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:HOUSE]
Semi-Annual Shareholder Report
September 30, 1996
Table of Contents
Item Page
Six-month results 3
President's letter to shareholders 4
Portfolio Managers' Discussion 5-6
Management Reports:
EV Classic Florida Limited Maturity Municipals Fund 7
EV Classic Massachusetts Limited Maturity Municipals Fund 8
EV Classic New York Limited Maturity Municipals Fund 9
EV Classic Pennsylvania Limited Maturity Municipals Fund 10
Financial Statements 11
Fund shares are not guaranteed by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution.
Shares are subject to investment risks, including possible loss of
principal invested.
Information about your mutual fund investment:
<TABLE>
<CAPTION>
Results for the Total Return Dividends paid NAV If your combined The after-tax
six months ended (excl. sales by Fund per share at Fund's distribution Federal & state distribution rate
September 30, 1996 charge) (during period) 9/30/96 rate at 9/30/96 tax rate is... you would need is...
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EV Classic Florida
Limited Maturity
Municipals Fund 1.3% $0.181 $9.56 3.74% 39.42% 6.17%
EV Classic
Massachusetts Limited
Maturity Municipals Fund 1.4% $0.186 $9.63 3.81% 43.68% 6.76%
EV Classic New York
Limited Maturity
Municipals Fund 1.5% $0.181 $9.58 3.74% 40.86% 6.32%
EV Classic
Pennsylvania Limited
Maturity Municipals Fund 1.4% $0.186 $9.61 3.82% 37.79% 6.34%
[GRAPHIC OF THE STATES FLORIDA, MASSACHUSETTS,
NEW YORK AND PENNSYLVANIA OMITTED IN COLUMN SIX]
</TABLE>
To Shareholders:
Following an upbeat 1995, the bond market encountered difficulty in
the first half of 1996, as the investment climate changed
dramatically.
The year started favorably enough, with the Federal Reserve lowering
the Federal Funds Rate - the rate banks charge each other for
overnight loans and a key short-term interest rate barometer - to
5.25%. Investors' optimism was short-lived, however, as Fed Chairman
Alan Greenspan suggested in his spring Congressional testimony that,
in light of current economic growth, the next move in rates would
likely be higher. Subsequent employment data showed that job
creation was exceeding market estimates and that the labor market
was indeed tightening.
While job growth has cooled in recent months from the blistering
pace set early in the year, the economy has nonetheless failed to
give a clear indication of its long-term direction. Accordingly, the
Federal Reserve has effectively put its monetary policy on hold.
Despite the uncertainty in the market, there are several reasons we
believe an investment in municipal bonds continues to represent good
value for tax-conscious investors. First, while turning in somewhat
faster growth than expected, the nation's economy remains subdued.
GDP grew at a revised 4.8% rate in the second quarter - a relatively
strong showing - but was followed by a 2.2% growth rate in the third
quarter, according to preliminary figures. Interestingly, recent
indicators, including the Federal Reserve's "beige book," an
anecdotal regional economic survey, suggest a possible slowdown in
the first half of 1997. Most importantly, by most measures,
inflation remains well under control.
Second, whatever the outcome of the various tax cut proposals that
have marked the campaigns of both major political parties, it is
certain that the tax structure will remain sharply progressive. That
means that municipal bonds should retain their relative value.
[GRAPHIC OMITTED TAX-EXEMPT BONDS YIELD CHART]
Tax-exempt bonds yield 81% of Treasury yields
30-yr. AAA Gerneral
Obligation (GO) Bonds* 5.61%
Taxable equivalent yield
of investment for couple
in 36% tax bracket 8.77%
30-year Treasury Bonds 6.92%
Principal and interest payments of Treasury securities are
guaranteed by the U.S. government.
*GO yield is a compilation of a representative variey of
general obligation bonds and is not necessarily represented
by the Fund's yield. Statistics as of September 30, 1996.
Past performance is no guarnatee of future results.
Source: Bloomberg, L.P.
Third, on the budget front, the deficit has been reduced
significantly. At present, the deficit as a percentage of GDP is the
smallest of all industrialized nations, alleviating near-term
borrowing needs.
Finally, and perhaps most important, the tax burden of our citizens
is still extraordinarily high. Municipal bonds remain the best way
for most individuals to relieve that burden and keep more of what
they work so hard to earn.We believe that, despite the occasional
market fluctuations, a steadfast, long-term outlook is the best way
to reap the advantages of tax-free investing.
Sincerely,
/S/Thomas J. Fetter
Thomas J. Fetter
President
November 10, 1996
[PHOTO OF THOMAS J. FETTER OMITTED]
Management Discussion
[PHOTO OF RAYMOND E. HENDER OMITTED]
An interview with Raymond E. Hender, Vice President, and William H.
Ahern, Vice President, Portfolio Managers of the Limited Maturity
Municipals Portfolios.
Q. Ray, how would you describe the bond market in recent months?
Mr. Hender: Volatility has certainly been the hallmark of the bond
market for much of the year. Many investors had been anticipating a
slowdown in the second half of the year. However, the economy not
only maintained its momentum, but proved a bit stronger than
expected. For example, third quarter GDP rose 2.2%, following a 4.6%
surge in the second quarter attributed to the rebuilding of
inventories by business. The economy's strength in the face of
weaker expectations has contributed to the bond market's increasing
volatility during the year.
Q. Bill, why has the market been unable to settle on one direction?
Mr. Ahern: The employment reports in March and April started the
ball rolling, with much stronger-than-expected job data. However, no
sooner had the market digested that information, than we again saw
some anecdotal signs of weakness. That pattern continued through the
period. Finally, prior to the Fed's most recent Open Market
Committee meeting in September, the market anticipated that the Fed
would elect to raise interest rates. Defying expectations, the Fed
decided to stand pat. Actually, the mere threat of a Fed rate hike
had caused the market to adjust, eliminating the need for Fed
action. In any event, the market's expectations contributed to the
volatility throughout the period and made this a fairly difficult
investment environment. That's been as true of the municipal market
as it has of the Treasury market.
Q. How would you characterize supply and demand in the municipal
market?
Mr. Hender: Municipal supply has been relatively light but on a par
with reduced demand. With a strong stock market for much of the
year, investors have generally focused less on fixed-income
vehicles. Much of the municipal supply has consisted of insured
bonds, which made the municipal market more generic in nature. By
that, I mean that quality spreads - the yield difference between
bonds of varying quality - have diminished. That has made it
considerably more difficult to find bargains in the investment grade
segment of the market.
Q. What changes have you made to the Portfolios in recent months?
Mr. Hender: We've made several shifts in the past several months.
First, we've extended the durations of the Portfolios beyond the
mid-point of our duration range. Recent signs point to a weakening
of the economy at some point, either in the fourth quarter of this
year or some time early next year. By extending duration - a measure
of responsiveness to interest rate changes - we are increasing the
Portfolios' exposure to a potential market rally. Second, we've
added more aggressive coupons to the Portfolios by trading current
and premium coupon bonds for discount bonds. Typically, discounts
have greater potential for capital appreciation in a stable-to-lower
interest rate environment. Finally, we've improved the Portfolios'
call protection, which also tends to improve upside potential.
Mr. Ahern: In a generic market like this, we've also redoubled our
efforts in the non-rated segment of the market. While the Portfolios
remain highly diversified, our selective use of non-rated bonds
should provide new opportunities. In those efforts, we benefit from
the depth and ample resources of the Eaton Vance research
department.
Q. That's an interesting point. Could you focus briefly on Eaton
Vance's municipal research department?
Mr. Ahern: At Eaton Vance, we maintain a strong research effort
that provides a continuous flow of information between our analysts
and our portfolio managers. We have analysts dedicated to each state
as well as to various industry sectors, such as electric utilities,
co-generation facilities, or transportation projects. By having
analysts dedicated to these various sectors and states, we can be
assured of full coverage of the important developments within those
areas and know that our standards are applied uniformly. That is
particularly critical in assessing non-rated bonds or lower-rated
bonds.
[PHOTO OF WILLIAM H. AHERN OMITTED]
Q. Why is that so important today?
Mr. Hender: As Bill indicated earlier, the market is increasingly
generic, with insured bonds representing a growing percentage of new
issuance. Therefore, we are looking at non-rated bonds to find value
and attractive new yield opportunities. Our analysts visit hundreds
of company, state, local, and agency officials annually. They also
maintain close contact with outside research sources and major
credit ratings agencies to monitor the fiscal progress of state and
local issuers. This in-depth research is helpful in determining
which bonds may present good opportunities, and, conversely, which
do not meet our criteria.
Q. How would you assess the current market from a credit standpoint?
Mr. Ahern: From a credit standpoint, this has been a relatively calm
period. Unlike recent years, which saw a number of credit
disappointments, such as the difficulties in Orange County, the
fiscal health of states and municipalities has improved somewhat in
the current economic environment. State and local budgets have
clearly benefited from lower interest rates. And employment growth -
while certainly not robust - has helped boost tax revenues at the
state level. Every new job created provides additional tax revenue,
and in many cases, helps reduce spending on social services. That
has created a better credit climate.
Q. Have you made many sector changes to the Portfolios?
Mr. Hender: There has not been much change in terms of sectors. As
Bill indicated, the states have done fairly well in the past year,
and, as a result, the general obligation sector has been fairly
stable. Elsewhere, we continue to monitor the electric utility
sector closely. Deregulation, together with wholesale and retail
wheeling - the sale of power to customers in other service areas -
is certain to radically alter that industry. In the health care
sector, we have upgraded the quality of our hospital holdings,
focusing increasingly on the large, well-managed systems that should
fare well in a changing health care scene.
Mr. Ahern: We've also favored several subsets of health care,
including continuing care communities and nursing homes. These
alternative-care facilities are beneficiaries of the nation's aging
population as well as the push in the political arena to find more
effective and less costly ways to deliver high-quality health care.
Finally, we have been increasingly selective in the solid waste
sector. The New Jersey court mandates initially sent shockwaves
through the entire solid waste sector. But the market is once again
focusing on the underlying fundamentals of individual projects and
we have limited our exposure to those that we view as the strongest.
Q. Looking ahead, what is your outlook for the market?
Mr. Hender: Predicting the direction of interest rates with any
degree of certainty is difficult. I would, however, agree with the
consensus that the economy is likely to weaken in the near-term. The
major question is whether the sharp employment growth of this year
will fuel inflation. If inflation does not result, we are likely to
see a stable-to-lower interest rate scenario. That should be a
favorable backdrop for the overall bond market.
In the municipal bond market, the vast majority of refunding has
been completed. Therefore, the market is not likely to suffer from
severe supply pressures in the coming year. That's important because
there should then be a good balance between supply and demand.
Naturally, past trends don't always provide a clue to future
performance. But intermediate-term municipal bonds should continue
to offer yields that are over 80% of taxable yields, according to
Bloomberg Financial. In my view, that illustrates the continuing
degree of value in this segment of the municipal market. And for
investors who want to enjoy the benefits of tax-free income while
limiting their volatility and exposure to interest rate risk, the
intermediate-term sector of the market still merits close attention.
EV Classic Florida Limited Maturity Municipals Fund
The State of the State: Florida
Florida's economy has grown steadily since 1993, led by a strong
service sector which comprises over one-third of the state's
employment and consists mainly of health and business services.
Total employment increased by 5% from 1993 to 1995, and the
unemployment rate decreased from 8.2% in 1992 to 5.2% at the end of
the second quarter of 1996. Other strong sectors include
construction and trade which, along with service, account for two-
thirds of employment in Florida. Tourism was hit hard by the
recession in the early 1990s, but has rebounded strongly in the past
few years. The tourism industry provides the foundation for much of
the state's economy and is expected to grow by 4.3% through fiscal
1997, according to Standard & Poor's.
Though dependent on a cyclical 6% sales and use tax, Florida's
finances are well managed, and the state maintains a healthy working
capital reserve. Governor Chiles has proposed bond issuance
totalling $1.14 billion for fiscal 1997, which will provide funding
in four main areas: Public Education, Environmental Preservation,
Right-of-Way Acquisition, and Prison and Detention. As required
by law, all bond issues must be backed by a specific revenue stream
to receive the "full faith and credit" approval from the Florida
state government.
[GRAPHIC OF THE STATE FLORIDA OMITTED]
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 56
Average quality AA
Investment grade 98.5%
Effective maturity 8.31 yrs.
Largest sectors:
Escrowed 21.3%
General obligations 18.1
Utility 9.9
Insured hospital 9.3*
Insured transportation 7.6*
* Private insurance does not remove the market risks associated with
this investment.
[GRAPHIC OF TREE OMITTED]
Your investment at work:
Nassau County, FL
Pollution Control Bonds
ITT/Rayonier Inc. Project
Rayonier, Inc. is a leading international company engaged in the
trading, merchandising and manufacture of logs, timber and forest
products. At its production facility in northeastern Florida,
Rayonier manufactures several grades of pulp used in textiles,
packaging, cosmetics, film, plastics, detergents and paints.
Rayonier is also among the top makers of fluff pulp, used in
absorbent products such as disposable diapers, sanitary products,
and industrial napkins. The proceeds of these bonds were used to
finance the acquisition, construction, and installation of air and
water pollution control facilities serving the company's pulp mill
in Fernandina Beach, in Nassau County, Florida. This industrial
development bond is an example of a municipal bond investment being
used to encourage economic initiatives while providing support for
the environment.
The Portfolio's Five Largest Holdings*
Jacksonville, FL
Bulk Power Supply System
Aaa/AAA 6.75% 10/1/16
Florida Department of
Natural Resources (MBIA)
Aaa/AAA 5.25% 7/1/10
Jacksonville, FL
Health Facilities Authority (MBIA)
Baptist Medical Center Project
Aaa/AAA 7.25% 6/1/05
Florida State Board of
Education
Aa/AA 5.5% 6/1/11
Orlando Utility
Community Water & Electric
Aaa/AAA 6.5% 10/1/20
*By market value as of September 30, 1996.
EV Classic Massachusetts Limited Maturity Municipals Fund
The State of the State: Massachusetts
The Massachusetts economy has made a dramatic recovery from the
recession of 1990-1991, which was one of the most difficult in
recent memory. After three years of budget deficits, the election of
Governor William Weld in 1990 led to immediate changes on the
budgetary front. Since his election in 1990, the governor has
balanced the budget in every year of his adminis-tration. As a
result of its more conservative fiscal policies, the state's general
obligation debt has earned several rating increases since 1991.
Though the Massachusetts economic recovery was somewhat slow at
first, the business climate has shown great improvement in recent
years. Unemployment reached 4.0% in August of 1996, its lowest since
June of 1989, and job growth has been increasing at a 1.4% annual
rate, with 114,800 new jobs added in the past two years. The
technology and defense-related sectors, which experienced
significant job losses, are beginning to turn around.
The state government has become much friendlier towards the business
community through tax cuts, regulatory reform, investing in
infrastructure, and programs to help small businesses.
[GRAPHIC OF THE STATE MASSACHUSETTS OMITTED]
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 49
Average quality AA
Investment grade 95.1%
Effective maturity 8.27 yrs.
Largest sectors:
Insured housing 16.8*%
Escrowed/prerefunded 12.8
Hospitals 12.5
Insured general obligations 10.3*
General obligations 8.4
* Private insurance does not remove the market risks associated with
this investment.
[GRAPHIC OF WATER PIPE OMITTED]
Your investment at work
Massachusetts Water
Resources Authority
Revenue Bonds
The Massachusetts Water Resources Authority was created in 1985 and
assumed control of the waterworks and sewer systems that provide
wholesale services to cities and towns located primarily in eastern
Massachusetts. The Authority's service area includes, in whole or
part, sixty cities and towns encompassing a population of 2.5
million people. Since its creation in 1985, the Authority has made
significant headway toward meeting statutory environmental mandates.
Its centerpiece achievement has been its progress toward the
construction of a new wastewater treatment plant for Boston Harbor.
Due to its increasingly sound financial practices, the Authority has
enjoyed strong financial performance in recent years. These bonds
provide an attractive 7.5% coupon from a strong issuer, while
helping fund improvements for essential services.
The Portfolio's Five Largest Holdings*
Massachusetts Housing Finance Agency (AMBAC)
Harborpoint Development
Aaa/AAA 6.20% 12/1/10
Massachusetts Housing Finance Agency (MBIA)
Aaa/AAA 6.125% 12/1/11
Massachusetts Health & Educational Facilities Authority
Daughters of Charity
Aa/NR 5.75% 7/1/02
Massachusetts Bay Transportation Authority (AMBAC)
Aaa/AAA 5.25% 3/1/11
Massachusetts Water &
Resource Authority
Aaa/AAA 7.5% 4/1/09
*By market value as of September 30, 1996.
EV Classic New York Limited Maturity Municipals Fund
The State of the State: New York
New York's economy has continued its relatively slow rate of growth
in 1996, with mediocre economic results for the state offset by a
Wall Street-led recovery in New York City. The securities industry,
concentrated primarily in New York City, has emerged as a key part
of the state's overall economy, accounting for 2.5% of the state's
private sector employment and over 5% for that of New York City.
Average wages for the securities industry, at $127,800 in 1995, are
among the highest in the state. By comparison, average wages
excluding this industry were $32,300 in 1995. Overall, employment in
the state is up 1% over the previous year, and this rate of growth
is not expected to change significantly through 1997. The
unemployment rate, at 6.4% in July of this year, was more than a
full percentage point higher than that of the nation. New York is
still one of the wealthiest states in the country, with a personal
income that is 118% of the nation, but the rate of growth in
personal income has slowed considerably since the 1990-1991
recession.
New York's budget has been balanced due to higher than expected
revenues from the securities industry, but problems remain. Though
the governor's three-year income tax cut was implemented for the
1996-97 budget, spending cuts have been slow to materialize. And
with the enactment of the new federal welfare bill, New York's
costly social programs could become especially burdensome if not
brought under stricter control.
[GRAPHIC OF THE STATE NEW YORK OMITTED]
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 55
Average quality AA-
Investment grade 99.2%
Effective maturity 8.60 yrs.
Largest sectors:
Transportation 12.4%
Education 10.4
General obligation 10.2
Insured transportation 9.7*
Escrowed/prerefunded 9.5
* Private insurance does not remove the risk of loss of principal
due to changes in market conditions that is associated with this
investment.
[GRAPHIC OF GRADUATION CAP OMITTED]
Your investment at work
Dormitory Authority of the
State of New York
State University of New York
The Dormitory Authority of New York State provides financing for
construction and repair projects to public and private educational
facilities throughout the state, including projects for the many
campuses of the State University system. Rated Aaa by Moody's, these
escrowed bonds provide an attractive 6.75% coupon from a well-
regarded issuer. Escrowed bonds are bonds that have been pre-
refunded by the issuers to take advantage of a lower rate
environment. Refundings hit the market in large supply in 1992 and
1993 as interest rates declined sharply. The large number of
refundings created a huge supply on the market and an unusual
opportunity in the intermediate range of the market. These bonds
have a stated maturity of 2021 but have been refunded to 2002. As a
result, investors enjoy the yield of a longer-maturity bond, but
with the volatility of a shorter-maturity bond.
The Portfolio's Five Largest Holdings:*
Dormitory Authority of the
State of New York
University of Rochester
A1/A+ 6.50% 7/1/09
New York State Energy Research & Development
Authority: Central Hudson Gas (FGIC)
Aaa/AAA 7.375% 10/1/14
New York City
Housing Development Corporation (Multi-Family)
Aa/AA 5.625% 5/1/12
New York State Medical Care Facilities Finance Agency
New York State Hospital (AMBAC)
Aaa/AAA 6.1% 2/15/04
New York Urban Development Corporation
Baa1/BBB 5.375% 1/1/15
*By market value as of September 30, 1996.
EV Classic Pennsylvania Limited Maturity Municipals Fund
The State of the State: Pennsylvania
While the national economy continues to register growth, progress in
Pennsylvania has been uneven, with the lower-cost, centrally located
areas continuing to outpace the Pittsburgh and Philadelphia
metropolitan areas. Mirroring the job growth at the national level,
Pennsylvania experienced a surge in employment gains in the early
summer months. In July, the Common-wealth's unemployment rate was
5.1%, unchanged from June. Total employment reached its highest
level in seven years. The construction industry was responsible for
the bulk of new jobs added during the summer, as the industry saw a
surge in housing starts that exceeded most expectations. Retail
trade, services and government also added significantly to the job
picture. Personal income levels for commonwealth residents continued
to rise in recent months, fueling the improvement in the retail
sector. Pennsylvania's fiscal outlook continues to improve, having
benefited from tax reforms, government cost controls, and a slowly
improving economy.
[GRAPHIC OF THE STATE PENNSYLVANIA OMITTED]
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 51
Average quality AA-
Investment grade 93.7%
Effective maturity 8.40 yrs.
Largest sectors:
Hospitals 21.4%
Escrowed 16.2
Insured hospitals 12.6*
Education 8.8
Insured general obligations 6.1*
* Private insurance does not remove the market risks associated with
this investment.
[GRAPHIC OF MEDICAL SYMBOL OMITTED]
Your investment at work
Montour County, PA
Health System
Revenue Bonds
Geisinger Authority
Geisinger is a regional, multi-institutional, health care system,
serving a population of approximately two million residents in
central and northeastern Pennsylvania. The Geisinger facilities
obligated by these bonds include two medical centers with over 800
beds, a group medical practice with 500 physicians, and a substance
abuse center. The medical centers, located in Danville and Wilkes-
Barre, provide multi-specialty medical services, treatment of
alcohol and drug dependency, management and consultative services,
and continuing medical education. These bonds are rated Aa/AA by
Moody's and Standard & Poor's, respectively. Issued by a well-
respected health services practitioner, the bonds have a very
attractive coupon of 7.375%, which helps to boost the Fund's income
while narrowing the Portfolio's focus in an increasingly selective
health care sector.
The Portfolio's Five Largest Holdings*
Pennsylvania Higher Education Facilities Authority
University of Pennsylvania Hospital
Aa/AA 5.875% 1/1/15
Pennsylvania State
Turnpike Commission (AMBAC)
Aaa/AAA 6.25% 6/1/11
Pottsville, PA Hospital Authority
Daughters of Charity
Aa/NR 5.00% 8/15/12
Philadelphia Municipal Authority
Justice Lease Revenue Bonds (FGIC)
Aaa/AAA 7.10% 11/15/11
Commonwealth of Pennsylvania (AMBAC)
Aaa/AAA 5.0% 11/15/11
*By market value as of September 30, 1996.
EV Classic Limited Maturity Municipals Funds
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
September 30, 1996 (Unaudited)
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 $ 7,301,281 $ 4,756,084 $ 3,908,446 $ 6,393,204
Unrealized appreciation (depreciation) (53,246) 15,376 (25,345) (65,429)
------------ ------------ ------------ ------------
Total investment in Portfolio, at value (Note 1A) $ 7,248,035 $ 4,771,460 $ 3,883,101 $ 6,327,775
Receivable from the Administrator (Note 4) 3,733 10,692 10,208 5,342
Deferred organization expenses (Note 1D) 3,203 4,807 4,460 4,395
------------ ------------ ------------ ------------
Total assets $ 7,254,971 $ 4,786,959 $ 3,897,769 $ 6,337,512
------------ ------------ ------------ ------------
Liabilities:
Dividends payable $ 5,206 $ 3,474 $ 2,789 $ 4,622
Payable for Fund shares redeemed 26,003 53,276 -- --
Payable to affiliate-
Trustees' fees 41 -- -- 41
Accrued expenses 1,188 1,772 1,560 2,296
------------ ------------ ------------ ------------
Total liabilities $ 32,438 $ 58,522 $ 4,349 $ 6,959
------------ ------------ ------------ ------------
Net Assets $ 7,222,533 $ 4,728,437 $ 3,893,420 $ 6,330,553
============ ============ ============ ============
Sources of Net Assets:
Paid-in capital $ 8,323,204 $ 4,899,418 $ 4,168,619 $ 6,879,364
Accumulated net realized loss on investment and
financial futures transactions (computed on the basis
of identified cost) (1,049,157) (186,696) (249,624) (484,114)
Accumulated undistributed (distributions in excess of)
net investment income 1,732 339 (230) 732
Unrealized appreciation (depreciation) of investments
and financial futures contracts from Portfolio
(computed on the basis of identified cost) (53,246) 15,376 (25,345) (65,429)
------------ ------------ ------------ ------------
Total $ 7,222,533 $ 4,728,437 $ 3,893,420 $ 6,330,553
============ ============ ============ ============
Shares of Beneficial Interest Outstanding 755,491 490,815 406,345 659,062
============ ============ ============ ============
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets (divided by) shares of beneficial
interest outstanding) (Note 6) $ 9.56 $ 9.63 $ 9.58 $ 9.61
====== ====== ====== ======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
(Six Months Ended September 30,1996 (Unaudited)
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 $ 205,982 $ 133,126 $ 104,927 $ 196,451
Expenses allocated from Portfolio (22,204) (14,313) (11,153) (21,148)
------------ ------------ ------------ ------------
Net investment income from Portfolio $ 183,778 $ 118,813 $ 93,774 $ 175,303
------------ ------------ ------------ ------------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ 82 $ 41 $ -- $ 82
Distribution costs (Note 5) 33,995 21,947 17,610 30,920
Custodian fees 1,500 833 1,499 1,499
Transfer and dividend disbursing agent fees 2,816 1,540 1,172 2,085
Printing and postage 2,456 3,366 3,172 3,450
Legal and accounting services 3,629 3,992 5,417 7,235
Amortization of organization expenses (Note 1D) 692 1,121 1,028 1,012
Miscellaneous 177 734 617 1,045
------------ ------------ ------------ ------------
Total expenses $ 45,347 $ 33,574 $ 30,515 $ 47,328
Deduct -- preliminary allocation of expenses
to the Administrator (Note 4) 3,733 10,692 10,208 5,342
------------ ------------ ------------ ------------
Net expenses $ 41,614 $ 22,882 $ 20,307 $ 41,986
------------ ------------ ------------ ------------
Net investment income $ 142,164 $ 95,931 $ 73,467 $ 133,317
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $ (28,371) $ (11,456) $ (2,061) $ 23,915
Financial futures contracts (38,414) (17,498) (16,100) (46,989)
------------ ------------ ------------ ------------
Net realized loss $ (66,785) $ (28,954) $ (18,161) $ (23,074)
Change in unrealized appreciation (depreciation) of
investments and financial futures contracts 14,702 2,194 492 (22,873)
------------ ------------ ------------ ------------
Net realized and unrealized loss $ (52,083) $ (26,760) $ (17,669) $ (45,947)
------------ ------------ ------------ ------------
Net increase in net
assets from operations $ 90,081 $ 69,171 $ 55,798 $ 87,370
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Six Months Ended September 30, 1996 (Unaudited)
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 $ 142,164 $ 95,931 $ 73,467 $ 133,317
Net realized loss on investments (66,785) (28,954) (18,161) (23,074)
Change in unrealized appreciation of investments 14,702 2,194 492 (22,873)
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 90,081 $ 69,171 $ 55,798 $ 87,370
------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) --
From net investment income $ (141,726) $ (93,112) $ (73,244) $ (132,034)
------------ ------------ ------------ ------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 18,870 $ 153,427 $ 275,079 $ 545,161
Net asset value of shares issued to shareholders in
payment of distributions declared 95,341 81,823 59,546 100,599
Cost of shares redeemed (1,138,572) (535,859) (488,228) (1,751,250)
------------ ------------ ------------ ------------
Decrease in net assets from Fund share transactions $ (1,024,361) $ (300,609) $ (153,603) $ (1,105,490)
------------ ------------ ------------ ------------
Net decrease in net assets $ (1,076,006) $ (324,550) $ (171,049) $ (1,150,154)
Net Assets:
At beginning of period 8,298,539 5,052,987 4,064,469 7,480,707
------------ ------------ ------------ ------------
At end of period $ 7,222,533 $ 4,728,437 $ 3,893,420 $ 6,330,553
============ ============ ============ ============
Accumulated undistributed (distributions in
excess of) net investment income included
in net assets at end of period $ 1,732 $ 339 $ (230) $ 732
============ ============ ============ ============
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>
Financial Highlights
<TABLE>
<CAPTION>
Classic Florida Limited
----------------------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30,1996 ------------------------------------------
(Unaudited) 1996 1995 1994*
-------------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.620 $ 9.520 $ 9.480 $ 10.000
-------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.180 $ 0.359 $ 0.353 $ 0.103
Net realized and unrealized
gain (loss) on investments (0.061) 0.100 0.088 (0.495)
-------- -------- -------- --------
Total income (loss) from operations $ 0.119 $ 0.459 $ 0.441 $ (0.392)
-------- -------- -------- --------
Less distributions:
From net investment income $ (0.179) $ (0.359) $ (0.353) $ (0.103)
In excess of net investment income -- -- (0.048) (0.025)
-------- -------- -------- --------
Total distributions $ (0.179) $ (0.359) $ (0.401) $ (0.128)
-------- -------- -------- --------
Net asset value, end of period $ 9.560 $ 9.620 $ 9.520 $ 9.480
======== ======== ======== ========
Total Return (1) 1.28% 4.84% 4.81% (4.07%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 7,223 $ 8,299 $ 13,771 $ 22,535
Ratio of net expenses to average daily net assets (2)(3) 1.70%+ 1.58% 1.50% 1.39%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.69%+ 1.56% -- --
Ratio of net investment income to
average daily net assets 3.77%+ 3.75% 3.81% 3.25%+
** 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 $ 0.175 $ 0.340 $ 0.334 $ 0.095
======== ======== ======== ========
Ratios (As a percentage of
average daily net assets):
Expenses (2)(3) 1.80%+ 1.78% 1.71% 1.65%+
Expenses after custodian fee reduction (2) 1.79%+ 1.76% -- --
Net investment income 3.67%+ 3.55% 3.60% 2.99%+
+ Annualized.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net
asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at
the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter 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. 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 period from the start of business, December 8, 1993, to March 31, 1994.
</TABLE>
<TABLE>
<CAPTION>
Classic Massachusetts Limited
----------------------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30,1996 ------------------------------------------
(Unaudited) 1996 1995 1994*
-------------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.680 $ 9.560 $ 9.520 $ 10.000
-------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.189 $ 0.370 $ 0.359 $ 0.107
Net realized and unrealized
gain (loss) on investments (0.055) 0.118 0.092++ (0.451)
-------- -------- -------- --------
Total income (loss) from operations $ 0.134 $ 0.488 $ 0.451 $ (0.344)
-------- -------- -------- --------
Less distributions:
From net investment income $ (0.184) $ (0.368) $ (0.359) $ (0.107)
In excess of net investment income -- -- (0.052) (0.029)
-------- -------- -------- --------
Total distributions $ (0.184) $ (0.368) $ (0.411) $ (0.136)
-------- -------- -------- --------
Net asset value, end of period $ 9.630 $ 9.680 $ 9.560 $ 9.520
======== ======== ======== ========
Total Return (1) 1.42% 5.16% 4.90% (3.67%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 4,728 $ 5,053 $ 5,378 $ 4,967
Ratio of net expenses to average daily net assets (2)(3) 1.55%+ 1.47% 1.63% 1.49%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.53%+ 1.46% -- --
Ratio of net investment income to
average daily net assets 3.94%+ 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 $ 0.168 $ 0.326 $ 0.324 $ 0.077
======== ======== ======== ========
Ratios (As a percentage of
average daily net assets):
Expenses (2)(3) 1.98%+ 1.92% 2.00% 2.38%+
Expenses after custodian fee reduction (2) 1.96%+ 1.91% -- --
Net investment income 3.51%+ 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 the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter 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. 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 period from the start of business, December 9, 1993, to March 31, 1994.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Classic New York Limited
----------------------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30,1996 ------------------------------------------
(Unaudited) 1996 1995 1994*
-------------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.620 $ 9.490 $ 9.500 $ 10.000
-------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.180 $ 0.359 $ 0.354 $ 0.100
Net realized and unrealized
gain (loss) on investments (0.041) 0.130 0.037++ (0.473)
-------- -------- -------- --------
Total income (loss) from operations $ 0.139 $ 0.489 $ 0.391 $ (0.373)
-------- -------- -------- --------
Less distributions:
From net investment income $ (0.179) $ (0.359) $ (0.354) $ (0.100)
In excess of net investment income -- -- (0.047) (0.027)
-------- -------- -------- --------
Total distributions $ (0.179) $ (0.359) $ (0.401) $ (0.127)
-------- -------- -------- --------
Net asset value, end of period $ 9.580 $ 9.620 $ 9.490 $ 9.500
======== ======== ======== ========
Total Return (1) 1.49% 5.19% 4.26% (3.88%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 3,893 $ 4,064 $ 6,043 $ 6,325
Ratio of net expenses to average daily net assets (2)(3) 1.62%+ 1.48% 1.52% 1.61%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.61%+ 1.46% -- --
Ratio of net investment income to
average daily net assets 3.76%+ 3.75% 3.76% 3.17%+
** 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 $ 0.155 $ 0.319 $ 0.318 $ 0.082
======== ======== ======== ========
Ratios (As a percentage of
average daily net assets):
Expenses (2)(3) 2.14%+ 1.90% 1.90% 2.17%+
Expenses after custodian fee reduction (2) 2.13%+ 1.88% -- --
Net investment income 3.24%+ 3.33% 3.38% 2.61%+
+ 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 the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter 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. 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 period from the start of business, December 8, 1993, to March 31, 1994.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Classic Pennsylvania Limited
----------------------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30,1996 ------------------------------------------
(Unaudited) 1996 1995 1994*
-------------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.660 $ 9.550 $ 9.520 $ 10.000
-------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.185 $ 0.373 $ 0.359 $ 0.103
Net realized and unrealized
gain (loss) on investments (0.051) 0.105 0.082 (0.453)
-------- -------- -------- --------
Total income (loss) from operations $ 0.134 $ 0.478 $ 0.441 $ (0.350)
-------- -------- -------- --------
Less distributions:
From net investment income $ (0.184) $ (0.368) $ (0.359) $ (0.103)
In excess of net investment income -- -- (0.052) (0.027)
-------- -------- -------- --------
Total distributions $ (0.184) $ (0.368) $ (0.411) $ (0.130)
-------- -------- -------- --------
Net asset value, end of period $ 9.610 $ 9.660 $ 9.550 $ 9.520
======== ======== ======== ========
Total Return (1) 1.43% 5.05% 4.79% (3.65%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 6,331 $ 7,481 $ 9,753 $ 14,022
Ratio of net expenses to average daily net assets (2)(3) 1.85%+ 1.53% 1.47% 1.38%+
Ratio of net expenses to average daily net assets
after custodian fee reduction (2) 1.84%+ 1.51% -- --
Ratio of net investment income to
average daily net assets 3.88%+ 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 $ 0.178 $ 0.342 $ 0.324 $ 0.089
======== ======== ======== ========
Ratios (As a percentage of
average daily net assets):
Expenses (2)(3) 2.00%+ 1.85% 1.84% 1.82%+
Expenses after custodian fee reduction (2) 1.99%+ 1.83% -- --
Net investment income 3.74%+ 3.55% 3.46% 2.85%+
+ Annualized.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the net
asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at
the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter 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. 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 period from the start of business, December 8, 1993, to March 31, 1994.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(Unaudited)
(1) Significant Accounting Policies
Eaton Vance Investment Trust (the Trust) is an entity of the type
commonly known as a Massachusetts business trust and is registered
under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Trust presently consists of
twenty-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 (6.6%,
5.8%, 3.2%, and 8.0% at September 30, 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.
G. Expense Reduction - Investors Bank & Trust Company (IBT) serves
as custodian to the Funds and the Portfolios. Pursuant to the
respective custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average cash balances the
Funds or the Portfolios maintain with IBT. All significant credits
balances used to reduce each Fund's custodian fees are reflected as
a reduction of operating expenses on the Statements of Operations.
H. Interim Financial Information - The interim financial statements
relating to September 30, 1996 and for the six month period then
ended have not been audited by independent certified public
accountants, but in the opinion of the Funds' management reflect all
adjustments consisting only of normal recurring adjustments,
necessary for the fair presentation of the financial statements.
(2) Distributions to Shareholders
The net income of each Fund is determined daily and substantially
all of the net income so determined is declared as a dividend to
shareholders of record at the time of declaration. Distributions are
paid monthly. Distributions of allocated realized capital gains, if
any, are made at least annually. Shareholders may reinvest 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 reportedin the financial
statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax
earnings and profits which result in temporary over distributions
for financial statement purposes are classified as distributions in
excess of net investment income or accumulated net realized gains.
Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. The tax treatment
of distributions for the calendar year will be reported to
shareholders prior to February 1, 1997 and will be based on tax
accounting methods which may differ from amounts determined for
financial statement purposes.
(3) Shares of Beneficial Interest
<TABLE>
<CAPTION>
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 Limited Fund Classic Massachusetts Limited Fund
------------------------------------- -------------------------------------
Six Months Ended Six Months Ended
September 30, Year Ended September 30, Year Ended
1996 March 31, 1996 March 31,
(Unaudited) 1996 (Unaudited) 1996
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Sales 1,976 114,215 16,047 92,646
Issued to shareholders electing to receive
payments of distributions in Fund shares 9,996 23,721 8,522 16,994
Redemptions (119,339) (721,127) (55,836) (150,290)
------- ------- ------ -------
Net decrease (107,367) (583,191) (31,267) (40,650)
======= ======= ====== =======
<CAPTION>
Classic New York Limited Fund Classic Pennsylvania Limited Fund
------------------------------------- -------------------------------------
Six Months Ended Six Months Ended
September 30, Year Ended September 30, Year Ended
1996 March 31, 1996 March 31,
(Unaudited) 1996 (Unaudited) 1996
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Sales 28,898 55,514 57,138 126,168
Issued to shareholders electing to receive
payments of distributions in Fund shares 6,233 17,130 10,512 25,698
Redemptions (51,157) (286,755) (183,339) (398,779)
------ ------- ------- -------
Net decrease (16,026) (214,111) (115,689) (246,913)
====== ======= ======= =======
</TABLE>
(4) Transactions with Affiliates
Eaton Vance Management (EVM) serves as the administrator of each
Fund, but receives no compensation. The Portfolios have engaged
Boston Management and Research (BMR), a subsidiary of EVM, to render
investment advisory services. See Note 2 of the Portfolios' Notes to
Financial Statements which are included elsewhere in this report. To
enhance the net income of the Funds, for the six months ended
September 30, 1996, $3,733, $10,692, $10,208, and $5,342, 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, on a preliminary basis, to EVM. Except as to Trustees of
the Funds and the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their
services to each Fund out of the investment adviser fee earned by
BMR. Certain of the officers and Trustees of the Funds and
Portfolios are officers and directors/trustees of the above
organizations (Note 5).
(5) Distribution Plan
Each Fund has adopted a distribution plan (the Plan) pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The Plans
require 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 6) 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 six months ended September 30, 1996 Classic Florida
Limited Fund, Classic Massachusetts Limited Fund, Classic New York
Limited Fund and Classic Pennsylvania Limited Fund, paid or accrued
$28,329, $18,289, $14,675 and $25,767, respectively, to or payable
to EVD representing 0.75% (annualized) of average daily net assets.
At September 30, 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 $3,238,000,
$690,000, $845,000 and $1,565,000, 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
six months ended September 30, 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 $5,666, $3,658, $2,935 and
$5,153, 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.
(6) 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
six months ended September 30, 1996, EVD received $3,004, $367, and
$2,305, respectively, of CDSC paid by shareholders of Classic
Florida Limited Fund, Classic Massachusetts Limited Fund, and
Classic Pennsylvania Limited Fund, respectively. There was no CDSC
paid to EVD by shareholders of Classic New York Limited Fund.
(7) Investment Transactions
<TABLE>
<CAPTION>
Increases and decreases in each Fund's investment in its corresponding Portfolio for the six
months ended September 30, 1996, were as follows:
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Fund Fund Fund Fund
------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Increases $ 72,740 $209,980 $311,522 $ 597,823
Decreases 1,245,012 560,225 546,440 1,854,773
</TABLE>
<TABLE>
<CAPTION>
Florida Limited Maturity Municipals Portfolio
Portfolio of Investments - September 30, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ------------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed - 21.3%
Aaa AAA $1,015 Dade County, FL,
Educational Facilities
Authority,(MBIA),
Prerefunded to
10/1/01, 7.00%, 10/1/08 $1,138,769
Aaa AAA 1,500 Dade County, FL, Local
School District, (FGIC),
Prerefunded to
8/1/01, 6.00%, 8/1/06 1,593,210
Aaa AAA 1,000 Dunnedin, Florida,
Hospital, Mease Health
Care, (MBIA), Prerefunded
to 11/15/01, 6.75%,
11/15/21 1,112,810
Aa AAA 1,500 Florida Board of
Education Capital Outlay,
Prerefunded to 6/1/01
6.75%, 6/1/12 1,645,920
Aaa AAA 1,500 Florida Department of
Natural Resources,
Preservation 2000,
(MBIA), Prerefunded to
7/1/98,7.25%, 7/1/08 1,607,895
Aaa AAA 4,485 Jacksonville Electric
Authority, Bulk Power
Supply System, Prerefunded
to 10/1/00, 6.75%, 10/1/16 4,906,500
Aaa AAA 3,250 Orlando Utility
Community Water &
Electric, Prerefunded to
10/1/01, 6.50%, 10/1/20 3,574,513
Aaa AAA 2,000 Palm Bay, FL, Utility,
Palm Bay Utility
Corporation, (MBIA)
Prerefunded to 10/1/02,
6.20%, 10/1/17 2,185,400
Aaa AAA 2,805 Palm Beach County
Criminal Justice Facilities,
(FGIC), Prerefunded to
6/1/00, 7.00%, 6/1/01 3,086,706
Baa1 AAA 1,750 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98,
7.875%, 7/1/17 1,895,652
--------------
$22,747,375
--------------
General Obligations - 18.1%
Aa AA $4,000 Florida State Board of
Education, 5.00%, 6/1/14 $3,762,600
Aa AA 3,000 Florida State Board of
Education, 5.00%, 6/1/09 2,896,080
Aa AA 1,500 Florida State Board of
Education, 5.125%, 6/1/18 1,396,875
Aa AA 4,000 Florida State Board of
Education, 5.50%, 6/1/11 4,022,040
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 1,086,670
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency,
5.50%, 7/1/01 2,048,380
Baa1 A- 2,500 Puerto Rico Municipal
Finance Agency,
5.875%, 7/1/05 2,578,875
NR NR 1,500 Virgin Islands Public
Finance Authority,
6.80%, 10/1/00 1,587,210
--------------
$19,378,730
--------------
Hospitals - 2.3%
NR BBB $515 Escambia County Health
Facilities Authority,
(Baptist Hospital Inc., and
Baptist Manor Inc.),
6.00%, 10/1/97 $519,486
NR BBB 545 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 6.25%, 10/1/98 554,984
Baa1 NR 425 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress Village
Project), 6.00%, 12/1/98 437,338
Baa1 NR 450 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress Village
Project), 6.25%, 12/1/99 467,955
Baa1 NR 480 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress Village
Project), 6.50%, 12/1/00 503,582
--------------
$2,483,345
--------------
Housing - 1.8%
Baa BBB $2,000 Puerto Rico Housing
Bank and Finance Agency,
5.10%, 12/1/03 $1,969,260
--------------
Industrial Development
Revenue - 3.4%
Baa2 BBB $1,470 Nassau County PCR,
(ITT Rayonier Incorporated
Project), 5.60%, 6/1/00 $1,497,577
B1 BB+ 2,000 Polk County, Florida,
Industrial Development
Authority, (IMC Fertilizer),
(AMT), 7.525%, 1/1/15 2,091,040
--------------
$3,588,617
--------------
Insured Cogeneration - 3.2%
Aaa AAA $2,000 Dade County, Florida,
Resource Recovery
Facilities, (AMBAC),
(AMT), 5.30%, 10/1/07 $1,978,660
Aaa AAA 1,500 Dade County, Florida,
Resource Recovery
Facilities, (AMBAC),
(AMT), 5.35%, 10/1/08 1,476,540
--------------
$3,455,200
--------------
Insured General Obligation - 3.6%
Aaa AAA $2,000 Dade County Local School
District, (MBIA),
6.40%, 8/1/00 $2,133,540
Aaa AAA 1,580 Sarasota County, FL,
(FGIC), 6.25%, 10/1/05 1,701,202
--------------
$3,834,742
--------------
Insured Hospital - 9.3%
Aaa AAA $2,000 Hillsborough County
Hospital Authority,
(Tampa General Hospital
Project), (FSA),
6.375%, 10/1/13 $2,104,040
Aaa AAA 4,000 Jacksonville Health
Facilities Authority,
(Baptist Medical Center
Project), (MBIA),
7.25%, 6/1/05 (1) 4,342,640
Aaa AAA 1,000 City of Lakeland,
(Lakeland Regional
Medical Center Project),
(FGIC), 5.40%, 11/15/01 1,035,590
Aaa AAA $1,360 North Broward Hospital
District, (MBIA),
6.20%, 1/1/04 $1,464,489
Aaa AAA 1,000 Orange County Health
Facilities Authority,
(Adventist Health
System/Sunbelt Inc,)
(CGIC), 5.50%, 11/15/02 1,036,130
--------------
$9,982,889
--------------
Insured Housing - 2.2%
Aaa AAA $1,240 Florida Housing Finance
Agency, (Leigh Meadows
Apartments), (AMBAC),
5.85%, 9/1/10 $1,247,316
Aaa AAA 1,140 Florida Housing Finance
Agency, (Stottert Arms
Apartments), (AMBAC),
5.90%, 9/1/10 1,146,703
--------------
$2,394,019
--------------
Insured Miscellaneous - 2.0%
Aaa AAA $2,000 City of Jacksonville,
Guaranteed Entitlement,
(AMBAC), 5.50% 10/1/02 $2,086,980
--------------
Insured Special Tax - 4.6%
Aaa AAA $5,000 Florida Department of
Natural Resources,
(MBIA), 5.25%, 7/1/10 $4,894,200
--------------
Insured Transportation - 7.6%
Aaa AAA $2,000 Dade County, Florida,
Seaport Revenue, (MBIA),
5.125%, 10/1/16 $1,893,460
Aaa AAA 3,120 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.85%, 10/1/06 3,363,266
Aaa AAA 2,500 Palm Beach County,
Florida, Airport, (MBIA),
7.75%, 10/1/10 2,870,725
--------------
$8,127,451
--------------
Insured Water & Sewer - 7.6%
Aaa AAA $3,000 Dade County FL, Water &
Sewer Revenue, (FGIC),
5.00%, 10/1/09 $2,880,840
Aaa AAA 2,000 Manatee County FL,
Public Utilities, (MBIA),
6.75%, 10/1/04 2,247,920
Aaa AAA 1,000 Pasco County FL, Water &
Sewer Revenue,(FGIC),
5.40%, 10/1/03 1,037,690
Aaa AAA 2,000 Tampa, Florida, Water &
Sewer Revenue, (FGIC),
5.25%, 10/1/13 1,934,520
--------------
$8,100,970
--------------
Utility - 9.9%
Aa AA $2,000 Gainesville, Florida Utility
System Revenue,
5.00%, 10/1/15 $1,843,180
Aa1 AA 3,000 Jacksonville Electric
Authority, St. John's River
Power Park, 6.50%, 10/1/03 3,314,970
Aa1 AA 3,500 Jacksonville Electric
Authority, St. John's River
Power Park, 5.25%, 10/1/20 3,326,085
Aa AA- 2,000 City of Tallahassee, Electric
Refunding Bonds,
5.90%, 10/1/05 2,117,420
--------------
$10,601,655
--------------
Water & Sewer Revenue - 3.1%
A3 A+ $330 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project), 5.40%,
10/1/00 $338,323
A3 A+ 345 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project),
5.50%, 10/1/01 354,839
A3 A+ $365 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project),
5.60%, 10/1/02 $376,220
A3 A+ 380 Dunes Community
Development District,
(Flagler County, Water &
Sewer Project),
5.70%, 10/1/03 393,269
Aa AA- 1,700 St. Petersburg, FL, Public
Utility Revenue,
6.65%, 10/1/03 1,833,571
--------------
$3,296,222
--------------
Total Tax-Exempt
Investments (identified
cost, $104,324,918) $106,941,655
==============
(1) Security has been segregated to cover margin requirements on open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by Florida municipalities.
The ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In order
to reduce the risk associated with such economic developments, at September 30, 1996,
40.1% of the securities in the portfolio of investments are backed by bond insurance
of various financial institutions and financial guaranty assurance agencies. The
aggregate percentage by financial institution range from 1.0% to 24.2% of total
investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Massachusetts Limited Maturity Municipals Portfolio
Portfolio of Investments - September 30, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 4.3%
A1 A+ $1,200 Massachusetts Health and
Education Finance
Authority, Tufts University,
7.40%, 8/1/18 $1,282,644
A A- 1,230 Massachusetts Health and
Education Finance
Authority, Suffolk
University,(CLEE),
5.85%, 7/1/16 1,232,977
A A- 1,030 Massachusetts Industrial
Finance Agency, Park
School, 5.50% 9/1/16 985,524
--------------
$3,501,145
--------------
Escrowed/Prerefunded - 12.8%
Aaa NR $1,000 Lowell, Massachusetts,
Prerefunded to 2/15/01,
7.625%, 2/15/10 $1,142,950
Aaa AAA 2,000 Lynn, Massachusetts, Water
and Sewer Commission,
(MBIA), Prerefunded to
12/1/00, 7.25%, 12/1/10 2,239,660
NR A+ 1,700 Massachusetts Health and
Educational Facilities
Authority, Baystate Medical
Center, Prerefunded to
7/1/99, 7.375%, 7/1/08 1,859,409
NR AAA 1,060 Massachusetts Health and
Educational Facilities
Authority, Jordan Hospital,
(FHA), Prerefunded to
8/15/98, 7.85%, 8/15/28 1,150,301
Aaa AAA 1,060 Massachusetts Health and
Educational Facilities
Authority, Berkshire
Health System, (MBIA),
Prerefunded to 10/1/98,
6.75%, 10/1/19 1,112,226
Aaa AAA 2,500 Massachusetts Water
Resource Authority,
Prerefunded to 4/1/00,
7.50%, 4/1/09 2,782,800
--------------
$10,287,346
--------------
General Obligations - 8.4%
Baa A- $1,000 City of Lawrence,
Massachusetts, State
Qualified Bonds, 5.00%,
9/15/02 $1,003,030
A1 A+ 1,240 The Commonwealth of
Massachusetts,
6.10%, 6/1/02 1,320,873
Baa1 A 3,000 Puerto Rico Aqueduct &
Sewer Authority, 5.00%,
7/1/15 2,753,310
Baa1 A 1,000 Puerto Rico Aqueduct &
Sewer Authority,
5.00%, 7/1/19 903,050
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 794,610
--------------
$6,774,873
--------------
Hospitals - 12.5%
Aa AA- $2,160 City of Boston,
Massachusetts, Boston
City Hospital, (FHA
Insured Mortgage),
5.15%, 2/15/01 $2,199,549
Baa BB 1,130 Massachusetts Health and
Educational Facilities
Authority, Milford
Whitinsville Hospital,
7.125% 7/15/02 1,138,577
NR BBB- 1,845 Massachusetts Health and
Educational Facilities
Authority, North Adams
Regional Hospital,
6.25%, 7/1/04 1,861,660
NR A- 500 Massachusetts Health and
Educational Facilities
Authority, Melrose
Wakefield Hospital,
5.375%, 7/1/05 496,570
NR A- 500 Massachusetts Health and
Educational Facilities
Authority, Sisters of
Providence Hospital,
6.00%, 11/15/00 508,510
Aa NR 3,000 Massachusetts Health and
Educational Facilities
Authority, Daughters of
Charity Issue,
5.75%, 7/1/02 3,132,150
A A 650 Massachusetts Health and
Educational Facilities
Authority, New England
Deaconess Hospital Issue,
6.50%, 4/1/04 687,843
--------------
$10,024,859
--------------
Housing - 0.2%
NR BBB+ $180 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 8/1/23 $188,879
--------------
Insured Education - 3.6%
Aaa AAA $665 Massachusetts Educational
Financing Authority,
(AMBAC), (AMT),
6.65%, 1/1/01 $700,717
Aaa AAA 2,110 Massachusetts Educational
Financing Authority,
(MBIA), (AMT),
7.35%, 1/1/99 2,179,419
--------------
$2,880,136
--------------
Insured General Obligations - 10.3%
Aaa AAA $1,000 Chelsea, Massachusetts,
(AMBAC), 6.00%, 6/15/02 $1,063,750
Aaa AAA 1,500 The Commonwealth of
Massachusetts, (FGIC),
7.20%, 3/1/02 1,643,925
Aaa AAA 2,500 The Commonwealth of
Massachusetts, (FGIC),
6.50%, 6/1/01 2,689,450
Aaa AAA 1,000 Town of Rockport,
Massachusetts, (AMBAC),
6.80%, 12/15/04 1,090,610
Aaa AAA 1,800 Worcester, Massachusetts,
(MBIA), 5.75%, 10/1/14 1,823,400
--------------
$8,311,135
--------------
Insured Hospital - 1.3%
Aaa AAA $1,000 Massachusetts Health and
Educational Facilities
Authority, Central
Massachusetts Medical
Center, (AMBAC),
5.50%, 7/1/99 $1,026,770
--------------
Insured Housing - 16.8%
Aaa AAA $1,900 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 5.90%, 1/1/03 $1,979,211
Aaa AAA 4,800 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), (Harborpoint
Development),
6.20%, 12/1/10 4,851,120
Aaa AAA 1,840 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 6.00%, 7/1/04 1,931,485
Aaa AAA 4,730 Massachusetts Housing
Finance Agency, (MBIA),
6.125% 12/1/11 4,759,752
--------------
$13,521,568
--------------
Insured Industrial
Development Revenue - 1.8%
Aaa AAA $1,400 Massachusetts IFA
(Nantucket Electric),
(AMBAC), (AMT),
5.30%, 7/1/04 $1,408,708
--------------
Insured Solid Waste - 1.3%
Aaa AAA $1,000 Massachusetts Industrial
Finance Agency,
REFUSETECH Inc.
Project, (FSA),
5.45%, 7/1/01 $1,024,220
--------------
Insured Transportation - 3.6%
Aaa AAA $3,000 Massachusetts Bay
Transportation Authority,
(AMBAC), 5.25%, 3/1/11 $2,891,190
--------------
Insured Utility - 4.4%
Aaa AAA $2,000 Massachusetts Municipal
Wholesale Electric
Company, (AMBAC),
6.625%, 7/1/03 $2,193,500
Aaa AAA 1,225 Massachusetts Municipal
Wholesale Electric
Company, (MBIA),
6.40%, 7/1/02 1,326,736
--------------
$3,520,236
--------------
Insured Water and Sewer - 5.8%
Aaa AAA $2,000 Boston, MA Water &
Sewer Authority, (FGIC),
5.25%, 11/1/11 $1,921,380
Aaa AAA 3,000 Massachusetts Water &
Sewer Authority, (MBIA),
5.00%, 12/1/16 2,760,090
--------------
$4,681,470
--------------
Lease Revenue/Certificate
of Participation - 2.0%
NR BBB $1,650 Puerto Rico ITEM &
EC - Guaynabo Lease
Program, 5.375%, 7/1/06 $1,602,959
--------------
Nursing Homes - 2.7%
NR NR $1,000 Massachusetts Health and
Educational Facilities,
(1st Mortgage-Fairview
Extended Care),
10.125%, 1/1/11 $1,131,680
NR NR 1,000 Massachusetts Industrial
Finance Agency, Health
Care Facilities,(Age Institute
of Massachusetts),
7.60%, 11/1/05 1,004,450
--------------
$2,136,130
--------------
Special Tax Revenue - 2.3%
NR NR $1,750 Virgin Islands Public
Finance Authority,
6.70%, 10/1/99 $1,830,780
--------------
Transportation - 1.4%
A1 A+ $1,000 Woods Hole, Martha's
Vineyard and Nantucket
Steamship Authority,
6.60%, 3/1/03 $1,097,690
--------------
Utilities - 1.3%
A BBB+ $1,000 Massachusetts Municipal
Wholesale Electric
Company, 5.70%, 7/1/01 $1,026,181
--------------
Water & Sewer Revenue - 3.2%
A A $1,000 Massachusetts Water
Resources Authority,
6.25%, 11/1/10 $1,044,350
Aa NR 1,500 Massachusetts Water
Abatement - New Bedford
Loan Project,
5.70%, 2/1/12 1,523,640
--------------
$2,567,990
--------------
Total Tax-Exempt
Investments (identified
cost, $78,671,495) $80,304,265
==============
(1) Security has been segregated to cover margin requirements on open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1996, 48.9% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage
by financial institution range from 1.3% to 23.8% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New York Limited Maturity Municipals Portfolio
Portfolio of Investments - September 30, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ------------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 0.8%
NR NR $950 Port Authority of New York
& New Jersey - KIAC
Project, 6.50%, 10/1/01 $975,574
--------------
Education - 10.4%
Baa1 BBB $1,000 City University of
New York, John Jay College,
6.00%, 8/15/06 $1,013,280
NR AA 1,000 Dormitory Authority of the
State of New York,
Manhattan College,
6.10%, 7/1/04 1,049,530
A1 A+ 5,955 Dormitory Authority of the
State of New York,
University of Rochester,
6.50%, 7/1/09 (1) 6,146,989
Baa1 BBB 1,000 Dormitory Authority of the
State of New York, City
University, 6.10%, 7/1/01 1,039,860
NR AA 1,000 Dormitory Authority of the
State of New York, Nursing
Home, (Our Lady of
Consolation), (FHA),
5.20%, 8/1/05 995,730
Baa1 BBB+ 1,000 Dormitory Authority of the
State of New York, State
University, 7.25%, 5/15/99 1,064,560
Baa1 BBB+ 1,000 Dormitory Authority of
The State of New York,
State University,
5.20%, 5/15/03 997,170
--------------
$12,307,119
--------------
Escrowed/Prerefunded - 9.5%
Aaa NR $1,250 Dormitory Authority of
the State of New York,
State University,
Prerefunded to
5/15/02, 6.75%, 5/15/21 $1,394,375
Aaa AAA 2,000 New York State Housing
Finance Agency, Escrowed
to Maturity, 6.80%, 5/15/01 2,179,660
Aaa AA- 2,500 Port Authority of New York
& New Jersey, (AMBAC),
Prerefunded to
10/1/02, 7.40%, 10/1/12 2,875,050
NR AA- 2,000 Power Authority of the
State of New York,
Prerefunded to
1/1/98, 8.00%, 1/1/17 2,130,240
Aaa AAA 2,500 Suffolk County, New York
Water Authority, (AMBAC),
Prerefunded to 6/1/02,
6.00%, 6/1/17 2,698,150
--------------
$11,277,475
--------------
General Obligations - 10.2%
Baa1 BBB+ $1,000 The City of New York,
6.375%, 8/1/05 $1,033,120
Baa1 BBB+ 3,000 The City of New York,
6.40%, 8/1/03 3,148,200
Baa1 BBB+ 1,500 The City of New York,
6.375%, 8/1/06 1,543,050
A A- 1,500 State of New York,
7.50%, 11/15/00 1,650,720
A A- 1,000 State of New York,
7.50%, 11/15/01 1,119,690
A A- 2,000 State of New York,
7.00%, 11/15/02 2,221,740
Baa1 A 1,350 Puerto Rico
Commonwealth,
6.35%, 7/1/10 1,430,298
--------------
$12,146,818
--------------
Hospitals - 7.1%
Baa1 BBB $2,340 Dormitory Authority of
New York, Department of
Health, 5.375%, 7/1/08 $2,255,900
NR AAA 2,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.40%, 8/15/00 2,050,260
NR AAA 3,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.50%, 8/15/01 3,103,140
Baa NR 1,000 New York State Dormitory
Authority, Nyack Hospital,
6.00%, 7/1/06 1,005,750
--------------
$8,415,050
--------------
Housing - 4.2%
Aa AA $5,100 New York City Housing
Development Corporation,
(Multi-Family),
5.625%, 5/1/12 $5,014,116
--------------
Industrial Development
Revenue - 1.5%
Baa3 BB+ $1,700 Puerto Rico Port
Authority - American
Airlines, 6.25%, 6/1/26 $1,719,465
--------------
Insured Education - 4.7%
Aaa AAA $1,075 Dormitory Authority of
the State of New York,
Mt. Sinai School of
Medicine, (MBIA),
6.75%, 7/1/09 $1,159,581
Aaa AAA 2,550 Dormitory Authority of
the State of New York,
State University,
(AMBAC), 5.25%, 7/1/14 2,444,670
Aaa AAA 2,000 Dormitory Authority of
the State of New York,
State University, (AMBAC),
5.25%, 7/1/06 1,975,000
--------------
$5,579,251
--------------
Insured Hospital - 6.3%
Aaa AAA $4,450 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.10%, 2/15/04 $4,736,936
Aaa AAA 2,500 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.20%, 2/15/05 2,695,800
--------------
$7,432,736
--------------
Insured Lease Revenue/
Certificate of Participation - 1.6%
Aaa AAA $2,000 City University of
New York - John Jay
College, (AMBAC),
6.00%, 8/15/08 $1,923,660
--------------
Insured Miscellaneous - 0.9%
Aaa AAA $1,000 New York State Municipal
Bond Bank Agency,
(AMBAC), 6.625%,
3/15/06 $1,084,270
--------------
Insured Transportation - 9.7%
Aaa AAA $2,240 Metropolitan Transportation
Authority for the City of
New York, (MBIA),
5.70%, 7/1/10 $2,256,934
Aaa AAA 3,500 The Port Authority of
New York and New Jersey,
(MBIA), 6.375%, 10/15/17 3,713,850
Aaa AAA 1,000 The Port Authority of
New York and New Jersey,
(AMBAC), 5.20%, 7/15/15 956,030
Aaa AAA 2,000 Triborough Bridge and
Tunnel Authority, (MBIA),
6.20%, 1/1/01 2,121,140
Aaa AAA 2,290 Triborough Bridge and
Tunnel Authority, (FGIC),
5.80%, 1/1/02 2,390,554
--------------
$11,438,508
--------------
Insured Utility - 5.1%
Aaa AAA $500 New York State Energy
Research and Development
Authority, Gas Facilities,
(Brooklyn Union Gas),
(MBIA), 5.50%, 1/1/21 $486,255
Aaa AAA 5,000 New York State Energy
Research and Development
Authority, Central Hudson
Gas, (FGIC), 7.375%,
10/1/14 5,503,000
--------------
$5,989,255
--------------
Insured Water and Sewer - 1.7%
Aaa AAA $1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.80%, 6/15/03 $1,051,950
Aaa AAA 1,000 Suffolk County, New York,
Water Authority, (MBIA),
5.00%, 6/1/15 922,300
--------------
$1,974,250
--------------
Lease Revenue/Certificates
of Participation - 6.8%
A1 AA $3,500 Housing New York
Corporation, 6.00%,
11/1/03 $3,655,435
Baa1 BBB 4,715 New York Urban
Development Corporation,
5.375%, 1/1/15 4,346,192
--------------
$8,001,627
--------------
Special Tax Revenue - 4.6%
A A $3,725 New York Local
Government Assistance
Corporation, 5.25%,
4/1/16 $3,541,805
A A 1,750 New York Local
Government Assistance
Corporation, 7.00%, 4/1/04 1,928,517
--------------
$5,470,322
--------------
Transportation - 12.4%
A1 A $1,750 New York State Thruway
Authority, 5.375%, 1/1/02 $1,794,398
A A- 1,645 New York State Thruway
Authority, 5.80%, 4/1/09 1,661,730
Baa1 BBB 1,000 New York State Thruway
Authority, 6.00%, 4/1/03 1,039,150
Baa1 BBB 3,000 New York State Thruway
Authority, 5.75%, 4/1/16 2,924,550
A1 AA- 3,000 Port Authority of New York
& New Jersey, (AMT),
6.00%, 7/1/14 3,055,380
Baa3 BB+ 2,875 Port Authority of New York
& New Jersey,
(Delta Airlines),
6.95%, 6/1/08 3,063,858
Aa A+ 1,250 Triborough Bridge &
Tunnel Authority,
4.75%, 1/1/19 1,102,663
--------------
$14,641,729
--------------
Water & Sewer Revenue - 2.5%
A A- $1,825 New York City Municipal
Water Finance Authority,
5.70%, 6/15/02 $1,901,285
Aaa AAA 1,000 New York State
Environmental Facilities
Corporation, County of
Westchester Project,
5.60%, 9/15/13 1,001,281
--------------
$2,902,566
--------------
Total Tax-Exempt
Investments (identified
cost, $116,927,363) $118,293,791
==============
(1) Security has been segregated to cover margin requirements on open
financial futures contracts.
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1996, 30.0% 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 8.0% to 18.1% of total
investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Maturity Municipals Portfolio
Portfolio of Investments - September 30, 1996 (Unaudited)
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------- ------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living - 1.5%
NR NR $1,120 Delaware County,
Pennsylvania, Industrial
Development Authority,
(Glen Riddle Project),
(AMT),8.125%, 9/1/05 $1,181,141
--------------
Cogeneration - 4.3%
NR BBB- 2,000 Pennsylvania Economic
Development Financing
Authority, (Resource
Recovery - Culver Project),
(AMT), 7.05%, 12/1/10 $2,094,260
NR NR 1,200 Pennsylvania Economic
Development Financing
Authority, (Resource
Recovery for Northampton),
6.75%, 1/1/07 1,221,120
--------------
$3,315,380
--------------
Education - 8.8%
NR AAA $700 Montgomery County
Higher Education and
Health Authority, (Saint
Joseph's University),
(CLEE), 6.00%, 12/15/02 $741,447
Aa A+ 1,500 Pennsylvania Higher
Educational Facilities
Authority, (Thomas
Jefferson University),
5.90%, 8/15/00 1,567,170
Aa AA 4,500 Pennsylvania Higher
Educational Facilities
Authority, (University of
Pennsylvania Hospital),
5.875%, 1/1/15 4,545,630
--------------
$6,854,247
--------------
Escrowed - 16.2%
Aaa AAA $3,200 Philadelphia Municipal
Authority, Justice Lease
Revenue Bonds, (FGIC),
Prerefunded to 11/15/01,
7.10%, 11/15/11 $3,603,712
Aaa NR 2,500 Philadelphia, Pennsylvania,
Hospital & Higher
Education, (Children's
Hospital), Prerefunded to
2/15/02, 6.50%, 2/15/21 2,743,800
Aaa AAA $2,070 Pennsylvania
Intragovernmental
Cooperative Authority,
(City of Philadelphia
Funding Program), (FGIC),
Escrowed to Maturity,
6.00%, 6/15/02 $2,197,698
Baa BBB 500 Pennsylvania State Higher
Education, (Medical
College of Pennsylvania),
Prefunded to 3/1/01,
7.25%, 3/1/05 558,380
Aaa AAA 1,500 Somerset County,
Pennsylvania, General
Authority, (FGIC),
Escrowed to Maturity,
6.50%, 10/15/01 1,623,225
Aaa AAA 7,000 Westmoreland County,
Pennsylvania, Municipal
Authority, 0.00%, 8/15/19 1,851,990
--------------
$12,578,805
--------------
General Obligations - 4.2%
Aa AA $1,575 Delaware County,
Pennsylvania, 5.50%,
10/1/15 $1,556,714
Baa1 A 750 Puerto Rico Aqueduct &
Sewer Authority, 5.00%,
7/1/15 688,328
Baa1 A 1,000 The Commomwealth of
Puerto Rico, Public
Improvement Refunding
Bonds, 5.50%, 7/1/01 1,034,870
--------------
$3,279,912
--------------
Hospitals - 21.4%
Aa AA $2,000 Geisinger, Pennsylvania,
Health System, 7.375%,
7/1/02 $2,153,500
NR AAA 1,030 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project),
(CLEE), 5.75%, 7/1/00 1,062,723
NR AAA 825 Indiana County,
Pennsylvania, Hospital
Authority, (Indiana
Hospital Project), (CLEE),
5.875%, 7/1/01 859,320
A BBB+ $1,000 Monroeville, Pennsylvania,
Hospital Authority,
(Forbes Health),
5.75%, 10/1/05 $1,003,470
Baa NR 1,030 Montgomery County,
Pennsylvania, Higher
Education & Health
Authority, (Montgomery
Hospital), 6.25%, 7/1/06 1,043,359
Baa NR 1,100 Montgomery County,
Pennsylvania, Higher
Education & Health
Authority, (Montgomery
Hospital), 6.375%, 7/1/07 1,117,380
A NR 500 New Castle Area Hospital
Authority, (St. Francis
Hospital of New Castle),
5.90%, 11/15/00 513,905
NR BBB 445 Northampton County
Hospital Authority,
(Easton Hospital)
6.90%, 1/1/02 457,504
Baa1 BBB+ 1,500 The Hospitals and Higher
Education Facilities
Authority of Philadelphia,
(Graduate Health System),
7.00%, 7/1/05 1,533,885
Baa1 BBB+ 2,500 Philadelphia, Pennsylvania,
Hospital and Higher
Education Facilities
Authority, (Pennsylvania
Hospital), 6.05%, 7/1/04 2,536,700
Aa NR 4,750 Pottsville, PA, Hospital
Authority, (Daughters of
Charity), 5.00%,
8/15/12 (1) 4,368,195
--------------
$16,649,941
--------------
Industrial Development
Revenue - 1.2%
NR NR $885 Chester County, PA,
Industrial Development
Authority, 8.00%, 9/1/05 $926,153
--------------
Insured Education - 3.1%
Aaa AAA $2,280 Lycoming County
Authority, Pennnsylvania,
College Revenue Bonds,
(AMBAC), 6.00%, 11/1/01 $2,409,253
--------------
Insured General Obligations - 6.1%
Aaa AAA $2,000 Bucks County,
Pennsylvania, Technical
School Authority,
(AMBAC), 5.375%,
8/15/15 $1,920,840
Aaa AAA 3,000 Commonwealth of
Pennsylvania, (AMBAC),
5.00%, 11/15/11 2,838,330
--------------
$4,759,170
--------------
Insured Hospitals - 12.6%
Aaa AAA $1,250 Allegheny County,
Pennsylvania, Hospital
Development Authority,
(South Hills Health),
(MBIA), 5.50%, 5/1/08 $1,255,250
Aaa AAA 1,000 The Hospital Authority of
Beaver County,
Pennsylvania, (The Medical
Center of Beaver, PA),
(AMBAC), 5.90%,
7/1/00 1,043,810
Aaa AAA 1,985 Chester County,
Pennsylvania, Health &
Educational Facilities,
(Chester County Hospital),
(MBIA), 5.625%, 7/1/09 1,977,656
Aaa AAA 1,000 Erie County, Pennsylvania,
Hospital Authority, (Hamot
Health System), (AMBAC),
7.10%, 2/15/10 1,087,220
Aaa AAA 2,050 Sayre Health Care Facilities
Authority, (Guthrie Medical
Center), (AMBAC),
6.50%, 3/1/00 2,169,556
Aaa AAA 2,100 Washington County
Hospital Authority,
(Shadyside Hospital
Project), (AMBAC),
5.80%, 12/15/02 2,215,899
--------------
$9,749,391
--------------
Insured Lease Revenue/
Certificates of Participation - 2.1%
Aaa AAA $500 The Harrisburg Authority
(Dauphin County,
Pennsylvania), Lease
Revenue Bonds, (CGIC),
6.25%, 6/1/01 $535,300
Aaa AAA 1,000 Northumberland County
Authority, Pennsylvania,
Lease Revenue Bonds,
(MBIA), 6.50%, 10/15/01 1,082,150
--------------
$1,617,450
--------------
Insured Transportation - 5.7%
Aaa AAA $4,250 Pennsylvania State
Turnpike Commisssion,
(AMBAC), 6.25%,
6/1/11 (1) $4,437,383
--------------
Life Care - 1.0%
NR NR $245 Delaware County,
Pennsylvania, Authority,
(White Horse Village),
6.30%, 7/1/03 $245,368
NR NR 505 Delaware County,
Pennsylvania, Authority,
(White Horse Village),
6.40%, 7/1/04 505,848
--------------
$751,216
--------------
Nursing Home - 0.7%
NR NR $500 Wilkins Area,
Pennsylvania, Industrial
Development Authority,
(Fairview Extended Care),
10.25%, 1/1/21 $568,095
--------------
Solid Waste - 2.4%
Baa A- $500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania, Solid
Waste Revenue,
6.20%, 5/15/99 511,805
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania, Solid
Waste Revenue,
6.20%, 5/15/99 513,890
Baa A- 300 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania, Solid
Waste Revenue,
6.20%, 5/15/99 310,011
Baa A- 500 Greater Lebanon Refuse
Authority of Lebanon
County, Pennsylvania, Solid
Waste Revenue,
6.20%, 5/15/99 518,755
--------------
$1,854,461
--------------
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 $261,540
--------------
Transportation - 4.8%
Aa3 AA- $2,550 Southeastern Pennsylvania
Transportation Authority,
LOC:Canadian Imperial
Bank of Commerce,
6.00%, 6/1/99 $2,646,033
Aa3 AA- 1,000 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial
Bank of Commerce,
6.00%, 6/1/99 1,052,490
--------------
$3,698,523
--------------
Utility - 1.4%
NR NR $1,000 Virgin Island Water &
Authority, 7.40%, 7/1/11 $1,058,840
--------------
Water & Sewer - 2.2%
NR AA $1,600 Pennsylvania Infrastucture
Investment Authority,
(Pennvest Pool Program),
6.45%, 9/1/04 $1,743,855
--------------
Total Tax-Exempt
Investments (identified
cost, $76,000,297) $77,694,756
==============
(1) Security has been segregated to cover margin requirements on open financial
futures contracts.
The Portfolio invests primarily in debt securities issued by Pennsylvania municipalities.
The ability of the issuers of the debt securities to meet their obligations may be affected
by economic developments in a specific industry or municipality. In order to reduce the
risk associated with such economic developments, at September 30, 1996, 29.6% of the
securities in the portfolio of investments are backed by bond insurance of various
financial institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 0.7% to 22.9% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Limited Maturity Municipals Portfolios
Financial Statements
Statments of Assets and Liabilities
September 30, 1996 (Unaudited)
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $104,324,918 $78,671,495 $116,927,363 $76,000,297
Unrealized appreciation 2,616,737 1,632,770 1,366,428 1,694,459
------------ ------------ ------------ ------------
Total investments, at value
(Note 1A) $106,941,655 $80,304,265 $118,293,791 $77,694,756
Cash 128 628 2,175,768 471,553
Receivable for daily variation
margin on open financial
futures contracts (Note 1E) 15,469 11,250 11,250 14,063
Receivable for investments sold 490,000 2,152,342 -- 2,680,360
Interest receivable 2,387,597 1,234,078 2,082,335 1,311,314
Deferred organization expenses
(Note 1D) 6,679 6,480 4,070 4,244
------------ ------------ ------------ ------------
Total assets $109,841,528 $83,709,043 $122,567,214 $82,176,290
------------ ------------ ------------ ------------
Liabilities:
Demand note payable (Note 5) $89,000 $870,000 $ -- $ --
Payable for investments purchased -- 519,843 1,993,130 2,903,787
Payable to affiliate --
Trustees' fee 2,044 1,544 2,044 1,544
Accrued expenses 10,872 7,347 10,816 6,471
------------ ------------ ------------ ------------
Total liabilities $101,916 $1,398,734 $2,005,990 $2,911,802
------------ ------------ ------------ ------------
Net Assets applicable to
investors' interest in
Portfolio $109,739,612 $82,310,309 $120,561,224 $79,264,488
============ ============ ============ ============
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $107,188,518 $80,725,279 $119,242,536 $77,629,704
Unrealized appreciation of
investments and financial
futures contracts (computed on the
basis of identified cost) 2,551,094 1,585,030 1,318,688 1,634,784
------------ ------------ ------------ ------------
Total $109,739,612 $82,310,309 $120,561,224 $79,264,488
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
Six Months Ended September 30, 1996 (Unaudited)
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $3,194,008 $2,429,471 $3,511,702 $2,431,381
----------- ----------- ----------- -----------
Expenses --
Investment adviser fee (Note 2) $270,842 $205,650 $300,218 $200,015
Compensation of Trustees not members of the
Investment Adviser's organization 4,216 3,738 4,217 3,225
Custodian fees (Note 1G) 32,239 19,711 36,484 25,483
Legal and accounting services 20,420 20,420 20,420 20,420
Amortization of organization expenses (Note 1D) 2,108 2,050 1,289 1,339
Miscellaneous 17,769 17,526 14,611 15,954
----------- ----------- ----------- -----------
Total expenses $347,594 $269,095 $377,239 $266,436
Deduct --
Reduction of custodian fee (Note 1G) 3,859 7,880 4,890 3,941
----------- ----------- ----------- -----------
Net expenses $343,735 $261,215 $372,349 $262,495
----------- ----------- ----------- -----------
Net investment income $2,850,273 $2,168,256 $3,139,353 $2,168,886
----------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) --
Investment transactions (identified cost basis) ($447,887) ($209,918) ($55,254) $292,280
Financial futures contracts (604,420) (328,595) (553,518) (576,904)
----------- ----------- ----------- -----------
Net realized loss ($1,052,307) ($538,513) ($608,772) ($284,624)
----------- ----------- ----------- -----------
Change in unrealized appreciation (depreciation) --
Investments $312,799 $2,712 ($16,010) ($208,107)
Financial futures contracts (65,643) (47,740) (47,740) (59,675)
----------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation) of investments $247,156 ($45,028) ($63,750) ($267,782)
----------- ----------- ----------- -----------
Net realized and unrealized loss ($805,151) ($583,541) ($672,522) ($552,406)
----------- ----------- ----------- -----------
Net increase in net assets from operations $2,045,122 $1,584,715 $2,466,831 $1,616,480
=========== =========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Six Months Ended September 30, 1996 (Unaudited)
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 $2,850,273 $2,168,256 $3,139,353 $2,168,886
Net realized loss on investments (1,052,307) (538,513) (608,772) (284,624)
Change in unrealized appreciation of investments 247,156 (45,028) (63,750) (267,782)
------------ ------------ ------------ ------------
Net increase in net assets from operations $2,045,122 $1,584,715 $2,466,831 $1,616,480
------------ ------------ ------------ ------------
Capital transactions --
Contributions $21,639,528 $16,916,097 $21,586,967 $19,231,304
Withdrawals (41,780,049) (33,325,779) (42,221,053) (33,777,296)
------------ ------------ ------------ ------------
Decrease in net assets resulting
from capital transactions ($20,140,521) ($16,409,682) ($20,634,086) ($14,545,992)
------------ ------------ ------------ ------------
Total decrease in net assets ($18,095,399) ($14,824,967) ($18,167,255) ($12,929,512)
Net Assets:
At beginning of period 127,835,011 97,135,276 138,728,479 92,194,000
------------ ------------ ------------ ------------
At end of period $109,739,612 $82,310,309 $120,561,224 $79,264,488
============ ============ ============ ============
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>
Supplementary Data
Florida Limited Portfolio
-------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30, ----------------------------------
(Unaudited) 1996 1995 1994**
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Ratios
(As a percentage of
average daily net
assets)++:
Net expenses (1) 0.60%+ 0.55% 0.52% 0.49%+
Net expenses after
custodian fee reduction 0.59%+ 0.54% -- --
Net investment income 4.86%+ 4.73% 4.73% 4.53%+
Portfolio Turnover 28% 20% 44% 8%
Net Assets, end of period
(000 omitted) $109,740 $127,835 $164,579 $185,977
Supplementary Data (Continued)
Massachusetts Limited Portfolio
----------------------------------------------------
Six Months Ended Year Ended March 31,
September 30, 1996 --------------------------------
(Unaudited 1996 1995 1994**
------------------ --------- ------- ------
<S> <C> <C> <C> <C>
Ratios
(As a percentage of
average daily net
assets):
Net expenses (1) 0.61%+ 0.57% 0.54% 0.52%+
Net expenses after
custodian fee reduction 0.59%+ 0.55% -- --
Net investment income 4.89%+ 4.72% 4.90% 4.57%+
Portfolio Turnover 29% 27% 46% 8%
Net Assets, end of period
(000 omitted) $82,310 $97,135 $119,120 $119,772
+ 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, and periods
thereafter, have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Portfolio
to increase its expense ratio by the effect of any offset arrangements with
its service providers. The expense ratios for each of the periods ended
March 31, 1995 and 1994 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data (continued)
New York Limited Portfolio
----------------------------------------------------
Six Months Ended Year Ended March 31,
September 30, ----------------------------------
(Unaudited) 1996 1995 1994**
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Ratios
(As a percentage of
average daily net
assets)++:
Net expenses (1) 0.58%+ 0.55% 0.52% 0.47%+
Net Expenses after
custodian fee reduction 0.57%+ 0.53% -- --
Net investment income 4.80%+ 4.66% 4.79% 4.50%+
Portfolio Turnover 21% 32% 31% 5%
Net Assets, end of period
(000 omitted) $120,561 $138,728 $173,632 $183,768
<CAPTION>
Supplementary Data (Continued)
Pennsylvania Limited Portfolio
-------------------------------------------------------
Six Months Ended Year Ended March 31,
September 30, 1996 ---------------------------------
(Unaudited 1996 1995 1994*
------------------- ------ -------- --------
<S> <C> <C> <C> <C>
Ratios
(As a percentage of
average daily net
assets):
Net expenses (1) 0.63%+ 0.58% 0.53% 0.50%+
Net expenses after
custodian fee
reduction (1) 0.62%+ 0.56% -- --
Net investment income 5.09%+ 4.81% 4.77% 4.59%+
Portfolio Turnover 25% 24% 39% 12%
Net Assets, end of period
(000 omitted) $79,264 $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, and periods thereafter,
have been adjusted to reflect a change in reporting requirements. The new reporting
guidelines require each Portfolio to increase its expense ratio by the effect of
any offset arrangements with its service providers. The expense ratios for each
of 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
(Unaudited)
(1) Significant Accounting Policies
California Limited Maturity Municipals Portfolio (California Limited
Portfolio), Connecticut Limited Maturity Municipals Portfolio
(Connecticut Limited Portfolio), Florida Limited Maturity Municipals
Portfolio (Florida Limited Portfolio), Michigan Limited Maturity
Municipals Portfolio (Michigan Limited Portfolio), New Jersey Limited
Maturity Municipals Portfolio (New Jersey Limited Portfolio), New York
Limited Maturity Municipals Portfolio (New York Limited Portfolio), and
Ohio Limited Maturity Municipals Portfolio (Ohio Limited Portfolio),
collectively the Portfolios, are registered under the Investment Company
Act of 1940 as non-diversified open-end management investment companies
which were organized as trusts under the laws of the State of New York
on May 1, 1992. The Declarations of Trust permit the Trustees to issue
interests in the Portfolios. The following is a summary of significant
accounting policies of the Portfolios. The policies are in conformity
with generally accepted accounting principles.
A. Investment Valuations -- Municipal bonds are normally valued on the
basis of valuations furnished by a pricing service. Taxable obligations,
if any, for which price quotations are readily available are normally
valued at the mean between the latest bid and asked prices. Futures
contracts listed on commodity exchanges are valued at closing settlement
prices. Short-term obligations, maturing in sixty days or less, are
valued at amortized cost, which approximates value. Investments for
which valuations or market quotations are unavailable are valued at fair
value using methods determined in good faith by or at the direction of
the Trustees.
B. Income -- Interest income is determined on the basis of interest
accrued, adjusted for amortization of premium or discount when required
for federal income tax purposes.
C. Income Taxes -- The Portfolios are treated as partnerships for
Federal tax purposes. No provision is made by the Portfolios for federal
or state taxes on any taxable income of the Portfolios because each
investor in the Portfolios is ultimately responsible for the payment of
any taxes. Since some of the Portfolios' investors are regulated
investment companies that invest all or substantially all of their
assets in the Portfolios, the Portfolios normally must satisfy the
applicable source of income and diversification requirements (under the
Internal Revenue Code) in order for their respective investors to
satisfy them. The Portfolios will allocate at least annually among their
respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss,
deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income
under the Internal Revenue Code, will retain its status as income exempt
from federal income tax when allocated to each Portfolio's investors.
The portion of such interest, if any, earned on private activity bonds
issued after August 7, 1986, may be considered a tax preference item for
investors.
D. Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-
line basis over five years beginning on the date each Portfolio
commenced operations.
E. Financial Futures Contracts -- Upon the entering of a financial
futures contract, a Portfolio is required to deposit ("initial margin")
either in cash or securities an amount equal to a certain percentage of
the purchase price indicated in the financial futures contract.
Subsequent payments are made or received by a Portfolio ("margin
maintenance") each day, dependent on the daily fluctuations in the value
of the underlying security, and are recorded for book purposes as
unrealized gains or losses by a Portfolio. A Portfolio's investment in
financial futures contracts is designed only to hedge against
anticipated future changes in interest rates. Should interest rates move
unexpectedly, a Portfolio may not achieve the anticipated benefits of
the financial futures contracts and may realize a loss.
F. When-issued and Delayed Delivery Transactions -- The Portfolios may
engage in When-issued and Delayed Delivery Transactions. The Portfolios
record when-issued securities on trade date and maintain security
positions such that sufficient liquid assets will be available to make
payment for the securities purchased. Securities purchased on a when-
issued or delayed delivery basis are marked to market daily and begin
earning interest on settlement date.
G. Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined
based on the average cash balances each Portfolio maintains with IBT.
All significant credit balances used to reduce each Portfolio's
custodian fees are reflected as a reduction of operating expenses in the
Statements of Operations.
H. 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.
I. Other -- Investment transactions are accounted for on a trade date
basis.
J. Interim Financial Information -- The interim financial statements
relating to September 30, 1996 and for the six month period then ended
have not been audited by independent certified public accountants, but
in the opinion of the Portfolios' management reflect all adjustments
consisting only of normal recurring adjustments, necessary for the fair
presentation of the financial statements.
(2) Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of gross income (i.e., income other than gains
from the sale of securities). For the six months ended September 30,
1996, each Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
- ---------- ---------- ---------------
Florida Limited 270,842 0.46%
Massachusetts Limited 205,650 0.46%
New York Limited 300,218 0.46%
Pennsylvania Limited 200,015 0.47%
Except as to Trustees of the Portfolios who are not members of EVM's or
BMR's organization, officers and Trustees receive remuneration for their
services to the Portfolios out of such investment adviser fee. Certain
of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended September 30, 1996, no
significant amounts have been deferred.
* Advisory fees paid as a percentage of average daily net assets (annualized).
<TABLE>
<CAPTION>
(3) Investments
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six months ended September 30, 1996 were as follows:
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
--------- --------- ------------ -----------
<S> <C> <C> <C> <C>
Purchases $31,836,410 $26,876,803 $26,377,260 $21,317,093
Sales 48,849,046 46,394,716 44,229,354 34,158,774
</TABLE>
<TABLE>
<CAPTION>
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at September 30, 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
---------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
Aggregate
cost $104,324,918 $ 78,671,495 $116,927,363 $ 76,000,297
============ ============== ============ ==============
Gross
unrealized
appreciation $ 2,806,678 $1,661,900 $ 1,897,947 $ 1,962,817
Gross
unrealized
depreciation 189,941 29,130 531,519 268,358
---------- -------------- ------------ -------------
Net
unrealized
appreciation $2,616,737 $1,632,770 $ 1,366,428 $ 1,694,459
============ ============== ============ ==============
</TABLE>
(5) Line of Credit
The Portfolios participate with other portfolios and funds managed by
BMR and EVM in a $120 million unsecured line of credit agreement with a
bank, a portion of which is discretionary. 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 daily unused portion
of the facility is allocated among the participating funds and
portfolios at the end of each quarter. At September 30, 1996, the
Florida Limited Portfolio and Massachusetts Limited Portfolio
had balances outstanding pursuant to this line of
credit of $89,000, $16,000 and $912,000, respectively. The Portfolios
did not have any significant borrowings or allocated fees during the period.
(6) Financial Instruments
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist
in managing exposure to various market risks. These financial
instruments include written options and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations under these financial instruments at September
30, 1996 is as follows:
Futures Contracts
Expiration Net Unrealized
Portfolio Date Contracts Position Depreciation
- ----------- ----- --------------------- --------- --------------
Florida
Limited 12/96 55 U.S. Treasury Bonds Short 65,643
Massachusetts
Limited 12/96 16 U.S. Treasury Bonds Short 20,721
New York
Limited 12/96 40 U.S. Treasury Bonds Short 47,740
Pennsylvania
Limited 12/96 50 U.S. Treasury Bonds Short 59,675
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 Traditional 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-11/96
