002,411 109,515,065
----------- ----------- ------------ ----------- -----------
At end of year $26,048,235 $93,361,499 $166,691,386 $34,278,767 $103,552,952
=========== =========== ============ =========== ============
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of year ($12,529) ($156,973) ($282,899) $54,814 ($160,639)
=========== =========== ============ =========== ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------
Marathon Arizona Marathon California
Limited Limited
--------------------- --------------------------------------------
Year Ended March 31, Year Ended March 31,
--------------------- --------------------------------------------
1996 1995** 1996 1995 1994 1993*
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.250 $ 10.000 $ 9.950 $ 10.050 $ 10.340 $ 10.000
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.413 $ 0.155 $ 0.385 $ 0.367 $ 0.380 $ 0.333
Net realized and unrealized
gain (loss) on investments 0.073 0.253 0.134 (0.027) (0.180) 0.443
---------- ---------- ---------- ---------- ---------- ----------
Total income from operations $ 0.486 $ 0.408 $ 0.519 $ 0.340 $ 0.200 $ 0.776
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.406) $ (0.155) $ (0.385) $ (0.367) $ (0.380) $ (0.333)
In excess of net investment income -- (0.003) (0.004) (0.066) (0.096) --
From net realized gain on
investment transactions -- -- -- (0.007) (0.014) --
From paid-in capital -- -- -- -- -- (0.103)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.406) $ (0.158) $ (0.389) $ (0.440) $ (0.490) $ (0.436)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 10.330 $ 10.250 $ 10.080 $ 9.950 $ 10.050 $ 10.340
========== ========== ========== ========== ========== ==========
Total Return (1) 4.79% 4.02% 5.27% 3.53% 1.86% 7.67%
Ratios/Supplemental Data***:
Net assets, end of period (000 omitted) $ 416 $ 499 $ 54,241 $ 73,857 $ 82,451 $ 37,124
Ratio of net expenses to average daily
net assets (2)(4) 1.33% 0.75%+ 1.63% 1.55% 1.40% 1.33%+
Ratio of net expenses to average daily
reduction (2) 1.24% -- 1.59% -- -- --
Ratio of net investment income to
average daily net assets 3.98% 3.78%+ 3.81% 3.72% 3.55% 3.77%+
Portfolio Turnover (3) -- -- -- -- 0% 24%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of expenses by the
Administrator and/or Investment Adviser. Had such actions not been taken, net investment income per share and the ratios
would have been:
Net investment income (loss) per share $(0.189) $ 0.066 $ 0.377 $ 0.299
========== ========== ========== ==========
Ratios (As a percentage of average daily net assets):
Expenses (2)(4) 7.13% 2.92%+ 1.48% 1.72%+
Net investment income (loss) (1.82%) 1.61%+ 3.47% 3.38%+
+ Annualized.
* For the period from the start of business, May 29, 1992, to March 31, 1993.
** For the period from the start of business, November 3, 1994, to March 31, 1995.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the
net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the period while the Funds were making investments
directly in securities. The portfolio turnover rate for the period since the Funds transferred substantially all of its
investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in this
report.
(4) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense offset arangements
with its service providers or those of the Portfolio. The expense ratios for each of the periods ended on or before
March 31, 1995 have not been adjusted to reflect this charge.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------
Marathon Connecticut Limited Marathon Florida Limited
-------------------------------- --------------------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- --------------------------------------------
1996 1995 1994** 1996 1995 1994 1993*
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.690 $ 9.690 $ 10.000 $ 10.080 $ 10.060 $ 10.360 $ 10.000
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.379 $ 0.373 $ 0.343 $ 0.383 $ 0.375 $ 0.387 $ 0.333
Net realized and unrealized
gain (loss) on investments 0.150 0.026 (0.243) 0.096 0.090 (0.200) 0.469
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total income from operations $ 0.529 $ 0.399 $ 0.100 $ 0.479 $ 0.465 $ 0.187 $ 0.802
---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.369) $ (0.373) $ (0.343) $ (0.383) $ (0.375) $ (0.387) $ (0.333)
In excess of net investment income -- (0.026) (0.056) (0.006) (0.058) (0.092) --
From net realized gain on investment
transactions -- -- -- -- (0.012) (0.008) --
In excess of net realized gain on
investment transactions -- -- (0.011) -- -- -- --
From paid-in capital -- -- -- -- -- -- (0.109)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.369) $ (0.399) $ (0.410) $ (0.389) $ (0.445) $ (0.487) $ (0.442)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.850 $ 9.690 $ 9.690 $ 10.170 $ 10.080 $ 10.060 $ 10.360
========== ========== ========== ========== ========== ========== ==========
Total Return (1) 5.50% 4.27% 0.73% 4.78% 4.79% 1.68% 7.94%
Ratios/Supplemental Data***:
Net assets, end of period (000 omitted) $ 13,014 $ 15,613 $ 14,752 $116,781 $149,581 $162,999 $ 90,210
Ratio of net expenses to average daily
net assets (2)(4) 1.53% 1.23% 0.86%+ 1.57% 1.50% 1.42% 1.24%+
Ratio of net expenses to average daily
reduction (2) 1.49% -- -- 1.56% -- -- --
Ratio of net investment income to
average daily net assets 3.78% 3.89% 3.50%+ 3.74% 3.77% 3.57% 3.73%+
Portfolio Turnover (3) -- -- -- -- -- 0% 11%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of expenses by
the Administrator and/or Investment Adviser. Had such actions not been taken, net investment income per share and
the ratios would have been:
Net investment income per share $ 0.346 $ 0.317 $ 0.229 $ 0.311
========== ========== ========== ==========
Ratios (As a percentage of average
daily net assets:
Expenses (2)(4) 1.86% 1.81% 2.02%+ 1.49%+
Net investment income 3.45% 3.31% 2.34%+ 3.48%+
+ Annualized.
* For the period from the start of business, May 29, 1992, to March 31, 1993.
** For the period from the start of business, April 16, 1993, to March 31, 1994.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at
the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to
be reinvested at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the period while the Funds were making investments
directly in securities. The portfolio turnover rate for the period since the Funds transferred substantially all of
its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in
this report.
(4) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense offset
arrangements with its service providers or those of the Portfolio. The expense ratios for each of the periods ended
on or before March 31, 1995 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------
Marathon Massachusetts Limited Marathon Michigan Limited
------------------------------------------- ---------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------------------- ---------------------------------
1996 1995 1994 1993** 1996 1995 1994*
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.980 $ 9.960 $ 10.270 $ 10.000 $ 9.630 $ 9.650 $ 10.000
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.383 $ 0.383 $ 0.385 $ 0.334 $ 0.383 $ 0.364 $ 0.345
Net realized and unrealized
gain (loss) on investments 0.126 0.082 (0.197) 0.368 0.090 0.030 (0.279)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total income from operations $ 0.509 $ 0.465 $ 0.188 $ 0.702 $ 0.473 $ 0.394 $ 0.066
---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.383) $ (0.383) $ (0.385) $ (0.334) $ (0.373) $ (0.364) $ (0.345)
In excess of net investment income (0.006) (0.055) (0.095) -- -- (0.050) (0.071)
From net realized gain on investment
transactions -- (0.007) (0.018) -- -- -- --
From paid-in capital -- -- -- (0.098) -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.389) $ (0.445) $ (0.498) $ (0.432) $ (0.373) $ (0.414) $ (0.416)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 10.100 $ 9.980 $ 9.960 $ 10.270 $ 9.730 $ 9.630 $ 9.650
========== ========== ========== ========== ========== ========== ==========
Total Return (1) 5.08% 4.84% 1.75% 6.95% 4.95% 4.24% 0.37%
Ratios/Supplemental Data***:
Net assets, end of period (000 omitted) $ 91,809 $113,338 $115,121 $ 55,737 $ 18,705 $ 26,048 $ 26,788
Ratio of net expenses to average
daily net assets (2)(4) 1.60% 1.57% 1.46% 1.24%+ 1.78% 1.55% 0.91%+
Ratio of net expenses to average daily
reduction (2) 1.58% -- -- -- 1.75% -- --
Ratio of net investment income to
average daily net assets 3.71% 3.89% 3.61% 3.88%+ 3.92% 3.82% 3.56%+
Portfolio Turnover (3) -- -- 2% 21% -- -- --
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of expenses by
the Administrator and/or Investment Adviser. Had such actions not been taken, net investment income per share and
the ratios would have been:
Net investment income per share $0.307 $0.354 $0.275
======= ======== ======
Ratios (As a percentage of average
daily net asset):
Expenses (2)(4) 1.55%+ 1.66% 1.63%+
Net Investment income 3.57%+ 3.71% 2.84%+
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, June 1, 1992, to March 31, 1993.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at
the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed
to be reinvested at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the period while the Funds were making investments
directly in securities. The portfolio turnover rate for the period since the Funds transferred substantially all
of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included
elsewhere in this report.
(4) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase its expense ratio by the effect of any
expense offset arrangements with its service providers or those of the Portfolio. The expense ratios for each of
the periods ended on or before March 31, 1995 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------------------
Marathon New Jersey Limited Marathon New York Limited
------------------------------------------- -------------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------------------- -------------------------------------------
1996 1995 1994 1993** 1996 1995 1994 1993*
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.020 $ 10.030 $ 10.350 $ 10.000 $ 10.030 $ 10.040 $ 10.360 $ 10.000
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.383 $ 0.370 $ 0.374 $ 0.325 $ 0.374 $ 0.378 $ 0.387 $ 0.327
Net realized and unrealized
gain (loss) on investments 0.093 0.068 (0.216)++ 0.453 0.135 0.049 (0.219) 0.475
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total income from operations $ 0.476 $ 0.438 $ 0.158 $ 0.778 $ 0.509 $ 0.427 $ 0.168 $ 0.802
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.383) $ (0.370) $ (0.374) $ (0.325) $ (0.374) $ (0.378) $ (0.387) $ (0.327)
In excess of net investment income (0.003) (0.060) (0.092) -- (0.015) (0.055) (0.093) --
From net realized gain on
investment transactions -- (0.018) (0.012) -- -- (0.004) (0.008) --
From paid-in capital -- -- -- (0.103) -- -- -- (0.115)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.386) $ (0.448) $ (0.478) $ (0.428) $ (0.389) $ (0.437) $ (0.488) $ (0.442)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 10.110 $ 10.020 $ 10.030 $ 10.350 $ 10.150 $ 10.030 $ 10.040 $ 10.360
========== ========== ========== ========== ========== ========== ========== ==========
Total Return (1) 4.79% 4.53% 1.44% 7.71% 5.12% 4.41% 1.46% 7.95%
Ratios/Supplemental Data***:
Net assets, end of period (000 omitted) $ 78,039 $ 93,361 $ 99,743 $ 58,527 $133,846 $166,691 $178,251 $ 93,819
Ratio of net expenses to
average daily net assets (2)(4) 1.60% 1.56% 1.51% 1.25%+ 1.57% 1.51% 1.40% 1.21%+
Ratio of net expenses to average daily
reduction (2) 1.58% -- -- -- 1.55% -- -- --
Ratio of net investment income to
average daily net assets 3.77% 3.73% 3.50% 3.71%+ 3.66% 3.81% 3.56% 3.69%+
Portfolio Turnover (3) -- -- 0% 9% -- -- -- 11%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of expenses by the
Administrator and/or Investment Adviser. Had such actions not been taken, net investment income per share and the ratios
would have been:
Net investment income per share $0.299 $0.305
======== ========
Ratios (As a percentage of average
daily net assets):
Expenses (2)(4) 1.55%+ 1.47%+
Net investment income 3.41%+ 3.43%+
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of timing of
sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
* For the period from the start of business,May 29, 1992, to March 31, 1993.
** For the period from the start of business, June 1, 1992, to March 31, 1993.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net
asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at
the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the period while the Funds were making investments
directly in securities. The portfolio turnover rate for the period since the Funds transferred substantially all of its
investable assets to the Portfolio is shown in the Portfolio's financial statements which are included elsewhere in
this report.
(4) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense offset
arrangements with its service providers or those of the Portfolio. The expense ratios for each of the periods ended
on or before March 31, 1995 have not been adjusted to reflect this change.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------
Marathon Ohio Limited Marathon Pennsylvania Limited
-------------------------------- -------------------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- -------------------------------------------
1996 1995 1994* 1996 1995 1994 1993**
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.730 $ 9.730 $ 10.000 $ 10.090 $ 10.100 $ 10.390 $ 10.000
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.398 $ 0.382 $ 0.354 $ 0.388 $ 0.374 $ 0.399 $ 0.336
Net realized and unrealized
gain (loss) on investments 0.085 0.032 (0.194) 0.110 0.065 (0.195) 0.490
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total income from operations $ 0.483 $ 0.414 $ 0.160 $ 0.498 $ 0.439 $ 0.204 $ 0.826
---------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.373) $ (0.382) $ (0.354) $ (0.388) $ (0.374) $ (0.399) $ (0.336)
In excess of net investment income -- (0.032) (0.076) (0.010) (0.069) (0.083) --
From net realized gain on
investment transactions -- -- -- -- (0.006) (0.012) --
In excess of net realized gain
on investment transactions -- -- -- -- -- -- (0.100)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.373) $ (0.414) $ (0.430) $ (0.398) $ (0.449) $ (0.494) $ (0.436)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.840 $ 9.730 $ 9.730 $ 10.190 $ 10.090 $ 10.100 $ 10.390
========== ========== ========== ========== ========== ========== ==========
Total Return (1) 5.07% 4.41% 1.23% 4.98% 4.50% 1.89% 8.19%
Ratios/Supplemental Data***:
Net assets, end of period (000 omitted) $ 29,759 $ 34,279 $ 32,002 $ 84,407 $103,553 $109,515 $ 65,005
Ratio of net expenses to
average daily net assets (2)(4) 1.67% 1.49% 1.03%+ 1.62% 1.57% 1.45% 1.29%+
Ratio of net expenses to average daily
reduction (2) 1.65% -- -- 1.60% -- -- --
Ratio of net investment income to
average daily net assets 4.04% 3.95% 3.53%+ 3.79% 3.75% 3.63% 3.88%+
Portfolio Turnover (3) -- -- -- -- -- 0% 18%
*** For the following periods, the operating expenses of the Funds and Portfolios reflect a reduction of expenses by
the Administrator and/or Investment Adviser. Had such actions not been taken, net investment income per share
and the ratios would have been:
Net investment income per share $0.371 $0.293 $0.315
======= ====== ======
Ratios (As a percentage of
average daily net assets):
Exenses (2)(4) 1.60% 1.63%+ 1.53%+
Net investment income 3.84% 2.93%+ 3.64%+
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, June 1, 1992, to March 31, 1993.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at
the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) Portfolio Turnover represents the rate of portfolio activity for the period while the Funds were making investments
directly in securities. The portfolio turnover rate for the period since the Funds transferred substantially all
of its investable assets to the Portfolio is shown in the Portfolio's financial statements which are included
elsewhere in this report.
(4) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense
offset arrangements with its service providers or those of the Portfolio. The expense ratios for each of the periods
ended on or before March 31, 1995 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
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-
four Funds, ten of which are included in these financial statements.
They include EV Marathon Arizona Limited Maturity Municipals Fund
("Marathon Arizona Limited Fund"), EV Marathon California Limited
Maturity Municipals Fund ("Marathon California Limited Fund"), EV
Marathon Connecticut Limited Maturity Municipals Fund ("Marathon
Connecticut Limited Fund"), EV Marathon Florida Limited Maturity
Municipals Fund ("Marathon Florida Limited Fund"), EV Marathon
Massachusetts Limited Maturity Municipals Fund ("Marathon Massachusetts
Limited Fund"), EV Marathon Michigan Limited Maturity Municipals Fund
("Marathon Michigan Limited Fund"), EV Marathon New Jersey Limited
Maturity Municipals Fund ("Marathon New Jersey Limited Fund"), EV
Marathon New York Limited Maturity Municipals Fund ("Marathon New York
Limited Fund"), EV Marathon Ohio Limited Maturity Municipals Fund
("Marathon Ohio Limited Fund"), and EV Marathon Pennsylvania Limited
Maturity Municipals Fund ("Marathon Pennsylvania 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 Municipals Portfolio, the Marathon
California Limited Fund invests its assets in the California Limited
Maturity Municipals Portfolio, the Marathon Connecticut Limited Fund
invests its assets in the Connecticut Limited Maturity Municipals
Portfolio, the Marathon Florida Limited Fund invests its assets in the
Florida Limited Maturity Municipals Portfolio, the Marathon
Massachusetts Limited Fund invests its assets in the Massachusetts
Limited Maturity Municipals Portfolio, the Marathon Michigan Fund
invests its assets in the Michigan Limited Maturity Municipals
Portfolio, the Marathon New Jersey Limited Fund invests its assets in
the New Jersey Limited Maturity Municipals Portfolio, the Marathon New
York Limited Fund invests its assets in the New York Limited Maturity
Municipals Portfolio, the Marathon Ohio Limited Fund invests its assets
in the Ohio Limited Maturity Municipals Portfolio and the Marathon
Pennsylvania Limited Fund invests its assets in the Pennsylvania Limited
Maturity Municipals Portfolio. The value of each Fund's investment in
its corresponding Portfolio reflects the Fund's proportionate interest
in the net assets of that Portfolio (78.3%, 91.9%, 87.7%, 91.7%, 94.8%,
88.5%, 97.6%, 96.8%, 89.1%, and 91.9% at March 31, 1996 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 Ohio
Limited Fund and Marathon Pennsylvania 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, 1996, 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 California Limited $1,636,789 March 31, 2004
Fund 723,340 March 31, 2003
Marathon Connecticut Limited 248,769 March 31, 2004
Fund 232,805 March 31, 2003
Marathon Florida Limited Fund 2,395,400 March 31, 2004
645,654 March 31, 2003
Marathon Massachusetts Limited 1,434,610 March 31, 2004
Fund 595,115 March 31, 2003
Marathon Michigan Limited 629,966 March 31, 2004
Fund 513,947 March 31, 2003
Marathon New Jersey Limited 1,685,218 March 31, 2004
Fund 574,423 March 31, 2003
Marathon New York Limited 1,660,209 March 31, 2004
Fund 901,272 March 31, 2003
Marathon Ohio Limited Fund 627,563 March 31, 2004
817,971 March 31, 2003
3,600 March 31, 2002
Marathon Pennsylvania Limited 1,531,994 March 31, 2004
Fund 574,393 March 31, 2003
(1) Significant Accounting Policies (continued)
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. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other -- Investment transactions are accounted for on a trade date
basis.
(2) Fund Name Changes
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 Ohio Limited Maturity Tax Free Fund and EV
Marathon Pennsylvania Limited Maturity Tax Free Fund changed their
respective names to EV Marathon Arizona Limited Maturity Municipals
Fund, EV Marathon California Limited Maturity Municipals Fund, EV Marathon
Connecticut Limited Maturity Municipals Fund, EV Marathon Florida
Limited Maturity Municipals Fund, EV Marathon Massachusetts Limited
Maturity Municipals Fund, EV Marathon Michigan Limited Maturity Municipals
Fund, EV Marathon New Jersey Limited Maturity Municipals Fund, EV Marathon
New York Limited Maturity Municipals Fund, EV Marathon Ohio Limited
Maturity Municipals Fund and EV Marathon Pennsylvania Limited Maturity
Municipals Fund.
(3) 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 income and 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.
(3) Distributions to Shareholders (continued)
Permanent differences incurred during the year ended March 31, 1996, for
the following Funds resulting from differences in book and tax
accounting have been reclassified at year end to undistributed net
investment income, accumulated realized gain (loss) and paid in capital.
The reclassifications for the year ended March 31, 1996 are as follows:
Increase Increase
(Decrease) (Decrease)
in Undistributed in Accumulated Decrease in
Net Investment Net Realized Paid-in
Income Gain Capital
--------------- -------------- ----------
Marathon Arizona
Limited Fund $ 891 $ (891) $ --
Marathon California
Limited Fund 60,456 469 (60,925)
Marathon Connecticut
Limited Fund (260) 260 --
Marathon Florida
Limited Fund 134,569 1,462 (136,031)
Marathon Massachusetts
Limited Fund 104,442 2,256 (106,698)
Marathon Michigan
Limited Fund 8,047 (5,814) (2,233)
Marathon New Jersey
Limited Fund 49,387 1,578 (50,965)
Marathon New York
Limited Fund 284,280 1,249 (285,529)
Marathon Pennsylvania
Limited Fund 109,599 18,676 (128,275)
(4) 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:
Marathon Marathon
Arizona Limited California Limited
Fund Fund
--------------- ------------------
Year Ended Year Ended
March 31, March 31,
--------------- ------------------
1996 1995* 1996 1995
--------------- ------------------
Sales 8,767 48,211 125,775 763,993
Issued to shareholders
electing to receive
payments of
distributions in
Fund shares 1,575 454 115,612 175,833
Redemptions (18,766) -- (2,283,300) (1,723,245)
-------- -------- ---------- ----------
Net increase (decrease) (8,424) 48,665 (2,041,913) (783,419)
======== ======== ========== ==========
Marathon Marathon
Connecticut Limited Florida Limited
Fund Fund
--------------- ------------------
Year Ended Year Ended
March 31, March 31,
--------------- ------------------
1996 1995 1996 1995
--------------- ------------------
Sales 81,436 257,528 640,788 1,669,969
Issued to shareholders
electing to receive
payments of
distributions in
Fund shares 35,937 44,233 232,870 344,557
Redemptions (408,009) (213,238) (4,235,722) (3,377,776)
-------- -------- ---------- ----------
Net increase (decrease) (290,636) 88,523 (3,362,064) (1,363,250)
======== ======== ========== ==========
(4) Shares of Beneficial Interest (continued)
Marathon Marathon
Massachusetts Limited Michigan Limited
Fund Fund
--------------- -------------------
Year Ended Year Ended
March 31, March 31,
---------------- -------------------
1996 1995 1996 1995
--------------- -------------------
Sales 305,814 1,204,290 44,619 399,248
Issued to shareholders
electing to receive
payments of
distributions in
Fund shares 228,138 309,056 49,660 76,499
Redemptions (2,805,006) (1,707,818) (876,104) (548,744)
---------- ---------- -------- ----------
Net decrease (2,271,054) (194,472) (781,825) (72,997)
========== ========== ======== ==========
Marathon Marathon
New Jersey Limited New York Limited
Fund Fund
--------------- -------------------
Year Ended Year Ended
March 31, March 31,
---------------- -------------------
1996 1995 1996 1995
---------------- -------------------
Sales 149,270 977,485 441,765 1,445,280
Issued to shareholders
electing to receive
payments of
distributions in
Fund shares 208,755 285,382 365,297 507,842
Redemptions (1,950,361) (1,896,701) (4,238,030) (3,091,008)
---------- ---------- ---------- ----------
Net decrease (1,592,336) (633,834) (3,430,968) (1,137,886)
========== ========== ========== ==========
Marathon Marathon
Ohio Limited Pennsylvania Limited
Fund Fund
--------------- -------------------
Year Ended Year Ended
March 31, March 31,
---------------- -------------------
1996 1995 1996 1995
---------------- -------------------
Sales 83,296 513,206 304,907 832,585
Issued to shareholders
electing to receive
payments of
distributions in
Fund shares 82,900 99,878 209,882 286,093
Redemptions (664,620) (379,292) (2,491,336) (1,707,934)
-------- -------- ---------- ----------
Net increase (decrease) (498,424) 233,792 (1,976,547) (589,256)
======== ======== ========== ==========
There were no transactions involving shares of any other class.
* For the period from the start of business, November 3, 1994, to
March 31, 1995.
(5) 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 3 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. To enhance the
net income of Marathon Arizona Limited Fund, $15,627 of expenses related
to the operation of the Fund 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) serves as the custodian to the Funds and Portfolios.
Prior to November 10, 1995, IBT was an affiliate of EVM. Pursuant to the
respective custodian agreements, IBT receives a fee reduced by credits
which are determined based on the average cash balances the Funds or
the Portfolios maintain with IBT. All significant credit balances used
to reduce the Funds' custody fees are reported as a reduction of expenses
in the statement of operations. Certain of the officers and Trustees of
the Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 6).
(6) 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 and Marathon Ohio 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 7) 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 year ended March 31, 1996,
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 Ohio Limited Fund, and Marathon Pennsylvania Limited Fund paid
or accrued $3,788, $479,514, $110,923, $1,006,885, $785,222, $169,895,
$651,926, $1,142,128, $242,918 and $716,171, respectively, to or payable
to EVD representing 0.75% (annualized) of average daily net assets. At
March 31, 1996, the amount of Uncovered Distribution Charges of EVD
calculated under the Plans for 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 Ohio Limited Fund and Marathon Pennsylvania
Limited Fund were approximately $14,000, $709,000, $314,000, $1,486,000,
$1,016,000, $471,000, $927,000, $1,627,000, $710,000 and $937,000,
respectively.
In addition, the Plans authorize the Funds to make payments of service
fees to the Principal Underwriter, Authorized Firms and other persons in
amounts not exceeding 0.25% of each Fund's average daily net assets for
each fiscal year. The Trustees have initially implemented the Plans by
authorizing the Funds to make quarterly service fee payments to the
Principal Underwriter and Authorized Firms in amounts not expected to
exceed 0.15% of each Fund's average daily net assets based on the value
of Class I shares sold by such persons and remaining outstanding for at
least one year. For the year ended March 31, 1996, 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 Ohio Limited Fund
and Marathon Pennsylvania Limited Fund paid or accrued service fees to
or payable to EVD in the amount of $43, $76,709, $15,268, $151,288,
$130,794, $22,304, $108,124, $187,224, $24,981, and $119,808,
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 and Portfolios are
officers or directors of EVD.
(7) 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 $3,400,
$278,000, $57,000, $593,000, $424,000, $110,000, $294,000, $603,000,
$96,000, and $333,000, respectively, of CDSC paid by shareholders of
Marathon Arizona Limited Fund, Marathon California Limited Fund, Marathon
Connecticut Limited Fund, Marathon Florida Limited Fund, Marathon
Massachusetts Limited Fund, Marathon Michigan Limited Fund, Marathon
New Jersey Limited Fund, Marathon New York Limited Fund, Marathon Ohio
Limited Fund, and Marathon Pennsylvania Limited Fund for the year ended
March 31, 1996.
(8) Investment Transactions
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended March 31, 1996 were as follows:
Marathon Marathon Marathon Marathon
Arizona California Connecticut Florida
Limited Limited Limited Limited
Fund Fund Fund Fund
---------- ---------- ---------- ----------
Increases $111,308 $1,619,086 $905,075 $7,241,283
Decreases 229,583 25,700,932 4,526,926 48,538,289
Marathon Marathon Marathon Marathon
Massachusetts Michigan New Jersey New York
Limited Limited Limited Limited
Fund Fund Fund Fund
---------- ---------- ---------- ----------
Increases $3,410,445 $546,385 $1,750,435 $5,281,656
Decreases 31,645,653 9,414,725 22,535,571 47,726,006
Marathon Marathon
Ohio Pennsylvania
Limited Limited
Fund Fund
---------- ----------
Increases $986,032 $3,668,590
Decreases 7,328,421 28,656,995
(9) Subsequent Event
On May 1, 1996, all of the outstanding shares of Marathon Arizona
Limited Fund were redeemed.
(10) Special Meetings of Shareholders (Unaudited)
On December 15, 1995, special meetings of the shareholders of each of
the Funds were held for the purpose of voting on the matters listed
below. On October 23, 1995, the record date of the meetings, each of the
Funds had the following number of shares outstanding and each Fund had
the following number of shares represented at the December 15, 1995
meeting:
Shares Shares
Outstanding Represented at
Fund at 10/23/95 12/15/95 Meeting
- -------------------- ----------- ----------------
Marathon Arizona
Limited Fund 50,358 40,083
Marathon California
Limited Fund 6,078,957 3,044,503
Marathon Connecticut
Limited Fund 1,486,480 743,675
Marathon Florida
Limited Fund 12,773,568 6,966,821
Marathon Massachusetts
Limited Fund 10,223,649 5,151,363
Marathon Michigan
Limited Fund 2,278,003 1,190,582
Marathon New Jersey
Limited Fund 8,416,344 4,372,776
Marathon New York
Limited Fund 14,652,103 7,401,728
Marathon Ohio
Limited Fund 3,245,939 1,669,491
Marathon Pennsylvania
Limited Fund 9,207,514 4,884,168
Item 1. To consider and act on a proposal to amend each Fund's
investment policy to provide that the Fund may invest without limit in
municipal obligations the interest on which is exempt from regular
federal income tax (but which may be a tax preference item for purposes
of alternative minimum tax) and from the State taxes that, in accordance
with each Fund's investment objective, the Fund seeks to avoid.
Item 2. For the Marathon Connecticut Limited, the Marathon Ohio Limited
and the Marathon Michigan Limited Funds only.
To approve the revision of certain of each Fund's fundamental investment
restrictions as follows:
2A. Eliminate the restriction concerning transactions with affiliates.
2B. Eliminate the restriction concerning investing for control.
2C. Eliminate the restriction concerning joint transactions.
2D. Reclassify the restriction concerning short sales.
2E. Reclassify the restriction concerning investment in affiliated
issuers.
2F. Reclassify the restriction concerning investment in exploration
companies.
2G. Eliminate the restriction concerning diversification of assets.
2H. Amend the restriction concerning underwriting.
2I. Amend the restriction concerning investing in futures
transactions.
2J. Amend the restriction concerning lending.
2K. Amend the restriction concerning borrowing, pledging and
senior securities.
2L. Clarify the restrictions concerning investing in another
investment company.
The following are the results of the voting on each proposal:
For the Marathon Arizona Limited Fund:
Proposal: 1
----------
For 32,346
Against 2,872
Abstain 4,865
For the Marathon California Limited Fund:
Proposal: 1
----------
For 2,757,005
Against 148,656
Abstain 138,841
<TABLE>
<CAPTION>
(10) Special Meetings of Shareholders (continued)
For the Marathon Connecticut Limited Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F 2G 2H 2I
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
For 662,244 670,001 670,001 666,956 667,857 669,587 670,974 675,408 670,068 673,373
Against 28,044 31,539 31,539 34,584 33,683 28,938 30,566 28,632 28,527 33,683
Abstain 53,387 42,136 42,136 42,136 42,136 45,151 42,136 39,635 44,081 36,620
2J 2K 2L
----------------------------
For 666,470 664,842 667,204
Against 32,055 33,683 28,632
Abstain 45,151 45,151 47,839
For the Marathon Florida Limited Fund:
Proposal: 1
-------------
For 6,224,458
Against 356,830
Abstain 385,533
For the Marathon Massachusetts Limited Fund:
Proposal: 1
--------------
For 4,452,368
Against 119,796
Abstain 579,199
For the Marathon Michigan Limited Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F 2G 2H 2I
----------------------------------------------------------------------------------------------------
For 961,157 932,442 953,129 951,715 937,425 950,008 947,417 937,680 944,817 928,121
Against 92,268 112,711 97,177 103,491 112,262 103,180 101,149 110,728 103,589 112,200
Abstain 137,157 145,430 140,276 135,376 140,896 137,394 142,017 142,175 142,177 150,261
2J 2K 2L
---------------------------
For 927,482 940,523 971,302
Against 122,271 106,022 79,197
Abstain 140,829 144,038 140,083
For the Marathon New Jersey Limited Fund:
Proposal: 1
-------------
For 4,026,856
Against 102,390
Abstain 243,531
For the Marathon New York Limited Fund:
Proposal: 1
--------------
For 6,818,953
Against 212,732
Abstain 370,043
For the Marathon Ohio Limited Fund:
Proposal: 1 2A 2B 2C 2D 2E 2F
--------------------------------------------------------------------------
For 1,433,979 1,402,861 1,402,885 1,394,303 1,411,893 1,409,913 1,402,557
Against 90,257 89,341 87,596 91,194 78,575 80,821 85,761
Abstain 145,255 177,289 179,010 183,994 178,023 178,756 181,173
Proposal: 2G 2H 2I 2J 2K 2L
----------------------------------------------------------------
For 1,398,418 1,405,673 1,406,727 1,399,726 1,398,696 1,415,436
Against 89,102 83,712 83,636 83,082 92,209 78,809
Abstain 181,971 180,106 182,127 186,683 178,586 175,246
For the Marathon Pennsylvania Limited Fund:
Proposal: 1
--------------
For 4,613,413
Against 117,260
Abstain 153,496
</TABLE>
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 Municipals Fund, EV Marathon
California Limited Maturity Municipals Fund, EV Marathon Connecticut
Limited Maturity Municipals Fund, EV Marathon Florida Limited Maturity
Municipals Fund, EV Marathon Massachusetts Limited Maturity Municipals
Fund, EV Marathon Michigan Limited Maturity Municipals Fund, EV Marathon
New Jersey Limited Maturity Municipals Fund, EV Marathon New York
Limited Maturity Municipals Fund, EV Marathon Ohio Limited Maturity
Municipals Fund, and EV Marathon Pennsylvania Limited Maturity
Municipals Fund (the Funds) (series of the Eaton Vance Investment Trust)
as of March 31, 1996, and the related statements of operations for the
year then ended, the statements of changes in net assets for the years
ended March 31, 1996 and 1995, and the financial highlights for each of
the years in the four year period ended March 31, 1996. 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 audit 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,
1996, 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 2, 1996
<TABLE>
<CAPTION>
Arizona Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 6.5%
NR NR $15 Arizona Educational Loan
Marketing Corporation,
6.25%, 6/1/06 $ 15,077
A1 AA 15 Arizona State University
Revenue Bonds,
6.50%, 7/1/01 16,342
---------------
$ 31,419
---------------
Escrowed/Prerefunded - 21.0%
Aaa AAA $ 5 Maricopa County, Arizona,
Hospital Revenue, Escrowed
to Maturity, 6.50%, 1/1/97 $5,049
Aaa AAA 20 Maricopa County, Arizona,
School District #28,
(Kyrene Elementary),
(FGIC), Prerefunded to
7/1/01, 6.00%, 7/1/13 21,338
Aaa AAA 20 Maricopa County, Arizona,
School District # 40,
(AMBAC), Prerefunded to
7/1/00, 5.75%, 7/1/03 21,200
NR AA+ 20 Phoenix, Arizona,
Prerefunded to 7/1/98,
6.50%, 7/1/01 21,360
NR AAA 15 Phoenix, Arizona, Civic
Improvement Corporation,
Prerefunded to 7/1/03,
6.125%, 7/1/14 16,464
NR AA- 15 Tuscon, Arizona,
Prerefunded to 7/1/01,
6.75%, 7/1/15 16,604
---------------
$ 102,015
---------------
General Obligations - 21.9%
Aa AA $15 Phoenix, Arizona,
5.90%, 7/1/00 $ 15,856
A1 A 25 Maricopa County, Arizona,
School District #8, 6.10%,
7/1/04 27,048
Baa1 A 10 Puerto Rico Public Building
Authority, 6.50%, 7/1/03 10,945
Baa1 A 30 Commonwealth of Puerto
Rico, 6.00%, 7/1/05 31,809
A1 A+ 20 Tempe Union High School
District #213, (Maricopa
County, Arizona), 5.90%,
7/1/03 20,997
---------------
$ 106,655
---------------
Housing - 5.2%
NR AAA $25 Phoenix, Arizona, Industrial
Development Authority,
6.00%, 6/1/06 $ 25,263
---------------
Insured Education - 8.6%
Aaa AAA $20 East Valley, Arizona,
Institute of Technology,
District 401, (AMBAC),
5.90%, 7/1/03 $ 20,982
Aaa AAA 20 Northern Arizona University,
(AMBAC), 6.00%, 6/1/06 20,665
---------------
$ 41,647
---------------
Insured General Obligations - 14.5%
Aaa AAA 40 Maricopa County, Arizona,
School District # 28,
(FGIC), 0.00%, 7/1/03 $ 28,028
Aaa AAA 20 Maricopa County, Arizona,
(FGIC), 6.25%, 7/1/00 21,473
Aaa AAA 20 Yavapai County, Arizona,
School District, (AMBAC),
6.00%, 7/1/01 21,061
---------------
$ 70,562
---------------
Insured Special Tax Revenue - 3.3%
Aaa AAA $15 Arizona State Transportation
Board Excise Tax, (MBIA),
6.90%, 7/1/99 $ 16,168
---------------
Solid Waste - 4.9%
A2 A $25 Pima County, Arizona,
Industrial Development
Authority, (Browning Ferris
Industries), (AMT), 5.00%,
2/1/06 $ 23,876
---------------
Special Tax Revenue - 8.6%
A A- $25 Glendale, Arizona,
Improvement District #59,
6.00%, 1/1/03 $ 26,036
A1 AA+ 15 Tempe, Arizona, Municipal
Property Corporation,
5.50%, 7/1/03 15,727
---------------
$ 41,763
---------------
Transportation - 3.3%
A A+ $15 Phoenix, Arizona, Street &
Highway User Bonds,
6.10%, 7/1/01 $ 15,979
---------------
Water & Sewer - 2.2%
Aa AA- $10 Scottsdale, Arizona,
Water & Sewer,
5.75%, 7/1/03 $ 10,708
---------------
Total Tax-Exempt
Investments (identified
cost, $467,314) $ 486,055
===============
The Portfolio invests primarily in debt securities issued by Arizona municipalities. The ability of the issuers
of the debt securities to meet thier obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 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 range from 3.3% to
17.3% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
California Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 2.5%
NR BBB- $1,500 Central Valley Finance
Authority, Carson Ice-Gen.
Project, 5.20%, 7/1/99 $ 1,502,085
---------------
Education - 6.3%
Aaa AAA $1,500 California Educational
Facilities Authority, Stanford
University, 5.90%, 11/1/03 $ 1,601,385
Aaa AAA 2,000 California Educational
Facilities Authority,
California Institute of
Technology, 6.375%, 1/1/08 2,133,680
---------------
$ 3,735,065
---------------
Escrowed/Prerefunded - 19.5%
NR A- $1,700 California Educational
Facilities Authority, National
University, Prerefunded to
5/1/01, 7.15%, 5/1/21 $ 1,921,221
Aaa AAA 2,300 California State Public
Works Board, Department
of Corrections, Prerefunded
to 9/1/01, 6.50%, 9/1/19 2,548,929
Aa AA 1,500 Los Angeles Department of
Airports, Prerefunded to
5/1/97, 7.40%, 5/1/10 1,586,880
Aaa AAA 1,925 Moulton Niguel, California,
Water District, Prerefunded
to 4/1/00, 7.30%, 4/1/12 2,156,039
NR AAA 3,000 San Bernadino, California,
Certificates of Participation,
Prerefunded to 8/1/01,
7.00%, 8/1/28 3,391,230
---------------
$ 11,604,299
---------------
Electric Utility - 1.8%
A2 A+ $1,000 California Pollution
Control Financing
Authority, Southern
California Edison
Company, Series D,
6.85%, 12/1/08 $ 1,079,350
---------------
General Obligations - 11.1%
Aa AA- $1,000 Palos Verdes Library
District, 6.70%, 8/1/11 $ 1,064,960
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 787,943
Baa1 A 490 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 536,290
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 770,978
A1 AA- 1,870 City and County of
San Francisco, 6.50%,
12/15/03 2,009,483
AA AA- 1,500 Santa Monica - Malibu,
California, Unified School
District, 5.50%, 8/1/12 1,458,945
---------------
$ 6,628,599
---------------
Housing - 1.7%
Aa A+ $1,000 Department of Veterans
Affairs of the State of
California, Home Purchase
Revenue Bonds, (AMT),
7.50%, 8/1/98 $ 1,042,470
---------------
Hospitals - 4.4%
A1 AA- $2,400 California Health Facilities
Financing Authority,
Sisters of Providence,
7.50%, 10/1/10 $ 2,628,456
---------------
Industrial Development
Revenue - 2.9%
Aaa AAA $1,700 California Pollution Control
Financing Authority, North
County Recycling Center,
6.00%, 7/1/00 $ 1,700,000
---------------
Insured Electric Utilities - 7.9%
Aaa AAA $1,500 Sacramento Municipal
Utility District, (AMBAC),
5.60%, 8/15/16 (2) $ 1,473,090
Aaa AAA 1,000 Sacramento Municipal
Utility District, (MBIA),
6.20%, 8/15/05 1,080,410
Aaa AAA 2,250 Southern California Public
Power Authority, (FSA),
5.50%, 7/1/12 2,183,963
---------------
$ 4,737,463
---------------
Insured Hospital Revenue - 10.9%
Aaa AAA $1,750 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 4.90%, 11/1/03 $ 1,746,640
Aaa AAA 1,000 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 5.125%, 11/1/05 999,580
Aaa AAA 750 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 5.875%, 11/1/06 788,880
Aaa AAA 3,250 California Health Facilities
Financing Authority,
(Catholic Health West),
(AMBAC), 5.00%, 7/1/14 2,966,210
---------------
$ 6,501,310
---------------
Insured Lease Revenue/
Certificates of Participation - 2.2%
Aaa AAA $1,250 Merced County, California,
CSAC Lease Finance
Program, Certificates of
Participation, (FSA),
5.60%, 10/1/01 $ 1,308,225
---------------
Insured Transportation - 4.9%
Aaa AAA $1,905 Los Angeles Department
of Airports, (Los Angeles
International Airport),
(FGIC), (AMT),
5.625%, 5/15/12 $ 1,864,404
Aaa AAA 1,000 San Francisco Bay Area
Rapid Transit District,
(AMBAC), 6.75%, 7/1/09 1,077,110
---------------
$ 2,941,514
---------------
Insured Water & Sewer
Revenue - 5.0%
Aaa AAA $3,000 Los Angeles, California,
Department of Water and
Power Electric Plant,
(FGIC), 5.70%, 9/1/11 $ 3,004,140
---------------
Lease Revenue/
Certificates of Participation - 6.5%
A A $1,920 San Bernadino Joint
Power Finance Authority
Lease Revenue
Bonds, 5.40%, 12/1/08 (1) $ 1,865,011
Aa NR 2,000 University of California,
Central Chiller Project,
5.20%, 11/1/07 (1) 1,981,060
---------------
$ 3,846,071
---------------
Nursing Homes - 3.4%
NR A+ $2,000 California Statewide
Communities Development
Corporation, (Pacific
Homes), 5.90%, 4/1/09 $ 2,002,740
---------------
Special Tax Revenue - 3.5%
Aa AA $2,000 Orange County Local
Transportation Authority,
Sales Tax Revenue Bonds,
5.70%, 2/15/03 $ 2,070,980
---------------
Transportation - 1.8%
A1 NR $1,000 Contra Costa, California,
Transportation Authority,
6.40%, 3/1/01 $ 1,082,830
---------------
Water & Sewer Revenue - 3.7%
A1 A $2,000 The City of Los Angeles
Wastewater System,
6.90%, 6/1/08 $ 2,181,359
---------------
Total Tax-Exempt
Investments (identified
cost, $58,558,528) $ 59,596,956
===============
(1) Security has been segregated to cover when-issued securities.
(2) When-issued security.
The Portfolio invests primarily in debt securities issued by California municipalities. The ability of the issuers
of the debt securities to meet thier obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 31.0%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage by financial institution range from 5.8% to
9.3% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Connecticut Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.5%
Baa1 BBB+ $ 750 State of Connecticut
HEFA, Fairfield University
Issue, 6.90%, 7/1/14 $ 794,685
---------------
Electric Revenue - 3.7%
Baa1 A- $ 500 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 $ 539,040
---------------
Escrowed/Prerefunded - 3.8%
Aaa AAA $ 500 South Central Connecticut
Regional Water Authority,
(AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07 $ 552,245
---------------
General Obligations - 15.7%
Aa AA $ 250 Town of Danbury,
Connecticut, 7.00%,
8/1/04 $ 286,260
NR BBB 300 Government of Guam,
4.80%, 11/15/03 284,730
Aa NR 190 Norwich, Connecticut,
5.00%, 8/1/14 174,171
Aa NR 190 Norwich, Connecticut,
5.00%, 8/1/15 173,694
Baa1 A 250 Commonwealth of Puerto
Rico, 7.50%, 7/1/04 289,580
Baa1 A 285 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 299,418
Baa1 A- 500 Puerto Rico Municipal
Finance Agency, 5.70%,
7/1/03 (1) 515,795
Baa1 A- 250 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/06 256,623
---------------
$ 2,280,271
---------------
Hospital Revenue - 4.7%
NR BBB- $ 640 Connecticut Health and
Educational Facilities
Authority, New Britain
Hospital, 7.50%, 7/1/06 $ 678,995
---------------
Housing - 14.0%
Aa AA $ 200 Connecticut Housing
Finance Authority,
6.95%, 11/15/01 $ 209,316
Aa AA 1,000 Connecticut Housing
Finance Authority,
6.90%, 11/15/99 1,058,350
Aa AA 120 Connecticut Housing
Finance Authority,
5.45%, 5/15/04 122,675
Aa AA 645 Connecticut Housing
Finance Authority,
5.35%, 11/15/07 637,821
---------------
$ 2,028,162
---------------
Insured Education - 3.3%
Aaa AAA $ 500 University of Connecticut,
(FGIC), 5.00%, 2/1/12 $ 472,750
---------------
Insured General Obligations - 15.8%
Aaa AAA $ 500 East Haven, Connecticut,
(FGIC), 5.30%, 11/1/09 $ 496,630
Aaa AAA 250 Hartford, Connecticut,
(FGIC), 5.40%, 10/1/09 250,848
Aaa AAA 315 New Haven, Connecticut,
(FGIC), 5.25%, 8/1/06 319,237
Aaa AAA 500 Old Saybrook, Connecticut,
(AMBAC), 4.10%, 8/15/01 491,935
Aaa AAA 750 State of Connecticut,
(FGIC), 5.25%, 10/1/09 746,408
---------------
$ 2,305,058
---------------
Insured Hospitals - 6.6%
Aaa AAA $ 150 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 5.75%, 7/1/06 $ 157,325
Aaa AAA 500 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 7.00%, 7/1/20 538,495
Aaa AAA 250 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 6.50%, 7/1/06 269,383
---------------
$ 965,203
---------------
Insured Miscellaneous - 5.5%
Aaa AAA $ 725 Woodstock, Connecticut
Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 797,638
---------------
Insured Special Tax - 4.2%
Aaa AAA $ 600 Connecticut Special Tax,
(FGIC), 5.10%, 6/1/03 $ 612,945
---------------
Insured Transportation - 6.1%
Aaa AAA $ 750 Connecticut State Airport
Bonds, Bradley International
Airport, (FGIC), 7.40%,
10/1/04 $ 885,293
---------------
Insured Utility - 3.7%
Aaa AAA $ 500 Connecticut Municipal
Electric Authority, (MBIA),
6.00%, 1/1/07 $ 533,835
---------------
Miscellaneous - 7.4%
Aa AA- $ 410 Connecticut State
Development Authority,
5.85%, 11/15/07 $ 434,596
A2 NR 625 Connecticut State
Development Authority,
Frito-Lay Incorporated
Project, 6.375%, 7/1/04 636,925
---------------
$ 1,071,521
---------------
Total Tax-Exempt
Investments (identified
cost, $14,290,916) $ 14,517,641
===============
(1) Security has been segregated to cover margin requirements on 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 thier obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 49.1% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution range
from 10.3% to 26.1% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Florida Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed - 22.6%
Aaa AAA $1,015 Dade County, FL,
Educational Facilities
Authority,(MBIA),
Prerefunded to 10/1/01,
7.00%, 10/1/08 $ 1,150,543
Aaa AAA 1,000 Dunnedin, Florida,
Hospital, Mease Health
Care, (MBIA), Prerefunded
to 11/15/01, 6.75%,
11/15/21 1,123,430
Aa AAA 1,295 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/99, 6.75%, 6/1/04 1,412,392
Aa AAA 1,500 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/01, 6.75%, 6/1/12 1,662,045
Aaa AAA 3,000 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/00, 7.25%, 6/1/23 3,365,580
Aaa AAA 1,500 Florida Department of
Natural Resources,
Preservation 2000,
(MBIA), 7.25%, 7/1/08 1,629,270
Aaa AAA 1,780 Hollywood, FL, Water &
Sewer, (FGIC), Prerefunded
to 10/1/02, 6.375%,
10/1/02 1,964,159
Aaa AAA 4,485 Jacksonville Electric
Authority, Bulk Power
Supply System, Prerefunded
to 10/1/00, 6.75%, 10/1/16 4,956,194
Aaa AAA 3,250 Orlando Utility Community
Water & Electric,
Prerefunded to 10/1/01,
6.50%, 10/1/20 3,605,778
Aaa AAA 2,000 Palm Bay, FL, Utility, Palm
Bay Utility Corporation,
(MBIA) Prerefunded to
10/1/02, 6.20%, 10/1/17 2,201,720
Aaa AAA 2,805 Palm Beach County
Criminal Justice Facilities,
(FGIC), Prerefunded to
6/1/00, 7.00%, 6/1/01 3,120,450
Baa1 AAA 1,750 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98,
7.875%, 7/1/17 1,926,033
---------------
$ 28,117,594
---------------
General Obligations - 13.9%
Aa AA $2,900 Broward County, Florida,
5.00%, 1/1/10 $ 2,739,775
Aa AA 5,000 Florida State Board of
Education, 4.75%, 6/1/22 4,249,700
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 1,094,470
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency, 5.50%,
7/1/01 2,052,880
Baa1 A- 5,400 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/05 5,579,172
NR NR 1,500 Virgin Islands Public
Finance Authority,
6.80%, 10/1/00 1,588,935
---------------
$ 17,304,932
---------------
Hospitals - 3.9%
NR BBB 490 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 5.50%,
10/1/96 $ 491,460
NR BBB 515 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 6.00%, 10/1/97 520,701
NR BBB 545 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 6.25%, 10/1/98 555,671
Baa1 NR 425 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.00%,
12/1/98 428,171
Baa1 NR 450 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.25%,
12/1/99 455,958
Baa1 NR 480 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.50%,
12/1/00 487,637
NR A- 1,635 Palm Beach County
Health Facilities Authority,
Good Samaritan Health
Systems Inc., 5.60%, 10/1/01 1,662,779
A BBB+ 290 St. Johns County Industrial
Development Authority,
(Flagler Hospital Project),
5.60%, 8/1/01 295,449
---------------
$ 4,897,826
---------------
Housing - 1.6%
Baa BBB $2,000 Puerto Rico Housing
Bank and Finance Agency,
5.10%, 12/1/03 $ 1,947,940
---------------
Industrial Development
Revenue - 2.8%
Baa2 BBB $1,470 Nassau County PCR,
(ITT Rayonier Incorporated
Project), 5.60%, 6/1/00 $ 1,493,270
Ba2 BB+ 2,000 Polk County, Florida,
Industrial Development
Authority, (IMC Fertilizer),
(AMT), 7.525%, 1/1/15 2,084,760
---------------
$ 3,578,030
---------------
Insured General Obligations - 6.8%
Aaa AAA $2,475 Dade County Local
School District, (MBIA),
6.40%, 8/1/00 $ 2,670,971
Aaa AAA 1,500 Dade County Local
School District, (MBIA),
6.00%, 8/1/06 1,605,420
Aaa AAA 1,000 Dade County Local
School District, (MBIA),
5.20%, 8/1/07 998,230
Aaa AAA 1,580 Sarasota County, FL,
(FGIC), 6.25%,10/1/05 1,704,283
Aaa AAA 1,500 Volusia County, Florida,
(MBIA), 5.25%, 12/1/13 1,422,135
---------------
$ 8,401,039
---------------
Insured Health Care - 3.5%
Aaa AAA $4,000 Jacksonville Health
Facilities Authority,
(Baptist Medical Center
Project), (MBIA), 7.25%,
6/1/25 $ 4,381,200
---------------
Insured Hospitals - 7.7%
Aaa AAA $4,000 Broward County Health
Facilities Authority,
(Holy Cross Hospital),
(AMBAC), 5.25%, 6/1/08 $ 3,967,760
Aaa AAA 2,000 Hillsborough County
Hospital Authority,
(Tampa General Hospital
Project), (FSA), 6.375%,
10/1/13 2,087,160
Aaa AAA 1,000 City of Lakeland,
(Lakeland Regional
Medical Center Project),
(FGIC), 5.40%, 11/15/01 1,040,650
Aaa AAA 1,360 North Broward Hospital
District, (MBIA), 6.20%,
1/1/04 1,466,638
Aaa AAA 1,000 Orange County Health
Facilities Authority,
(Adventist Health
System/Sunbelt Inc.)
(CGIC), 5.50%, 11/15/02 1,038,070
---------------
$ 9,600,278
---------------
Insured Lease/Certificate
of Participation - 1.0%
Aaa AAA $1,150 City of Collier County,
Certificate of Participation,
(FSA), 5.35%, 2/15/02 $ 1,183,707
---------------
$2,000 Insured Miscellaneous - 1.7%
Jacksonville, FL GTD
5.5%, 10/1/02 $ 2,092,060
---------------
Insured Special Tax - 5.9%
Aaa AAA $1,525 Florida Department of
Natural Resources,
Preservation 2000,
(AMBAC), 6.70%,
7/1/05 $ 1,687,565
Aaa AAA 5,150 Tampa, FL, Utility Tax,
(AMBAC), 6.50%,
10/1/02 5,657,584
---------------
$ 7,345,149
---------------
Insured Transportation - 8.3%
Aaa AAA $1,700 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.60%, 10/1/03 $ 1,836,442
Aaa AAA 2,000 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.80%, 10/1/05 2,166,540
Aaa AAA 3,120 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.85%, 10/1/06 3,384,794
Aaa AAA 2,500 Palm Beach County,
Florida, Airport, (MBIA),
7.75%, 10/1/10 2,894,950
---------------
$ 10,282,726
---------------
Insured Water & Sewer - 7.5%
Aaa AAA $3,000 Dade County, FL, Water &
Sewer Revenue, (FGIC),
5.00%, 10/1/09 $ 2,894,370
Aaa AAA 2,000 Manatee County, FL,
Public Utilities, (MBIA),
6.75%, 10/1/04 2,259,020
Aaa AAA 1,000 Pasco County, FL, Water &
Sewer Revenue,(FGIC),
5.40%, 10/1/03 1,039,300
Insured Water & Sewer (continued)
Aaa AAA 500 Port Orange, FL, Water &
Sewer Revenue,(AMBAC),
6.50%, 10/1/04 536,180
Aaa AAA 2,710 Tampa, Florida, Water &
Sewer Revenue, (FGIC),
5.25%, 10/1/13 2,570,327
---------------
$ 9,299,197
---------------
Miscellaneous - 0.8%
Baa BBB $1,000 Puerto Rico Housing
Bank & Finance Agency,
5.00%, 12/1/02 $ 976,700
---------------
Solid Waste - 0.9%
A NR $1,165 Brevard County, Florida,
Solid Waste Management
System, 5.00%, 4/1/01 $ 1,178,328
---------------
Utilities - 8.4%
Aa AA $2,000 Gainesville, Florida Utility
System Revenue,
5.00%, 10/1/16 $ 1,814,040
Aa1 AA 3,000 Jacksonville Electric
Authority, St. John's River
Power Park,
6.50%, 10/1/03 3,319,830
Aa1 AA 3,500 Jacksonville Electric
Authority, St. John's River
Power Park,
5.25%, 10/1/20 3,232,705
Aa AA- 2,000 City of Tallahassee,
Electric Refunding
Bonds, 5.90%, 10/1/05 2,124,740
---------------
$ 10,491,315
---------------
Water & Sewer Revenue - 2.7%
A3 A+ $ 330 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.40%, 10/1/00 $ 339,392
A3 A+ 345 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.50%, 10/1/01 355,868
A3 A+ 365 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.60%, 10/1/02 377,220
A3 A+ 380 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.70%, 10/1/03 394,292
Aa AA- 1,700 St. Petersburg, FL, Public
Utility Revenue,
6.65%, 10/1/03 1,846,638
---------------
$ 3,313,410
---------------
Total Tax-Exempt
Investments (identified
cost, $122,087,493) $124,391,431
===============
The Portfolio invests primarily in debt securities issued by Florida municipalities. The ability of the issuers
of the debt securities to meet thier obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 19.5%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage by financial institution range from 0.8% to
18.7% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Massachusetts Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 3.6%
A1 A+ $1,200 Massachusetts Health and
Education Finance
Authority, Tufts
University, 7.40%, 8/1/18 $ 1,297,344
A A- 1,230 Massachusetts Health and
Education Finance
Authority, Suffolk
University, 5.85%, 7/1/16 1,215,498
A A- 1,000 Massachusetts Industrial
Finance Agency, Clark
University, 6.80%, 7/01/06 1,056,530
---------------
$ 3,569,372
---------------
Escrowed/Prerefunded - 15.6%
Aaa AAA $1,175 Boston, Massachusetts,
(MBIA), Prerefunded to
7/1/01, 6.75%, 7/1/11 $ 1,309,937
Aaa NR 1,000 Lowell, Massachusetts,
Prerefunded to 2/15/01,
7.625%, 2/15/10 1,154,520
Aaa AAA 2,000 Lynn, Massachusetts, Water
and Sewer Commission,
(MBIA), Prerefunded to
12/1/00, 7.25%, 12/1/10 2,261,280
Aaa BBB+ 1,245 Massachusetts Municipal
Wholesale Electric System,
Prerefunded to 7/1/02,
6.75%, 7/1/17 1,400,239
NR A+ 1,700 Massachusetts Health and
Educational Facilities
Authority, Baystate Medical
Center, Prerefunded to
7/1/99, 7.375%, 7/1/08 1,883,447
NR AAA 1,075 Massachusetts Health and
Educational Facilities
Authority, Jordan Hospital,
(FHA), Prerefunded to
8/15/98, 7.85%, 8/15/28 1,183,199
Aaa AAA 1,060 Massachusetts Health and
Educational Facilities
Authority, Berkshire Health
System, (MBIA), Prerefunded
to 10/1/98, 6.75%, 10/1/19 1,123,377
Aaa AAA 4,750 Massachusetts Water
Resource Authority,
Prerefunded to
4/1/00, 7.50%, 4/1/09 (2) 5,345,175
---------------
$ 15,661,174
---------------
General Obligations - 8.5%
Baa A- $1,000 City of Lawrence,
Massachusetts, State
Qualified Bonds, 5.00%,
9/15/02 $ 999,970
Baa A- 500 City of Lawrence,
Massachusetts, State
Qualified Bonds, 5.25%,
9/15/04 500,995
Baa1 NR 500 City of Lowell,
Massachusetts, State
Qualified Bonds, 5.50%,
8/15/97 510,320
Baa1 NR 650 City of Lowell,
Massachusetts, State
Qualified Bonds, 5.75%,
8/15/98 670,950
A1 A+ 1,240 The Commonwealth
of Massachusetts, 6.10%,
6/1/02 1,324,320
A1 A+ 1,000 The Commonwealth of
Massachusetts, 6.25%,
7/1/04 1,087,740
A A 1,650 Puerto Rico Aqueduct &
Sewer Authority, 5.00%,
7/1/15 1,483,862
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 770,978
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 787,943
A2 NR 350 Canton, Massachusetts,
Industrial Development
Financial Authority,
5.625%, 12/01/02 355,358
---------------
$ 8,492,436
---------------
Hospitals - 11.9%
Aa AA- $2,180 City of Boston,
Massachusetts, Boston
City Hospital, (FHA
Insured Mortgage),
5.00%, 2/15/00 $ 2,201,974
Aa AA- 2,160 City of Boston,
Massachusetts, Boston
City Hospital, (FHA
Insured Mortgage),
5.15%, 2/15/01 2,191,385
A A- 1,225 Massachusetts Health and
Educational Facilities
Authority, Charlton
Memorial Hospital Issue,
7.00%, 7/1/00 1,305,483
A A- 610 Massachusetts Health and
Educational Facilities
Authority, Charlton
Memorial Hospital Issue,
7.10%, 7/1/01 657,897
Aa AA 750 Massachusetts Health and
Educational Facilities
Authority, Children's
Hospital Issue,
5.50%, 10/1/02 770,993
Hospitals (continued)
Aa AA 1,000 Massachusetts Health and
Educational Facilities
Authority, Brigham &
Women's Hospital,
5.10%, 7/1/07 978,160
Aa NR 3,000 Massachusetts Health and
Educational Facilities
Authority, Daughters of
Charity Issue,
5.75%, 7/1/02 3,120,750
A A 650 Massachusetts Health and
Educational Facilities
Authority, New England
Deaconess Hospital Issue,
6.50%, 4/1/04 684,288
---------------
$ 11,910,930
---------------
Housing - 0.2%
NR BBB+ $ 180 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 8/1/23 $ 189,279
---------------
Insured Education - 3.0%
Aaa AAA 680 Massachusetts Educational
Financing Authority,
(AMBAC), (AMT),
6.65%, 1/1/01 $ 718,576
Aaa AAA 2,190 Massachusetts Educational
Financing Authority,
(MBIA), (AMT),
7.35%, 1/1/99 2,273,570
---------------
$ 2,992,146
---------------
Insured General Obligations - 13.7%
Aaa AAA $1,170 City of Attleboro,
Massachusetts, (AMBAC),
5.125%, 12/1/15 $ 1,083,151
Aaa AAA 1,000 City of Boston,
Massachusetts, (MBIA),
6.375%, 7/1/02 1,089,640
Aaa AAA 1,000 City of Boston,
Massachusetts, (AMBAC),
5.20%, 2/1/04 1,019,230
Aaa AAA 1,000 Chelsea, Massachusetts,
(AMBAC), 6.00%, 6/15/02 1,070,240
Aaa AAA 1,500 The Commonwealth of
Massachusetts, (FGIC),
7.20%, 3/1/02 1,660,320
Aaa AAA 2,500 The Commonwealth of
Massachusetts, (FGIC),
6.50%, 6/1/01 2,721,800
Aaa AAA 4,000 City of Lowell,
Massachusetts, State
Qualified Bonds, (FSA),
5.10%, 1/15/04 4,030,320
Aaa AAA 1,000 Town of Rockport,
Massachusetts, (AMBAC),
6.80%, 12/15/04 1,098,610
---------------
$ 13,773,311
---------------
Insured Hospital - 1.0%
Aaa AAA 1,000 Massachusetts Health and
Educational Facilities
Authority, Central
Massachusetts Medical
Center, (AMBAC),
5.50%, 7/1/99 $ 1,034,070
---------------
Insured Housing - 8.7%
Aaa AAA $1,900 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 5.90%, 1/1/03 $ 1,974,670
4,800 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), (Harborpoint
Development), 6.20%,
12/1/10 (1) 4,815,744
Aaa AAA 1,840 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 6.00%, 7/1/04 1,924,934
---------------
$ 8,715,348
---------------
Insured Solid Waste - 1.8%
Aaa AAA $1,735 Massachusetts Industrial
Finance Agency,
REFUSETECH Inc.
Project, (FSA), 5.45%,
7/1/01 $ 1,797,165
---------------
Insured Transportation - 1.0%
Aaa AAA $ 900 Massachusetts Port
Authority, (FGIC),
(AMT), 7.10%, 7/1/01 $ 995,094
---------------
Insured Utility - 3.6%
Aaa AAA $2,000 Massachusetts Municipal
Wholesale Electric
Company, (AMBAC),
6.625%, 7/1/03 $ 2,210,620
Aaa AAA 1,225 Massachusetts Municipal
Wholesale Electric
Company, (MBIA),
6.40%, 7/1/02 1,337,149
---------------
$ 3,547,769
---------------
Insured Water and Sewer - 3.7%
Aaa AAA $1,000 Lynn Water and Sewer
Commission, (FGIC),
5.50%, 6/1/99 $ 1,031,770
Aaa AAA 3,000 Massachusetts Water &
Sewer Authority, (MBIA),
5.00%, 12/1/16 2,709,600
---------------
$ 3,741,370
---------------
Nursing Homes - 2.1%
NR NR $1,000 Massachusetts Health and
Educational Facilities,
(1st Mortgage-Fairview
Extended Care), 10.125%,
1/1/11 $1,134,870
NR NR 1,000 Massachusetts Industrial
Finance Agency, Health
Care Facilities, (Age
Institute of Massachusetts),
7.60%, 11/1/05 1,001,250
---------------
$ 2,136,120
---------------
Special Tax Revenue - 5.3%
A1 AA- $3,050 The Commonwealth of
Massachusetts, 7.00%,
6/1/02 (2) $ 3,416,031
NR NR 1,750 Virgin Islands Public
Finance Authority, 6.70%,
10/1/99 1,841,438
---------------
$ 5,257,469
---------------
Transportation - 5.2%
A1 A+ $1,000 Massachusetts Bay
Transportation Authority,
5.30%, 3/1/04 $ 1,023,290
Aa AA- 1,625 Massachusetts Port
Authority, 5.00%, 7/1/15 1,480,570
Baa1 A 1,500 Puerto Rico Highway
Authority, 6.75%, 7/1/05 1,635,495
A1 A+ 1,000 Woods Hole, Martha's
Vineyard and Nantucket
Steamship Authority,
6.60%, 3/1/03 1,110,330
---------------
$ 5,249,685
---------------
Utilities - 7.4%
A BBB+ $ 500 Massachusetts Municipal
Wholesale Electric
Company, 5.70%, 7/1/01 $ 517,790
A BBB+ 1,000 Massachusetts Municipal
Wholesale Electric
Company, 5.70%, 7/1/01 1,035,580
A BBB+ 900 Massachusetts Municipal
Wholesale Electric
Company, 6.75%, 7/1/05 983,511
Baa2 BBB- 5,000 Massachusetts Industrial
Finance Agency, Eastern
Edison Project,
5.875%, 8/1/08 4,903,000
---------------
$ 7,439,881
---------------
Water & Sewer Revenue - 3.7%
A A $1,000 Massachusetts Water
Resources Authority,
6.25%, 11/1/10 $ 1,045,810
A A 1,975 Massachusetts Water
Resources Authority,
5.875%, 11/1/04 2,088,600
A A 500 Massachusetts Water
Resources Authority,
6.30%, 12/1/01 540,350
---------------
$ 3,674,760
---------------
Total Tax-Exempt
Investments (identified
cost, $98,547,321) $100,177,379
===============
(1) When-issued security.
(2) Security has been segregated to cover when-issued securities.
The Portfolio invests primarily in debt securities issued by Massachusetts municipalities. The ability of the
issuers of the debt securities to meet thier obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 47.0% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution range
from 5.6% to 16.9% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Michigan Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed/Prerefunded - 19.0%
Aaa AAA $1,500 Grand Ledge, Michigan
Public School District,
(MBIA), Prerefunded
to 5/1/04, 7.875%,
10/1/04 $ 1,820,565
A1 AA+ 500 Lansing, Michigan Tax
Increment Bonds,
Escrowed to Maturity,
6.20%, 10/1/04 541,110
Baa1 AAA 950 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98,
7.875%, 7/1/17 1,045,561
Aaa AAA 2,305 Romulus, Michigan
Community School
District, Prerefunded to
5/1/07, 0.00%, 5/1/22 468,745
---------------
$ 3,875,981
---------------
General Obligations - 13.5%
Ba1 BBB $ 650 Detroit, Michigan, 6.25%,
4/1/05 $ 665,698
Ba1 BBB 495 Detroit, Michigan, 6.40%,
4/1/05 512,078
Aa AA 500 Milan, Michigan School
District, 5.00%, 5/1/08 486,720
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.60%, 7/1/04 1,096,960
---------------
$ 2,761,456
---------------
Hospitals - 14.9%
Baa NR $ 525 Flint, Michigan Hospital
Authority, (Hurley Medical
Center), 6.00%, 7/1/05 $ 507,969
A A 1,000 Kent County, Michigan
Hospital Finance Authority,
Blodgett Memorial
Medical Center, 7.25%,
7/1/05 1,068,310
A NR 505 Marquette, Michigan
Hospital Finance Authority,
6.625%, 4/1/07 509,631
NR BBB 1,000 Michigan State Hospital
Finance Authority,
(Gratiot Community
Hospital), 6.10%, 10/1/07 963,260
---------------
$ 3,049,170
---------------
Housing - 5.1%
NR A+ $1,000 Michigan State Housing
Development Authority,
6.00%, 4/1/01 $ 1,050,910
---------------
Industrial Development
Revenue - 1.5%
NR BB $ 320 Richmond, Michigan
Economic Development
Corporation, K-MART
Project, 6.30%, 1/1/99 $ 305,875
---------------
Insured Education - 2.5%
Aaa AAA $ 500 Michigan Higher Education
Student Loan Authority,
(AMBAC), (AMT),
5.65%, 4/1/07 $ 504,750
---------------
Insured General Obligations - 15.3%
Aaa AAA $ 500 Comstock, Michigan
Public Schools, (CGIC),
6.80%, 5/1/02 $ 544,460
Aaa AAA 1,000 Imlay, Michigan, School
District, 5.40%, 5/1/17 950,480
Aaa AAA 1,000 State of Michigan
Municipal Bond Authority,
Local Government Loan
Project, (MBIA), 5.375%,
11/1/17 937,490
Aaa AAA 750 Willow Run, Michigan,
Community School
District, 5.00%, 5/1/16 688,493
---------------
$ 3,120,923
---------------
Insured Industrial
Development Revenue - 5.3%
Aaa AAA $1,000 Monroe County, Michigan,
The Detroit Edison
Company, (AMBAC),
(AMT), 6.35%, 12/1/04 (1) $ 1,082,180
---------------
Insured Utility - 5.3%
Aaa AAA $1,000 Western Townships,
Michigan, Sewer Disposal
System, (CGIC),
6.70%, 1/1/06 $ 1,072,530
---------------
Lease Revenue/
Certificate of Participation - 2.6%
A1 AA- $ 500 State of Michigan Building
Authority, 6.10%, 10/1/01 $ 538,055
---------------
Nursing Home - 1.9%
NR NR $ 395 Michigan Hospital Finance
Authority, (Presbyterian
Villages), 6.20%, 1/1/06 $ 392,105
---------------
Special Tax Revenue - 10.3%
Baa1 A $ 500 Puerto Rico Highway and
Transportation, 5.00%,
7/1/02 $ 499,960
NR BBB+ 1,500 Battle Creek, Michigan
Downtown Development
Authority, 6.65%, 5/1/02 1,602,360
---------------
$ 2,102,320
---------------
Water & Sewer Revenue - 2.8%
Aa AA $ 500 Michigan Municipal
Bond Authority, 7.00%,
10/1/02 $ 568,208
---------------
Total Tax-Exempt
Investments (identified
cost, $19,846,029) $ 20,424,463
===============
(1) Security has been segregated to cover margin requirements on 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, 1996, 28.4%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies.The aggregate percentage by financial institution range from 2.3% to
20.4% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 2.8%
NR BBB- $2,250 New Jersey Economic
Development Authority,
Heating & Cooling,
(Trigen-Trenton Project),
6.10%, 12/1/05 $ 2,248,560
---------------
Education - 3.6%
NR A- $ 380 New Jersey Educational
Facilities Authority, Drew
University, 5.875%, 7/1/03 $ 400,436
NR A+ 355 Higher Education Assistance
Authority, (State of New
Jersey), (AMT), NJ Class
Loan Program, 5.70%,
1/1/02 355,824
A1 AA 1,895 Rutgers, The State
University (The State of
New Jersey), 6.20%, 5/1/04 2,059,638
---------------
$ 2,815,898
---------------
Escrowed - 4.7%
Aaa AAA $1,325 Port Authority of New York
& New Jersey, (AMBAC),
Prerefunded to 10/1/02,
7.40%, 10/1/12 $ 1,545,162
Baa1 AAA 1,985 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to
7/1/98, 7.875%, 7/1/17 2,184,671
---------------
$ 3,729,833
---------------
General Obligations - 8.3%
Aaa AAA $1,280 County of Morris, New
Jersey, 6.50%, 8/1/02 $ 1,417,280
Aa AA 1,000 The Township of Morris,
New Jersey, 6.55%, 7/1/02 1,102,420
Aa1 AA+ 1,000 State of New Jersey, 6.00%,
8/1/04 1,069,000
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 770,978
Baa1 A 1,000 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 1,050,590
Aa AA 1,000 South Brunswick, New
Jersey, 7.125%, 7/15/02 1,133,420
---------------
$ 6,543,688
---------------
Health Care - 2.8%
A A- $1,000 New Jersey Health Care
Facilities Financing Authority,
(Atlantic City Medical Care
Center), 6.45%, 7/1/02 $ 1,050,060
A A- 340 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.25%, 7/1/00 353,668
A A- 750 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.55%, 7/1/03 792,323
---------------
$ 2,196,051
---------------
Housing - 11.4%
NR AA+ $1,500 New Jersey Housing
Finance Agency,
6.60%, 11/1/03 $ 1,596,270
NR A+ 2,500 New Jersey Housing and
Mortgage Finance Agency,
6.30%, 11/1/01 2,640,200
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
6.40%, 11/1/02 1,054,690
NR A+ 2,570 New Jersey Housing and
Mortgage Finance Agency,
6.50%, 11/1/03 2,702,998
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
6.00%, 11/1/02 1,040,080
---------------
$ 9,034,238
---------------
Industrial Development
Revenue - 0.9%
Aa3 NR $ 690 New Jersey Economic
Development Authority,
LOC: Bank of Paris,
(AMT), 6.00%, 12/1/02 $ 712,846
---------------
Insured Education - 3.7%
Aaa AAA $1,000 Essex County, New Jersey,
Improvement Authority,
(Guaranteed County
College Project), (AMBAC),
5.25%, 12/1/16 $ 936,470
Aaa AAA 1,000 New Jersey State
Educational Facilities,
Seton Hall University,
(FGIC), 6.10%, 7/1/01 1,072,950
Aaa AAA 1,000 New Jersey State
Educational Facilities,
(University of Medicine
& Dentistry), (AMBAC),
5.25%, 12/1/21 915,750
---------------
$ 2,925,170
---------------
Insured General Obligations - 16.9%
Aaa AAA $1,000 Atlantic City, New Jersey,
Board of Education,
(AMBAC), 6.00%, 12/1/02 $ 1,070,000
Aaa AAA 1,175 Edison, New Jersey,
(AMBAC), 4.70%, 1/1/04 1,168,890
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.10%, 11/15/99 531,195
Insured General Obligations
(continued)
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/01 539,940
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/02 539,490
Aaa AAA 2,000 Essex County, New Jersey,
(AMBAC), 5.375%, 9/1/10 1,979,140
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School District,
(FGIC), 6.60%, 6/1/02 1,326,036
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School District,
(FGIC), 6.60%, 6/1/03 1,335,636
Aaa AAA 1,200 Kearney, New Jersey,
(FSA), 6.50%, 2/1/04 1,319,448
Aaa AAA 500 North Bergen, New
Jersey, General Improvement,
(MBIA), 5.25%, 3/1/06 506,920
Aaa AAA 850 Roselle, New Jersey,
(MBIA), 4.65%, 10/15/03 843,591
Aaa AAA 1,000 South Brunswick Township,
New Jersey, Board of
Education, (FGIC),
6.40%, 8/1/03 1,093,260
Aaa AAA 1,100 South River, New Jersey,
School District, (FGIC),
5.00%, 12/1/09 1,063,975
---------------
$ 13,317,521
---------------
Insured Health Care - 5.0%
Aaa AAA $2,000 New Jersey Economic
Development Authority,
(Clara Maass Health System
Project), (FSA), 5.00%,
7/1/25 $ 1,760,500
Aaa AAA 1,910 New Jersey Health Care
Facilities & Financing
Authority, (Dover
General Hospital &
Medical Center), (MBIA),
7.00%, 7/1/04 2,174,993
---------------
$ 3,935,493
---------------
Insured Industrial
Development Revenue - 4.8%
Aaa AAA $2,500 New Jersey Economic
Development Authority,
Market Transition
5.70%, 7/1/05 (1) $ 2,622,400
Aaa AAA 1,000 New Jersey Economic
Development Authority,
Market Transition
5.80%, 7/1/07 1,049,520
Aaa AAA 100 Warren County New
Jersey Pollution Control
Finance Authority,
Resource Recovery,
(MBIA), 6.55%, 12/1/06 110,601
---------------
$ 3,782,521
---------------
Insured Lease/Certificates
of Participaton - 1.1%
Aaa AAA $845 Hudson County, New Jersey,
Certificates of Participation,
(MBIA), 6.20%, 6/1/03 $ 901,150
---------------
Insured Solid Waste - 0.3%
Aaa AAA $250 The Bergen County
Utilities Authority, Solid
Waste System,
(FGIC), 6.00%, 6/15/02 $ 268,953
---------------
Insured Transportation - 10.8%
Aaa AAA $2,000 New Jersey Transportation
Trust Fund Authority,
(MBIA), 5.00%, 6/15/15 $ 1,828,960
Aaa AAA 1,500 New Jersey Turnpike
Authority, (FSA), 5.90%,
1/1/03 1,586,895
Aaa AAA 2,000 New Jersey Turnpike
Authority, (MBIA),
5.90%, 1/1/04 2,141,680
Aaa AAA 895 New Jersey Turnpike
Authority, (FSA),
6.40%, 1/1/02 980,634
Aaa AAA 1,000 Port Authority of New York
& New Jersey, (MBIA),
(AMT), 5.25%, 9/1/07 983,110
Aaa AAA 1,000 Port Authority of New York
& New Jersey, (MBIA),
(AMT), 5.375%, 9/1/08 984,390
---------------
$ 8,505,669
---------------
Insured Utility - 1.4%
Aaa AAA $1,000 Middlesex County, New
Jersey, Utility Authority,
(FGIC) 6.10%, 12/1/01 $ 1,077,030
---------------
Insured Water & Sewer - 3.2%
Aaa AAA $750 Middlesex, New Jersey,
Utility Authority, Sewer
Revenue, (FGIC), 5.00%,
9/15/07 $ 742,890
Aaa AAA 2,000 West New York & New
Jersey Utility Authority,
Sewer Revenue, (FGIC),
5.125%, 12/15/17 (1) 1,822,880
---------------
$ 2,565,770
---------------
Lease Revenue/Certificates
of Participation - 4.6%
Aa AA- $1,000 Mercer County
Improvement Authority,
(Richard J. Hughes
Justice Complex), 5.15%,
1/1/05 $ 999,860
Aa AA- 1,000 Mercer County
Improvement Authority,
(Richard J. Hughes
Justice Complex), 5.15%,
1/1/06 993,110
A1 A+ 720 New Jersey Economic
Development Authority,
Lease Revenue, (Green
Lights Energy Project),
5.00%, 1/15/06 698,270
A1 A+ 875 State of New Jersey,
Certificates of Participation,
5.90%, 4/1/99 909,204
---------------
$ 3,600,444
---------------
Solid Waste - 3.6%
Baa NR $ 300 The Atlantic County
Utilities Authority
(New Jersey),
Solid Waste System,
7.00%, 3/1/08 $ 297,588
A1 AA- 500 Gloucester County
Improvement Authority
of New Jersey,
(Landfill Project), 5.40%,
9/1/00 515,380
A1 NR 300 The Passaic County
Utilities Authority
(New Jersey), Solid
Waste Disposal, 5.70%,
3/1/98 307,446
NR A 1,700 The Union County
Utilities Authority
(New Jersey), Solid
Waste System, (AMT),
7.20%, 6/15/14 1,758,123
---------------
$ 2,878,537
---------------
Transportation - 6.4%
A1 AA- $ 500 New Jersey Highway
Authority, (Garden State
Parkway), 5.90%, 1/1/04 $ 532,185
A1 AA- 250 New Jersey Highway
Authority, (Garden State
Parkway), 6.10%, 1/1/06 266,795
Ba1 BB 1,625 Port Authority of New
York & New Jersey,
(Delta Airlines),
6.95%, 6/1/08 1,722,205
Baa1 A 1,500 Puerto Rico Highway
Authority, 6.75%, 7/1/05 1,635,495
NR A+ 910 South Jersey Port
Corporation (An
Instrumentality of the
State of New Jersey),
(AMT), 5.15%, 1/1/04 909,918
---------------
$ 5,066,598
---------------
Utility - 3.7%
Baa1 A- $1,000 Puerto Rico Electric
Power Authority,
6.125%, 7/1/08 $ 1,038,820
Baa1 A- 1,785 Puerto Rico Electric
Power Authority,
6.125%, 7/1/09 1,847,261
---------------
$ 2,886,081
---------------
Total Tax-Exempt
Investments (identified
cost, $77,501,411) $ 78,992,051
===============
(1)Security has been segregated to cover margin requirements on 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,
1996, 47.2% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies.The aggregate percentage by financial institution range
from 7.1% to 14.6% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New York Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 12.8%
Aaa AA+ $ 500 Dormitory Authority of
the State of New York,
Columbia University,
5.10%, 7/1/01 $ 511,730
Aa AA 2,250 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/20 2,499,300
Aa AA 1,000 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/30 1,110,800
NR AA 1,000 Dormitory Authority of
the State of New York,
Manhattan College,
6.10%, 7/1/04 1,092,150
A1 A+ 5,955 Dormitory Authority of
the State of New York,
University of Rochester,
6.50%, 7/1/09 6,202,311
Baa1 BBB 1,000 Dormitory Authority of
the State of New York, City
University, 6.10%, 7/1/01 1,048,220
NR AA 3,000 Dormitory Authority of
the State of New York,
Nursing Home,
(Our Lady of Consolation),
(FHA), 5.20%, 8/1/05 2,945,460
Baa1 BBB+ 1,000 Dormitory Authority of
the State of New York, State
University, 7.25%, 5/15/99 1,070,960
Baa1 BBB+ 1,000 Dormitory Authority of
The State of New York, State
University, 5.20%, 5/15/03 998,170
---------------
$ 17,479,101
---------------
Electric Utility - 2.1%
Aa AA- $3,100 Power Authority of the
State of New York,
5.0%, 1/1/14 $ 2,843,227
---------------
Escrowed/Prerefunded - 11.5%
Aaa NR $2,250 Dormitory Authority of
the State of New York,
State University,
Prerefunded to 5/15/02,
6.75%, 5/01/21 $2,539,283
Aaa AAA 2,000 New York State Housing
Finance Agency, Escrowed
to Maturity, 6.80%,
5/15/01 2,206,640
Aaa AAA 900 New York State Housing
Finance Authority, State
University, Escrowed to
Maturity, 7.80%, 5/1/01 1,033,434
Aaa AA- 2,500 Port Authority of New York
& New Jersey, (AMBAC),
Prerefunded to 10/1/02,
7.40%, 10/1/12 2,915,400
NR AA- 2,000 Power Authority of the
State of New York,
Prerefunded to
1/1/98, 8.00%, 1/1/17 2,168,860
Aaa AAA 2,500 Suffolk County, New York
Water Authority, (AMBAC),
Prerefunded to 6/1/02,
6.00%, 6/1/17 2,723,525
Aaa A+ 1,900 Triborough Bridge and
Tunnel Authority,
Prerefunded to
1/1/01, 7.00%, 1/1/21 2,123,782
---------------
$ 15,710,924
---------------
General Obligations - 8.7%
Baa1 BBB+ $1,000 The City of New York,
6.375%, 8/1/05 $ 1,028,140
Baa1 BBB+ 3,000 The City of New York,
6.40%, 8/1/03 3,131,340
Baa1 BBB+ 1,500 The City of New York,
6.375%, 8/1/06 1,534,305
A A- 1,500 State of New York,
7.50%, 11/15/00 1,672,380
A A- 1,000 State of New York,
7.50%, 11/15/01 1,131,470
A A- 2,000 State of New York,
7.00%, 11/15/02 2,246,760
Baa1 A 1,000 Puerto Rico
Commonwealth,
6.35%, 7/1/10 1,050,590
---------------
$ 11,794,985
---------------
Health Care - 1.7%
Baa1 BBB $2,340 Dormitory Authority
of New York, Department
of Health,
5.375%, 7/1/08 $ 2,239,614
---------------
Hospitals - 4.9%
Baa BBB $ 500 Cortland County Industrial
Development Agency,
Cortland Memorial
Hospital Inc. Project,
6.15%, 7/1/02 $508,215
NR AAA 2,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.40%, 8/15/00 2,045,840
NR AAA 3,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.50%, 8/15/01 3,093,840
Hospitals (continued)
Aa AA 1,000 New York State Medical
Care Facilities Finance
Agency, Hospital and
Nursing Home Revenue
Bonds, 7.50%, 2/15/09 1,082,150
---------------
$ 6,730,045
---------------
Housing - 0.8%
NR AAA $1,050 New York City Housing
Development Corporation,
6.70%, 6/1/00 $ 1,104,149
---------------
Insured Education - 3.4%
Aaa AAA $1,075 Dormitory Authority of
the State of New York,
Mt. Sinai School of
Medicine, (MBIA),
6.75%, 7/1/09 $ 1,166,934
Aaa AAA 1,550 Dormitory Authority of
the State of New York,
State University,
(AMBAC), 5.25%, 7/1/14 1,468,005
Aaa AAA 1,000 Dormitory Authority of
the State of New York, City
University, (FGIC),
5.25%, 7/1/06 1,011,770
Aaa AAA 1,000 Dormitory Authority of
the State of New York, City
University, (FGIC),
5.00%, 7/1/07 973,090
---------------
$ 4,619,799
---------------
Insured General Obligation - 3.7%
Aaa AAA $2,200 Nassau County, New York,
(MBIA), 5.10%, 7/1/05 $ 2,214,322
Aaa AAA 2,750 Nassau County, New York,
(FGIC), 5.10%, 8/1/04 2,785,173
---------------
$ 4,999,495
---------------
Insured Hospital - 5.5%
Aaa AAA $4,450 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.10%, 2/15/04 $ 4,770,801
Aaa AAA 2,500 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.20%, 2/15/05 2,716,300
---------------
$ 7,487,101
---------------
Insured Housing - 1.5%
Aa AA $2,000 New York City Housing
Development Corporation,
(FHA), 5.40%, 11/1/05 $ 2,007,320
---------------
Insured Miscellaneous - 0.8%
Aaa AAA $1,000 New York State Municipal
Bond Bank Agency,
(AMBAC), 6.625%,
3/15/06 $ 1,091,430
---------------
Insured Transportation - 6.9%
Aaa AAA $1,135 Metropolitan Transportation
Authority for the City
of New York, (MBIA),
5.80%, 7/1/03 $ 1,208,662
Aaa AAA 3,500 The Port Authority of
New York and New Jersey,
(MBIA), 6.375%, 10/15/17 3,674,930
Aaa AAA 2,000 Triborough Bridge and
Tunnel Authority, (MBIA),
6.20%, 1/1/01 2,139,220
Aaa AAA 2,290 Triborough Bridge and
Tunnel Authority, (FGIC),
5.80%, 1/1/02 2,408,279
---------------
$ 9,431,091
---------------
Insured Utility - 4.3%
Aaa AAA $5,280 New York State Energy
Research and Development
Authority, Central Hudson
Gas, (FGIC), 7.375%,
10/1/14 $ 5,832,341
---------------
Insured Water and Sewer - 2.2%
Aaa AAA $1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.80%, 6/15/03 $ 1,060,190
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.55%, 6/15/01 1,041,540
Aaa AAA 1,000 Suffolk County, New York,
Water Authority, (MBIA),
5.00%, 6/1/15 915,670
---------------
$ 3,017,400
---------------
Lease Revenue/Certificates
of Participation - 10.8%
A1 AA $3,000 Battery Park City
Authority, 6.00%,
11/1/03 $3,192,990
A1 AA 3,500 Housing New York
Corporation, 6.00%,
11/1/03 3,682,280
Baa1 BBB 4,715 New York Urban
Development Corporation,
5.375%, 1/1/15 4,281,974
NR BBB 1,650 Puerto Rico Industrial
Tourist Educational
Medicine & Environmental
Control, (Guaynabo Lease),
5.375%, 7/1/06 1,606,160
Lease Revenue/Certificates
of Participation (continued)
Baa1 A 2,000 Puerto Rico Public
Buildings Authority,
5.30%, 7/1/03 2,038,360
---------------
$14,801,764
---------------
Special Tax Revenue - 6.2%
Aa AA- $2,975 Municipal Assistance
Corporation for the City
of New York,
5.75%, 7/1/08 $ 3,025,397
A A 2,725 New York Local
Government Assistance
Corporation, 5.25%,
4/1/16 2,530,702
A A 1,750 New York Local
Government Assistance
Corporation, 7.00%,
4/1/04 1,950,918
A A 1,700 New York Local
Government Assistance
Corporation, 0.00%,
4/1/06 1,007,845
---------------
$ 8,514,862
---------------
Transportation - 8.5%
Baa1 BBB $1,000 Metropolitan Transportation
Authority, 5.375%, 7/1/02 $ 1,006,490
A1 A 1,750 New York State Thruway
Authority, 5.375%, 1/1/02 1,803,393
A A- 1,645 New York State Thruway
Authority, 5.80%, 4/1/09 1,662,388
Baa1 BBB 1,000 New York State Thruway
Authority, 6.00%, 4/1/03 1,030,450
Ba1 BB 2,875 Port Authority of New York
& New Jersey, (Delta Airlines),
6.95%, 6/1/08 3,046,983
Baa1 A 2,850 Puerto Rico Highway
Authority, 6.75%, 7/1/05 3,107,441
---------------
$ 11,657,145
---------------
Water & Sewer Revenue - 3.7%
A A- $1,825 New York City Municipal
Water Finance Authority,
5.70%, 6/15/02 $ 1,909,041
Aaa AAA 1,000 New York State
Environmental Facilities
Corporation, County of
Westchester Project,
5.60%, 9/15/13 1,002,050
Aa A 2,000 New York State
Environmental Facilities
Corporation, New
York City Municipal
Water Finance Authority,
6.60%, 6/15/05 2,199,860
---------------
$ 5,110,951
---------------
Total Tax-Exempt
Investments (identified
cost, $135,090,306) $136,472,744
===============
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,
1996, 32.3% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies.The aggregate percentage by financial institution range
from 8.3% to 13.0% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Ohio Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.3%
A1 A+ $ 500 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.75%, 8/1/03 $ 511,950
A1 NR 1,200 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.95%, 8/1/05 1,228,464
---------------
$ 1,740,414
---------------
Escrowed - 5.6%
Aaa AAA $ 650 Clermont County, Ohio,
Water Works, (AMBAC),
Prerefunded to 12/1/01,
6.625%, 12/1/16 $ 726,674
Baa1 AAA 1,000 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98
7.875%, 7/1/17 1,100,590
---------------
$ 1,827,264
---------------
General Obligations - 16.5%
NR A- $ 750 City of Cincinatti School
District, (Hamilton County,
Ohio) Revenue Anticipation
Notes, 6.05%, 6/15/00 $787,538
NR NR 500 Cleveland, Ohio, City
School District, 6.50%,
6/15/97 501,420
Aa NR 500 Hamilton County, Ohio,
5.00%, 12/1/16 453,835
NR A+ 300 Kings County, Ohio, Local
School District, 7.60%,
12/1/10 336,645
Aa AA 200 State of Ohio, Infrastructure
Improvement Bonds,
6.50%, 8/1/04 222,952
Baa1 A 1,000 Commonwealth of Puerto
Rico, 6.25%, 7/1/08 1,056,430
A NR 1,000 Wauseon, Ohio School
District, 7.25%, 12/1/10 1,086,950
NR NR 924 Youngstown, Ohio, County
School District,
6.40%, 7/1/00 954,289
---------------
$ 5,400,059
---------------
Health Care - 8.6%
Aa2 NR $1,000 Hamilton County, Ohio
Hospital Facilities,
(Episcopal Retirement
Homes, Inc.), 6.80%,
1/1/08 $ 1,072,030
NR BBB- 680 Marion County, Ohio,
Health Care Facilities,
(United Church
Homes Project), 5.25%,
11/15/98 672,935
Aa2 NR 1,000 Warren County, Ohio,
Hospital Facilities,
(Otterbein Homes
Project), 7.20%, 7/1/11 1,094,340
---------------
$ 2,839,305
---------------
Hospitals - 7.8%
A A- $1,000 Erie County Hospital
Improvement (Fireland
Community Hospital
Project), 6.75%, 1/1/08 $ 1,052,110
Baa BBB 500 Hamilton County Ohio
Health System
(Providence Hospital
Project), 6.00%, 7/1/01 505,535
NR NR 990 Mt. Vernon Ohio Hospital,
(Knox Community
Hospital), 7.875%,
6/1/12 996,287
---------------
$ 2,553,932
---------------
Industrial Development
Revenue - 8.9%
NR A- $1,020 Ohio Economic
Development Commission,
(ABS Industries)
(AMT), 6.00%, 6/1/04 $ 1,038,319
NR A- 1,000 Ohio Economic
Development Commission,
(Ohio Enterprise
Bond Fund-Progress
Plastics Products), (AMT),
5.60%, 6/1/02 1,006,120
NR A- 805 Ohio Economic
Development Commission,
(Ohio Enterprise
Bond Fund-Progress
Plastics Products), (AMT),
6.80%, 12/1/01 871,896
---------------
$ 2,916,335
---------------
Insured Education - 3.0%
Aaa AAA $1,000 Ohio State Public Facilities
Commission, (Higher
Educational Facilities),
(AMBAC), 4.70%, 6/1/05 $ 985,310
---------------
Insured General Obligations - 25.8%
Aaa AAA $1,615 Cleveland, Ohio,
(MBIA), 6.50%,
11/15/01 $ 1,776,145
Aaa AAA 1,350 Mt. Vernon County, Ohio,
Local School District,
(FGIC), 7.50%, 12/1/14 1,559,534
Aaa AAA 1,760 Southwest Licking Ohio
School Facilities
Improvement, (FGIC),
7.10%, 12/1/16 1,988,096
Insured General Obligations
(continued)
Aaa AAA 400 St. Henry, Ohio, Local
School District, (MBIA),
5.25%, 12/1/19 371,840
Aaa AAA 1,000 West Clermont Ohio
School District, (AMBAC),
7.125%, 12/1/19 1,133,260
Aaa AAA 1,500 West Clermont Ohio
School District, (AMBAC),
6.90%, 12/1/12 1,663,800
---------------
$ 8,492,675
---------------
Insured Hospital - 3.8%
Aaa AAA $1,150 Portage County Ohio
Hospital Revenue Bonds,
(Robinson Hospital
Project), (MBIA), 6.50%,
11/15/04 $ 1,261,044
---------------
Insured Transportation - 2.9%
Aaa AAA $1,000 Dayton, Ohio, Airport
Revenue, (James M.
Cox-Dayton International
Airport), (AMBAC),
5.25%, 12/1/15 $ 942,610
---------------
Insured Utility - 1.6%
Aaa AAA $ 500 Cleveland, Ohio, Public
Power System, (MBIA),
6.10%, 11/15/03 $ 540,365
---------------
Insured Water & Sewer - 1.9%
Aaa AAA $ 690 Bellefontaine, Ohio, Water
System Mortgage Revenue,
(AMBAC), 5.00%,
12/1/15 $ 630,984
---------------
Lease Revenue/Certificate of
A1 A+ $ 500 Ohio Building Authority,
(State Correctional
Facilities) 6.50%,
10/1/04 $ 544,275
---------------
Nursing Homes - 2.2%
NR NR $ 350 Cuyahoga County, Ohio,
Health Care Facilities,
(Judson Retirement
Community), 8.875%,
11/15/19 $ 379,376
NR NR 300 Greene County, Ohio,
First Mortgage, (Fairview
Extended Care),
10.125%, 1/1/11 338,340
---------------
$ 717,716
---------------
Special Tax - 1.5%
NR NR $ 504 Columbus Ohio Special
Assessment, 6.05%,
9/15/05 $ 502,517
---------------
Utility - 1.0%
NR BBB $ 350 Guam Power Authority,
5.10%, 10/1/03 $ 339,820
---------------
Water & Sewer Revenue - 1.9%
A1 AA- $ 575 Hamilton County Ohio
Sewer System, (The
Metropolitan District of
Greater Cincinatti),
6.40%, 12/1/02 $ 627,503
---------------
Total Tax-Exempt
Investments (identified
cost, $32,188,327) $ 32,862,128
===============
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, 1996, 39.0%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies.The aggregate percentage by financial institution range from 10.8% to
18.5% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 3.2%
NR AAA $ 700 Montgomery County
Higher Education and
Health Authority,
(Saint Joseph's University),
6.00%, 12/15/02 $ 741,825
Aa A+ 1,500 Pennsylvania Higher
Educational Facilities
Authority, (Thomas
Jefferson University),
5.90%, 8/15/00 1,584,750
Baa1 BBB 500 Pennsylvania Higher
Educational Facilities
Authority, (The Medical
College of Pennsylvania),
7.25%, 3/1/05 526,815
---------------
$ 2,853,390
---------------
Escrowed - 23.2%
Aaa AAA $1,000 Allegheny County,
Pennsylvania, Sanitation
Authority, (FGIC)
Prerefunded to 12/1/01,
6.50%, 12/1/16 $ 1,091,070
A A- 520 Chester County Health
and Education Facilities
Authority, (Bryn Mawr
Rehabilitation Hospital),
Escrowed to Maturity,
6.50%, 7/1/02 571,568
Aaa AAA 1,000 Harrisburg, Pennsylvania,
Water Revenue Authority,
(FGIC), Prerefunded to
7/15/01, 7.00%, 7/15/06 1,108,870
Aaa AAA 500 Pennsylvania Turnpike
Commission, (FGIC),
Escrowed to
Maturity, 6.50%, 12/1/01 545,535
Aaa AAA 3,200 Philadelphia Municipal
Authority, Justice Lease
Revenue Bonds,
(FGIC), Prerefunded to
11/15/01, 7.10%,
11/15/11 3,632,832
Aaa NR 2,500 Philadelphia, Pennsylvania,
Hospital & Higher
Education, (Children's
Hospital), Prerefunded to
2/15/02, 6.50%, 2/15/21 2,759,500
Aaa AAA 1,000 The Pittsburgh Water and
Sewer Authority, (FGIC),
Prerefunded to 9/1/01,
6.75%, 9/1/10 1,114,990
Aaa AAA 2,000 Pleasant Valley School
District (Monroe County,
Pennsylvania) (AMBAC),
Prerefunded to 3/15/01,
5.85%, 3/1/05 2,104,960
Aaa AAA 1,500 Somerset County,
Pennsylvania, General
Authority, (FGIC),
Escrowed to Maturity,
6.50%, 10/15/01 1,633,980
Aaa AAA 1,000 Somerset County,
Pennsylvania, General
Authority, (FGIC),
Prerefunded to 10/15/01,
7.00%, 10/15/13 1,113,470
Aaa AAA 3,000 County of Westmoreland,
Pennsylvania, (AMBAC),
Prerefunded to 8/1/01,
6.70%, 8/1/09 3,287,010
Aaa AAA 7,880 Westmoreland County,
Pennsylvania, Municipal
Authority, 0.00%, 8/15/19 2,025,081
---------------
$ 20,988,866
---------------
General Obligation - 4.5%
A1 AA- $1,500 Commonwealth of
Pennsylvania, 6.00%,
9/15/01 1,606,140
Baa1 A 1,000 Puerto Rico Aqueduct &
Sewer Authority, 5.00%,
7/1/15 899,310
Baa1 A 1,000 The Commomwealth of
Puerto Rico, Public
Improvement Refunding
Bonds, 5.50%, 7/1/01 1,033,430
Baa1 A 500 Puerto Rico Public
Building Authority,
6.00%, 7/1/99 520,370
---------------
$ 4,059,250
---------------
Health Care - 4.8%
NR NR $1,120 Delaware County,
Pennsylvania, Industrial
Development Authority,
(Glen Riddle Project),
8.125%, 9/1/05 $ 1,128,266
Aa AA 1,030 Geisinger, Pennsylvania,
Health System, 6.00%,
7/1/01 1,079,811
Aa AA 2,000 Geisinger, Pennsylvania,
Health System, 7.375%,
7/1/02 2,164,460
---------------
$ 4,372,537
---------------
Hospitals - 16.8%
NR AAA $1,030 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project), (CLEE),
5.75%, 7/1/00 $ 1,063,485
NR AAA 825 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project), (CLEE),
5.875%, 7/1/01 860,178
Baa1 BBB+ 1000 Monroeville, Pennsylvania,
Hospital Authority,
(Forbes Health),
5.75%, 10/1/05 979,270
A NR 500 New Castle Area
Hospital Authority, (St.
Francis Hospital
of New Castle), 5.90%,
11/15/00 512,725
NR BBB 445 Northampton County
Hospital Authority,
(Easton Hospital)
6.90%, 1/1/02 455,707
Baa1 BBB+ 1,250 The Hospitals and Higher
Education Facilities
Authority of
Philadelphia, (Graduate
Health System),
6.90%, 7/1/00 1,317,713
Baa1 BBB+ 3,000 The Hospitals and Higher
Education Facilities
Authority of
Philadelphia, (Graduate
Health System),
7.00%, 7/1/05 3,186,480
Baa1 BBB+ 2,475 The Hospital and Higher
Education Facilities
Authority of
Philadelphia, (Temple
University Hospital),
6.00%, 11/15/00 2,513,585
Aa NR 4,750 Pottsville, PA, Hospital
Authority, (Daughters
of Charity),
5.00%, 8/15/12 4,300,175
---------------
$ 15,189,318
---------------
Housing - 2.8%
Aaa AAA $2,450 Pennsylvania Housing
Finance Agency, (FNMA),
5.70%, 7/1/02 $ 2,492,165
---------------
Industrial Development
Revenue - 2.1%
NR NR $885 Chester County, PA,
Industrial Development
Authority, 8.00%,
9/1/05 $ 878,681
A3 A- 1,000 Clinton County, PA,
Industrial Development
Authority, (International
Paper Company),
5.375%, 5/1/04 1,000,920
---------------
$ 1,879,601
---------------
Insured Education - 3.9%
Aaa AAA $2,280 Lycoming County
Authority, Pennnsylvania,
College Revenue
Bonds, (AMBAC),
6.00%, 11/1/01 $ 2,413,540
Aaa AAA 1,000 Northampton County
Higher Education
Authority, (Lehigh
University), (MBIA),
7.10%, 11/15/09 1,090,560
---------------
$ 3,504,100
---------------
Insured General Obligation - 1.8%
Aaa AAA $ 265 Greensburg Salem School
District, (Westmoreland
County, Pennsylvania),
(MBIA), 5.80%, 9/15/01 $ 281,873
Aaa AAA 1,000 Commonwealth of
Pennsylvania, (MBIA),
6.60%, 1/1/01 1,091,400
Aaa AAA 275 The School District of
Philadelphia, Pennsylvania,
(AMBAC), 6.35%,
5/15/02 298,862
---------------
$ 1,672,135
---------------
Insured Health Care - 2.4%
Aaa AAA $2,050 Sayre Health Care
Facilities Authority,
(Guthrie Medical
Center ), (AMBAC),
6.50%, 3/1/00 $ 2,179,560
---------------
Insured Hospitals - 10.4%
Aaa AAA $2,215 The Hospital Authority
of Beaver County,
Pennsylvania, (The
Medical Center of
Beaver, PA,), (AMBAC),
5.90%, 7/1/00 $ 2,322,073
Insured Hospitals (continued)
Aaa AAA 2,000 Delaware County
Authority of Pennsylvania,
(Delaware Memorial
Hospital), (MBIA),
5.125%, 8/15/06 1,994,300
Aaa AAA 1,000 Erie County, Pennsylvania,
Hospital Authority,
(Hamot Health
System), (AMBAC),
7.10%, 2/15/10 1,086,800
Aaa AAA 400 Franklin County
Industrial Development
Authority, ( The
Chambersburg Hospital
Project), (FGIC), 5.80%,
7/1/02 416,944
Aaa AAA 500 Lancaster County Hospital
Authority, (The Lancaster
General Hospital Project),
(AMBAC), 5.80%, 7/1/01 525,020
Aaa AAA 525 Lehigh County General
Purpose Authority, (St.
Luke's Hospital
of Bethlehem,
Pennsylvania Project),
(AMBAC), 5.70%, 7/1/01 547,129
Aaa AAA 250 Mt. Lebanon Hospital
Authority (Allegheny
County, Pennsylvania)
(St. Clair Memorial
Hospital), (FGIC), 5.90%,
7/1/02 261,780
Aaa AAA 2,100 Washington County
Hospital Authority,
(Shadyside Hospital
Project), (AMBAC),
5.80%, 12/15/02 2,220,162
---------------
$ 9,374,208
---------------
Insured Lease/Certificates
of Participation - 2.4%
Aaa AAA $500 The Harrisburg Authority
(Dauphin County,
Pennsylvania), Lease
Revenue Bonds, (FGIC),
6.25%, 6/1/01 $ 539,860
Aaa AAA 1,000 Northumberland County
Authority, Pennsylvania,
Lease Revenue
Bonds, (MBIA), 6.50%,
10/15/01 1,089,320
Aaa AAA 500 The Philadelphia
Municipal Authority,
Justice Lease Revenue
Bonds, (MBIA), 6.40%,
11/15/98 526,070
---------------
$ 2,155,250
---------------
Insured Special Tax - 4.5%
Aaa AAA $2,070 Pennsylvania
Intergovernmental
Cooperation Authority,
(City of Philadelphia
Funding Program), (FGIC),
6.00%, 6/15/02 $ 2,195,980
Aaa AAA 1,900 Pennsylvania
Intergovernmental
Cooperation Authority,
(City of Philadelphia
Funding Program), (FGIC),
5.45%, 6/15/08 1,899,829
---------------
$ 4,095,809
---------------
Insured Transportation - 4.9%
Aaa AAA $4,250 Pennsylvania State Turnpike
Commisssion, (AMBAC),
6.25%, 6/1/11 $ 4,405,635
---------------
Insured Water & Sewer - 0.8%
Aaa AAA $700 Delaware County Industrial
Development Authority,
(Philadelphia Suburban
Water Company Project),
(FGIC), 5.95%, 6/1/02 $ 736,344
---------------
Nursing Home - 0.6%
NR NR $500 Wilkins Area, Pennsylvania,
Industrial Development
Authority, (Fairview
Extended Care), 10.25%,
1/1/21 $ 569,840
---------------
Solid Waste - 3.4%
Baa A- $500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.20%, 5/15/99 $ 514,760
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.20%, 11/15/99 516,920
Baa A- 300 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.40%, 5/15/00 311,925
Solid Waste (continued)
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania,
Solid Waste Revenue,
6.40%, 11/15/00 522,015
NR NR 1,200 Pennsylvania Economic
Development Financing
Authority, (Resource
Recovery for Northampton),
6.75%, 1/1/07 1,209,852
---------------
$ 3,075,472
---------------
Special Tax Revenue - 0.3%
NR NR $250 Virgin Islands Public
Finance Authority,
(V.I. General Obligation/
Matching Loan Fund
Notes), 6.70%,10/1/99 $ 263,063
---------------
Transportation - 4.1%
Aa3 AA- $2,550 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial
Bank of Commerce,
6.00%, 6/1/99 $ 2,672,069
Aa3 AA- 1,000 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial
Bank of Commerce,
6.00%, 6/1/01 1,063,117
---------------
$ 3,735,186
---------------
Utility - 1.2%
NR NR $1,000 Virgin Island Water &
Sewer Authority, 7.40%,
7/1/11 $ 1,046,500
---------------
Water & Sewer - 1.9%
NR AA $1,600 Pennsylvania Infrastructure
Investment Authority,
(Pennvest Pool
Program), 6.45%, 9/1/04 $ 1,762,128
---------------
Total Tax-Exempt
Investments (identified
cost, $88,507,791) $ 90,410,357
===============
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,
1996, 48.4% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies.The aggregate percentage by financial institution range
from 6.7% to 23.7% of total investments.
See notes to financial statements
</TABLE>
Limited Maturity Municipals Portfolios
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996
- -----------------------------------------------------------------------------------------------------------
Arizona California Connecticut Florida Massachusetts
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ----------- ----------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $467,314 $58,558,528 $14,290,916 $122,087,493 $98,547,321
Unrealized appreciation 18,741 1,038,428 226,725 2,303,938 1,630,058
-------- ----------- ----------- ------------ -----------
Total investments, at value (Note 1A) $486,055 $59,596,956 $14,517,641 $124,391,431 $100,177,379
Cash 2,660 84,450 249,527 130 210,483
Receivable for investments sold -- -- -- 805,225 --
Interest receivable 6,814 1,010,968 253,852 2,852,461 1,545,014
Receivable from the Investment
Adviser (Note 3) 13,822 -- -- -- --
Deferred organization expenses
(Note 1D) 3,195 2,900 2,352 8,787 8,530
-------- ----------- ----------- ------------ -----------
Total assets $512,546 $60,695,274 $15,023,372 $128,058,034 $101,941,406
-------- ----------- ----------- ------------ -----------
Liabilities:
Demand note payable (Note 6) $ -- $ -- $ -- $215,000 $ --
Payable for investments purchased -- 1,474,957 157,848 -- 4,800,000
Payable for daily variation margin on open
financial futures contracts (Note 1E) -- -- 3,000 -- --
Payable to affiliate --
Trustees' fees -- 1,693 41 2,189 --
Accrued expenses 1,244 2,544 957 5,834 6,130
-------- ----------- ----------- ------------ -----------
Total liabilities $1,244 $1,479,194 $161,846 $223,023 $4,806,130
-------- ----------- ----------- ------------ -----------
Net Assets applicable to investors'
interest in Portfolio $511,302 $59,216,080 $14,861,526 $127,835,011 $97,135,276
======== =========== =========== ============ ===========
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $492,561 $58,177,652 $14,637,976 $125,531,073 $95,505,218
Unrealized appreciation of investments
and financial futures contracts
(computed on the basis of identified
cost) 18,741 1,038,428 223,550 2,303,938 1,630,058
-------- ----------- ----------- ------------ -----------
Total $511,302 $59,216,080 $14,861,526 $127,835,011 $97,135,276
======== =========== =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996
- ------------------------------------------------------------------------------------------------------------
Michigan New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $19,846,029 $77,501,411 $135,090,306 $32,188,327 $88,507,791
Unrealized appreciation 578,434 1,490,640 1,382,438 673,801 1,902,566
----------- ----------- ------------ ----------- -----------
Total investments, at value (Note 1A) $20,424,463 $78,992,051 $136,472,744 $32,862,128 $90,410,357
Cash 274,947 1,354,175 232 38,479 259,306
Receivable for investments sold 30,000 524,772 -- -- 4,501,158
Interest receivable 464,907 1,308,117 2,440,493 627,909 1,356,793
Deferred organization expenses
(Note 1D) 3,372 3,682 5,359 2,549 5,583
----------- ----------- ------------ ----------- -----------
Total assets $21,197,689 $82,182,797 $138,918,828 $33,531,065 $96,533,197
----------- ----------- ------------ ----------- -----------
Liabilities:
Demand note payable (Note 6) $ -- $ -- $183,000 $ -- $ --
Payable for investments purchased -- 1,989,734 -- -- 4,335,225
Payable for daily variation margin on open
financial futures contracts (Note 1E) 4,500 15,750 -- -- --
Payable to affiliate --
Trustees' fees 41 1,693 2,849 412 1,693
Accrued expenses 1,742 3,044 4,500 1,278 2,279
----------- ----------- ------------ ----------- -----------
Total liabilities $6,283 $2,010,221 $190,349 $1,690 $4,339,197
----------- ----------- ------------ ----------- -----------
Net Assets applicable to investors'
interest in Portfolio $21,191,406 $80,172,576 $138,728,479 $33,529,375 $92,194,000
=========== =========== ============ =========== ===========
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $20,617,735 $78,695,325 $137,346,041 $32,855,574 $90,291,434
Unrealized appreciation of investments
and financial futures contracts
(computed on the basis of identified
cost) 573,671 1,477,251 1,382,438 673,801 1,902,566
----------- ----------- ------------ ----------- -----------
Total $21,191,406 $80,172,576 $138,728,479 $33,529,375 $92,194,000
=========== =========== ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
Year Ended March 31, 1996
- ------------------------------------------------------------------------------------------------------
Arizona California Connecticut Florida Massachusetts
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ---------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest income $32,044 $3,808,980 $851,625 $7,635,674 $5,819,018
------- ---------- -------- ---------- ----------
Expenses --
Investment adviser fee (Note 3) $2,725 $327,056 $74,308 $664,262 $506,126
Compensation of Trustees not
members of the Investment
Adviser's organization -- 6,778 177 10,454 8,898
Custodian fees (Note 3) 3,742 39,911 12,186 76,701 57,180
Interest expense (Note 6) -- 14,843 -- -- 9,046
Printing and postage -- -- 1,002 -- --
Legal and accounting services 5,690 21,260 20,131 30,060 26,097
Registration costs -- -- -- -- 1,250
Bond pricing 3,416 -- -- -- --
Amortization of organization
expenses (Note 1D) 886 1,765 2,576 4,217 4,099
Miscellaneous 588 7,943 7,017 25,639 12,225
------- ---------- -------- ---------- ----------
Total expenses $17,047 $419,556 $117,397 $811,333 $624,921
------- ---------- -------- ---------- ----------
Deduct --
Reduction of investment
adviser fee (Note 3) $2,725 $ -- $53,054 $ -- $ --
Allocation of expenses to the
Investment Adviser (Note 3) 13,822 -- -- -- --
Reduction of custodian fee (Note 3) 500 26,628 8,076 25,064 18,005
------- ---------- -------- ---------- ----------
Total $17,047 $26,628 $61,130 $25,064 $18,005
------- ---------- -------- ---------- ----------
Net expenses $ -- $392,928 $56,267 $786,269 $606,916
------- ---------- -------- ---------- ----------
Net investment income $32,044 $3,416,052 $795,358 $6,849,405 $5,212,102
------- ---------- -------- ---------- ----------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) --
Investment transactions
(identified cost basis) $7,233 $1,093,627 $104,858 $1,101,851 $527,819
Financial futures contracts (6,079) (402,738) (88,087) (806,120) (590,914)
------- ---------- -------- ---------- ----------
Net realized gain (loss) $1,154 $690,889 $16,771 $295,731 ($63,095)
------- ---------- -------- ---------- ----------
Change in unrealized appreciation --
Investments $2,524 $430,606 $273,176 $1,447,454 $1,662,159
Financial futures contracts 3,400 69,703 10,425 142,806 100,304
------- ---------- -------- ---------- ----------
Net unrealized appreciation
of investments $5,924 $500,309 $283,601 $1,590,260 $1,762,463
- -------------- ------- ---------- -------- ---------- ----------
Net realized and
unrealized gain $7,078 $1,191,198 $300,372 $1,885,991 $1,699,368
------- ---------- -------- ---------- ----------
Net increase in net assets
from operations $39,122 $4,607,250 $1,095,730 $8,735,396 $6,911,470
======= ========== ========== ========== ==========
See notes to financial Statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
- -------------------------------------------------------------------------------------------------
Michigan New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest income $1,512,575 $4,772,911 $8,226,792 $2,096,232 $5,569,577
---------- ---------- ---------- ---------- ----------
Expenses --
Investment adviser fee (Note 3) $126,312 $412,459 $722,493 $173,867 $478,819
Compensation of Trustees not
members of the Investment
Adviser's organization 1,395 6,450 11,725 1,766 6,494
Custodian fees (Note 3) 16,987 48,622 82,786 22,509 56,011
Interest expense (Note 6) 5,971 7,460 -- 4,284 17,317
Legal and accounting services 23,460 25,860 30,360 23,460 25,860
Registration costs -- -- -- 250 --
Amortization of organization
expenses (Note 1D) 3,122 1,793 2,576 2,577 2,680
Miscellaneous 4,818 11,779 23,721 5,977 11,998
---------- ---------- ---------- ---------- ----------
Total expenses $182,065 $514,423 $873,661 $234,690 $599,179
Deduct --
Reduction of custodian fee (Note 3) 10,680 23,238 34,821 7,558 20,958
---------- ---------- ---------- ---------- ----------
Net expenses $171,385 $491,185 $838,840 $227,132 $578,221
---------- ---------- ---------- ---------- ----------
Net investment income $1,341,190 $4,281,726 $7,387,952 $1,869,100 $4,991,356
---------- ---------- ---------- ---------- ----------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) --
Investment transactions
(identified cost basis) $483,781 $588,158 $1,075,619 $453,529 $90,417
Financial futures contracts (169,851) (504,799) (857,703) (223,129) (560,722)
---------- ---------- ---------- ---------- ----------
Net realized gain (loss) $313,930 $83,359 $217,916 $230,400 ($470,305)
---------- ---------- ---------- ---------- ----------
Change in unrealized appreciation --
Investments $65,041 $807,472 $2,164,521 $146,955 $1,733,591
Financial futures contracts 22,438 68,215 147,906 32,301 95,204
---------- ---------- ---------- ---------- ----------
Net unrealized appreciation
of investments $87,479 $875,687 $2,312,427 $179,256 $1,828,795
- -------------- ---------- ---------- ---------- ---------- ----------
Net realized and
unrealized gain $401,409 $959,046 $2,530,343 $409,656 $1,358,490
---------- ---------- ---------- ---------- ----------
Net increase in net assets
from operations $1,742,599 $5,240,772 $9,918,295 $2,278,756 $6,349,846
========== ========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- ---------------------------------------------------------------------------------------------------
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 $32,044 $3,416,052 $795,358 $6,849,405 $5,212,102
Net realized gain (loss)
on investments 1,154 690,889 16,771 295,731 (63,095)
Change in unrealized
appreciation of investments 5,924 500,309 283,601 1,590,260 1,762,463
-------- ----------- ----------- ------------ ------------
Net increase in net assets
from operations $39,122 $4,607,250 $1,095,730 $8,735,396 $6,911,470
-------- ----------- ----------- ------------ ------------
Capital transactions --
Contributions $111,308 $2,502,298 $1,702,174 $10,648,982 $4,408,033
Withdrawals (229,584) (30,237,193) (5,251,996) (56,128,282) (33,303,769)
-------- ----------- ----------- ------------ ------------
Decrease in net assets resulting
from capital transactions ($118,276) ($27,734,895) ($3,549,822) ($45,479,300) ($28,895,736)
-------- ----------- ----------- ------------ ------------
Total decrease in net assets ($79,154) ($23,127,645) ($2,454,092) ($36,743,904) ($21,984,266)
Net Assets:
At beginning of year 590,456 82,343,725 17,315,618 164,578,915 119,119,542
-------- ----------- ----------- ------------ ------------
At end of year $511,302 $59,216,080 $14,861,526 $127,835,011 $97,135,276
======== =========== =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- -------------------------------------------------------------------------------------------------------
Michigan New Jersey New York Ohio Pennsylvania
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 $1,341,190 $4,281,726 $7,387,952 $1,869,100 $4,991,356
Net realized gain (loss)
on investments 313,930 83,359 217,916 230,400 (470,305)
Change in unrealized
appreciation of investments 87,479 875,687 2,312,427 179,256 1,828,795
------------ ------------ ------------ ------------ ------------
Net increase in net assets
from operations $1,742,599 $5,240,772 $9,918,295 $2,278,756 $6,349,846
------------ ------------ ------------ ------------ ------------
Capital transactions --
Contributions $748,500 $2,138,038 $7,273,143 $1,242,994 $4,976,577
Withdrawals (14,497,709) (24,485,909) (52,095,383) (9,427,749) (32,738,468)
------------ ------------ ------------ ------------ ------------
Decrease in net assets resulting
from capital transactions ($13,749,209) ($22,347,871) ($44,822,240) ($8,184,755) ($27,761,891)
------------ ------------ ------------ ------------ ------------
Total decrease in net assets ($12,006,610) ($17,107,099) ($34,903,945) ($5,905,999) ($21,412,045)
At beginning of year 33,198,016 97,279,675 173,632,424 39,435,374 113,606,045
------------ ------------ ------------ ------------ ------------
At end of year $21,191,406 $80,172,576 $138,728,479 $33,529,375 $92,194,000
=========== =========== ============ =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- -----------------------------------------------------------------------------------------------------------
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)
Change in 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
======== =========== =========== ============ ============
*For the period from the start of business, November 3, 1994, to March 31, 1995.
Year Ended March 31, 1995
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
- -----------------------------------------------------------------------------------------------------------
Michigan New Jersey New York Ohio Pennsylvania
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 $1,731,146 $4,840,639 $8,821,606 $1,988,159 $5,762,059
Net realized loss
on investments (1,889,732) (2,432,985) (2,970,287) (1,848,899) (1,989,932)
Change in unrealized
appreciation of investments 1,913,469 2,933,058 3,317,903 1,939,481 2,563,670
----------- ------------ ------------ ----------- ------------
Net increase in net assets
from operations $1,754,883 $5,340,712 $9,169,222 $2,078,741 $6,335,797
----------- ------------ ------------ ----------- ------------
Capital transactions --
Contributions $8,180,397 $13,706,598 $23,864,886 $8,548,567 $15,664,244
Withdrawals (12,345,746) (24,715,358) (43,169,334) (9,169,484) (32,013,516)
----------- ------------ ------------ ----------- ------------
Decrease in net assets resulting
from capital transactions ($4,165,349) ($11,008,760) ($19,304,448) ($620,917)($16,349,272)
----------- ------------ ------------ ----------- ------------
Total increase (decrease) in net assets ($2,410,466) ($5,668,048) ($10,135,226) $1,457,824 ($10,013,475)
Net Assets:
At beginning of year 35,608,482 102,947,723 183,767,650 37,977,550 123,619,520
----------- ------------ ------------ ----------- ------------
At end of year $33,198,016 $97,279,675 $173,632,424 $39,435,374 $113,606,045
=========== =========== ============ =========== ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
- ------------------------------------------------------------------------------------------------------------------------
Arizona Limited Portfolio California Limited Portfolio
------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
------------------------- --------------------------------
1996 1995*** 1996 1995 1994**
------------ --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.08% 0.00%+ 0.58% 0.53% 0.46%+
Net expenses after custodian fee reduction (1) 0.00% -- 0.55% -- --
Net investment income 5.31% 4.60%+ 4.82% 4.72% 4.50%+
Portfolio Turnover 35% 1% 36% 56% 6%
Net Assets, end of period (000 omitted) $511 $590 $59,216 $82,344 $95,704
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and/or an allocation
of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
<CAPTION>
Ratios (As a percentage of average daily net assets):
Expenses (1) 2.82% 1.31%+ 0.52%+
Net investment income 2.57% 3.29%+ 4.44%+
Connecticut Limited Portfolio Florida Limited Portfolio
------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
------------------------- --------------------------------
1996 1995 1994** 1996 1995 1994**
-------- ------- ------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.39% 0.17% 0.00%+ 0.55% 0.52% 0.49%+
Net expenses after custodian fee reduction (1) 0.35% -- -- 0.54% -- --
Net investment income 4.91% 4.95% 4.53%+ 4.73% 4.73% 4.53%+
Portfolio Turnover 52% 73% 39% 20% 44% 8%
Net Assets, end of period (000 omitted) $14,862 $17,316 $16,767 $127,835 $164,579 $185,977
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and/or an allocation
of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.72% 0.67% 0.62%+
Net investment income 4.58% 4.45% 3.92%+
+ 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.
(1) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any offset arrangements
with its service providers. The expense ratios for the periods ended March 31, 1995 and 1994 have not been adjusted to reflect
this change.
Massachusetts Limited Portfolio Michigan Limited Portfolio
-------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------- --------------------------------
1996 1995 1994** 1996 1995 1994**
-------- ------- ------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.57% 0.54% 0.52%+ 0.68% 0.48% 0.00%+
Net expenses after custodian fee reduction (1) 0.55% -- -- 0.64% -- --
Net investment income 4.72% 4.90% 4.57%+ 5.00% 4.88% 4.62%+
Portfolio Turnover 27% 46% 8% 40% 111% 30%
Net Assets, end of period (000 omitted) $97,135 $119,120 $119,772 $21,191 $33,198 $35,608
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and/or an allocation
of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.59% 0.54%+
Net investment income 4.77% 4.08%+
New Jersey Limited Portfolio New York Limited Portfolio
-------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------- --------------------------------
1996 1995 1994** 1996 1995 1994**
-------- ------- ------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets):
Net expenses (1) 0.57% 0.54% 0.54%+ 0.55% 0.52% 0.47%+
Net expenses after custodian fee reduction (1) 0.55% -- -- 0.53% -- --
Net investment income 4.78% 4.73% 4.53%+ 4.66% 4.79% 4.50%+
Portfolio Turnover 42% 44% 10% 32% 31% 5%
Net Assets, end of period (000 omitted) $80,173 $97,280 $102,948 $138,728 $173,632 $183,768
+ 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.
(1) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any offset arrangements
with its service providers. The expense ratios for the periods ended March 31, 1995 and 1994 have not been adjusted to reflect
this change.
Ohio Limited Portfolio Pennsylvania Limited Portfolio
-------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------- --------------------------------
1996 1995 1994** 1996 1995 1994**
-------- ------- ------ --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.63% 0.46% 0.00%+ 0.58% 0.53% 0.50%+
Net expenses after custodian fee reduction (1) 0.61% -- -- 0.56% -- --
Net investment income 5.06% 4.96% 4.68%+ 4.81% 4.77% 4.59%+
Portfolio Turnover 47% 120% 33% 24% 39% 12%
Net Assets, end of period (000 omitted) $33,529 $39,435 $37,978 $92,194 $113,606 $123,620
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and an allocation of
expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.58% 0.54%+
Net investment income 4.84% 4.14%+
+ 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.
(1) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any offset arrangements
with its service providers. The expense ratios for the periods ended March 31, 1995 and 1994 have not been adjusted to reflect
this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
Arizona Limited Maturity Municipals Portfolio (Arizona Limited
Portfolio), California Limited Maturity Municipals Portfolio (California
Limited Portfolio), Connecticut Limited Maturity Municipals Portfolio
(Connecticut Limited Portfolio), Florida Limited Maturity Municipals
Portfolio (Florida Limited Portfolio), Massachusetts Limited Maturity
Municipals Portfolio (Massachusetts Limited Portfolio), Michigan Limited
Maturity Municipals Portfolio (Michigan Limited Portfolio), New Jersey
Limited Maturity Municipals Portfolio (New Jersey Limited Portfolio),
New York Limited Maturity Municipals Portfolio (New York Limited
Portfolio), Ohio Limited Maturity Municipals Portfolio (Ohio Limited
Portfolio), and Pennsylvania Limited Maturity Municipals Portfolio
(Pennsylvania 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. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
H. Other -- Investment transactions are accounted for on a trade date
basis.
(2) Portfolio Name Changes
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, Ohio Limited Maturity Tax Free
Portfolio and Pennsylvania Limited Maturity Tax Free Portfolio changed
their respective names to Arizona Limited Maturity Municipals Portfolio,
California Limited Maturity Municipals Portfolio, Connecticut Limited
Maturity Municipals Portfolio, Florida Limited Maturity Municipals
Portfolio, Massachusetts Limited Maturity Municipals Portfolio, Michigan
Limited Maturity Municipals Portfolio, New Jersey Limited Maturity
Municipals Portfolio, New York Limited Maturity Municipals Portfolio,
Ohio Limited Maturity Municipals Portfolio and Pennsylvania Limited
Maturity Municipals Portfolio.
(3) 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 year ended March 31, 1996, each
Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
- ---------- ---------- ------------------
Arizona Limited $ 2,725 0.45%
California Limited 327,056 0.46%
Connecticut Limited 74,308 0.46%
Florida Limited 664,262 0.46%
Massachusetts Limited 506,126 0.46%
Michigan Limited 126,312 0.47%
New Jersey Limited 412,459 0.46%
New York Limited 722,493 0.46%
Ohio Limited 173,867 0.47%
Pennsylvania Limited 478,819 0.46%
To enhance the net income of the Arizona Limited Portfolio and
Connecticut Limited Portfolio, BMR made a reduction of its fees in the
amounts of $2,725, and $53,054, for the year ended March 31, 1996. In
addition, $13,822, of expenses related to the operation of the Arizona
Limited Portfolio, was allocated, to BMR for the year ended March 31,
1996.
Investors Bank & Trust Company (IBT) serves as custodian of the
Portfolios. Prior to November 10, 1995, IBT was an affiliate of EVM and
BMR. Pursuant to the custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances
each Portfolio maintains with IBT. All significant credit balances used
to reduce the Portfolio's custody fees are reported as a reduction of
expenses in the Statement of Operations. Certain of the officers and
Trustees of the Portfolios are officers and directors/trustees of the
above organizations.
* Advisory fees paid as a percentage of average daily net assets.
(4) Investments
Purchases and sales of investments, other than U.S. Government
securities and short-term obligations, for the year ended March 31, 1996
were as follows:
Arizona California Connecticut Florida Massachusetts
Limited Limited Limited Limited Limited
Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- -----------
Purchases $199,789 $24,877,015 $8,250,736 $28,911,796 $29,004,871
Sales 267,967 44,446,230 10,784,654 65,874,757 46,682,315
Michigan New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- ---------- -----------
Purchases $10,444,968 $36,977,125 $48,785,957 $16,917,510 $24,225,600
Sales 22,415,051 53,795,384 80,959,674 22,846,327 47,926,721
(5) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 1996, as computed on a
federal income tax basis, are as follows:
Arizona California Connecticut Florida Massachusetts
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- ---------- -----------
Aggregate
cost $467,314 $58,558,528 $14,290,916 $122,087,493 $98,547,321
======== =========== =========== ============ ===========
Gross
unrealized
appreciation $20,046 $1,382,191 $316,726 $3,356,253 $1,995,216
Gross
unrealized
depreciation 1,305 343,763 90,001 1,052,315 365,158
-------- ---------- ----------- ------------ -----------
Net
unrealized
appreciation
$18,741 $1,038,428 $226,725 $2,303,938 $1,630,058
======== =========== =========== ============ ===========
Michigan New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- ---------- -----------
Aggregate
cost $19,846,029 $77,501,411 $135,090,306 $32,188,327 $88,507,791
========== =========== =========== =========== ===========
Gross
unrealized
appreciation $756,054 $2,011,354 $2,402,137 $810,700 $2,197,635
Gross
unrealized
depreciation 177,620 520,714 1,019,699 136,899 295,069
---------- ----------- ----------- ----------- -----------
Net
unrealized
appreciation $578,434 $1,490,640 $1,382,438 $673,801 $1,902,566
========== =========== =========== =========== ===========
(6) Line of Credit
The Portfolios participate with other portfolios and funds managed by
BMR and EVM in a $120 million unsecured line of credit agreement with a
bank. The line of credit consists of a $20 million committed facility
and a $100 million discretionary facility. Each portfolio may
temporarily borrow up to 5% of its total assets to satisfy redemption
requests or settle transactions. Interest is charged to each portfolio
or fund based on its borrowings at an amount above either the bank's
adjusted certificate of deposit rate, a variable adjusted certificate of
deposit rate, or a federal funds effective rate. In addition, a fee
computed at an annual rate of 1/4 of 1% on the $20 million committed
facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and
portfolios at the end of each quarter. At March 31, 1996, the Florida
Limited Portfolio and New York Limited Portfolio had a balance
outstanding pursuant to this line of credit of $215,000 and $183,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended March 31, 1996.
(7) Financial Instruments
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist
in managing exposure to various market risks. These financial
instruments include written options and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations under these financial instruments at March 31,
1996 is as follows:
Futures
Contracts Net
Expiration Unrealized
Portfolio Date Contracts Position Depreciation
- ---------- --------- ---------------- -------- ------------
Connecticut
Limited 6/96 4 U.S. Treasury Bonds Short $ 3,175
Michigan
Limited 6/96 6 U.S. Treasury Bonds Short 4,763
New Jersey
Limited 6/96 21 U.S. Treasury Bonds Short 13,389
Independent Auditors' Report
To the Trustees and Investors of
Arizona Limited Maturity Municipals Portfolio
California Limited Maturity Municipals Portfolio
Connecticut Limited Maturity Municipals Portfolio
Florida Limited Maturity Municipals Portfolio
Massachusetts Limited Maturity Municipals Portfolio
Michigan Limited Maturity Municipals Portfolio
New Jersey Limited Maturity Municipals Portfolio
New York Limited Maturity Municipals Portfolio
Ohio Limited Maturity Municipals Portfolio
Pennsylvania Limited Maturity Municipals Portfolio
We have audited the accompanying statements of assets and liabilities,
including the portfolio of investments, of Arizona Limited Maturity
Municipals Portfolio, California Limited Maturity Municipals Portfolio,
Connecticut Limited Maturity Municipals Portfolio, Florida Limited
Maturity Municipals Portfolio, Massachusetts Limited Maturity Municipals
Portfolio, Michigan Limited Maturity Municipals Portfolio, New Jersey
Limited Maturity Municipals Portfolio, New York Limited Maturity
Municipals Portfolio, Ohio Limited Maturity Municipals Portfolio, and
Pennsylvania Limited Maturity Municipals Portfolio (the Portfolios), as
of March 31, 1996, and the related statements of operations for the year
then ended, and the statements of changes in net assets for the years
ended March 31, 1996 and 1995 and the supplementary data for each of the
years in the three year period ended March 31, 1996. 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 audit 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, 1996 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 the
aforementioned Portfolios, as of March 31, 1996, 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 2, 1996
Investment Management
Funds
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of
New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard University Graduate School of Business
Administration
Norton H. Reamer
President and Director,
United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser
and Consultant
Portfolios
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
William H. Ahern, Jr.
Vice President and Portfolio Manager of
Connecticut, Michigan, New Jersey, and Ohio Limited Maturity Municipals
Portfolios
Raymond E. Hender
Vice President and Portfolio Manager of Arizona, California, Florida,
Massachusetts, New York and Pennsylvania Limited Maturity Municipals
Portfolios
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of
New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard University Graduate School of Business
Administration
Norton H. Reamer
President and Director,
United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser
and Consultant
Investment Adviser of Limited Maturity Municipals Portfolios
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of EV Marathon Limited Maturity Municipals 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
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
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
M-10LTFCSRC-5/96
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