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Previous: SUN LIFE N Y VARIABLE ACCOUNT C, N-4 EL, 1996-06-03 |
Next: EATON VANCE INVESTMENT TRUST, N-30D, 1996-06-03 |
Eaton Vance Investment Trust
For the Funds:
(bullet) EV Classic Florida Limited Maturity Municipals Fund
(bullet) EV Classic Massachusetts Limited Maturity Municipals Fund
(bullet) EV Classic New York Limited Maturity Municipals Fund
(bullet) EV Classic 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 Classic Florida
Limited Maturity
Municipals Fund 4.8% $0.359 $9.62 3.72% 42.85% 6.51% 99.98%
EV Classic Massachusetts
Limited Maturity
Municipals Fund 5.2% $0.368 $9.68 3.79% 43.68% 6.73% 99.93%
EV Classic New York
Limited Maturity
Municipals Fund 5.2% $0.359 $9.62 3.72% 40.56% 6.26% 99.98%
EV Classic Pennsylvania
Limited Maturity
Municipals Fund 5.1% $0.368 $9.66 3.80% 47.65% 7.25% 99.93%
[GRAPHICS OMITTED IN COL 5 OF FLORIDA, MASSACHUSETTS, NEW YORK AND PENNSYLVANIA]
* Percentages represent the portion 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.
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 is one reason we at Eaton Vance believe patience is a
major key to successful investing.
[PHOTO OF THOMAS J. FETTER OMITTED]
Sincerely,
/S/Thomas J. Fetter
Thomas J. Fetter
President
May 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.
[PHOTO OF RAYMOND E. HENDER OMITTED]
Caption reads: Raymond E. Hender
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.
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 some
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.
[PHOTO OF WILLIAM H. AHERN OMITTED]
Caption reads: William H. Ahern
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 management of inventories by business, and
the impact of 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
on U.S. Treasury bonds is more than 4.5%. Given the fact that real rates
of return 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 exceeded 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 large percentage of the yield of long-term bonds,
with roughly half 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.
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 Classic 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 Classic Florida Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 3.8% 2.3%
Without CDSC 4.8% 2.3%
EV Classic Lehman
Florida Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
12/93 10,000 10,000
1/94 10,110 10,106
2/94 9,904 9,887
3/94 9,583 9,623
4/94 9,660 9,693
5/94 9,727 9,741
6/94 9,691 9,724
7/94 9,819 9,861
8/94 9,826 9,913
9/94 9,749 9,818
10/94 9,643 9,719
11/94 9,512 9,577
12/94 9,647 9,723
1/95 9,816 9,905
2/95 9,994 10,128
3/95 10,044 10,233
4/95 10,057 10,261
5/95 10,245 10,534
6/95 10,234 10,524
7/95 10,342 10,658
8/95 10,426 10,784
9/95 10,448 10,825
10/95 10,534 10,920
11/95 10,609 11,040
12/95 10,663 11,098
1/96 10,729 11,206
2/96 10,653 11,168
3/96 10,531 11,059
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 12/8/93. +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 Classic 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/prerefunded 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 Classic Massachusetts Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 4.2% 2.7%
Without CDSC 5.2% 2.7%
EV Classic Lehman
Massachusetts Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
12/93 10,000 10,000
1/94 10,068 10,106
2/94 9,892 9,887
3/94 9,623 9,623
4/94 9,691 9,693
5/94 9,749 9,741
6/94 9,724 9,724
7/94 9,863 9,861
8/94 9,890 9,913
9/94 9,794 9,818
10/94 9,689 9,719
11/94 9,559 9,577
12/94 9,695 9,723
1/95 9,854 9,905
2/95 10,033 10,128
3/95 10,094 10,233
4/95 10,097 10,261
5/95 10,286 10,534
6/95 10,244 10,524
7/95 10,343 10,658
8/95 10,438 10,784
9/95 10,472 10,825
10/95 10,559 10,920
11/95 10,657 11,040
12/95 10,711 11,098
1/96 10,767 11,206
2/96 10,724 11,168
3/96 10,614 11,059
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 12/9/93. +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 Classic 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/prerefunded 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 further
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 Classic New York Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 4.2% 2.3%
Without CDSC 5.2% 2.3%
EV Classic Lehman
New York Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
12/93 10,000 10,000
1/94 10,100 10,106
2/94 9,903 9,887
3/94 9,612 9,623
4/94 9,679 9,693
5/94 9,746 9,741
6/94 9,710 9,724
7/94 9,828 9,861
8/94 9,845 9,913
9/94 9,737 9,818
10/94 9,631 9,719
11/94 9,458 9,577
12/94 9,604 9,723
1/95 9,773 9,905
2/95 9,972 10,128
3/95 10,022 10,233
4/95 10,035 10,261
5/95 10,223 10,534
6/95 10,191 10,524
7/95 10,299 10,658
8/95 10,383 10,784
9/95 10,416 10,825
10/95 10,503 10,920
11/95 10,610 11,040
12/95 10,664 11,098
1/96 10,729 11,206
2/96 10,664 11,168
3/96 10,542 11,059
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 12/8/93. +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 Classic Pennsylvania Limited Maturity Municipals Fund
[GRAPHIC OF GRADUATION CAP OMITTED]
Your investment at work
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 23.2%
Hospitals 16.8
Insured - Hospitals 10.4*
Insured - Transportation 4.9*
Health care 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 commonwealth'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 commonwealth 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 Classic Pennsylvania Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 4.1% 2.6%
Without CDSC 5.1% 2.6%
EV Classic Lehman
Pennsylvania Brothers
Limited 7-Year
Maturity Municipal
Municipals Bond
Date Fund Index
- -------------------------------------
12/93 10,000 10,000
1/94 10,111 10,106
2/94 9,925 9,887
3/94 9,625 9,623
4/94 9,703 9,693
5/94 9,761 9,741
6/94 9,736 9,724
7/94 9,854 9,861
8/94 9,872 9,913
9/94 9,776 9,818
10/94 9,681 9,719
11/94 9,540 9,577
12/94 9,686 9,723
1/95 9,846 9,905
2/95 10,035 10,128
3/95 10,086 10,233
4/95 10,100 10,261
5/95 10,288 10,534
6/95 10,247 10,524
7/95 10,335 10,658
8/95 10,420 10,784
9/95 10,453 10,825
10/95 10,541 10,920
11/95 10,638 11,040
12/95 10,693 11,098
1/96 10,759 11,206
2/96 10,695 11,168
3/96 10,595 11,059
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 12/8/93. +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.
</TABLE>
<TABLE>
<CAPTION>
EV Classic Limited Maturity Municipals Funds
Financial Statements
Statements of Assets and Liabilities
March 31, 1996
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $8,356,521 $5,016,470 $4,067,750 $7,497,925
Unrealized appreciation (depreciation) (67,948) 13,182 (25,837) (42,556)
---------- ---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $8,288,573 $5,029,652 $4,041,913 $7,455,369
Receivable for Fund shares sold -- 816 5,000 10,017
Receivable from the Administrator (Note 5) 18,370 24,619 21,238 26,171
Deferred organization expenses (Note 1D) 3,895 5,928 5,488 5,407
---------- ---------- ---------- ----------
Total assets $8,310,838 $5,061,015 $4,073,639 $7,496,964
---------- ---------- ---------- ----------
Liabilities:
Dividends payable $7,610 $4,736 $3,729 $7,025
Payable for Fund shares redeemed -- -- 2,076 4,845
Payable to affiliate --
Trustees' fees 41 41 -- 41
Accrued expenses 4,648 3,251 3,365 4,346
---------- ---------- ---------- ----------
Total liabilities $12,299 $8,028 $9,170 $16,257
---------- ---------- ---------- ----------
Net Assets $8,298,539 $5,052,987 $4,064,469 $7,480,707
========== ========== ========== ==========
Sources of Net Assets:
Paid-in capital $9,347,565 $5,200,027 $4,322,222 $7,984,854
Accumulated net realized loss on investment and
financial futures transactions (computed on the basis
of identified cost) (982,372) (157,742) (231,463) (461,040)
Accumulated undistributed (distributions in excess of)
net investment income 1,294 (2,480) (453) (551)
Unrealized appreciation (depreciation) of investments
from Portfolio (computed on the basis of identified cost) (67,948) 13,182 (25,837) (42,556)
---------- ---------- ---------- ----------
Total $8,298,539 $5,052,987 $4,064,469 $7,480,707
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding 862,858 522,082 422,371 774,751
========== ========== ========== ==========
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets (divided by) shares of beneficial
interest outstanding) (Note 7) $9.62 $9.68 $9.62 $9.66
===== ===== ===== =====
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $498,644 $289,042 $262,901 $437,083
Expenses allocated from Portfolio (51,249) (30,133) (26,787) (45,341)
-------- -------- -------- --------
Net investment income from Portfolio $447,395 $258,909 $236,114 $391,742
-------- -------- -------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $162 $162 $378 $162
Distribution costs (Note 6) 84,766 49,544 45,584 73,364
Custodian fees (Note 5) 3,001 3,169 2,926 2,922
Transfer and dividend disbursing agent fees 5,507 3,976 1,727 5,461
Printing and postage 10,137 8,452 8,905 9,939
Legal and accounting services 8,794 7,155 6,721 9,352
Amortization of organization expenses (Note 1D) 1,457 2,218 2,053 2,024
-------- -------- -------- --------
Total expenses $113,824 $74,676 $68,294 $103,224
Deduct -- Allocation of expenses to the
Administrator (Note 5) 18,370 24,619 21,238 26,171
-------- -------- -------- --------
Net expenses $95,454 $50,057 $47,056 $77,053
-------- -------- -------- --------
Net investment income $351,941 $208,852 $189,058 $314,689
-------- -------- -------- --------
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss from Portfolio --
Investment transactions (identified cost basis) ($115,299) ($5,146) ($20,265) ($90,654)
Financial futures contracts (57,889) (28,114) (30,126) (45,845)
-------- -------- -------- --------
Net realized loss ($173,188) ($33,260) ($50,391) ($136,499)
Change in unrealized appreciation 310,510 105,044 140,734 239,926
-------- -------- -------- --------
Net realized and unrealized gain $137,322 $71,784 $90,343 $103,427
-------- -------- -------- --------
Net increase in net
assets from operations $489,263 $280,636 $279,401 $418,116
======== ======== ======== ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
--------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $351,941 $208,852 $189,058 $314,689
Net realized loss on investments (173,188) (33,260) (50,391) (136,499)
Change in unrealized appreciation of investments 310,510 105,044 140,734 239,926
---------- ---------- ---------- ----------
Net increase in net assets from operations $489,263 $280,636 $279,401 $418,116
---------- ---------- ---------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($351,329) ($207,640) ($188,378) ($309,256)
---------- ---------- ---------- ----------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sales of shares $1,113,184 $901,869 $535,978 $1,234,275
Net asset value of shares issued to shareholders in
payment of distributions declared 230,154 165,278 165,662 249,490
Cost of shares redeemed (6,954,195) (1,465,165) (2,770,705) (3,864,821)
---------- ---------- ---------- ----------
Decrease in net assets from Fund share transactions ($5,610,857) ($398,018) ($2,069,065) ($2,381,056)
---------- ---------- ---------- ----------
Net decrease in net assets ($5,472,923) ($325,022) ($1,978,042) ($2,272,196)
Net Assets:
At beginning of year 13,771,462 5,378,009 6,042,511 9,752,903
---------- ---------- ---------- ----------
At end of year $8,298,539 $5,052,987 $4,064,469 $7,480,707
========== ========== ========== ==========
Accumulated undistributed (distributions in excess of)
net investment income included in net assets
at end of year $1,294 ($2,480) ($453) ($551)
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes
Year Ended March 31, 1995
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
--------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $686,243 $224,161 $308,604 $461,892
Net realized loss on investments (804,739) (117,622) (173,962) (293,113)
Change in unrealized appreciation of investments 880,692 94,951 105,107 318,400
----------- ---------- ---------- ----------
Net increase in net assets from operations $762,196 $201,490 $239,749 $487,179
----------- ---------- ---------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($686,243) ($224,161) ($308,604) ($461,892)
In excess of net investment income (92,984) (32,437) (41,058) (66,283)
----------- ---------- ---------- ----------
Total distributions to shareholders ($779,227) ($256,598) ($349,662) ($528,175)
----------- ---------- ---------- ----------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sales of shares $9,729,211 $3,937,604 $6,429,917 $5,729,217
Net asset value of shares issued to shareholders in
payment of distributions declared 538,010 211,505 258,129 419,800
Cost of shares redeemed (19,014,161) (3,683,373) (6,860,488) (10,377,411)
----------- ---------- ---------- ----------
Increase (decrease) in net assets from Fund
share transactions ($8,746,940) $465,736 ($172,422) ($4,228,394)
----------- ---------- ---------- ----------
Net increase (decrease) in net assets ($8,763,971) $410,628 ($282,355) ($4,269,390)
Net Assets:
At beginning of year 22,535,433 4,967,381 6,324,866 14,022,293
----------- ---------- ---------- ----------
At end of year $13,771,462 $5,378,009 $6,042,511 $9,752,903
=========== ========== ========== ==========
Accumulated distributions in excess of net investment
income included in net assets at end of year ($1,214) ($3,692) ($1,133) ($5,984)
=========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Classic Florida Limited Classic Massachusetts Limited
-------------------------------- ---------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- ---------------------------------
1996 1995 1994* 1996 1995 1994*
---------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.520 $ 9.480 $10.000 $ 9.560 $ 9.520 $10.000
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.359 $ 0.353 $ 0.103 $ 0.370 $ 0.359 $ 0.107
Net realized and unrealized
gain (loss) on investments 0.100 0.088 (0.495) 0.118 0.092++ (0.451)
---------- ---------- ---------- ---------- ---------- ----------
Total income (loss) from operations $ 0.459 $ 0.441 $ (0.392) $ 0.488 $ 0.451 $ (0.344)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.359) $ (0.353) $ (0.103) $ (0.368) $ (0.359) $ (0.107)
In excess of net investment income -- (0.048) (0.025) -- (0.052) (0.029)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.359) $ (0.401) $ (0.128) $ (0.368) $ (0.411) $ (0.136)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.620 $ 9.520 $ 9.480 $ 9.680 $ 9.560 $ 9.520
========== ========== ========== ========== ========== ==========
Total Return (1) 4.84% 4.81% (4.07%) 5.16% 4.90% (3.67%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 8,299 $13,771 $22,535 $5,053 $5,378 $4,967
Ratio of net expenses to average daily net assets (2)(3) 1.58% 1.50% 1.39%+ 1.47% 1.63% 1.49%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.56% -- -- 1.46% -- --
Ratio of net investment income to average daily net assets 3.75% 3.81% 3.25%+ 3.80% 3.82% 3.12%+
** For the following periods, the operating expenses of the Funds reflect an allocation of expenses to 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 $ 0.340 $ 0.334 $ 0.095 $ 0.326 $ 0.324 $ 0.077
========== ========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net asset
Expenses (2)(3) 1.78% 1.71% 1.65%+ 1.92% 2.00% 2.38%+
Net investment income 3.55% 3.60% 2.99%+ 3.35% 3.45% 2.23%+
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing
of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset
value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the
net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) 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.
* For the Classic Florida Limited and Classic Massachusetts Limited Funds, the Financial Highlights are for the period from
the start of business, December 8, 1993 and December 9, 1993, respectively, to March 31, 1994.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Classic New York Limited Classic Pennsylvania Limited
-------------------------------- ---------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- ---------------------------------
1996 1995 1994* 1996 1995 1994*
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.490 $ 9.500 $10.000 $ 9.550 $ 9.520 $10.000
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.359 $ 0.354 $ 0.100 $ 0.373 $ 0.359 $ 0.103
Net realized and unrealized
gain (loss) on investments 0.130 0.037++ (0.473) 0.105 0.082 (0.453)
---------- ---------- ---------- ---------- ---------- ----------
Total income (loss) from operations $ 0.489 $ 0.391 $ (0.373) $ 0.478 $ 0.441 $ (0.350)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.359) $ (0.354) $ (0.100) $ (0.368) $ (0.359) $ (0.103)
In excess of net investment income -- (0.047) (0.027) -- (0.052) (0.027)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.359) $ (0.401) $ (0.127) $ (0.368) $ (0.411) $ (0.130)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.620 $ 9.490 $ 9.500 $ 9.660 $ 9.550 $ 9.520
========== ========== ========== ========== ========== ==========
Total Return (1) 5.19% 4.26% (3.88%) 5.05% 4.79% (3.65%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $4,064 $6,043 $6,325 $7,481 $9,753 $14,022
Ratio of net expenses to average daily net assets (2)(3) 1.48% 1.52% 1.61%+ 1.53% 1.47% 1.38%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.46% -- -- 1.51% -- --
Ratio of net investment income to average daily net assets 3.75% 3.76% 3.17%+ 3.87% 3.83% 3.29%+
** For the following periods, the operating expenses of the Funds reflect an allocation of expenses to 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 $0.319 $0.318 $0.082 $0.342 $0.324 $0.089
========== ========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net asset
Expenses (2)(3) 1.90% 1.90% 2.17%+ 1.85% 1.84% 1.82%+
Net investment income 3.33% 3.38% 2.61%+ 3.55% 3.46% 2.85%+
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the timing
of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net
asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested
at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) 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.
* For the Classic New York Limited and Classic Pennsylvania Limited Funds, the Financial Highlights are for the period
from the start of business, December 8, 1993, to March 31, 1994.
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, four of which are included in these financial statements.
They include EV Classic Florida Limited Maturity Municipals Fund
("Classic Florida Limited Fund"), EV Classic Massachusetts Limited
Maturity Municipals Fund ("Classic Massachusetts Limited Fund"), EV
Classic New York Limited Maturity Municipals Fund ("Classic New York
Limited Fund"), and EV Classic Pennsylvania Limited Maturity Municipals
Fund ("Classic 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 Classic
Florida Limited Fund invests its assets in the Florida Limited Maturity
Municipals Portfolio, the Classic Massachusetts Limited Fund invests its
assets in the Massachusetts Limited Maturity Municipals Portfolio, the
Classic New York Limited Fund invests its assets in the New York Limited
Maturity Municipals Portfolio, and Classic 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 (6.5%, 5.2%, 2.9%, and 8.1% at March 31, 1996 for the
Classic Florida Limited Fund, Classic Massachusetts Limited Fund,
Classic New York Limited Fund, and Classic 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
- ------ ---------- ------------
Classic Florida
Limited Fund $560,185 March 31, 2004
175,896 March 31, 2003
Classic Massachusetts
Limited Fund 98,981 March 31, 2004
35,341 March 31, 2003
58 March 31, 2002
Classic New York
Limited Fund 151,250 March 31, 2004
42,307 March 31, 2003
195 March 31, 2002
Classic Pennsylvania
Limited Fund 270,831 March 31, 2004
83,019 March 31, 2003
563 March 31, 2002
Dividends paid by each Fund from net interest on tax-exempt municipal
bonds allocated from its corresponding Portfolio are not included by
shareholders as gross income for federal income tax purposes because
each Fund and Portfolio intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which
will enable the Funds to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item to shareholders.
D. Deferred Organization Expenses - Costs incurred by a Fund in
connection with its organization, including registration costs, are
being amortized on the straight-line basis over five years, beginning on
the date each Fund commenced operations.
E. Other - Investment transactions are accounted for on a trade date
basis.
F. 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.
(2) Fund Name Changes
Effective February 1, 1996, EV Classic Florida Limited Maturity Tax Free
Fund, EV Classic Massachusetts Limited Maturity Tax Free Fund, EV
Classic New York Limited Maturity Tax Free Fund, and EV Classic
Pennsylvania Limited Maturity Tax Free Fund changed their respective
names to EV Classic Florida Limited Maturity Municipals Fund, EV Classic
Massachusetts Limited Maturity Municipals Fund, EV Classic New York
Limited Maturity Municipals Fund, and EV Classic 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. During the year ended March 31, 1996, $1,896 was
reclassified from accumulated undistributed net investment income to
accumulated net realized loss for Classic Florida Limited Fund due to
permanent differences between book and tax accounting. The tax treatment
of distributions for the calendar year will be reported to shareholders
prior to February 1, 1997 and will be based on tax accounting methods
which may differ from amounts determined for financial statement
purposes.
(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). Transactions in Fund shares were as follows:
Classic Florida Classic Massachusetts
Limited Fund Limited Fund
------------------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------------------------
1996 1995 1996 1995
--------- --------- --------- ---------
Sales 114,215 1,028,811 92,646 412,016
Issued to
shareholders
electing
to receive
payments of
distributions
in Fund shares 23,721 57,134 16,994 22,406
Redemptions (721,127) (2,017,638) (150,290) (393,350)
--------- --------- --------- ---------
Net increase
(decrease) (583,191) (931,693) (40,650) 41,072
========= ========= ========= =========
Classic New York Classic Pennsylvania
Limited Fund Limited Fund
Year Ended March 31, Year Ended March 31,
----------------------------------------------------
1996 1995 1996 1995
--------- --------- --------- ---------
Sales 55,514 679,290 126,168 601,975
Issued to
shareholders
electing
to receive
payments of
distributions
in Fund shares 17,130 27,539 25,698 44,417
Redemptions (286,755) (736,398) (398,779) (1,097,896)
--------- --------- --------- ---------
Net decrease (214,111) (29,569) (246,913) (451,504)
========= ========= ========= =========
(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 the Funds, $18,370, $24,619, $21,238, and $26,171, of
expenses related to the operation of the Classic Florida Limited Fund,
Classic Massachusetts Limited Fund, Classic New York Limited Fund, and
Classic Pennsylvania Limited Fund, respectively, 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 custodian to
the Funds and the 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. Effective January 30,
1995, the Trustees of the Funds adopted an Amended Distribution Plan.
The Plans require each of 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) 6.25% of the aggregate amount received by
the Fund for shares sold plus (ii) distribution fees calculated by
applying the rate of 1% over the prevailing prime rate to the
outstanding balance of Uncovered Distribution Charges of EVD, reduced by
the aggregate amount of contingent deferred sales charges (see Note 7)
and amounts theretofore paid to EVD. The amount payable to EVD with
respect to each day is accrued on such day as a liability of each Fund
and, accordingly, reduces each Funds' net assets. For the year ended
March 31, 1996 Classic Florida Limited Fund, Classic Massachusetts
Limited Fund, Classic New York Limited Fund and Classic Pennsylvania
Limited Fund, paid or accrued $70,638, $41,287, $37,987 and $61,137,
respectively, to or payable to EVD representing 0.75% (annualized) of
average daily net assets. At March 31, 1996, the amount of Uncovered
Distribution Charges of EVD calculated under the Plans for Classic
Florida Limited Fund, Classic Massachusetts Limited Fund, Classic New
York Limited Fund and Classic Pennsylvania Limited Fund were
approximately $3,121,000, $668,000, $810,000 and $1,489,000,
respectively.
In addition, the Plans permit the Funds to make monthly payments of
service fees to the Principal Underwriter in amounts not expected to
exceed 0.25% of each Fund's average daily net assets for any fiscal
year. The Trustees have initially implemented the Plans by authorizing
the Funds to make monthly service fee payments to the Principal
Underwriter in amounts not expected to exceed 0.15% of each Fund's
average daily net assets for any fiscal year. For the year ended March
31, 1996, Classic Florida Limited Fund, Classic Massachusetts Limited
Fund, Classic New York Limited Fund and Classic Pennsylvania Limited
Fund paid or accrued service fees to or payable to EVD in the amount of
$14,128, $8,257, $7,597 and $12,227, respectively. On sales made prior
to January 30, 1995, EVD makes monthly service fees payments to
Authorized Firms in amounts anticipated to be equivalent to 0.15%,
annualized, of the assets maintained in each Fund by their customers. On
sales of shares made on January 30, 1995 and thereafter, EVD currently
expects to pay to an Authorized Firm a service fee at the time of sale
equal to 0.15% of the purchase price of the shares sold by such
Authorized Firm and monthly payments of service fees in amounts not
expected to exceed 0.15% per annum of the Funds average daily net assets
based on the value of Fund shares sold by such Authorized Firm and
remaining outstanding for at least one year. During the first year after
a purchase of Fund shares, EVD will retain the service fee as
reimbursement for the service fee payment made to the Authorized Firm at
the time of sale. Service fee payments are made for personal services
and/or maintenance of shareholder accounts. Service fees paid to EVD and
Authorized Firms are separate and distinct from the sales commissions
and distribution fees payable by a Fund to EVD, and as such are not
subject to automatic discontinuance when there are no outstanding
Uncovered Distribution Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(7) Contingent Deferred Sales Charges
For shares purchased on or after January 30, 1995, a contingent deferred
sales charge (CDSC) of 1% is imposed on any redemption of Fund shares
made within one year of purchase. Generally, the CDSC is based upon the
lower of the net asset value at date of redemption or date of purchase.
No charge is levied on shares acquired by reinvestment of dividends or
capital gains distributions. No CDSC is levied on shares which have been
sold to EVD or its affiliates or to their respective employees or
clients. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under the Fund's Distribution Plans.
CDSC received when no Uncovered Distribution Charges exist will be
credited to the Funds. For the year ended March 31, 1996, EVD received
$156, $229, $359 and $1,083, respectively, of CDSC paid by shareholders
of Classic Florida Limited Fund, Classic Massachusetts Limited Fund,
Classic New York Limited Fund, and Classic Pennsylvania Limited Fund,
respectively.
(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:
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Fund Fund Fund Fund
-------- ------------ ----------- -----------
Increases $1,254,423 $ 997,589 $ 604,597 $1,307,987
Decreases 7,518,641 1,658,116 3,164,680 4,081,473
(9) 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 numbers of shares outstanding and each Fund had
the following number of shares represented at the December 15, 1995
meeting:
Shares Outstanding Shares Represented at
Fund at 10/23/95 12/15/95 Meeting
- ------ ------------------ ----------------------
Classic
Florida Limited 897,403 480,787
Classic
Massachusetts Limited 543,136 305,447
Classic
New York Limited 487,718 248,861
Classic
Pennsylvania Limited 810,807 407,499
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.
For the Classic For the Classic
Florida Limited Fund: Massachusetts Limited Fund:
Proposal 1 Proposal 1
FOR 468,480 FOR 251,422
AGAINST 3,777 AGAINST 54,025
ABSTAIN 8,530 ABSTAIN --
For the Classic For the Classic
New York Limited Fund: Pennsylvania Limited Fund:
Proposal 1 Proposal 1
FOR 213,085 FOR 380,349
AGAINST 878 AGAINST 2,164
ABSTAIN 34,898 ABSTAIN 24,986
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 Classic Florida Limited Maturity Municipals Fund, EV Classic
Massachusetts Limited Maturity Municipals Fund, EV Classic New York
Limited Maturity Municipals Fund and EV Classic Pennsylvania Limited
Maturity Municipals Fund (the Funds) ( series of Eaton Vance Investment
Trust) as of March 31, 1996, 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 three-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 audits
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the aforementioned funds of Eaton Vance Investment
Trust at March 31, 1996, and 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>
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 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, 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 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, 47.0% 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>
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>
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>
<TABLE>
<CAPTION>
Limited Maturity Municipals Portfolios
Financial Statements
Statements of Assets and Liabilities
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
--------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $122,087,493 $98,547,321 $135,090,306 $88,507,791
Unrealized appreciation 2,303,938 1,630,058 1,382,438 1,902,566
------------ ----------- ------------ -----------
Total investments, at value (Note 1A) $124,391,431 $100,177,379 $136,472,744 $90,410,357
Cash 130 210,483 232 259,306
Receivable for investments sold 805,225 -- -- 4,501,158
Interest receivable 2,852,461 1,545,014 2,440,493 1,356,793
Deferred organization expenses (Note 1D) 8,787 8,530 5,359 5,583
------------ ----------- ------------ -----------
Total assets $128,058,034 $101,941,406 $138,918,828 $96,533,197
------------ ----------- ------------ -----------
Liabilities:
Demand note payable (Note 6) $215,000 $ -- $183,000 $ --
Payable for investments purchased -- 4,800,000 -- 4,335,225
Payable to affiliate --
Trustees' fee 2,189 -- 2,849 1,693
Accrued expenses 5,834 6,130 4,500 2,279
------------ ----------- ------------ -----------
Total liabilities $223,023 $4,806,130 $190,349 $4,339,197
------------ ----------- ------------ -----------
Net Assets applicable to investors'
interest in Portfolio $127,835,011 $97,135,276 $138,728,479 $92,194,000
============ =========== ============ ===========
Sources of Net Assets:
Net proceeds from capital contributions
and withdrawals Unrealized appreciation $125,531,073 $95,505,218 $137,346,041 $90,291,434
of investments (computed on the
basis of identified cost) 2,303,938 1,630,058 1,382,438 1,902,566
------------ ----------- ------------ -----------
Total $127,835,011 $97,135,276 $138,728,479 $92,194,000
============ =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
--------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $7,635,674 $5,819,018 $8,226,792 $5,569,577
---------- ---------- ---------- ----------
Expenses --
Investment adviser fee (Note 3) $664,262 $506,126 $722,493 $478,819
Compensation of Trustees not members of the
Investment Adviser's organization 10,454 8,898 11,725 6,494
Custodian fees (Note 3) 76,701 57,180 82,786 56,011
Interest expense (Note 6) -- 9,046 -- 17,317
Legal and accounting services 30,060 26,097 30,360 25,860
Registration costs -- 1,250 -- --
Amortization of organization expenses (Note 1D) 4,217 4,099 2,576 2,680
Miscellaneous 25,639 12,225 23,721 11,998
---------- ---------- ---------- ----------
Total expenses $811,333 $624,921 $873,661 $599,179
Deduct --
Reduction of custodian fee (Note 3) 25,064 18,005 34,821 20,958
---------- ---------- ---------- ----------
Net expenses $786,269 $606,916 $838,840 $578,221
---------- ---------- ---------- ----------
Net investment income $6,849,405 $5,212,102 $7,387,952 $4,991,356
---------- ---------- ---------- ----------
Realized and Unrealized Gain (Loss)
on Investments:
Net realized gain (loss) --
Investment transactions (identified cost basis) $1,101,851 $527,819 $1,075,619 $90,417
Financial futures contracts (806,120) (590,914) (857,703) (560,722)
---------- ---------- ---------- ----------
Net realized gain (loss) $295,731 ($63,095) $217,916 ($470,305)
---------- ---------- ---------- ----------
Change in unrealized appreciation --
Investments $1,447,454 $1,662,159 $2,164,521 $1,733,591
Financial futures contracts 142,806 100,304 147,906 95,204
---------- ---------- ---------- ----------
Net unrealized appreciation of investments $1,590,260 $1,762,463 $2,312,427 $1,828,795
---------- ---------- ---------- ----------
Net realized and unrealized gain $1,885,991 $1,699,368 $2,530,343 $1,358,490
---------- ---------- ---------- ----------
Net increase in net assets from operations $8,735,396 $6,911,470 $9,918,295 $6,349,846
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
----------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $6,849,405 $5,212,102 $7,387,952 $4,991,356
Net realized gain (loss) on investments 295,731 (63,095) 217,916 (470,305)
Change in unrealized appreciation of investments 1,590,260 1,762,463 2,312,427 1,828,795
------------ ------------ ------------ ------------
Net increase in net assets from operations $8,735,396 $6,911,470 $9,918,295 $6,349,846
------------ ------------ ------------ ------------
Capital transactions --
Contributions $10,648,982 $4,408,033 $7,273,143 $4,976,577
Withdrawals (56,128,282) (33,303,769) (52,095,383) (32,738,468)
------------ ------------ ------------ ------------
Decrease in net assets resulting from
capital transactions ($45,479,300) (28,895,736) ($44,822,240) ($27,761,891)
------------ ------------ ------------ ------------
Total decrease in net assets ($36,743,904) ($21,984,266) ($34,903,945) ($21,412,045)
Net Assets:
At beginning of year 164,578,915 119,119,542 173,632,424 113,606,045
------------ ------------ ------------ ------------
At end of year $127,835,011 $97,135,276 $138,728,479 $92,194,000
============ =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1995
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
------------------ ----------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $8,483,858 $5,912,832 $8,821,606 $5,762,059
Net realized loss on investments (4,072,437) (2,100,952) (2,970,287) (1,989,932)
Change in unrealized appreciation
of investments 5,067,690 2,792,609 3,317,903 2,563,670
------------ ------------ ------------ ------------
Net increase in net assets from operations $9,479,111 $6,604,489 $9,169,222 $6,335,797
------------ ------------ ------------ ------------
Capital transactions --
Contributions $29,535,670 $17,263,223 $23,864,886 $15,664,244
Withdrawals (60,412,518) (24,520,587) (43,169,334) (32,013,516)
------------ ------------ ------------ ------------
Decrease in net assets resulting from
capital transactions ($30,876,848) ($7,257,364) ($19,304,448) ($16,349,272)
------------ ------------ ------------ ------------
Total decrease in net assets ($21,397,737) ($652,875) ($10,135,226) ($10,013,475)
Net Assets:
At beginning of year 185,976,652 119,772,417 183,767,650 123,619,520
------------ ------------ ------------ ------------
At end of year $164,578,915 $119,119,542 $173,632,424 $113,606,045
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
Florida Limited Portfolio Massachusetts 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) 0.55% 0.52% 0.49%+ 0.57% 0.54% 0.52%+
Net expenses after custodian
fee reduction (1) 0.54% -- -- 0.55% -- --
Net investment income 4.73% 4.73% 4.53%+ 4.72% 4.90% 4.57%+
Portfolio Turnover 20% 44% 8% 27% 46% 8%
Net Assets, end of period (000 omitted) $127,835 $164,579 $185,977 $97,135 $119,120 $119,772
New York Limited Portfolio Pennsylvania Limited Portfolio
------------------------------ ------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------ ------------------------------
1996 1995 1994* 1996 1995 1994*
-------- -------- ------- ------- -------- -------
Ratios (As a percentage of average
daily net assets)++:
Net expenses (1) 0.55% 0.52% 0.47%+ 0.58% 0.53% 0.50%+
Net expenses after custodian
fee reduction (1) 0.53% -- -- 0.56% -- --
Net investment income 4.66% 4.79% 4.50%+ 4.81% 4.77% 4.59%+
Portfolio Turnover 32% 31% 5% 24% 39% 12%
Net Assets, end of period (000 omitted) $138,728 $173,632 $183,768 $92,194 $113,606 $123,620
+ Annualized.
* 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 provider. 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
Florida Limited Maturity Municipals Portfolio (Florida Limited
Portfolio), Massachusetts Limited Maturity Municipals Portfolio
(Massachusetts Limited Portfolio), New York Limited Maturity Municipals
Portfolio (New York 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 Valuation - 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
Portfolio's 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
Florida Limited Maturity Tax Free Portfolio, Massachusetts Limited
Maturity Tax Free Portfolio, New York Limited Maturity Tax Free
Portfolio, and Pennsylvania Limited Maturity Tax Free Portfolio, changed
their respective names to Florida Limited Maturity Municipals Portfolio,
Massachusetts Limited Maturity Municipals Portfolio, New York 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 *
- --------------- --------------- ----------------------
Florida Limited $664,262 0.46%
Massachusetts Limited 506,126 0.46%
New York Limited 722,493 0.46%
Pennsylvania Limited 478,819 0.46%
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 average organizations.
* Advisory fees paid as a percentage of average daily net assets
(annualized).
(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:
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
Purchases $28,911,796 $29,004,871 $48,785,957 $24,255,600
Sales 65,874,757 46,682,315 80,959,674 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:
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ------------ -----------
Aggregate Cost $122,087,493 $98,547,321 $135,090,306 $88,507,791
=========== =========== ============ ===========
Gross
unrealized
appreciation $3,356,253 $1,995,216 $2,402,137 $2,197,635
Gross
unrealized
depreciation $1,052,315 $365,158 $1,019,699 $295,069
----------- ----------- ------------ -----------
Net
unrealized
appreciation $2,303,938 $1,630,058 $1,382,438 $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.
There were no outstanding obligations under these financial instruments
at March 31, 1996.
Independent Auditors' Report
To the Trustees and Investors of:
Florida Limited Maturity Municipals Portfolio
Massachusetts Limited Maturity Municipals Portfolio
New York Limited Maturity Municipals Portfolio
Pennsylvania Limited Maturity Municipals Portfolio
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Florida Limited Maturity
Municipals Portfolio, Massachusetts Limited Maturity Municipals
Portfolio, New York Limited Maturity Municipals Portfolio, and
Pennsylvania Limited Maturity Municipals Portfolio (the Portfolios), as
of March 31, 1996, 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 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 Trust's 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 at 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
Raymond E. Hender
Vice President and Portfolio Manager of 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 Classic 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
C-4LTFCSRC-5/96
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