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Previous: EATON VANCE INVESTMENT TRUST, N-30D, 1996-06-03 |
Next: WISCONSIN ENERGY CORP, 424B3, 1996-06-03 |
Eaton Vance Investment Trust
For the Funds:
(bullet) EV Traditional California Limited Maturity Municipals Fund
(bullet) EV Traditional Connecticut Limited Maturity Municipals Fund
(bullet) EV Traditional Florida Limited Maturity Municipals Fund
(bullet) EV Traditional Michigan Limited Maturity Municipals Fund
(bullet) EV Traditional New Jersey Limited Maturity Municipals Fund
(bullet) EV Traditional New York Limited Maturity Municipals Fund
(bullet) EV Traditional Ohio Limited Maturity Municipals Fund
[LOGO]
Annual Shareholder Report
March 31, 1996
<TABLE>
<CAPTION>
Results for the six months ending March 31, 1996
The
Dividends If your after-tax
paid Fund's combined equivalent
Total return by Fund NAV distribution Federal & yield
(excl. sales (during per share rate state tax you would Tax
charge) period) at 3/31/96 at 3/31/96 rate is... need is... Information*
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EV Traditional California
Limited Maturity
Municipals Fund 5.4% $0.379 $9.65 4.46% 43.04% 7.81% 99.60%
EV Traditional Connecticut
Limited Maturity
Municipals Fund 5.5% $0.364 $9.61 4.32% 38.88% 7.03% 99.88%
EV Traditional Florida
Limited Maturity
Municipals Fund 5.3% $0.471 $10.12 4.64% 42.20% 8.03% 100.0%
EV Traditional Michigan
Limited Maturity
Municipals Fund 5.1% $0.379 $9.58 4.49% 40.58% 7.55% 100.0%
EV Traditional New Jersey
Limited Maturity
Municipals Fund 4.8% $0.373 $9.67 4.40% 40.08% 7.33% 99.68%
EV Traditional New York
Limited Maturity
Municipals Fund 6.7% $0.471 $10.22 4.60% 40.56% 7.74% 99.98%
EV Traditional Ohio
Limited Maturity
Municipals Fund 4.8% $0.374 $9.61 4.42% 40.80% 7.46% 99.82%
[GRAPHICS OMITTED IN COL 5 OF CALIFORNIA, CONNECTICUT, FLORIDA, MICHIGAN, NEW JERSEY, NEW YORK AND OHIO]
* Percentages represent the portion of the total dividends paid by the
Funds from net investment income during the year ended March 31, 1996,
that have been designated as tax-exempt interest dividends. Tax
legislation eliminated the exception to the market discount rules
applicable to tax-exempt obligations. As a result, certain tax-exempt
obligations acquired by the Portfolio at market discounts may generate a
small amount of ordinary taxable income.
To Shareholders
Municipal bond yields fell sharply in 1995, gaining back most of the
losses of the previous year. Twice during the year, the Federal Reserve
lowered short-term interest rates, further buoying the market.
Realistically, it may be difficult for the market to match last year's
gains. Still, there are many reasons to be optimistic about the
municipal bond market in 1996 and to believe that an investment in
municipal bonds represents very good value and should be a part of a
wise investor's fixed-income portfolio.+
The U.S. economy continues in its favorable pattern of slow growth and
low inflation, which is a good environment for the municipal bond
market.
During 1995 the municipal market underperformed the taxable market
because of concern about the possible passage of major tax reform
legislation. While such concerns are likely to persist this year, we at
Eaton Vance continue to believe there is little chance that significant
reform, in the form of a flat tax, consumption tax or value-added tax,
will be enacted in the forseeable future. While flat tax and other
reform proposals will be debated, especially during the Presidential
campaigns, they are so controversial and sweeping that we believe the
process needed to secure agreement and subsequent passage of a plan is,
at best, years away.
At the same time, the Presidential campaigns could provide impetus to
proposals that should prove favorable to the bond market. Any positive
result in this area is likely to provide additional momentum to the bond
market through fiscal restraint and, therefore, lower yields.
These factors have combined to produce a significant opportunity for
municipal bond investors. To the extent that fears about tax reform
depress prices, investors can enter the market at a discount. To the
extent that budget reform measures lessen the Federal government's
borrowing needs, investors may be expected to reap the rewards through a
strengthening bond market. As always, achieving investment rewards may
depend on an investor's willingness to adopt a long-term investment
horizon. That's one reason we at Eaton Vance believe patience is a key
to successful investing.
[PHOTO OF THOMAS J. FETTER OMITTED]
Sincerely,
/S/Thomas J. Fetter
Thomas J. Fetter
President
May 19, 1996
+ A portion of the Portfolios' income could be subject to Federal
alternative minimum tax.
Management Discussion
An interview with Raymond E. Hender, Vice President, and William H.
Ahern, Vice President, Portfolio Managers of the Limited Maturity
Municipals Portfolios.
Q. Ray, interest rates have been on a rollercoaster in the past year.
What's behind the fluctuations in interest rates?
R.H.: This has been an extraordinarily volatile period for the bond
markets in general. From March through December 1995, the bond market
enjoyed a significant decline in interest rates as the economy showed
signs of weakness and the Federal Reserve pursued an accommodative
monetary policy. In addition, the markets held out hope throughout 1995
that the budget negotiations would produce an agreement aimed at
significant deficit reduction.
After the first of the year, it appeared that the economy was somewhat
stronger than expected, which pushed rates a little higher. In addition,
the budget talks ended in a political stalemate. Although economic
growth has remained relatively modest for quite some time now - in the
2.5% range - those developments contributed to a more defensive market
in the first quarter.
[PHOTO OF RAYMOND HENDER OMITTED]
Caption reads: Raymond Hender
Q. Bill, how has the intermediate sector of the market responded to the
rate changes?
W.A.: The intermediate sector has felt significantly less volatility
than the longer-term market. Predictably, the intermediate segment of
the market underperformed during the long rate decline, but has
outperformed during the rate hike of the past several months.
Importantly, the intermediate universe has performed in line with
expectations, which makes it very attractive to conservative investors
who want to limit their exposure to market turbulence.
Q. You referred to a prolonged period of relatively modest economic
growth. What's keeping the economy within such a narrow range?
R.H.: Clearly, the Federal Reserve has taken a more activist role in the
economy in recent years. By making periodic minor adjustments in
interest rates, the Fed has been careful to keep the economy from
growing too fast on one hand, or tipping into recession on the other.
Some have called this the "Goldilocks" economy: neither too hot nor too
cold.
Q. Did market volatility affect your strategy to a great degree?
W.A.: With a flat-to-mildly lower interest rate scenario, we have
increased the Portfolios' average maturities and durations over the past
six months to reflect our longer-term positive outlook on the market.
From the outset, the Portfolios have pursued a conservative investment
style, and hence, were relatively well-positioned when the market
started to deteriorate. We have remained consistent with our prospectus
mandate and have maintained a duration in the middle of our allowable
duration range - around 6-to-6.5 years at March 31, 1996. That has
limited the impact of rising rates on the Portfolios.
Q. Where else have you focused?
R.H.: We've found some good values in the non-rated segment of the
intermediate market. Eaton Vance has increasingly made the non-rated
sector a specialty in recent years. These bonds require an especially
rigorous analysis, but we are able to find selective situations that add
incrementally to the Funds' current yield as well as afford the
potential for capital appreciation.
We've also focused on consolidating positions within the Portfolios. In
so doing, we have increased the average size of our holdings, while
reducing the total number of holdings. Consolidating holdings helps
improve liquidity, an important element in structuring the Portfolios,
especially in periods of volatility. And finally, we sought to take
advantage of the recent market correction as an opportunity to improve
the quality of the Portfolios.
Q. Is there a lesson that investors can learn from the past year's
volatility?
W.A.: I believe that in today's markets, discipline is more important
than ever. There are so many influences on the markets, both
domestically and abroad, that at first blush appear unrelated to the
fundamentals of the bond market. Yet, they may have a short-term impact
nonetheless. In such a climate, the unsophisticated investor may be
cowed into abandoning a reasonable market view by short-term influences.
In this market it is more important than ever to remain focused on
fundamentals. That's the approach that we take in the Portfolios, and we
believe it is especially appropriate today.
[PHOTO OF WILLIAM AHERN OMITTED]
Caption reads: William Ahern
Q. How is that discipline evidenced in
the Portfolios?
R.H.: In the short-term, the bond market has been jarred by reports of
grain shortages, or by foreign currency fluctuations, or by
international events. However, we've maintained our focus on economic
fundamentals and haven't been sidetracked by what we regard as
extraneous, short-term events.
Despite the rise in interest rates in the first quarter, we believe that
there is very little inflation in the economy. As most bond investors
know, inflation is the main nemesis of the fixed-income markets. But in
recent years, because of a vigilant posture by the Federal Reserve, a
large labor supply, a better management of inventories by business, and
the impact of increasing global competition, inflation has generally
been put to rest.
Q. So, you feel there is still good value in bonds?
W.A.: Absolutely. From a long-term point of view, bonds currently offer
very high real rates of return - that is, yield minus the rate of
inflation. For example, the typical 5-year AAA-rated municipal bond
yielded 4.38% at March 31, 1996 according to Bloomberg Financial. For a
taxpayer in the 36% tax bracket, that represents a taxable equivalent
yield of 6.84%. With inflation running at 2.3%, the real rate of return
is more than 4.5%. Given the fact that real rates of return on U.S.
Treasury bonds have histori-cally been in the 3% range, the recent
benchmarks suggest that there is uncommon value in municipal bonds.
Q. Looking ahead, what is your outlook for the intermediate-term market?
R.H.: We remain positive on the bond market over the long term. First
quarter GDP grew at a 2.8% annualized rate, according to preliminary
Commerce Department figures. While that was above estimates, it still
does not indicate a booming economy. So the economy continues to advance
at a modest pace, and that is good news for bond investors. However, as
we've seen in the first quarter of 1996, there may be bumps along the
way. That draws many investors to the intermediate sector, which
typically garners a good percentage of the yield of long-term bonds, but
only around half of their volatility. Naturally, past performance does
not guarantee future trends. But for investors whose primary investment
goals include tax-free income and relative stability of principal, there
is a continuing strong case to be made for intermediate-term municipal
bonds.
Included in the pages that follow are performance charts that compare
your Fund's total return with that of a broad-based securities market
index. The lines on the chart represent the total returns of $10,000
hypothetical investments in your Fund and the unmanaged Lehman Brothers
7- year Municipal Bond Index. The solid line on the chart represents the
Fund's performance. The Fund's total return figure reflects fund
expenses and portfolio transaction costs, and assumes the reinvestment
of income dividends and capital gain distributions. The dashed line
represents the Fund's performance, including the Fund's 2.5 percent
maximum sales charge. The dotted line represents the performance of the
Lehman Brothers 7-Year Municipal Bond Index, a broad-based, widely
recognized unmanaged index of municipal bonds. Whereas the Fund's
portfolio is comprised principally of bonds solely from your individual
state, the Index is composed of bonds from all 50 states and many
jurisdictions. The Index's total return does not reflect any commissions
or expenses that would be incurred if an investor individually purchased
or sold the securities represented in the Index. It is not possible to
invest in the Index.
EV Traditional California Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF HEALTH CARE SYMBOL OMITTED]
California Health
Facilities Finance Authority
Sisters of Providence
The Sisters of Providence is a charitible religious order of the
Catholic Church. A portion of the proceeds of this bond were used to
finance the cost of the acquisition, construction, and equipping of a
five-story tower and central plant facility for St. Joseph Medical
Center in Burbank. Another portion was devoted to the funding of
construction and renovation projects at Providence Hospital in Oakland.
This bond is a good example of a relatively high-coupon investment in a
well-regarded issuer that provided the Portfolio defensive
characteristics as well as an incremental yield advantage.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF CALIFORNIA OMITTED]
Number of issues 35
Average quality AA
Investment grade 100%
Effective maturity (years) 7.92
Largest sectors:
Escrowed/prerefunded 19.5%
General obligations 11.1
Insured - Hospital revenue 10.9*
Insured - Utilities 7.9*
Lease revenue/certificates
of participation 6.5
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: California
California's economy seems to be continuing its slow improvement from
the recession that began in 1990. The state benefits from a growing
population and diverse employment base. Despite the loss of high-paying
aerospace jobs in recent years, the state's job growth is expected to be
twice that at the national level in 1996.
Overall, job increases have been led by gains in construction,
electronics, tourism, business services, international trade and
entertainment.
Despite the state's recent problems, the economic outlook is generally
favorable. The economic turnaround is expected to be created in part by
growth in the state's sizable high-technology sector. For example, it is
predicted that personal income will rise significantly during the mid
1990s, which should continue to elevate state revenue collections.
Revenues have already improved significantly, running 3% above estimates
for the current fiscal year. That is likely to produce a
$1 billion surplus at fiscal year-end. While California still has
hurdles to overcome, it's clear the state is on the comeback trail.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal California Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.8% 1.4%
Without CDSC 5.4% 2.5%
EV Traditonal EV Traditonal
California California
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
12/93+ 10,000 10,000 9,747
1/94 10,090 10,106 9,835
2/94 9,934 9,887 9,683
3/94 9,655 9,623 9,411
4/94 9,701 9,693 9,456
5/94 9,758 9,741 9,511
6/94 9,722 9,724 9,476
7/94 9,850 9,861 9,601
8/94 9,866 9,913 9,617
9/94 9,770 9,818 9,523
10/94 9,663 9,719 9,419
11/94 9,512 9,577 9,272
12/94 9,595 9,723 9,352
1/95 9,774 9,905 9,527
2/95 9,972 10,128 9,720
3/95 10,022 10,233 9,768
4/95 10,034 10,261 9,781
5/95 10,232 10,534 9,974
6/95 10,179 10,524 9,922
7/95 10,276 10,658 10,017
8/95 10,360 10,784 10,098
9/95 10,393 10,825 10,130
10/95 10,479 10,920 10,214
11/95 10,586 11,040 10,318
12/95 10,628 11,098 10,360
1/96 10,704 11,206 10,434
2/96 10,675 11,168 10,405
3/96 10,562 11,059 10,295
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 12/8/93. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional Connecticut Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF GRADUATION CAP OMITTED]
CT Health & Education
Finance Authority
Fairfield University
These revenue bonds were issued in 1995 to finance the acquisition of
property and construction costs of renovations to several facilities of
Fairfield University, a well-regarded institution founded in 1942 and
located in Fairfield, CT. Interest payments on the bond are secured by a
lien on college tuition payments. The bonds, rated Baa1/BBB by Moody's
and Standard & Poor's, respectively, carry an attractive 6.9% coupon.
They are an example of the Porfolio's strong research efforts during the
past year to find good value in lower-rated investment-quality bonds.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF CONNECTICUT OMITTED]
Number of issues 31
Average quality AA
Investment grade 100%
Effective maturity (years) 8.12
Largest sectors:
Insured - General obligations 15.8%*
General obligations 15.7
Housing 14.0
Miscellaneous 7.4
Insured - Hospitals 6.6*
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Connecticut
Connecticut has not yet fully recovered from the last recession and,
accordingly, continues to experience economic duress in several key
economic sectors. Job growth remains moderate and is not expected to
reach pre-recession levels until the end of the decade. Construction
activity and the trade and service sectors have generated some momentum,
but the state's manufacturing sector continues to decline. Connecticut's
defense industry, which ranked sixth in the nation in defense contracts
in 1989, declined to twelfth place in 1995. Finally, the insurance
sector, long an important segment in the state's financial industry, saw
further downsizing. The industry restructured to meet the challenges of
increasing competition and the likely prospect of health care reforms in
coming years. Despite its slow recovery, Connecticut enjoys very high
wealth levels and maintains generally satisfactory financial results. In
the state's 1996-97 biennial budget, the administration and legislature
are attempting to control the costs of social services. The budget
provides structural changes that should lead to long-term savings.
Meanwhile, while ongoing budgetary pressures remain, fiscal 1996
revenues should receive a boost from the recent tax amnesty on income,
sales, and corporate taxes.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal Connecticut Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.9% 1.0%
Without CDSC 5.5% 2.2%
EV Traditonal EV Traditonal
Connecticut Connecticut
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
12/93 10,000 10,000 9,747
1/94 10,044 10,106 9,789
2/94 9,856 9,887 9,606
3/94 9,585 9,623 9,342
4/94 9,650 9,693 9,406
5/94 9,665 9,741 9,421
6/94 9,608 9,724 9,364
7/94 9,724 9,861 9,478
8/94 9,749 9,913 9,502
9/94 9,672 9,818 9,427
10/94 9,575 9,719 9,332
11/94 9,646 9,577 9,224
12/94 9,566 9,723 9,324
1/95 9,723 9,905 9,476
2/95 9,888 10,128 9,638
3/95 9,947 10,233 9,695
4/95 9,969 10,261 9,716
5/95 10,123 10,534 9,867
6/95 10,101 10,524 9,845
7/95 10,197 10,658 9,938
8/95 10,290 10,784 10,029
9/95 10,332 10,825 10,070
10/95 10,438 10,920 10,174
11/95 10,533 11,040 10,266
12/95 10,574 11,098 10,306
1/96 10,649 11,206 10,379
2/96 10,607 11,168 10,338
3/96 10,493 11,059 10,227
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 12/27/93. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional Florida Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF FACTORY OMITTED]
Polk County FL
Industrial Development Authority
IMC Fertilizer
IMC Fertilizer Group is one of the world's largest producers of potash,
phosphate, and phosphate fertilizer. Issued under the aegis of Polk
County IDA, the proceeds of these bonds were used to finance a 415-acre
containment basin for the storage of phosphogypsum, a chemical
manufacturing by-product. The project is popular with environmentalists
because it averts environmental contamination by industrial by-products.
The bonds have a 7.525% coupon and represent an opportunity to add yield
to the Portfolio through an investment in an industry leader.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF STATE OF FLORIDA OMITTED]
Number of issues 64
Average quality AA
Investment grade 97.0%
Effective maturity (years) 7.88
Largest sectors:
Escrowed 22.6%
General obligations 13.9
Utilities 8.4
Insured - Transportation 8.3*
Insured - Hospitals 7.7*
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Florida
Florida continues to rank among the southeastern region's growth
leaders. Despite a slight slowdown in economic activity in 1995, the
state's economy expanded at a faster pace than the national rate,
resulting in good employment growth.
While Florida's population gains have eased from the blistering 2.9%
pace of the 1980s, the state remains a favorite retirement destination
and continues to benefit from a large migration from northern states.
The tourism industry performed erratically in 1995, but has strengthened
in recent months and remains a major source of service sector
employment. The service, trade and construction sectors together account
for 64% of the state's employment.
Like many states, the lack of a federal budget and growing social
service expeditures add a degree of uncertainty to the financial
picture. However, rising investment returns in 1995 and 1996 have
boosted the state's per capita income growth. And, importantly, Florida
has benefited from a growing revenue base, especially from rising
corporate, sales and use-tax revenues. Moreover, the state's well-
managed financial program and excellent economic performance have
contributed to credit stability.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal Florida Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From July 31, 19934, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.7% 3.9%
Without CDSC 5.3% 5.5%
EV Traditonal EV Traditonal
Florida Florida
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
7/94+ 10,000 10,000 9,750
8/94 10,030 10,052 9,778
9/94 9,949 9,956 9,700
10/94 9,839 9,856 9,593
11/94 9,708 9,712 9,465
12/94 9,848 9,860 9,602
1/95 10,020 10,045 9,769
2/95 10,198 10,271 9,942
3/95 10,269 10,378 10,012
4/95 10,278 10,405 10,020
5/95 10,472 10,682 10,210
6/95 10,460 10,672 10,198
7/95 10,563 10,808 10,299
8/95 10,667 10,936 10,400
9/95 10,697 10,978 10,429
10/95 10,770 11,073 10,500
11/95 10,852 11,195 10,580
12/95 10,936 11,255 10,662
1/96 11,010 11,364 10,734
2/96 10,933 11,325 10,659
3/96 10,815 11,214 10,545
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 7/5/94. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional Michigan Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF FACTORY OMITTED]
Monroe County MI
Detroit Edison Company
This industrial development revenue bond was issued by Monroe County to
finance the construction of pollution control projects at Edison's Fermi
2 Power Plant as well as its Monroe Power Plant. Proceeds of the
offering were used to purchase land, pollution control equipment and
solid waste disposal facilities. The bonds are popular with Michigan
residents, because in addition to offering an attractive yield, they
help construct equipment needed to protect the local environment. The
bonds are insured and are rated triple-A by major rating agencies.
Naturally, private insurance does not remove the market risk associated
with this investment.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF MICHIGAN OMITTED]
Number of issues 26
Average quality AA-
Investment grade 98.5%
Effective maturity (years) 8.65
Largest sectors:
Escrowed/prerefunded 19.0%
Insured - General obligations 15.3*
Hospitals 14.9
General obligations 13.5
Special tax revenue 10.3
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Michigan
After benefiting from a strong recovery in the auto and durable goods
industries in 1994, the Michigan economy slowed somewhat in 1995.
Nonetheless, the state's job growth exceeded that of the nation.
Michigan's jobless rate, which last year fell below the national average
for the first time since 1966, was 5.3% at year end.The manufacturing
boom was accompanied by a surge in service jobs, including such areas as
finance and outsourcing, which helped to boost total employment. While
Michigan has enjoyed a strong resurgence, the state remains heavily
reliant on national economic trends. On the fiscal front, the 1994-95
fiscal year marked the third consecutive year of stronger-than-expected
revenue growth, with sizable balances for both the General Fund and
School Aid Fund. A slower economy will likely mean lower revenue growth
in 1996, although the state's financial condition should remain sound
due to budgetary restraints and cost-containment measures enacted in
1991. The state has managed to replenish its financial reserves to the
highest level in state history. That should provide Michigan with an
extra measure of safety and stability as it faces significantly higher
costs for education in coming years.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal Michigan Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.5% 1.1%
Without CDSC 5.1% 2.2%
EV Traditonal EV Traditonal
Michigan Michigan
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
12/93+ 10,000 10,000 9,747
1/94 10,079 10,106 9,824
2/94 9,882 9,887 9,632
3/94 9,582 9,623 9,340
4/94 9,659 9,693 9,414
5/94 9,706 9,741 9,460
6/94 9,690 9,724 9,445
7/94 9,797 9,861 9,549
8/94 9,824 9,913 9,576
9/94 9,728 9,818 9,481
10/94 9,611 9,719 9,368
11/94 9,470 9,577 9,230
12/94 9,573 9,723 9,331
1/95 9,763 9,905 9,516
2/95 9,941 10,128 9,689
3/95 9,990 10,233 9,738
4/95 10,003 10,261 9,750
5/95 10,180 10,534 9,923
6/95 10,138 10,524 9,882
7/95 10,214 10,658 9,956
8/95 10,309 10,784 10,048
9/95 10,352 10,825 10,090
10/95 10,482 10,920 10,217
11/95 10,578 11,040 10,311
12/95 10,610 11,098 10,342
1/96 10,697 11,206 10,427
2/96 10,624 11,168 10,355
3/96 10,500 11,059 10,235
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 12/8/93. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional New Jersey Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF HEALTH CARE SYMBOL OMITTED]
New Jersey Health Care Facilities
and Financing Authority
Dover General Hospital
These bonds were issued to finance renovations to certain facilities of
Dover Hospital and Medical Center, including the construction of a
parking facility, an endoscopic treatment suite and other treatment
rooms, and equipment and furniture used in the operation of the
Hospital. Interest and principal payments are backed by revenues of the
Medical Center. The bonds have a very attractive 7% coupon and are rated
triple-A by major rating agencies. The bonds are insured by MBIA, one of
the nation's largest municipal bond insurers. Naturally, private
insurance does not remove the market risk associated with this
investment.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF NEW JERSEY OMITTED]
Portfolio Overview
Based on market value as of March 31, 1996
Number of issues 68
Average quality AA
Investment grade 97.4%
Effective maturity (years) 8.93
Largest sectors:
Insured - General obligations 16.9%*
Housing 11.4
Insured - Transportation 10.8*
General obligations 8.3
Transportation 6.4
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: New Jersey
New Jersey registered mediocre economic growth in 1995, especially when
compared to the robust gains of the previous year. Sluggish consumer
spending, a lackluster real estate market, and weak demand in the
manufacturing sector combined to dampen the economy. Despite a
significant decline in interest rates, home construction showed little
sign of rebounding, with only about 23,000 new housing units authorized
in 1995, the lowest number since 1992. Weakness was especially evident
in manufacturing, financial services, and utilities. Fortunately, job
losses in those sectors were offset by additions among retail trade,
business services, and healthcare providers. Employment gains totalled
over 40,000 in 1995, well short of the 71,000 increase in 1994, but
enough to push the state unemployment rate below 6% at year-end. New
Jersey has felt the impact of income tax cuts that threaten revenues and
push many expenditures to the local level. While the state budgets have
been generally successful, tighter budgets have left little margin for
error, especially with social spending rising. To ease these pressures,
the administration has targeted savings, including the possibility of
outsourcing selected human services.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal New Jersey Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.2% 1.4%
Without CDSC 4.8% 2.6%
EV Traditonal EV Traditonal
New Jersey New Jersey
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
12/93+ 10,000 10,000 9,747
1/94 10,088 10,106 9,833
2/94 9,932 9,887 9,681
3/94 9,652 9,623 9,408
4/94 9,728 9,693 9,482
5/94 9,775 9,741 9,528
6/94 9,738 9,724 9,492
7/94 9,855 9,861 9,606
8/94 9,871 9,913 9,622
9/94 9,795 9,818 9,548
10/94 9,678 9,719 9,434
11/94 9,547 9,577 9,306
12/94 9,692 9,723 9,447
1/95 9,860 9,905 9,610
2/95 10,015 10,128 9,762
3/95 10,086 10,233 9,831
4/95 10,077 10,261 9,822
5/95 10,264 10,534 10,004
6/95 10,210 10,524 9,952
7/95 10,307 10,658 10,046
8/95 10,379 10,784 10,117
9/95 10,433 10,825 10,169
10/95 10,518 10,920 10,253
11/95 10,646 11,040 10,377
12/95 10,688 11,098 10,418
1/96 10,742 11,206 10,471
2/96 10,691 11,168 10,421
3/96 10,567 11,059 10,300
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 12/8/93. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional New York Limited Maturity Municipals Fund
[GRAPHIC OF A GRADUATION CAP OMITTED]
Your Investment at Work
Dormitory Authority of the State of New York
Cornell University
The Authority is a public-benefit corporation created to finance and
construct a variety of public-purpose facilities for educational and
not-for-profit use. The proceeds of these 1990 bonds were directed as a
loan to finance the costs of capital improvements of university
facilities, including the construction costs of renovations to several
dormitory and dining facilities, as well as improvements to classrooms
and faculty office space. Backed by a pledge of the school's revenues,
the bonds carry a premium coupon of 7.375% and are rated Aa/AA by
Moody's and Standard & Poor's, respectively.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF NEW YORK OMITTED]
Number of issues 66
Average quality AA-
Investment grade 97.8%
Effective maturity (years) 7.32
Largest sectors:
Education 12.8%
Escrowed/prerefunded 11.5
Lease revenues/Certificates
of participation 10.8
General obligations 8.7
Transportation 8.5
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: New York
The New York economy continues to grow, albeit at a slower pace than the
nation as a whole. The recession of the early 1990s claimed more than a
half-million jobs in the state. New York employment is not expected to
reach pre-recession levels until 1998, according to Standard & Poor's.
Job growth has been stagnant, increasing at 1.1% annually compared to
national job growth of 1.6% a year. Unemployment rates have fallen,
although they remain higher than the national average.
The sluggish state economy has intensified the difficult fiscal choices
facing the state. Because a high state tax burden appears to have
impaired the state's competitive position, Governor Pataki's goal is to
reduce New Yorkers' tax bite. Consequently, the Pataki administra-tion's
current budget proposals aim to make further cuts in social spending.
These cuts are highly problematic in that they are very dependent on
actions at the federal level. In addition, cuts in social spending are
likely to trigger a fierce partisan debate with the state legislature.
But the proposals nonetheless represent a bold attempt by the
administration to reform the state's past budget procedures and
strengthen the state's competitive position.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal New York Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From July 31, 1994, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 4.0% 4.5%
Without CDSC 6.7% 6.1%
EV Traditonal EV Traditonal
New York New York
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
7/94+ 10,000 10,000 9,749
8/94 10,059 10,052 9,807
9/94 9,958 9,956 9,708
10/94 9,848 9,856 9,601
11/94 9,686 9,712 9,443
12/94 9,838 9,860 9,590
1/95 10,009 10,045 9,758
2/95 10,199 10,271 9,942
3/95 10,270 10,378 10,012
4/95 10,268 10,405 10,010
5/95 10,474 10,682 10,211
6/95 10,473 10,672 10,209
7/95 10,576 10,808 10,310
8/95 10,690 10,936 10,422
9/95 10,720 10,978 10,451
10/95 10,825 11,073 10,553
11/95 10,971 11,195 10,695
12/95 11,023 11,255 10,746
1/96 11,108 11,364 10,829
2/96 11,063 11,325 10,784
3/96 10,956 11,214 10,680
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 7/6/94. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional Ohio Limited Maturity Municipals Fund
Your investment at work
[GRAPHIC OF THE HEALTH CARE SYMBOL OMITTED]
Hamilton County OH
Hospital Facilities
Episcopal Retirement Home
The Episcopal Retirement Home, Inc. is a non-profit corporation that
owns and operates a series of hospital facilities specializing in
nursing care, assisted living and independent living. These bonds were
issued in 1992 to refinance earlier debt used to acquire and construct
several facilities. Rated Aa2 by Moody's and non-rated by Standard &
Poor's, these bonds carry an attractive 6.8% coupon. In addition to
providing a good stream of income to the Portfolio, they are an example
of the Portfolio's efforts to find attractive special situations in
well-regarded non-rated issuers.
Portfolio Overview
Based on market value as of March 31, 1996
[GRAPHIC OF THE STATE OF OHIO OMITTED]
Number of issues 38
Average quality AA-
Investment grade 88.8%
Effective maturity (years) 7.86
Largest sectors:
Insured - General obligations 25.8%*
General obligations 16.5
Industrial development revenue 8.9
Health care 8.6
Hospitals 7.8
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Ohio
An increasing economic diversity has improved Ohio's employment mix in
the past decade. Manufacturing has been especially robust in the past
year as the national economy continued to expand. The large automobile
industry within the state has benefited from a strong surge in 1994 auto
sales. In addition, the weak dollar has given an added boost to the
state's exporters of durable goods. While manufacturing still represents
the lion's share of jobs - 21% versus 17% for the nation - growth in the
trade and services sectors has led to greater economic stability for the
state. Recent unemployment figures have generally reflected national
trends, with the Ohio jobless rate hovering near the 4% level.
The Ohio financial outlook has strengthened with the stronger economy.
Tax receipts - especially auto sales tax and use taxes - have generally
exceeded expectations. Reduced medicaid caseloads have led to a decrease
in social spending. The improved economic performance has enabled the
state to expand its financial reserves. The general fund balance was up
sharply in the recent fiscal year, with personal income growth in the 8%
range.
[GRAPHIC OMITTED OF WORM CHART:]
Header reads: Comparison of Change in Value of a $10,000 Investment
in EV Traditonal Ohio Limited Maturity Municipals Fund (Including
Sales Charge) and the Lehman Brothers 7-Year Municipal Bond Index
From December 31, 1993, through March 31, 1996
AVERAGE ANNUAL RETURNS 1 Year Life of Fund*
With CDSC 2.2% 1.2%
Without CDSC 4.8% 2.3%
EV Traditonal EV Traditonal
Ohio Ohio
Limited Limited
Maturity Lehman Maturity
Municipals Brothers Municipals
Fund 7-Year Fund
(without Municipal (with
max. sales Bond max. sales
Date charge) Index charge)
- ---------------------------------------------------
12/93+ 10,000 10,000 9,747
1/94 10,116 10,106 9,860
2/94 9,878 9,887 9,629
3/94 9,588 9,623 9,346
4/94 9,675 9,693 9,430
5/94 9,731 9,741 9,485
6/94 9,705 9,724 9,460
7/94 9,832 9,861 9,584
8/94 9,848 9,913 9,599
9/94 9,741 9,818 9,495
10/94 9,634 9,719 9,391
11/94 9,504 9,577 9,263
12/94 9,648 9,723 9,404
1/95 9,827 9,905 9,578
2/95 9,972 10,128 9,720
3/95 10,032 10,233 9,779
4/95 10,023 10,261 9,770
5/95 10,232 10,534 9,973
6/95 10,168 10,524 9,911
7/95 10,243 10,658 9,984
8/95 10,337 10,784 10,076
9/95 10,391 10,825 10,128
10/95 10,488 10,920 10,222
11/95 10,583 11,040 10,316
12/95 10,636 11,098 10,367
1/96 10,669 11,206 10,399
2/96 10,628 11,168 10,359
3/96 10,515 11,059 10,249
Past performance is not indicative of future results. Investment
returns and principal will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Source: Towers Data Systems, Bethesda, MD. *Investment operations
commenced 12/8/93. +Index information is available only at month-end;
therefore, the line comparison begins at the next month-end following
the commencement of the Fund's investment operations.
EV Traditional Limited Maturity Municipals Fund
Financial Statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
March 31, 1996
Traditional Traditional Traditional Traditional
California Connecticut Florida Michigan
Limited Fund Limited Fund Limited Fund Limited Fund
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investment in Portfolio --
Identified cost $4,755,819 $1,698,347 $2,356,360 $2,201,889
Unrealized appreciation (depreciation) 46,275 14,403 (35,377) 128,950
---------- ---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $4,802,094 $1,712,750 $2,320,983 $2,330,839
Receivable for Fund shares sold -- 487 -- --
Receivable from the Administrator (Note 5) 18,443 12,441 15,507 12,516
Deferred organization expenses (Note 1D) 5,760 6,158 4,520 5,700
---------- ---------- ---------- ----------
Total assets $4,826,297 $1,731,836 $2,341,010 $2,349,055
---------- ---------- ---------- ----------
Liabilities:
Dividends payable $10,229 $1,599 $3,468 $5,854
Payable for Fund shares redeemed 12,436 -- -- --
Payable to affiliate --
Trustees' fees 41 -- -- --
Accrued expenses 3,505 2,310 12,110 3,007
---------- ---------- ---------- ----------
Total liabilities $26,211 $3,909 $15,578 $8,861
---------- ---------- ---------- ----------
Net Assets $4,800,086 $1,727,927 $2,325,432 $2,340,194
========== ========== ========== ==========
Sources of Net Assets:
Paid-in capital $5,320,305 $1,819,460 $2,361,924 $2,717,661
Accumulated net realized gain (loss) on investment and
financial futures transactions (computed on the basis
of identified cost) (566,762) (105,861) 515 (507,256)
Accumulated undistributed (distributions in excess of)
net investment income 268 (75) (1,630) 839
Unrealized appreciation (depreciation) of
investments and
financial futures contracts from Portfolio
(computed on the basis of identified cost) 46,275 14,403 (35,377) 128,950
---------- ---------- ---------- ----------
Total $4,800,086 $1,727,927 $2,325,432 $2,340,194
========== ========== ========== ==========
Shares of Beneficial Interest Outstanding 497,411 179,728 229,704 244,279
========== ========== ========== ==========
Net Asset Value and Redemption Price Per Share
(net assets (divided by) shares of beneficial
interest outstanding) $9.65 $9.61 $10.12 $9.58
===== ===== ===== =====
Computation of Offering Price Per Share
(100/97.50 of net asset value per share) $9.90 $9.86 $10.38 $9.83
===== ===== ===== =====
On sales of $50,000 or more, the offering price is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
March 31, 1996
Traditional Traditional Traditional
New Jersey New York Ohio
Limited Fund Limited Fund Limited Fund
--------------------------------------------------
<S> <C> <C> <C>
Assets:
Investment in Portfolio --
Identified cost $1,854,470 $390,170 $3,472,829
Unrealized appreciation 31,707 14,273 78,086
---------- ---------- ----------
Total investment in Portfolio, at value (Note 1A) $1,886,177 $404,443 $3,550,915
Receivable from the Administrator (Note 5) 19,734 17,527 --
Deferred organization expenses (Note 1D) 5,731 6,234 5,580
---------- ---------- ----------
Total assets $1,911,642 $428,204 $3,556,495
---------- ---------- ----------
Liabilities:
Dividends payable $2,375 $1,238 $9,165
Accrued expenses 2,547 2,329 4,204
---------- ---------- ----------
Total liabilities $4,922 $3,567 $13,369
---------- ---------- ----------
Net Assets $1,906,720 $424,637 $3,543,126
========== ========== ==========
Sources of Net Assets:
Paid-in capital $1,995,789 $406,349 $3,759,369
Accumulated net realized gain (loss) on investment and
financial futures transactions (computed on the basis
of identified cost) (120,614) 4,648 (296,007)
Accumulated undistributed (distributions in excess of)
net investment income (162) (633) 1,678
Unrealized appreciation of investments and
financial futures contracts from Portfolio
(computed on the basis of identified cost) 31,707 14,273 78,086
---------- ---------- ----------
Total $1,906,720 $424,637 $3,543,126
========== ========== ==========
Shares of Beneficial Interest Outstanding 197,173 41,563 368,712
======= ====== =======
Net Asset Value and Redemption Price Per Share
(net assets (divided by) shares of beneficial interest outstanding) $9.67 $10.22 $9.61
===== ===== =====
Computation of Offering Price Per Share
(100/97.50 of net asset value per share) $9.92 $10.48 $9.86
===== ===== =====
On sales of $50,000 or more, the offering price is reduced.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
Year Ended March 31, 1996
Traditional Traditional Traditional Traditional
California Connecticut Florida Michigan
Limited Fund Limited Fund Limited Fund Limited Fund
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $364,529 $68,586 $50,028 $227,400
Expenses allocated from Portfolio (37,619) (4,261) (5,147) (25,912)
-------- ------- ------- --------
Net investment income from Portfolio $326,910 $64,325 $44,881 $201,488
-------- ------- ------- --------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $162 $ -- $113 $40
Distribution costs (Note 6) 54,610 10,137 168 32,805
Custodian fees (Note 5) 3,001 1,551 3,002 2,791
Transfer and dividend disbursing agent fees 4,224 1,100 763 3,319
Printing and postage 9,570 8,388 5,785 9,519
Legal and accounting services 8,735 4,576 3,209 7,035
Registration costs -- 1,000 -- --
Amortization of organization expenses (Note 1D) 2,152 2,302 4,150 2,134
Miscellaneous -- -- 1,647 --
-------- ------- ------- --------
Total expenses $82,454 $29,054 $18,837 $57,643
-------- ------- ------- --------
Deduct --
Allocation of expenses to the Administator (Note 5) $18,443 $12,441 $15,507 $12,516
Reduction of custodian fee (Note 5) 489 88 -- --
-------- ------- ------- --------
Total $18,932 $12,529 $15,507 $12,516
-------- ------- ------- --------
Net expenses $63,522 $16,525 $3,330 $45,127
-------- ------- ------- --------
Net investment income $263,388 $47,800 $41,551 $156,361
-------- ------- ------- --------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $43,174 ($13,753) $2,907 $66,007
Financial futures contracts (38,175) (7,997) (1,448) (29,481)
-------- ------- ------- --------
Net realized gain (loss) $4,999 ($21,750) $1,459 $36,526
Change in unrealized appreciation (depreciation) 125,662 43,082 (39,806) 53,460
-------- ------- ------- --------
Net realized and unrealized gain (loss) $130,661 $21,332 ($38,347) $89,986
-------- ------- ------- --------
Net increase in net assets
from operations $394,049 $69,132 $3,204 $246,347
======== ======= ======= ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
Traditional Traditional Traditional
New Jersey New York Ohio
Limited Fund Limited Fund Limited Fund
-----------------------------------------------
<S> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $137,738 $39,537 $250,354
Expenses allocated from Portfolio (14,196) (4,027) (27,155)
-------- ------- -------
Net investment income from Portfolio $123,542 $35,510 $223,199
-------- ------- -------
Expenses --
Compensation of Trustees not members of the
Administrator's organization $ -- $ -- $40
Distribution costs (Note 6) 20,993 37 34,942
Custodian fees (Note 5) 2,501 2,991 3,002
Transfer and dividend disbursing agent fees 1,285 647 3,497
Printing and postage 13,604 5,883 9,190
Legal and accounting services 4,514 3,368 7,448
Amortization of organization expenses (Note 1D) 2,141 3,440 2,090
Miscellaneous 16 1,609 210
-------- ------- -------
Total expenses $45,054 $17,975 $60,419
-------- ------- -------
Deduct --
Allocation of expenses to the Administator (Note 5) $19,734 $17,527 $ --
Reduction of custodian fee (Note 5) 32 -- --
-------- ------- -------
Total $19,766 $17,527 $ --
-------- ------- -------
Net expenses $25,288 $448 $60,419
-------- ------- -------
Net investment income $98,254 $35,062 $162,780
-------- ------- -------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) ($1,268) $8,405 $56,299
Financial futures contracts (16,331) (3,350) (28,157)
-------- ------- -------
Net realized gain (loss) ($17,599) $5,055 $28,142
Change in unrealized appreciation of investments 57,190 12,420 23,630
-------- ------- -------
Net realized and unrealized gain $39,591 $17,475 $51,772
-------- ------- -------
Net increase in net assets from operations $137,845 $52,537 $214,552
======== ======= ========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
Traditional Traditional Traditional Traditional
California Connecticut Florida Michigan
Limited Fund Limited Fund Limited Fund Limited Fund
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $263,388 $47,800 $41,551 $156,361
Net realized gain (loss) on investments 4,999 (21,750) 1,459 36,526
Change in unrealized appreciation (depreciation)
of investments 125,662 43,082 (39,806) 53,460
---------- ---------- ---------- ----------
Net increase in net assets from operations $394,049 $69,132 $3,204 $246,347
---------- ---------- ---------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($258,258) ($47,800) ($41,551) ($154,185)
In excess of net investment income -- (762) (1,811) --
---------- ---------- ---------- ----------
Total distributions to shareholders ($258,258) ($48,562) ($43,362) ($154,185)
---------- ---------- ---------- ----------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $766,925 $769,941 $2,140,838 $123,386
Net asset value of shares issued to shareholders in
payment of distributions declared 172,382 35,104 30,957 102,234
Cost of shares redeemed (4,244,747) (680,629) (46,950) (4,881,976)
---------- ---------- ---------- ----------
Increase (decrease) in net assets from
Fund share transactions ($3,305,440) $124,416 $2,124,845 ($4,656,356)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets ($3,169,649) $144,986 $2,084,687 ($4,564,194)
Net Assets:
At beginning of year 7,969,735 1,582,941 240,745 6,904,388
---------- ---------- ---------- ----------
At end of year $4,800,086 $1,727,927 $2,325,432 $2,340,194
========== ========== ========== ==========
Accumulated undistributed (distributions in excess of)
net investment income included in net assets at
end of year $268 ($75) ($1,630) $839
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
Year Ended March 31, 1996
Traditional Traditional Traditional
New Jersey New York Ohio
Limited Fund Limited Fund Limited Fund
-----------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $98,254 $35,062 $162,780
Net realized gain (loss) on investments (17,599) 5,055 28,142
Change in unrealized appreciation of investments 57,190 12,420 23,630
---------- --------- ----------
Net increase in net assets from operations $137,845 $52,537 $214,552
---------- --------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($96,903) ($35,062) ($162,780)
In excess of net investment income -- (439) (3,471)
---------- --------- ----------
Total distributions to shareholders ($96,903) ($35,501) ($166,251)
---------- --------- ----------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sales of shares $354,799 $1,369,335 $185,818
Net asset value of shares issued to shareholders in
payment of distributions declared 83,122 16,412 90,926
Cost of shares redeemed (1,878,569) (1,157,662) (1,871,443)
---------- --------- ----------
Increase (decrease) in net assets from
Fund share transactions ($1,440,648) $228,085 ($1,594,699)
---------- --------- ----------
Net increase (decrease) in net assets ($1,399,706) $245,121 ($1,546,398)
Net Assets:
At beginning of year 3,306,426 179,516 5,089,524
---------- --------- ----------
At end of year $1,906,720 $424,637 $3,543,126
========== ========= ==========
Accumulated undistributed (distributions in excess of)
net investment income included in net assets at
end of year ($162) ($633) $1,678
========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTON>
Statement of Changes in Net Assets
Year Ended March 31, 1995
Traditional Traditional Traditional Traditional
California Connecticut Florida Michigan
Limited Fund Limited Fund Limited Fund* Limited Fund
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $422,921 $81,333 $4,534 $309,977
Net realized loss on investments (562,761) (78,952) (515) (518,635)
Change in unrealized appreciation of investments 425,011 61,989 4,429 497,292
---------- ---------- --------- ----------
Net increase in net assets from operations $285,171 $64,370 $8,448 $288,634
---------- ---------- --------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($422,921) ($81,333) ($4,534) ($309,977)
In excess of net investment income (65,025) (10,076) (248) (42,990)
---------- ---------- --------- ----------
Total distributions to shareholders ($487,946) ($91,409) ($4,782) ($352,967)
---------- ---------- --------- ----------
Transactions in shares of beneficial
interest (Note 4) --
Proceeds from sales of shares $4,247,898 $1,593,720 $253,115 $3,647,414
Net asset value of shares issued to shareholders in
payment of distributions declared 263,751 67,490 4,329 259,467
Cost of shares redeemed (10,818,154) (2,102,622) (20,375) (5,811,858)
---------- ---------- --------- ----------
Increase (decrease) in net assets from
Fund share transactions ($6,306,505) ($441,412) $237,069 ($1,904,977)
---------- ---------- --------- ----------
Net increase (decrease) in net assets ($6,509,280) ($468,451) $240,735 ($1,969,310)
Net Assets:
At beginning of year 14,479,015 2,051,392 10 8,873,698
---------- ---------- --------- ----------
At end of year $7,969,735 $1,582,941 $240,745 $6,904,388
========== ========== ======== ==========
Accumulated undistributed (distributions in excess of)
net investment income included in net assets at
end of year ($4,933) $687 ($248) ($1,337)
========== ========== ======== ==========
* For the Traditional Florida Limited Fund the Statement of Changes in Net Assets is for the period from the start of
business, July 5, 1994, to March 31, 1995.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
Year ended March 31, 1995
Traditional Traditional Traditional
New Jersey New York Ohio
Limited Fund Limited Fund* Limited Fund
-----------------------------------------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $135,362 $2,962 $235,498
Net realized loss on investments (99,815) (407) (304,047)
Change in unrealized appreciation of investments 100,169 1,853 307,142
---------- --------- ----------
Net increase in net assets from operations $135,716 $4,408 $238,593
---------- --------- ----------
Distributions to shareholders (Note 3) --
From net investment income ($135,362) ($2,962) ($235,498)
In excess of net investment income (20,190) (194) (25,004)
---------- --------- ----------
Total distributions to shareholders ($155,552) ($3,156) ($260,502)
---------- --------- ----------
Transactions in shares of beneficial interest (Note 4) --
Proceeds from sales of shares $2,933,944 $190,691 $3,331,128
Net asset value of shares issued to shareholders in
payment of distributions declared 140,656 1,557 201,293
Cost of shares redeemed (2,896,814) (13,994) (4,215,716)
---------- --------- ----------
Increase (decrease) in net assets from
Fund share transactions $177,786 $178,254 ($683,295)
---------- --------- ----------
Net increase (decrease) in net assets $157,950 $179,506 ($705,204)
At beginning of year 3,148,476 10 5,794,728
---------- --------- ----------
At end of year $3,306,426 $179,516 $5,089,524
========== ========= ==========
Accumulated undistributed (distributions in excess of)
net investment income included in net assets at
end of year ($1,513) ($194) $5,149
========== ========= ==========
* For the Traditional New York Limited Fund the Statement of Changes in Net Assets is for the period from the start
of business, July 6, 1994, to March 31, 1995.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Traditional California Limited Traditional Connecticut Limited
-------------------------------- --------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- --------------------------------
1996 1995 1994* 1996 1995 1994*
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.520 $ 9.570 $10.000 $ 9.460 $ 9.500 $10.000
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.376 $ 0.348 $ 0.098 $ 0.350 $ 0.344 $ 0.072
Net realized and unrealized
gain (loss) on investments 0.124 0.003++ (0.400) 0.156 0.002++ (0.475)
---------- ---------- ---------- ---------- ---------- ----------
Total income (loss) from operations $ 0.500 $ 0.351 $ (0.302) $ 0.506 $ 0.346 $ (0.403)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.370) $ (0.348) $ (0.098) $ (0.350) $ (0.344) $ (0.072)
In excess of net investment income -- (0.053) (0.030) (0.006) (0.042) (0.025)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions $ (0.370) $ (0.401) $ (0.128) $ (0.356) $ (0.386) $ (0.097)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.650 $ 9.520 $ 9.570 $ 9.610 $ 9.460 $ 9.500
========== ========== ========== ========== ========== ==========
Total Return (1) 5.39% 3.80% (3.16%) 5.49% 3.78% (4.14%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 4,800 $ 7,970 $14,479 $ 1,728 $ 1,583 $ 2,051
Ratio of net expenses to average daily net assets (2)(3) 1.54% 1.51% 1.48%+ 1.62% 1.37% 1.38%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (2) 1.50% -- -- 1.58% -- --
Ratio of net investment income to average daily net assets 3.90% 3.75% 2.91%+ 3.62% 3.70% 2.70%+
** 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 $ 0.350 $ 0.320 $ 0.081 $ 0.228 $ 0.192 $ 0.035
========== ========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net asset
Expenses (2)(3) 1.81% 1.81% 1.98%+ 2.88% 3.01% 2.78%+
Net investment income 3.63% 3.45% 2.41%+ 2.36% 2.06% 1.30%+
+ Annualized
++ The per share amount is not in accord with the net realized and unrealized gain (loss) for the period because of the
timing of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at the
net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested
at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require the Fund to increase its expense ratio by the effect of any expense offset
arrangements with its service providers. 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 Traditional California Limited and Traditional Connecticut Limited Funds, the Financial Highlights are for
the period from the start of business, December 8, 1993, and December 27, 1993, respectively, to March 31, 1994.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Traditional Florida Limited Traditional Michigan Limited
--------------------- ---------------------------------
Year Ended March 31, Year Ended March 31,
--------------------- ---------------------------------
1996 1995*** 1996 1995 1994*
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.070 $10.000 $ 9.480 $ 9.490 $10.000
---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.451 $ 0.321 $ 0.376 $ 0.352 $ 0.100
Net realized and unrealized
gain (loss) on investments 0.070++ 0.088 0.095 0.039++ (0.484)
---------- ---------- ---------- ---------- ----------
Total income (loss) from operations $ 0.521 $ 0.409 $ 0.471 $ 0.391 $ (0.384)
---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $ (0.451) $ (0.321) $ (0.371) $ (0.352) $ (0.100)
In excess of net investment income (0.020) (0.018) -- (0.049) (0.026)
---------- ---------- ---------- ---------- ----------
Total distributions $ (0.471) $ (0.339) $ (0.371) $ (0.401) $ (0.126)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $10.120 $10.070 $ 9.580 $ 9.480 $ 9.490
========== ========== ========== ========== ==========
Total Return (1) 5.33% 4.19% 5.10% 4.26% (3.99%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 2,325 $ 241 $ 2,340 $ 6,904 $ 8,874
Ratio of net expenses to average daily net assets (2)(3) 0.89% 0.74%+ 1.83% 1.56% 1.15%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (2) 0.87% -- 1.79% -- --
Ratio of net investment income to average daily net assets 4.26% 4.52%+ 3.94% 3.80% 3.07%+
** 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 (loss) per share $0.283 $(0.506) $0.345 $0.312 $0.061
========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net asset
Expenses (2)(3) 2.48% 12.20%+ 2.15% 1.99% 2.35%+
Net investment income (loss) 2.67% (6.94%)+ 3.62% 3.37% 1.87%+
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gains for the period because of the
timing of sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first day and a sale at
the net asset value on the last day of each period reported. Dividends and distributions, if any, are assumed
to be reinvested at the net asset value on the payable date. Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase its expense ratio by the effect of any
expense offset arrangements with its service providers. 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 Traditional Michigan Limited Fund, the Financial Highlights are for the period from the start of
business, December 8, 1993, to March 31, 1994.
*** For the Traditional Florida Limited Fund, the Financial Highlights are for the period from the start of
business, July 5, 1994, to March 31, 1995.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Traditional Traditional
New Jersey Limited New York Limited
-------------------------------- ----------------------
Year Ended March 31, Year Ended March 31,
-------------------------------- ----------------------
1996 1995 1994* 1996 1995***
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.590 $ 9.570 $10.000 $10.030 $10.000
---------- ---------- ---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.368 $ 0.345 $ 0.099 $ 0.465 $ 0.325
Net realized and unrealized
gain (loss) on investments 0.077 0.071 (0.404) 0.196 0.051
---------- ---------- ---------- ---------- ----------
Total income (loss) from operations $ 0.445 $ 0.416 $ (0.305) $ 0.661 $ 0.376
---------- ---------- ---------- ---------- ----------
Less distributions:
From net investment income $(0.365) $ (0.345) $ (0.099) $ (0.465) $ (0.325)
In excess of net investment income -- (0.051) (0.026) (0.006) (0.021)
---------- ---------- ---------- ---------- ----------
Total distributions $ (0.365) $ (0.396) $ (0.125) $ (0.471) $ (0.346)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 9.670 $ 9.590 $ 9.570 $10.220 $10.030
========== ========== ========== ========== ==========
Total Return (1) 4.77% 4.49% (3.20%) 6.68% 3.87%
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 1,907 $ 3,306 $ 3,148 $ 425 $ 180
Ratio of net expenses to average daily net assets (2)(3) 1.54% 1.61% 1.57%+ 0.61% 0.98%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (2) 1.52% -- -- 0.58% --
Ratio of net investment income to average daily net assets 3.78% 3.62% 3.08%+ 4.52% 5.96%+
** 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 (loss) per
share and the ratios would have been:
Net investment income (loss) per share $ 0.291 $ 0.293 $ 0.057 $ 0.233 $ (1.178)
========== ========== ========== ========== ==========
Ratios (As a percentage of average daily net asset
Expenses (2)(3) 2.30% 2.16% 2.88%+ 2.87% 28.54%+
Net investment income (loss) 3.02% 3.07% 1.77%+ 2.26% (21.60%)+
+ 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 each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase its expense ratio by the effect of any
expense offset arrangements with its service providers. 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 Traditional New Jersey Limited Fund, the Financial Highlights are for the period from the start of
business, December 8, 1993, to March 31, 1994.
*** For the Traditional New York Limited Fund, the Financial Highlights are for the period from the start of
business, July 6, 1994, to March 31, 1995.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Traditional Ohio Limited
---------------------------------
Year Ended March 31,
---------------------------------
1996 1995 1994*
---------- ---------- ----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.530 $ 9.500 $10.000
---------- ---------- ----------
Income (loss) from operations:
Net investment income $ 0.358 $ 0.358 $ 0.095
Net realized and unrealized gain (loss) on investments 0.088 0.068 (0.473)
---------- ---------- ----------
Total income (loss) from operations $ 0.446 $ 0.426 $ (0.378)
---------- ---------- ----------
Less distributions:
From net investment income $ (0.358) $ (0.358) $ (0.095)
In excess of net investment income (0.008) (0.038) (0.027)
---------- ---------- ----------
Total distributions $ (0.366) $ (0.396) $ (0.122)
---------- ---------- ----------
Net asset value, end of period $ 9.610 $ 9.530 $ 9.500
========== ========== ==========
Total Return (1) 4.81% 4.63% (3.91%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 3,543 $ 5,090 $ 5,795
Ratio of net expenses to average daily net assets (2)(3) 2.01% 1.60% 1.27%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (2) 1.99% -- --
Ratio of net investment income to average daily net assets 3.70% 3.81% 3.04%+
** For the following periods, the operating expenses of the Fund 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 $0.311 $0.074
====== ======
Ratios (As a percentage of average daily net asset):
Expenses (2)(3) 2.10% 1.95%+
Net investment income 3.32% 2.36%+
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gain (loss) for
the period because of the timing of sales of Fund shares and the amount of per share realized
and unrealized gains and losses at such time.
(1) Total investment return is calculated assuming a purchase at the net asset value on the first
day and a sale at the net asset value on the last day of each period reported. Dividends and
distributions, if any, are assumed to be reinvested at the net asset value on the payable date.
Amount is computed on a nonannualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 have been adjusted to refelct 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 Traditional Ohio Limited Fund, the Financial Highlights are for the period from the start
of business, December 8, 1993, to March 31, 1994.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
Eaton Vance Investment Trust (the Trust) is an entity of the type
commonly known as a Massachusetts business trust and is registered under
the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Trust presently consists of twenty-
four Funds, seven of which are included in these financial statements.
They include EV Traditional California Limited Maturity Municipals Fund
("Traditional California Limited Fund"), EV Traditional Connecticut
Limited Maturity Municipals Fund ("Traditional Connecticut Limited
Fund"), EV Traditional Florida Limited Maturity Municipals Fund,
("Traditional Florida Limited Fund"), EV Traditional Michigan Limited
Maturity Municipals Fund ("Traditional Michigan Limited Fund"), EV
Traditional New Jersey Limited Maturity Municipals Fund ("Traditional
New Jersey Limited Fund"), EV Traditional New York Limited Maturity
Municipals Fund ("Traditional New York Limited Fund")and EV Traditional
Ohio Limited Maturity Municipals Fund ("Traditional Ohio Limited Fund").
Each Fund invests all of its investable assets in interests in a
separate corresponding open-end management investment company
(a "Portfolio"), a New York Trust, having the same investment objective
as its corresponding Fund. The Traditional California Limited Fund
invests its assets in the California Limited Maturity Municipals
Portfolio, the Traditional Connecticut Limited Fund invests its assets
in the Connecticut Limited Maturity Municipals Portfolio, the
Traditional Florida Limited Fund invests its assets in the Florida
Limited Maturity Municipals Portfolio, the Traditional Michigan Limited
Fund invests its assets in the Michigan Limited Maturity Municipals
Portfolio, the Traditional New Jersey Limited Fund invests its assets in
the New Jersey Limited Maturity Municipals Portfolio, the Traditional
New York Limited Fund invests its assets in the New York Limited
Maturity Municipals Portfolio and the Ohio Limited Fund invests its
assets in the Ohio 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 (8.1%,
11.5%, 1.8%, 11.0%, 2.4%, 0.3% and 10.6% at March 31, 1996 for the
Traditional California Limited Fund, Traditional Connecticut Limited
Fund, Traditional Florida Limited Fund, Traditional Michigan Limited
Fund, Traditional New Jersey Limited Fund, Traditional New York Limited
Fund and Traditional Ohio 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 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 Funds, for federal income tax purposes, had
capital loss carryovers, which will reduce taxable income arising from
future net realized gain on investments, if any, to the extent permitted
by the Internal Revenue Code, and thus will reduce the amount of
distributions to shareholders which would otherwise be necessary to
relieve the Funds of any liability for federal income or excise tax.
The amounts and expiration dates of the capital loss carryovers are as
follows:
Fund Amount Expires
- --------------------- ---------- ----------------
Traditional California
Limited Fund $373,739 March 31, 2004
116,865 March 31, 2003
Traditional Connecticut
Limited Fund 49,875 March 31, 2004
37,427 March 31, 2003
6,885 March 31, 2002
Traditional Michigan
Limited Fund 280,688 March 31, 2004
202,917 March 31, 2003
12,147 March 31, 2002
Traditional New Jersey
Limited Fund 81,999 March 31, 2004
21,376 March 31, 2003
497 March 31, 2002
Traditional Ohio
Limited Fund 134,780 March 31, 2004
144,732 March 31, 2003
13,519 March 31, 2002
Dividends paid by each Fund from net interest on tax-exempt municipal
bonds allocated from its corresponding Portfolio are not includable by
shareholders as gross income for federal income tax purposes because
each Fund and Portfolio intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which
will enable the Funds to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item to shareholders.
D. Deferred Organization Expenses -- Costs incurred by
a Fund in connection with its organization, including registration
costs, are being amortized on the straight-line
basis over five years.
E. Use of Estimates -- The preparation of financial statements in
comformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
F. Other -- Investment transactions are accounted for on a trade date
basis.
(2) Fund Name Changes
During the period, the EV Classic California Limited Maturity Tax Free
Fund, EV Classic Connecticut Limited Maturity Tax Free Fund, EV
Traditional Florida Limited Maturity Tax Free Fund, EV Classic Michigan
Limited Maturity Tax Free Fund, EV Classic New Jersey Limited Maturity
Tax Free Fund, EV Traditional New York Limited Maturity Tax Free Fund
and EV Classic Ohio Limited Maturity Tax Free Fund changed their
respective names to EV Traditional California Limited Maturity
Municipals Fund, EV Traditional Connecticut Limited Maturity Municipals
Fund, EV Traditional Florida Limited Maturity Municipals Fund,
EV Traditional Michigan Limited Maturity Municipals Fund, EV Traditional
New Jersey Limited Maturity Municipals Fund, EV Traditional New York
Limited Maturity Municipals Fund and EV Traditional Ohio Limited Maturity
Municipals Fund. In addition, each Fund, except for Traditional Florida
Limited Fund and Traditional New York Limited Fund, discontinued the
payment of sales commissions and distribution fees to the Principal
Underwriter pursuant to their respective Distribution Plan (see Note 6).
All of the Funds have adopted new service plans (see Note 7) which
allow for the quarterly payment of service fees to the Principal
Underwriter and authorized firms. Purchases of Fund shares on or
after February 1, 1996 will be subject to a Maximum Initial Sales
Charge of 2.50% on amounts up to $50,000 and at declining rates on
purchases in excess of such amounts.
(3) Distributions to Shareholders
The net income of a Fund is determined daily and substantially all of
the net income so determined is declared as a dividend to shareholders
of record at the time of declaration. Distributions are paid monthly.
Distributions of allocated realized capital gains, if any, are made at
least annually. Shareholders may reinvest income and capital gain
distributions in additional shares of a Fund at the net asset value as
of the ex-dividend date. Distributions are paid in the form of
additional shares or, at the election of the shareholder, in cash. The
Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that
only distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital. Differences
in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary over
distributions for financial statements purposes are classified as
distributions in excess of net investment income or accumulated net
realized gains. During the year ended March 31, 1996, $71 and $429 for
Traditional California Limited Fund and Traditional Florida Limited
Fund, respectively was reclassified from accumulated net realized gain
(loss) to accumulated undistributed (distributions in excess of) net
investment income due to permanent differences between book and tax
accounting. The tax treatment of distributions for the calendar year
will be reported to shareholders prior to February 1, 1997 and will be
based on tax accounting methods which may differ from amounts determined
for financial statement purposes.
(4) Shares of Beneficial Interest
The Funds' Declaration of Trust permits the Trustees to issue an
unlimited number of full and fractional shares of beneficial interest
(without par value). Transactions in Fund shares were as follows:
Traditional Traditional Traditional
California Connecticut Florida
Limited Fund Limited Fund Limited Fund
------------- -------------- -------------
Year Ended Year Ended Year Ended
March 31, March 31, March 31,
------------- -------------- -------------
1996 1995 1996 1995 1996 1995*
------ ------- ------ ------ ------- -------
Sales 79,260 446,064 79,771 169,046 207,359 25,560
Issued to
shareholders
electing to
receive
payments of
distributions
in Fund
shares 17,785 27,926 3,640 7,199 3,014 437
Redemptions (436,543) (1,149,774) (70,930) (225,035) (4,584) (2,083)
------- --------- ------ ------- ------ -------
Net
increase
(decrease) (339,498) (675,784) 12,481 (48,790) 205,789 23,914
======= ======= ====== ====== ======= ======
Traditional Traditional Traditional
Michigan New Jersey New York
Limited Fund Limited Fund Limited Fund
------------- -------------- -------------
Year Ended Year Ended Year Ended
March 31, March 31, March 31,
------------- -------------- -------------
1996 1995 1996 1995 1996 1995**
------ ------- ------ ------ ------- -------
Sales 12,885 382,990 36,458 307,217 135,541 19,146
Issued to
shareholders
electing
to receive
payments of
distributions
in Fund
shares 10,623 27,600 8,541 14,838 1,602 157
Redemptions (507,235) (617,634) (192,653) (306,159) (113,486) (1,398)
------- --------- ------ ------- ------ -------
Net
increase
(decrease) (483,727) (207,044) (147,654) 15,896 23,657 17,905
======= ======= ====== ====== ======= ======
Traditional Ohio
Limited Fund
----------------
Year Ended March 31,
----------------
1996 1995
------------ ------------
Sales 19,075 350,118
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 9,399 21,320
Redemptions (193,886) (447,159)
------------ ------------
Net increase (decrease) (165,412) (75,721)
============ ============
* For the period from the start of business, July 5, 1994 to
March 31, 1995.
** For the period from the start of business, July 6, 1994 to
March 31, 1995.
(5) Transactions with Affiliates
Eaton Vance Management (EVM) serves as the Administrator of each Fund,
but receives no compensation. The Portfolios have engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 3 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. To enhance the
net income of the Funds, $18,443, $12,441, $15,507, $12,516, $19,734 and
$17,527 of expenses related to the operation of the Traditional
California Limited Fund, Traditional Connecticut Limited Fund,
Traditional Florida Limited Fund, Traditional Michigan Limited Fund,
Traditional New Jersey Limited Fund, and Traditional New York Limited
Fund, respectively, were allocated, to EVM. Except as to Trustees of the
Funds and the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their
services to each Fund out of such investment adviser fee.
Investors Bank & Trust Company (IBT), serves as custodian to the Funds
and the Portfolios. Prior to November 10, 1995, IBT was an affiliate of
EVM. Pursuant to the respective custodian agreements, IBT receives a fee
reduced by credits which are determined based on the average cash
balances the Funds or the Portfolios maintain with IBT. All significant
credit balances used to reduce the Fund's custody fees are reported as a
reduction of expenses in the Statement of Operations. Certain of the
officers and Trustees of the Funds and Portfolios are officers and
directors/trustees of the above organizations (Note 6).
(6) Distribution Plan
Prior to February 1, 1996, each Fund (except Traditional Florida Limited
Fund and Traditional New York Limited Fund) had adopted a distribution
plan (the Plan) pursuant to Rule 12b-1 under the Investment Company Act
of 1940. The Plans required 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 would automatically
discontinue payments to EVD during any period in which there are no
outstanding Uncovered Distribution Charges, which were 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 8) and amounts theretofore
paid to EVD. The amount payable to EVD with respect to each day was
accrued on such day as a liability of each Fund and, accordingly,
reduced the Fund's net assets. For the period from April 1, 1995 to
January 31, 1996, Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Michigan Limited Fund, Traditional
New Jersey Limited Fund, and Traditional Ohio Limited Fund paid $44,447,
$8,155, $26,821, $17,080, and $28,330, respectively to EVD representing
0.75% (annualized) of average daily net assets. At March 31, 1996, the
amount of Uncovered Distribution Charges of EVD calculated under the
Plans for Traditional California Limited Fund, Traditional Connecticut
Limited Fund, Traditional Michigan Limited Fund, Traditional New Jersey
Limited Fund, and Traditional Ohio Limited Fund were approximately
$1,395,000, $247,000, $909,000, $412,000 and $705,000, respectively.
In addition, the Plans permitted 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 had initially implemented the Plans by authorizing
the Funds to make monthly service fee payments to the Principal
Underwriter in amounts not exceeding 0.15% of each Fund's average daily
net assets for any fiscal year. For the period from April 1, 1995to
January 31, 1996. Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Michigan Limited Fund, Traditional
New Jersey Limited Fund and Traditional Ohio Limited Fund paid service
fees to EVD in the amount of $8,889, $1,631, $5,364, $3,416 and $5,666,
respectively. Pursuant to the Distribution Plan, on sales made prior to
January 30, 1995, EVD made monthly service fee payments to Authorized
Firms in amounts equivalent to 0.15%, annualized, of the assets
maintained in each Fund by their customers. On sales of shares made
between January 30, 1995 and February 1, 1996, EVD paid 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 Firm and monthly payments of service
fees in amounts not exceeding 0.15% per annum of the Funds' average
daily net assets based on the value of Fund shares sold by such Firm and
remaining outstanding for at least one year. During the first year after
a purchase of Fund shares, EVD retained the service fee as reimbursement
for the service fee payment made to the Authorized Firm at the time of
sale. Service fee payments were made for personal services and/or
maintenance of shareholder accounts. Service fees paid to EVD and
Authorized Firms were separate and distinct from the sales commissions
and distribution fees payable by a Fund to EVD, and as such were not
subject to automatic discontinuance when there were no outstanding
Uncovered Distribution Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(7) Service Plan
Effective February 1, 1996 each Fund has adopted a Service Plan (except
Traditional Florida Limited Fund and Traditional New York Limited Fund
which had adopted a Service Plan since the start of business) designed
to meet the service fee requirements of The National Association of
Securities Dealers, Inc. The Service Plans provide that each Fund may
make service fee payments to EVD, Authorized Firms, or other persons in
amounts not exceeding 0.25% of each Fund's average daily net assets for
any fiscal year. The Trustees have initially implemented each Plan by
authorizing the Fund to make quarterly service fee payments to the
Principal Underwriter and Authorized Firms in amounts not exceeding
0.15% of each Fund's average daily net assets for any fiscal year
which is attributable to shares of a Fund sold by such persons and
remaining outstanding for at least one year. Service fee payments are
made for personal services and/or the maintenance of shareholder
accounts.For the period from February 1, 1996 to March 31, 1996,
Traditional California Limited Fund, Traditional Connecticut Limited
Fund, Traditional Florida Limited Fund, Traditional Michigan Limited
Fund, Traditional New Jersey Limited Fund, Traditional New York Limited
Fund and Traditional Ohio Limited Fund paid or accrued service fees of
$1,274, $351, $168, $620, $497, $37 and $946, respectively.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(8) Contingent Deferred Sales Charges
For shares of Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Michigan Limited Fund, Traditional
New Jersey Limited Fund and Traditional Ohio Limited Fund purchased
prior to February 1, 1996, a contingent deferred sales charge (CDSC) of
1.00% is imposed on any redemption of Fund shares made within one year
of purchase. 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 Funds' Distribution Plans. CDSC received when no Uncovered
Distribution Charges exist will be credited to the Funds. For the year
ended March 31, 1996, EVD received $1,647, $250, $559, $295, and $259 of
CDSC paid by shareholders of Traditional California Limited Fund,
Traditional Connecticut Limited Fund, Traditional Michigan Limited Fund,
Traditional New Jersey Limited Fund and Traditional Ohio Limited Fund
respectively.
(9) Investment Transactions
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended March 31, 1996 were as follows:
Traditional Traditional Traditional
California Connecticut Florida
Limited Fund Limited Fund Limited Fund
------------- ------------- -------------
Increases $ 883,212 $ 797,097 $2,153,277
Decreases 4,536,261 725,070 71,352
Traditional Traditional Traditional
Michigan New Jersey New York
Limited Fund Limited Fund Limited Fund
------------- ------------- -------------
Increases $ 202,116 $ 387,603 $1,386,890
Decreases 5,082,986 1,950,338 1,204,697
Traditional
Ohio
Limited Fund
-------------
Increases $ 256,961
Decreases 2,099,328
(10) Special Meetings of Shareholders (unaudited)
On December 15, 1995, special meetings of the shareholders of each of
the Funds were held for the purpose of voting on the matters listed
below. On October 23, 1995, the record date of the meetings, each of the
Funds had the following number of shares outstanding and each Fund had
the following number of shares represented at the December 15, 1995
meeting:
Shares Outstanding Shares Represented at
Fund at 10/23/95 12/15/95 Meeting
- -------------- ------------------ ---------------------
Traditional
California Limited 670,599 345,607
Traditional
Connecticut Limited 110,654 58,105
Traditional
Florida Limited 60,535 35,890
Traditional
Michigan Limited 395,724 201,712
Traditional
New Jersey Limited 252,346 131,351
Traditional
New York Limited 83,637 67,469
Traditional
Ohio Limited 431,022 218,191
Item 1. To consider and act on a proposal to amend each Fund's
investment policy to provide that the Fund may invest without limit in
municipal obligations the interest on which is exempt from regular
federal income tax (but which may be a tax preference item for purposes
of alternative minimum tax) and from the State taxes that, in accordance
with each Fund's investment objective, the Fund seeks to avoid.
(10) Special Meetings of Shareholders (continued)
Item 2. For the Traditional Connecticut Limited, the Traditional Ohio
Limited and the Traditional Michigan Limited Funds only. To approve the
revision of certain of each Fund's fundamental investment restrictions
as follows:
2A. Eliminate the restriction concerning transactions with
affiliates.
2B. Eliminate the restriction concerning investing for control.
2C. Eliminate the restriction concerning joint transactions.
2D. Reclassify the restriction concerning short sales.
2E. Reclassify the restriction concerning investment in
affiliated issuers.
2F. Reclassify the restriction concerning investment in
exploration companies.
2G. Eliminate the restriction concerning diversification of
assets.
2H. Amend the restriction concerning underwriting.
2I. Amend the restriction concerning investing in futures
transactions.
2J. Amend the restriction concerning lending.
2K. Amend the restriction concerning borrowing, pledging and
senior securities.
2L. Clarify the restrictions concerning investing in another
investment company.
<TABLE>
<CAPTION>
The following are the results of the voting on each proposal.
For the Traditional California Limited Fund:
Proposal 1
------------
<S> <C> <C> <C> <C> <C> <C> <C>
FOR 236,601
AGAINST 5,044
ABSTAIN 103,955
For the Traditional Connecticut Limited Fund:
Proposal
1 2A 2B 2C 2D 2E 2F
-------- -------- -------- -------- -------- -------- --------
FOR 50,391 49,150 49,150 50,391 49,150 49,150 50,391
AGAINST -- 1,241 1,241 -- 1,241 1,241 --
ABSTAIN 7,705 7,715 7,715 7,715 7,715 7,715 7,715
Proposal
2G 2H 2I 2J 2K 2L
-------- -------- -------- -------- -------- --------
FOR 49,150 49,150 50,346 49,150 50,346 50,391
AGAINST 1,241 1,241 -- 1,286 -- --
ABSTAIN 7,715 7,715 7,760 7,715 7,760 7,715
For the Traditional Florida Limited Fund:
Proposal 1
------------
FOR 35,890
AGAINST --
ABSTAIN --
For the Traditional Michigan Limited Fund:
Proposal
1 2A 2B 2C 2D 2E 2F
-------- -------- -------- -------- -------- -------- --------
FOR 186,968 185,962 189,018 189,018 182,824 185,962 182,824
AGAINST 7,364 9,140 4,088 4,088 12,278 7,144 12,278
ABSTAIN 7,379 6,609 8,605 8,605 6,609 8,695 6,609
Proposal
2G 2H 2I 2J 2K 2L
-------- -------- -------- -------- -------- --------
FOR 189,971 187,975 187,975 187,975 184,919 186,915
AGAINST 5,131 5,131 7,127 7,127 8,187 8,187
ABSTAIN 6,609 8,605 6,609 6,609 8,605 6,609
(10) Special Meetings of Shareholders (continued)
For the Traditional New York Limited Fund:
Proposal 1
------------
FOR 67,469
AGAINST --
ABSTAIN --
For the Traditional New Jersey Limited Fund:
Proposal 1
------------
FOR 118,108
AGAINST 12,274
ABSTAIN 969
For the Traditional Ohio Limited Fund:
Proposal
1 2A 2B 2C 2D 2E 2F
-------- -------- -------- -------- -------- -------- --------
FOR 201,800 163,178 169,100 180,462 166,460 166,523 166,414
AGAINST 11,143 18,708 12,786 15,363 15,426 15,363 15,472
ABSTAIN 5,248 36,305 36,305 22,366 36,305 36,305 36,305
Proposal
2G 2H 2I 2J 2K 2L
-------- -------- -------- -------- -------- --------
FOR 168,610 168,166 164,867 166,523 168,556 168,610
AGAINST 13,276 11,587 17,019 15,363 13,230 38,199
ABSTAIN 36,305 38,438 36,305 36,305 36,305 11,382
</TABLE>
Independent Auditors' Report
To the Trustees and Shareholders of Eaton Vance Investment Trust:
We have audited the accompanying statement of assets and liabilities of
EV Traditional California Limited Maturity Muncipals Fund, EV
Traditional Connecticut Limited Maturity Muncipals Fund, EV Traditional
Florida Limited Maturity Muncipals Fund, EV Traditional Michigan Limited
Maturity Muncipals Fund, EV Traditional New Jersey Limited Maturity
Muncipals Fund, EV Traditional New York Limited Maturity Muncipals Fund,
and EV Traditional Ohio Limited Maturity Muncipals Fund (series of Eaton
Vance Investment Trust) as of March 31, 1996, and the related statements
of operations for the year then ended, the statements of changes in net
assets for the years ended March 31, 1996 and 1995, and the financial
highlights for each of the years in the three-year period ended March
31, 1996. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of each
of the aforementioned funds of Eaton Vance Investment Trust at March 31,
1996, the results of their operations, the changes in their net assets
and their financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 2, 1996
<TABLE>
<CAPTION>
California Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 2.5%
NR BBB- $1,500 Central Valley Finance
Authority, Carson Ice-Gen.
Project, 5.20%, 7/1/99 $ 1,502,085
---------------
Education - 6.3%
Aaa AAA $1,500 California Educational
Facilities Authority, Stanford
University, 5.90%, 11/1/03 $ 1,601,385
Aaa AAA 2,000 California Educational
Facilities Authority,
California Institute of
Technology, 6.375%, 1/1/08 2,133,680
---------------
$ 3,735,065
---------------
Escrowed/Prerefunded - 19.5%
NR A- $1,700 California Educational
Facilities Authority, National
University, Prerefunded to
5/1/01, 7.15%, 5/1/21 $ 1,921,221
Aaa AAA 2,300 California State Public
Works Board, Department
of Corrections, Prerefunded
to 9/1/01, 6.50%, 9/1/19 2,548,929
Aa AA 1,500 Los Angeles Department of
Airports, Prerefunded to
5/1/97, 7.40%, 5/1/10 1,586,880
Aaa AAA 1,925 Moulton Niguel, California,
Water District, Prerefunded
to 4/1/00, 7.30%, 4/1/12 2,156,039
NR AAA 3,000 San Bernadino, California,
Certificates of Participation,
Prerefunded to 8/1/01,
7.00%, 8/1/28 3,391,230
---------------
$ 11,604,299
---------------
Electric Utility - 1.8%
A2 A+ $1,000 California Pollution
Control Financing
Authority, Southern
California Edison
Company, Series D,
6.85%, 12/1/08 $ 1,079,350
---------------
General Obligations - 11.1%
Aa AA- $1,000 Palos Verdes Library
District, 6.70%, 8/1/11 $ 1,064,960
Baa1 A 750 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 787,943
Baa1 A 490 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 536,290
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 770,978
A1 AA- 1,870 City and County of
San Francisco, 6.50%,
12/15/03 2,009,483
AA AA- 1,500 Santa Monica - Malibu,
California, Unified School
District, 5.50%, 8/1/12 1,458,945
---------------
$ 6,628,599
---------------
Housing - 1.7%
Aa A+ $1,000 Department of Veterans
Affairs of the State of
California, Home Purchase
Revenue Bonds, (AMT),
7.50%, 8/1/98 $ 1,042,470
---------------
Hospitals - 4.4%
A1 AA- $2,400 California Health Facilities
Financing Authority,
Sisters of Providence,
7.50%, 10/1/10 $ 2,628,456
---------------
Industrial Development
Revenue - 2.9%
Aaa AAA $1,700 California Pollution Control
Financing Authority, North
County Recycling Center,
6.00%, 7/1/00 $ 1,700,000
---------------
Insured Electric Utilities - 7.9%
Aaa AAA $1,500 Sacramento Municipal
Utility District, (AMBAC),
5.60%, 8/15/16 (2) $ 1,473,090
Aaa AAA 1,000 Sacramento Municipal
Utility District, (MBIA),
6.20%, 8/15/05 1,080,410
Aaa AAA 2,250 Southern California Public
Power Authority, (FSA),
5.50%, 7/1/12 2,183,963
---------------
$ 4,737,463
---------------
Insured Hospital Revenue - 10.9%
Aaa AAA $1,750 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 4.90%, 11/1/03 $ 1,746,640
Aaa AAA 1,000 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 5.125%, 11/1/05 999,580
Aaa AAA 750 ABAG Finance Authority,
Certificates of Participation,
Stanford University Hospital,
(MBIA), 5.875%, 11/1/06 788,880
Aaa AAA 3,250 California Health Facilities
Financing Authority,
(Catholic Health West),
(AMBAC), 5.00%, 7/1/14 2,966,210
---------------
$ 6,501,310
---------------
Insured Lease Revenue/
Certificates of Participation - 2.2%
Aaa AAA $1,250 Merced County, California,
CSAC Lease Finance
Program, Certificates of
Participation, (FSA),
5.60%, 10/1/01 $ 1,308,225
---------------
Insured Transportation - 4.9%
Aaa AAA $1,905 Los Angeles Department
of Airports, (Los Angeles
International Airport),
(FGIC), (AMT),
5.625%, 5/15/12 $ 1,864,404
Aaa AAA 1,000 San Francisco Bay Area
Rapid Transit District,
(AMBAC), 6.75%, 7/1/09 1,077,110
---------------
$ 2,941,514
---------------
Insured Water & Sewer
Revenue - 5.0%
Aaa AAA $3,000 Los Angeles, California,
Department of Water and
Power Electric Plant,
(FGIC), 5.70%, 9/1/11 $ 3,004,140
---------------
Lease Revenue/
Certificates of Participation - 6.5%
A A $1,920 San Bernadino Joint
Power Finance Authority
Lease Revenue
Bonds, 5.40%, 12/1/08 (1) $ 1,865,011
Aa NR 2,000 University of California,
Central Chiller Project,
5.20%, 11/1/07 (1) 1,981,060
---------------
$ 3,846,071
---------------
Nursing Homes - 3.4%
NR A+ $2,000 California Statewide
Communities Development
Corporation, (Pacific
Homes), 5.90%, 4/1/09 $ 2,002,740
---------------
Special Tax Revenue - 3.5%
Aa AA $2,000 Orange County Local
Transportation Authority,
Sales Tax Revenue Bonds,
5.70%, 2/15/03 $ 2,070,980
---------------
Transportation - 1.8%
A1 NR $1,000 Contra Costa, California,
Transportation Authority,
6.40%, 3/1/01 $ 1,082,830
---------------
Water & Sewer Revenue - 3.7%
A1 A $2,000 The City of Los Angeles
Wastewater System,
6.90%, 6/1/08 $ 2,181,359
---------------
Total Tax-Exempt
Investments (identified
cost, $58,558,528) $ 59,596,956
===============
(1) Security has been segregated to cover when-issued securities.
(2) When-issued security.
The Portfolio invests primarily in debt securities issued by California municipalities. The ability of the issuers
of the debt securities to meet thier obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 31.0%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage by financial institution range from 5.8% to
9.3% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Connecticut Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.5%
Baa1 BBB+ $ 750 State of Connecticut
HEFA, Fairfield University
Issue, 6.90%, 7/1/14 $ 794,685
---------------
Electric Revenue - 3.7%
Baa1 A- $ 500 Puerto Rico Electric
Power Authority, 7.125%,
7/1/14 $ 539,040
---------------
Escrowed/Prerefunded - 3.8%
Aaa AAA $ 500 South Central Connecticut
Regional Water Authority,
(AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07 $ 552,245
---------------
General Obligations - 15.7%
Aa AA $ 250 Town of Danbury,
Connecticut, 7.00%,
8/1/04 $ 286,260
NR BBB 300 Government of Guam,
4.80%, 11/15/03 284,730
Aa NR 190 Norwich, Connecticut,
5.00%, 8/1/14 174,171
Aa NR 190 Norwich, Connecticut,
5.00%, 8/1/15 173,694
Baa1 A 250 Commonwealth of Puerto
Rico, 7.50%, 7/1/04 289,580
Baa1 A 285 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 299,418
Baa1 A- 500 Puerto Rico Municipal
Finance Agency, 5.70%,
7/1/03 (1) 515,795
Baa1 A- 250 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/06 256,623
---------------
$ 2,280,271
---------------
Hospital Revenue - 4.7%
NR BBB- $ 640 Connecticut Health and
Educational Facilities
Authority, New Britain
Hospital, 7.50%, 7/1/06 $ 678,995
---------------
Housing - 14.0%
Aa AA $ 200 Connecticut Housing
Finance Authority,
6.95%, 11/15/01 $ 209,316
Aa AA 1,000 Connecticut Housing
Finance Authority,
6.90%, 11/15/99 1,058,350
Aa AA 120 Connecticut Housing
Finance Authority,
5.45%, 5/15/04 122,675
Aa AA 645 Connecticut Housing
Finance Authority,
5.35%, 11/15/07 637,821
---------------
$ 2,028,162
---------------
Insured Education - 3.3%
Aaa AAA $ 500 University of Connecticut,
(FGIC), 5.00%, 2/1/12 $ 472,750
---------------
Insured General Obligations - 15.8%
Aaa AAA $ 500 East Haven, Connecticut,
(FGIC), 5.30%, 11/1/09 $ 496,630
Aaa AAA 250 Hartford, Connecticut,
(FGIC), 5.40%, 10/1/09 250,848
Aaa AAA 315 New Haven, Connecticut,
(FGIC), 5.25%, 8/1/06 319,237
Aaa AAA 500 Old Saybrook, Connecticut,
(AMBAC), 4.10%, 8/15/01 491,935
Aaa AAA 750 State of Connecticut,
(FGIC), 5.25%, 10/1/09 746,408
---------------
$ 2,305,058
---------------
Insured Hospitals - 6.6%
Aaa AAA $ 150 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 5.75%, 7/1/06 $ 157,325
Aaa AAA 500 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 7.00%, 7/1/20 538,495
Aaa AAA 250 Connecticut HEFA,
Stamford Hospital Issue,
(MBIA), 6.50%, 7/1/06 269,383
---------------
$ 965,203
---------------
Insured Miscellaneous - 5.5%
Aaa AAA $ 725 Woodstock, Connecticut
Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 797,638
---------------
Insured Special Tax - 4.2%
Aaa AAA $ 600 Connecticut Special Tax,
(FGIC), 5.10%, 6/1/03 $ 612,945
---------------
Insured Transportation - 6.1%
Aaa AAA $ 750 Connecticut State Airport
Bonds, Bradley International
Airport, (FGIC), 7.40%,
10/1/04 $ 885,293
---------------
Insured Utility - 3.7%
Aaa AAA $ 500 Connecticut Municipal
Electric Authority, (MBIA),
6.00%, 1/1/07 $ 533,835
---------------
Miscellaneous - 7.4%
Aa AA- $ 410 Connecticut State
Development Authority,
5.85%, 11/15/07 $ 434,596
A2 NR 625 Connecticut State
Development Authority,
Frito-Lay Incorporated
Project, 6.375%, 7/1/04 636,925
---------------
$ 1,071,521
---------------
Total Tax-Exempt
Investments (identified
cost, $14,290,916) $ 14,517,641
===============
(1) Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by Connecticut municipalities. The ability of the
issuers of the debt securities to meet thier obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 49.1% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution range
from 10.3% to 26.1% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Florida Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed - 22.6%
Aaa AAA $1,015 Dade County, FL,
Educational Facilities
Authority,(MBIA),
Prerefunded to 10/1/01,
7.00%, 10/1/08 $ 1,150,543
Aaa AAA 1,000 Dunnedin, Florida,
Hospital, Mease Health
Care, (MBIA), Prerefunded
to 11/15/01, 6.75%,
11/15/21 1,123,430
Aa AAA 1,295 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/99, 6.75%, 6/1/04 1,412,392
Aa AAA 1,500 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/01, 6.75%, 6/1/12 1,662,045
Aaa AAA 3,000 Florida Board of Education
Capital Outlay, Prerefunded
to 6/1/00, 7.25%, 6/1/23 3,365,580
Aaa AAA 1,500 Florida Department of
Natural Resources,
Preservation 2000,
(MBIA), 7.25%, 7/1/08 1,629,270
Aaa AAA 1,780 Hollywood, FL, Water &
Sewer, (FGIC), Prerefunded
to 10/1/02, 6.375%,
10/1/02 1,964,159
Aaa AAA 4,485 Jacksonville Electric
Authority, Bulk Power
Supply System, Prerefunded
to 10/1/00, 6.75%, 10/1/16 4,956,194
Aaa AAA 3,250 Orlando Utility Community
Water & Electric,
Prerefunded to 10/1/01,
6.50%, 10/1/20 3,605,778
Aaa AAA 2,000 Palm Bay, FL, Utility, Palm
Bay Utility Corporation,
(MBIA) Prerefunded to
10/1/02, 6.20%, 10/1/17 2,201,720
Aaa AAA 2,805 Palm Beach County
Criminal Justice Facilities,
(FGIC), Prerefunded to
6/1/00, 7.00%, 6/1/01 3,120,450
Baa1 AAA 1,750 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98,
7.875%, 7/1/17 1,926,033
---------------
$ 28,117,594
---------------
General Obligations - 13.9%
Aa AA $2,900 Broward County, Florida,
5.00%, 1/1/10 $ 2,739,775
Aa AA 5,000 Florida State Board of
Education, 4.75%, 6/1/22 4,249,700
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.50%, 7/1/03 1,094,470
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency, 5.50%,
7/1/01 2,052,880
Baa1 A- 5,400 Puerto Rico Municipal
Finance Agency, 5.875%,
7/1/05 5,579,172
NR NR 1,500 Virgin Islands Public
Finance Authority,
6.80%, 10/1/00 1,588,935
---------------
$ 17,304,932
---------------
Hospitals - 3.9%
NR BBB 490 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 5.50%,
10/1/96 $ 491,460
NR BBB 515 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 6.00%, 10/1/97 520,701
NR BBB 545 Escambia County Health
Facilities Authority, (Baptist
Hospital Inc., and Baptist
Manor Inc.) 6.25%, 10/1/98 555,671
Baa1 NR 425 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.00%,
12/1/98 428,171
Baa1 NR 450 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.25%,
12/1/99 455,958
Baa1 NR 480 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village Project), 6.50%,
12/1/00 487,637
NR A- 1,635 Palm Beach County
Health Facilities Authority,
Good Samaritan Health
Systems Inc., 5.60%, 10/1/01 1,662,779
A BBB+ 290 St. Johns County Industrial
Development Authority,
(Flagler Hospital Project),
5.60%, 8/1/01 295,449
---------------
$ 4,897,826
---------------
Housing - 1.6%
Baa BBB $2,000 Puerto Rico Housing
Bank and Finance Agency,
5.10%, 12/1/03 $ 1,947,940
---------------
Industrial Development
Revenue - 2.8%
Baa2 BBB $1,470 Nassau County PCR,
(ITT Rayonier Incorporated
Project), 5.60%, 6/1/00 $ 1,493,270
Ba2 BB+ 2,000 Polk County, Florida,
Industrial Development
Authority, (IMC Fertilizer),
(AMT), 7.525%, 1/1/15 2,084,760
---------------
$ 3,578,030
---------------
Insured General Obligations - 6.8%
Aaa AAA $2,475 Dade County Local
School District, (MBIA),
6.40%, 8/1/00 $ 2,670,971
Aaa AAA 1,500 Dade County Local
School District, (MBIA),
6.00%, 8/1/06 1,605,420
Aaa AAA 1,000 Dade County Local
School District, (MBIA),
5.20%, 8/1/07 998,230
Aaa AAA 1,580 Sarasota County, FL,
(FGIC), 6.25%,10/1/05 1,704,283
Aaa AAA 1,500 Volusia County, Florida,
(MBIA), 5.25%, 12/1/13 1,422,135
---------------
$ 8,401,039
---------------
Insured Health Care - 3.5%
Aaa AAA $4,000 Jacksonville Health
Facilities Authority,
(Baptist Medical Center
Project), (MBIA), 7.25%,
6/1/25 $ 4,381,200
---------------
Insured Hospitals - 7.7%
Aaa AAA $4,000 Broward County Health
Facilities Authority,
(Holy Cross Hospital),
(AMBAC), 5.25%, 6/1/08 $ 3,967,760
Aaa AAA 2,000 Hillsborough County
Hospital Authority,
(Tampa General Hospital
Project), (FSA), 6.375%,
10/1/13 2,087,160
Aaa AAA 1,000 City of Lakeland,
(Lakeland Regional
Medical Center Project),
(FGIC), 5.40%, 11/15/01 1,040,650
Aaa AAA 1,360 North Broward Hospital
District, (MBIA), 6.20%,
1/1/04 1,466,638
Aaa AAA 1,000 Orange County Health
Facilities Authority,
(Adventist Health
System/Sunbelt Inc.)
(CGIC), 5.50%, 11/15/02 1,038,070
---------------
$ 9,600,278
---------------
Insured Lease/Certificate
of Participation - 1.0%
Aaa AAA $1,150 City of Collier County,
Certificate of Participation,
(FSA), 5.35%, 2/15/02 $ 1,183,707
---------------
$2,000 Insured Miscellaneous - 1.7%
Jacksonville, FL GTD
5.5%, 10/1/02 $ 2,092,060
---------------
Insured Special Tax - 5.9%
Aaa AAA $1,525 Florida Department of
Natural Resources,
Preservation 2000,
(AMBAC), 6.70%,
7/1/05 $ 1,687,565
Aaa AAA 5,150 Tampa, FL, Utility Tax,
(AMBAC), 6.50%,
10/1/02 5,657,584
---------------
$ 7,345,149
---------------
Insured Transportation - 8.3%
Aaa AAA $1,700 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.60%, 10/1/03 $ 1,836,442
Aaa AAA 2,000 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.80%, 10/1/05 2,166,540
Aaa AAA 3,120 Hillsborough County
Aviation Authority, Tampa
International Airport,
(FGIC), 6.85%, 10/1/06 3,384,794
Aaa AAA 2,500 Palm Beach County,
Florida, Airport, (MBIA),
7.75%, 10/1/10 2,894,950
---------------
$ 10,282,726
---------------
Insured Water & Sewer - 7.5%
Aaa AAA $3,000 Dade County, FL, Water &
Sewer Revenue, (FGIC),
5.00%, 10/1/09 $ 2,894,370
Aaa AAA 2,000 Manatee County, FL,
Public Utilities, (MBIA),
6.75%, 10/1/04 2,259,020
Aaa AAA 1,000 Pasco County, FL, Water &
Sewer Revenue,(FGIC),
5.40%, 10/1/03 1,039,300
Insured Water & Sewer (continued)
Aaa AAA 500 Port Orange, FL, Water &
Sewer Revenue,(AMBAC),
6.50%, 10/1/04 536,180
Aaa AAA 2,710 Tampa, Florida, Water &
Sewer Revenue, (FGIC),
5.25%, 10/1/13 2,570,327
---------------
$ 9,299,197
---------------
Miscellaneous - 0.8%
Baa BBB $1,000 Puerto Rico Housing
Bank & Finance Agency,
5.00%, 12/1/02 $ 976,700
---------------
Solid Waste - 0.9%
A NR $1,165 Brevard County, Florida,
Solid Waste Management
System, 5.00%, 4/1/01 $ 1,178,328
---------------
Utilities - 8.4%
Aa AA $2,000 Gainesville, Florida Utility
System Revenue,
5.00%, 10/1/16 $ 1,814,040
Aa1 AA 3,000 Jacksonville Electric
Authority, St. John's River
Power Park,
6.50%, 10/1/03 3,319,830
Aa1 AA 3,500 Jacksonville Electric
Authority, St. John's River
Power Park,
5.25%, 10/1/20 3,232,705
Aa AA- 2,000 City of Tallahassee,
Electric Refunding
Bonds, 5.90%, 10/1/05 2,124,740
---------------
$ 10,491,315
---------------
Water & Sewer Revenue - 2.7%
A3 A+ $ 330 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.40%, 10/1/00 $ 339,392
A3 A+ 345 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.50%, 10/1/01 355,868
A3 A+ 365 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.60%, 10/1/02 377,220
A3 A+ 380 Dunes Community
Development District,
(Flagler County,
Water & Sewer Project),
5.70%, 10/1/03 394,292
Aa AA- 1,700 St. Petersburg, FL, Public
Utility Revenue,
6.65%, 10/1/03 1,846,638
---------------
$ 3,313,410
---------------
Total Tax-Exempt
Investments (identified
cost, $122,087,493) $124,391,431
===============
The Portfolio invests primarily in debt securities issued by Florida municipalities. The ability of the issuers
of the debt securities to meet thier obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 19.5%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage by financial institution range from 0.8% to
18.7% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Michigan Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed/Prerefunded - 19.0%
Aaa AAA $1,500 Grand Ledge, Michigan
Public School District,
(MBIA), Prerefunded
to 5/1/04, 7.875%,
10/1/04 $ 1,820,565
A1 AA+ 500 Lansing, Michigan Tax
Increment Bonds,
Escrowed to Maturity,
6.20%, 10/1/04 541,110
Baa1 AAA 950 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98,
7.875%, 7/1/17 1,045,561
Aaa AAA 2,305 Romulus, Michigan
Community School
District, Prerefunded to
5/1/07, 0.00%, 5/1/22 468,745
---------------
$ 3,875,981
---------------
General Obligations - 13.5%
Ba1 BBB $ 650 Detroit, Michigan, 6.25%,
4/1/05 $ 665,698
Ba1 BBB 495 Detroit, Michigan, 6.40%,
4/1/05 512,078
Aa AA 500 Milan, Michigan School
District, 5.00%, 5/1/08 486,720
Baa1 A 1,000 Puerto Rico Public
Building Authority,
6.60%, 7/1/04 1,096,960
---------------
$ 2,761,456
---------------
Hospitals - 14.9%
Baa NR $ 525 Flint, Michigan Hospital
Authority, (Hurley Medical
Center), 6.00%, 7/1/05 $ 507,969
A A 1,000 Kent County, Michigan
Hospital Finance Authority,
Blodgett Memorial
Medical Center, 7.25%,
7/1/05 1,068,310
A NR 505 Marquette, Michigan
Hospital Finance Authority,
6.625%, 4/1/07 509,631
NR BBB 1,000 Michigan State Hospital
Finance Authority,
(Gratiot Community
Hospital), 6.10%, 10/1/07 963,260
---------------
$ 3,049,170
---------------
Housing - 5.1%
NR A+ $1,000 Michigan State Housing
Development Authority,
6.00%, 4/1/01 $ 1,050,910
---------------
Industrial Development
Revenue - 1.5%
NR BB $ 320 Richmond, Michigan
Economic Development
Corporation, K-MART
Project, 6.30%, 1/1/99 $ 305,875
---------------
Insured Education - 2.5%
Aaa AAA $ 500 Michigan Higher Education
Student Loan Authority,
(AMBAC), (AMT),
5.65%, 4/1/07 $ 504,750
---------------
Insured General Obligations - 15.3%
Aaa AAA $ 500 Comstock, Michigan
Public Schools, (CGIC),
6.80%, 5/1/02 $ 544,460
Aaa AAA 1,000 Imlay, Michigan, School
District, 5.40%, 5/1/17 950,480
Aaa AAA 1,000 State of Michigan
Municipal Bond Authority,
Local Government Loan
Project, (MBIA), 5.375%,
11/1/17 937,490
Aaa AAA 750 Willow Run, Michigan,
Community School
District, 5.00%, 5/1/16 688,493
---------------
$ 3,120,923
---------------
Insured Industrial
Development Revenue - 5.3%
Aaa AAA $1,000 Monroe County, Michigan,
The Detroit Edison
Company, (AMBAC),
(AMT), 6.35%, 12/1/04 (1) $ 1,082,180
---------------
Insured Utility - 5.3%
Aaa AAA $1,000 Western Townships,
Michigan, Sewer Disposal
System, (CGIC),
6.70%, 1/1/06 $ 1,072,530
---------------
Lease Revenue/
Certificate of Participation - 2.6%
A1 AA- $ 500 State of Michigan Building
Authority, 6.10%, 10/1/01 $ 538,055
---------------
Nursing Home - 1.9%
NR NR $ 395 Michigan Hospital Finance
Authority, (Presbyterian
Villages), 6.20%, 1/1/06 $ 392,105
---------------
Special Tax Revenue - 10.3%
Baa1 A $ 500 Puerto Rico Highway and
Transportation, 5.00%,
7/1/02 $ 499,960
NR BBB+ 1,500 Battle Creek, Michigan
Downtown Development
Authority, 6.65%, 5/1/02 1,602,360
---------------
$ 2,102,320
---------------
Water & Sewer Revenue - 2.8%
Aa AA $ 500 Michigan Municipal
Bond Authority, 7.00%,
10/1/02 $ 568,208
---------------
Total Tax-Exempt
Investments (identified
cost, $19,846,029) $ 20,424,463
===============
(1) Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by Michigan municipalities. The ability of the issuers
of the debt securities to meet their obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 28.4%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies.The aggregate percentage by financial institution range from 2.3% to
20.4% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 2.8%
NR BBB- $2,250 New Jersey Economic
Development Authority,
Heating & Cooling,
(Trigen-Trenton Project),
6.10%, 12/1/05 $ 2,248,560
---------------
Education - 3.6%
NR A- $ 380 New Jersey Educational
Facilities Authority, Drew
University, 5.875%, 7/1/03 $ 400,436
NR A+ 355 Higher Education Assistance
Authority, (State of New
Jersey), (AMT), NJ Class
Loan Program, 5.70%,
1/1/02 355,824
A1 AA 1,895 Rutgers, The State
University (The State of
New Jersey), 6.20%, 5/1/04 2,059,638
---------------
$ 2,815,898
---------------
Escrowed - 4.7%
Aaa AAA $1,325 Port Authority of New York
& New Jersey, (AMBAC),
Prerefunded to 10/1/02,
7.40%, 10/1/12 $ 1,545,162
Baa1 AAA 1,985 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to
7/1/98, 7.875%, 7/1/17 2,184,671
---------------
$ 3,729,833
---------------
General Obligations - 8.3%
Aaa AAA $1,280 County of Morris, New
Jersey, 6.50%, 8/1/02 $ 1,417,280
Aa AA 1,000 The Township of Morris,
New Jersey, 6.55%, 7/1/02 1,102,420
Aa1 AA+ 1,000 State of New Jersey, 6.00%,
8/1/04 1,069,000
Baa1 A- 750 Puerto Rico Municipal
Finance Agency, 5.60%,
7/1/02 770,978
Baa1 A 1,000 Commonwealth of Puerto
Rico, 6.35%, 7/1/10 1,050,590
Aa AA 1,000 South Brunswick, New
Jersey, 7.125%, 7/15/02 1,133,420
---------------
$ 6,543,688
---------------
Health Care - 2.8%
A A- $1,000 New Jersey Health Care
Facilities Financing Authority,
(Atlantic City Medical Care
Center), 6.45%, 7/1/02 $ 1,050,060
A A- 340 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.25%, 7/1/00 353,668
A A- 750 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Care Center),
6.55%, 7/1/03 792,323
---------------
$ 2,196,051
---------------
Housing - 11.4%
NR AA+ $1,500 New Jersey Housing
Finance Agency,
6.60%, 11/1/03 $ 1,596,270
NR A+ 2,500 New Jersey Housing and
Mortgage Finance Agency,
6.30%, 11/1/01 2,640,200
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
6.40%, 11/1/02 1,054,690
NR A+ 2,570 New Jersey Housing and
Mortgage Finance Agency,
6.50%, 11/1/03 2,702,998
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
6.00%, 11/1/02 1,040,080
---------------
$ 9,034,238
---------------
Industrial Development
Revenue - 0.9%
Aa3 NR $ 690 New Jersey Economic
Development Authority,
LOC: Bank of Paris,
(AMT), 6.00%, 12/1/02 $ 712,846
---------------
Insured Education - 3.7%
Aaa AAA $1,000 Essex County, New Jersey,
Improvement Authority,
(Guaranteed County
College Project), (AMBAC),
5.25%, 12/1/16 $ 936,470
Aaa AAA 1,000 New Jersey State
Educational Facilities,
Seton Hall University,
(FGIC), 6.10%, 7/1/01 1,072,950
Aaa AAA 1,000 New Jersey State
Educational Facilities,
(University of Medicine
& Dentistry), (AMBAC),
5.25%, 12/1/21 915,750
---------------
$ 2,925,170
---------------
Insured General Obligations - 16.9%
Aaa AAA $1,000 Atlantic City, New Jersey,
Board of Education,
(AMBAC), 6.00%, 12/1/02 $ 1,070,000
Aaa AAA 1,175 Edison, New Jersey,
(AMBAC), 4.70%, 1/1/04 1,168,890
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.10%, 11/15/99 531,195
Insured General Obligations
(continued)
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/01 539,940
Aaa AAA 500 City of Elizabeth, Union
County, New Jersey, (MBIA)
6.20%, 11/15/02 539,490
Aaa AAA 2,000 Essex County, New Jersey,
(AMBAC), 5.375%, 9/1/10 1,979,140
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School District,
(FGIC), 6.60%, 6/1/02 1,326,036
Aaa AAA 1,200 Jackson Township, New
Jersey, Local School District,
(FGIC), 6.60%, 6/1/03 1,335,636
Aaa AAA 1,200 Kearney, New Jersey,
(FSA), 6.50%, 2/1/04 1,319,448
Aaa AAA 500 North Bergen, New
Jersey, General Improvement,
(MBIA), 5.25%, 3/1/06 506,920
Aaa AAA 850 Roselle, New Jersey,
(MBIA), 4.65%, 10/15/03 843,591
Aaa AAA 1,000 South Brunswick Township,
New Jersey, Board of
Education, (FGIC),
6.40%, 8/1/03 1,093,260
Aaa AAA 1,100 South River, New Jersey,
School District, (FGIC),
5.00%, 12/1/09 1,063,975
---------------
$ 13,317,521
---------------
Insured Health Care - 5.0%
Aaa AAA $2,000 New Jersey Economic
Development Authority,
(Clara Maass Health System
Project), (FSA), 5.00%,
7/1/25 $ 1,760,500
Aaa AAA 1,910 New Jersey Health Care
Facilities & Financing
Authority, (Dover
General Hospital &
Medical Center), (MBIA),
7.00%, 7/1/04 2,174,993
---------------
$ 3,935,493
---------------
Insured Industrial
Development Revenue - 4.8%
Aaa AAA $2,500 New Jersey Economic
Development Authority,
Market Transition
5.70%, 7/1/05 (1) $ 2,622,400
Aaa AAA 1,000 New Jersey Economic
Development Authority,
Market Transition
5.80%, 7/1/07 1,049,520
Aaa AAA 100 Warren County New
Jersey Pollution Control
Finance Authority,
Resource Recovery,
(MBIA), 6.55%, 12/1/06 110,601
---------------
$ 3,782,521
---------------
Insured Lease/Certificates
of Participaton - 1.1%
Aaa AAA $845 Hudson County, New Jersey,
Certificates of Participation,
(MBIA), 6.20%, 6/1/03 $ 901,150
---------------
Insured Solid Waste - 0.3%
Aaa AAA $250 The Bergen County
Utilities Authority, Solid
Waste System,
(FGIC), 6.00%, 6/15/02 $ 268,953
---------------
Insured Transportation - 10.8%
Aaa AAA $2,000 New Jersey Transportation
Trust Fund Authority,
(MBIA), 5.00%, 6/15/15 $ 1,828,960
Aaa AAA 1,500 New Jersey Turnpike
Authority, (FSA), 5.90%,
1/1/03 1,586,895
Aaa AAA 2,000 New Jersey Turnpike
Authority, (MBIA),
5.90%, 1/1/04 2,141,680
Aaa AAA 895 New Jersey Turnpike
Authority, (FSA),
6.40%, 1/1/02 980,634
Aaa AAA 1,000 Port Authority of New York
& New Jersey, (MBIA),
(AMT), 5.25%, 9/1/07 983,110
Aaa AAA 1,000 Port Authority of New York
& New Jersey, (MBIA),
(AMT), 5.375%, 9/1/08 984,390
---------------
$ 8,505,669
---------------
Insured Utility - 1.4%
Aaa AAA $1,000 Middlesex County, New
Jersey, Utility Authority,
(FGIC) 6.10%, 12/1/01 $ 1,077,030
---------------
Insured Water & Sewer - 3.2%
Aaa AAA $750 Middlesex, New Jersey,
Utility Authority, Sewer
Revenue, (FGIC), 5.00%,
9/15/07 $ 742,890
Aaa AAA 2,000 West New York & New
Jersey Utility Authority,
Sewer Revenue, (FGIC),
5.125%, 12/15/17 (1) 1,822,880
---------------
$ 2,565,770
---------------
Lease Revenue/Certificates
of Participation - 4.6%
Aa AA- $1,000 Mercer County
Improvement Authority,
(Richard J. Hughes
Justice Complex), 5.15%,
1/1/05 $ 999,860
Aa AA- 1,000 Mercer County
Improvement Authority,
(Richard J. Hughes
Justice Complex), 5.15%,
1/1/06 993,110
A1 A+ 720 New Jersey Economic
Development Authority,
Lease Revenue, (Green
Lights Energy Project),
5.00%, 1/15/06 698,270
A1 A+ 875 State of New Jersey,
Certificates of Participation,
5.90%, 4/1/99 909,204
---------------
$ 3,600,444
---------------
Solid Waste - 3.6%
Baa NR $ 300 The Atlantic County
Utilities Authority
(New Jersey),
Solid Waste System,
7.00%, 3/1/08 $ 297,588
A1 AA- 500 Gloucester County
Improvement Authority
of New Jersey,
(Landfill Project), 5.40%,
9/1/00 515,380
A1 NR 300 The Passaic County
Utilities Authority
(New Jersey), Solid
Waste Disposal, 5.70%,
3/1/98 307,446
NR A 1,700 The Union County
Utilities Authority
(New Jersey), Solid
Waste System, (AMT),
7.20%, 6/15/14 1,758,123
---------------
$ 2,878,537
---------------
Transportation - 6.4%
A1 AA- $ 500 New Jersey Highway
Authority, (Garden State
Parkway), 5.90%, 1/1/04 $ 532,185
A1 AA- 250 New Jersey Highway
Authority, (Garden State
Parkway), 6.10%, 1/1/06 266,795
Ba1 BB 1,625 Port Authority of New
York & New Jersey,
(Delta Airlines),
6.95%, 6/1/08 1,722,205
Baa1 A 1,500 Puerto Rico Highway
Authority, 6.75%, 7/1/05 1,635,495
NR A+ 910 South Jersey Port
Corporation (An
Instrumentality of the
State of New Jersey),
(AMT), 5.15%, 1/1/04 909,918
---------------
$ 5,066,598
---------------
Utility - 3.7%
Baa1 A- $1,000 Puerto Rico Electric
Power Authority,
6.125%, 7/1/08 $ 1,038,820
Baa1 A- 1,785 Puerto Rico Electric
Power Authority,
6.125%, 7/1/09 1,847,261
---------------
$ 2,886,081
---------------
Total Tax-Exempt
Investments (identified
cost, $77,501,411) $ 78,992,051
===============
(1)Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by New Jersey municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 47.2% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies.The aggregate percentage by financial institution range
from 7.1% to 14.6% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
New York Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 12.8%
Aaa AA+ $ 500 Dormitory Authority of
the State of New York,
Columbia University,
5.10%, 7/1/01 $ 511,730
Aa AA 2,250 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/20 2,499,300
Aa AA 1,000 Dormitory Authority of
the State of New York,
Cornell University,
7.375%, 7/1/30 1,110,800
NR AA 1,000 Dormitory Authority of
the State of New York,
Manhattan College,
6.10%, 7/1/04 1,092,150
A1 A+ 5,955 Dormitory Authority of
the State of New York,
University of Rochester,
6.50%, 7/1/09 6,202,311
Baa1 BBB 1,000 Dormitory Authority of
the State of New York, City
University, 6.10%, 7/1/01 1,048,220
NR AA 3,000 Dormitory Authority of
the State of New York,
Nursing Home,
(Our Lady of Consolation),
(FHA), 5.20%, 8/1/05 2,945,460
Baa1 BBB+ 1,000 Dormitory Authority of
the State of New York, State
University, 7.25%, 5/15/99 1,070,960
Baa1 BBB+ 1,000 Dormitory Authority of
The State of New York, State
University, 5.20%, 5/15/03 998,170
---------------
$ 17,479,101
---------------
Electric Utility - 2.1%
Aa AA- $3,100 Power Authority of the
State of New York,
5.0%, 1/1/14 $ 2,843,227
---------------
Escrowed/Prerefunded - 11.5%
Aaa NR $2,250 Dormitory Authority of
the State of New York,
State University,
Prerefunded to 5/15/02,
6.75%, 5/01/21 $2,539,283
Aaa AAA 2,000 New York State Housing
Finance Agency, Escrowed
to Maturity, 6.80%,
5/15/01 2,206,640
Aaa AAA 900 New York State Housing
Finance Authority, State
University, Escrowed to
Maturity, 7.80%, 5/1/01 1,033,434
Aaa AA- 2,500 Port Authority of New York
& New Jersey, (AMBAC),
Prerefunded to 10/1/02,
7.40%, 10/1/12 2,915,400
NR AA- 2,000 Power Authority of the
State of New York,
Prerefunded to
1/1/98, 8.00%, 1/1/17 2,168,860
Aaa AAA 2,500 Suffolk County, New York
Water Authority, (AMBAC),
Prerefunded to 6/1/02,
6.00%, 6/1/17 2,723,525
Aaa A+ 1,900 Triborough Bridge and
Tunnel Authority,
Prerefunded to
1/1/01, 7.00%, 1/1/21 2,123,782
---------------
$ 15,710,924
---------------
General Obligations - 8.7%
Baa1 BBB+ $1,000 The City of New York,
6.375%, 8/1/05 $ 1,028,140
Baa1 BBB+ 3,000 The City of New York,
6.40%, 8/1/03 3,131,340
Baa1 BBB+ 1,500 The City of New York,
6.375%, 8/1/06 1,534,305
A A- 1,500 State of New York,
7.50%, 11/15/00 1,672,380
A A- 1,000 State of New York,
7.50%, 11/15/01 1,131,470
A A- 2,000 State of New York,
7.00%, 11/15/02 2,246,760
Baa1 A 1,000 Puerto Rico
Commonwealth,
6.35%, 7/1/10 1,050,590
---------------
$ 11,794,985
---------------
Health Care - 1.7%
Baa1 BBB $2,340 Dormitory Authority
of New York, Department
of Health,
5.375%, 7/1/08 $ 2,239,614
---------------
Hospitals - 4.9%
Baa BBB $ 500 Cortland County Industrial
Development Agency,
Cortland Memorial
Hospital Inc. Project,
6.15%, 7/1/02 $508,215
NR AAA 2,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.40%, 8/15/00 2,045,840
NR AAA 3,000 New York State Medical
Care Facilities Finance
Agency, Mount Sinai
Hospital, 5.50%, 8/15/01 3,093,840
Hospitals (continued)
Aa AA 1,000 New York State Medical
Care Facilities Finance
Agency, Hospital and
Nursing Home Revenue
Bonds, 7.50%, 2/15/09 1,082,150
---------------
$ 6,730,045
---------------
Housing - 0.8%
NR AAA $1,050 New York City Housing
Development Corporation,
6.70%, 6/1/00 $ 1,104,149
---------------
Insured Education - 3.4%
Aaa AAA $1,075 Dormitory Authority of
the State of New York,
Mt. Sinai School of
Medicine, (MBIA),
6.75%, 7/1/09 $ 1,166,934
Aaa AAA 1,550 Dormitory Authority of
the State of New York,
State University,
(AMBAC), 5.25%, 7/1/14 1,468,005
Aaa AAA 1,000 Dormitory Authority of
the State of New York, City
University, (FGIC),
5.25%, 7/1/06 1,011,770
Aaa AAA 1,000 Dormitory Authority of
the State of New York, City
University, (FGIC),
5.00%, 7/1/07 973,090
---------------
$ 4,619,799
---------------
Insured General Obligation - 3.7%
Aaa AAA $2,200 Nassau County, New York,
(MBIA), 5.10%, 7/1/05 $ 2,214,322
Aaa AAA 2,750 Nassau County, New York,
(FGIC), 5.10%, 8/1/04 2,785,173
---------------
$ 4,999,495
---------------
Insured Hospital - 5.5%
Aaa AAA $4,450 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.10%, 2/15/04 $ 4,770,801
Aaa AAA 2,500 New York State Medical
Care Facilities Finance
Agency, New York State
Hospital, (AMBAC),
6.20%, 2/15/05 2,716,300
---------------
$ 7,487,101
---------------
Insured Housing - 1.5%
Aa AA $2,000 New York City Housing
Development Corporation,
(FHA), 5.40%, 11/1/05 $ 2,007,320
---------------
Insured Miscellaneous - 0.8%
Aaa AAA $1,000 New York State Municipal
Bond Bank Agency,
(AMBAC), 6.625%,
3/15/06 $ 1,091,430
---------------
Insured Transportation - 6.9%
Aaa AAA $1,135 Metropolitan Transportation
Authority for the City
of New York, (MBIA),
5.80%, 7/1/03 $ 1,208,662
Aaa AAA 3,500 The Port Authority of
New York and New Jersey,
(MBIA), 6.375%, 10/15/17 3,674,930
Aaa AAA 2,000 Triborough Bridge and
Tunnel Authority, (MBIA),
6.20%, 1/1/01 2,139,220
Aaa AAA 2,290 Triborough Bridge and
Tunnel Authority, (FGIC),
5.80%, 1/1/02 2,408,279
---------------
$ 9,431,091
---------------
Insured Utility - 4.3%
Aaa AAA $5,280 New York State Energy
Research and Development
Authority, Central Hudson
Gas, (FGIC), 7.375%,
10/1/14 $ 5,832,341
---------------
Insured Water and Sewer - 2.2%
Aaa AAA $1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.80%, 6/15/03 $ 1,060,190
Aaa AAA 1,000 New York City Municipal
Water Finance Authority,
(AMBAC), 5.55%, 6/15/01 1,041,540
Aaa AAA 1,000 Suffolk County, New York,
Water Authority, (MBIA),
5.00%, 6/1/15 915,670
---------------
$ 3,017,400
---------------
Lease Revenue/Certificates
of Participation - 10.8%
A1 AA $3,000 Battery Park City
Authority, 6.00%,
11/1/03 $3,192,990
A1 AA 3,500 Housing New York
Corporation, 6.00%,
11/1/03 3,682,280
Baa1 BBB 4,715 New York Urban
Development Corporation,
5.375%, 1/1/15 4,281,974
NR BBB 1,650 Puerto Rico Industrial
Tourist Educational
Medicine & Environmental
Control, (Guaynabo Lease),
5.375%, 7/1/06 1,606,160
Lease Revenue/Certificates
of Participation (continued)
Baa1 A 2,000 Puerto Rico Public
Buildings Authority,
5.30%, 7/1/03 2,038,360
---------------
$14,801,764
---------------
Special Tax Revenue - 6.2%
Aa AA- $2,975 Municipal Assistance
Corporation for the City
of New York,
5.75%, 7/1/08 $ 3,025,397
A A 2,725 New York Local
Government Assistance
Corporation, 5.25%,
4/1/16 2,530,702
A A 1,750 New York Local
Government Assistance
Corporation, 7.00%,
4/1/04 1,950,918
A A 1,700 New York Local
Government Assistance
Corporation, 0.00%,
4/1/06 1,007,845
---------------
$ 8,514,862
---------------
Transportation - 8.5%
Baa1 BBB $1,000 Metropolitan Transportation
Authority, 5.375%, 7/1/02 $ 1,006,490
A1 A 1,750 New York State Thruway
Authority, 5.375%, 1/1/02 1,803,393
A A- 1,645 New York State Thruway
Authority, 5.80%, 4/1/09 1,662,388
Baa1 BBB 1,000 New York State Thruway
Authority, 6.00%, 4/1/03 1,030,450
Ba1 BB 2,875 Port Authority of New York
& New Jersey, (Delta Airlines),
6.95%, 6/1/08 3,046,983
Baa1 A 2,850 Puerto Rico Highway
Authority, 6.75%, 7/1/05 3,107,441
---------------
$ 11,657,145
---------------
Water & Sewer Revenue - 3.7%
A A- $1,825 New York City Municipal
Water Finance Authority,
5.70%, 6/15/02 $ 1,909,041
Aaa AAA 1,000 New York State
Environmental Facilities
Corporation, County of
Westchester Project,
5.60%, 9/15/13 1,002,050
Aa A 2,000 New York State
Environmental Facilities
Corporation, New
York City Municipal
Water Finance Authority,
6.60%, 6/15/05 2,199,860
---------------
$ 5,110,951
---------------
Total Tax-Exempt
Investments (identified
cost, $135,090,306) $136,472,744
===============
The Portfolio invests primarily in debt securities issued by New York municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such economic developments, at March 31,
1996, 32.3% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies.The aggregate percentage by financial institution range
from 8.3% to 13.0% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Ohio Limited Maturity Municipals Portfolio
Portfolio of Investments - March 31, 1996
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ---------------------- Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.3%
A1 A+ $ 500 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.75%, 8/1/03 $ 511,950
A1 NR 1,200 The Student Loan Funding
Corporation of Cincinatti,
(AMT), 5.95%, 8/1/05 1,228,464
---------------
$ 1,740,414
---------------
Escrowed - 5.6%
Aaa AAA $ 650 Clermont County, Ohio,
Water Works, (AMBAC),
Prerefunded to 12/1/01,
6.625%, 12/1/16 $ 726,674
Baa1 AAA 1,000 Puerto Rico Aqueduct &
Sewer Authority,
Prerefunded to 7/1/98
7.875%, 7/1/17 1,100,590
---------------
$ 1,827,264
---------------
General Obligations - 16.5%
NR A- $ 750 City of Cincinatti School
District, (Hamilton County,
Ohio) Revenue Anticipation
Notes, 6.05%, 6/15/00 $787,538
NR NR 500 Cleveland, Ohio, City
School District, 6.50%,
6/15/97 501,420
Aa NR 500 Hamilton County, Ohio,
5.00%, 12/1/16 453,835
NR A+ 300 Kings County, Ohio, Local
School District, 7.60%,
12/1/10 336,645
Aa AA 200 State of Ohio, Infrastructure
Improvement Bonds,
6.50%, 8/1/04 222,952
Baa1 A 1,000 Commonwealth of Puerto
Rico, 6.25%, 7/1/08 1,056,430
A NR 1,000 Wauseon, Ohio School
District, 7.25%, 12/1/10 1,086,950
NR NR 924 Youngstown, Ohio, County
School District,
6.40%, 7/1/00 954,289
---------------
$ 5,400,059
---------------
Health Care - 8.6%
Aa2 NR $1,000 Hamilton County, Ohio
Hospital Facilities,
(Episcopal Retirement
Homes, Inc.), 6.80%,
1/1/08 $ 1,072,030
NR BBB- 680 Marion County, Ohio,
Health Care Facilities,
(United Church
Homes Project), 5.25%,
11/15/98 672,935
Aa2 NR 1,000 Warren County, Ohio,
Hospital Facilities,
(Otterbein Homes
Project), 7.20%, 7/1/11 1,094,340
---------------
$ 2,839,305
---------------
Hospitals - 7.8%
A A- $1,000 Erie County Hospital
Improvement (Fireland
Community Hospital
Project), 6.75%, 1/1/08 $ 1,052,110
Baa BBB 500 Hamilton County Ohio
Health System
(Providence Hospital
Project), 6.00%, 7/1/01 505,535
NR NR 990 Mt. Vernon Ohio Hospital,
(Knox Community
Hospital), 7.875%,
6/1/12 996,287
---------------
$ 2,553,932
---------------
Industrial Development
Revenue - 8.9%
NR A- $1,020 Ohio Economic
Development Commission,
(ABS Industries)
(AMT), 6.00%, 6/1/04 $ 1,038,319
NR A- 1,000 Ohio Economic
Development Commission,
(Ohio Enterprise
Bond Fund-Progress
Plastics Products), (AMT),
5.60%, 6/1/02 1,006,120
NR A- 805 Ohio Economic
Development Commission,
(Ohio Enterprise
Bond Fund-Progress
Plastics Products), (AMT),
6.80%, 12/1/01 871,896
---------------
$ 2,916,335
---------------
Insured Education - 3.0%
Aaa AAA $1,000 Ohio State Public Facilities
Commission, (Higher
Educational Facilities),
(AMBAC), 4.70%, 6/1/05 $ 985,310
---------------
Insured General Obligations - 25.8%
Aaa AAA $1,615 Cleveland, Ohio,
(MBIA), 6.50%,
11/15/01 $ 1,776,145
Aaa AAA 1,350 Mt. Vernon County, Ohio,
Local School District,
(FGIC), 7.50%, 12/1/14 1,559,534
Aaa AAA 1,760 Southwest Licking Ohio
School Facilities
Improvement, (FGIC),
7.10%, 12/1/16 1,988,096
Insured General Obligations
(continued)
Aaa AAA 400 St. Henry, Ohio, Local
School District, (MBIA),
5.25%, 12/1/19 371,840
Aaa AAA 1,000 West Clermont Ohio
School District, (AMBAC),
7.125%, 12/1/19 1,133,260
Aaa AAA 1,500 West Clermont Ohio
School District, (AMBAC),
6.90%, 12/1/12 1,663,800
---------------
$ 8,492,675
---------------
Insured Hospital - 3.8%
Aaa AAA $1,150 Portage County Ohio
Hospital Revenue Bonds,
(Robinson Hospital
Project), (MBIA), 6.50%,
11/15/04 $ 1,261,044
---------------
Insured Transportation - 2.9%
Aaa AAA $1,000 Dayton, Ohio, Airport
Revenue, (James M.
Cox-Dayton International
Airport), (AMBAC),
5.25%, 12/1/15 $ 942,610
---------------
Insured Utility - 1.6%
Aaa AAA $ 500 Cleveland, Ohio, Public
Power System, (MBIA),
6.10%, 11/15/03 $ 540,365
---------------
Insured Water & Sewer - 1.9%
Aaa AAA $ 690 Bellefontaine, Ohio, Water
System Mortgage Revenue,
(AMBAC), 5.00%,
12/1/15 $ 630,984
---------------
Lease Revenue/Certificate of
A1 A+ $ 500 Ohio Building Authority,
(State Correctional
Facilities) 6.50%,
10/1/04 $ 544,275
---------------
Nursing Homes - 2.2%
NR NR $ 350 Cuyahoga County, Ohio,
Health Care Facilities,
(Judson Retirement
Community), 8.875%,
11/15/19 $ 379,376
NR NR 300 Greene County, Ohio,
First Mortgage, (Fairview
Extended Care),
10.125%, 1/1/11 338,340
---------------
$ 717,716
---------------
Special Tax - 1.5%
NR NR $ 504 Columbus Ohio Special
Assessment, 6.05%,
9/15/05 $ 502,517
---------------
Utility - 1.0%
NR BBB $ 350 Guam Power Authority,
5.10%, 10/1/03 $ 339,820
---------------
Water & Sewer Revenue - 1.9%
A1 AA- $ 575 Hamilton County Ohio
Sewer System, (The
Metropolitan District of
Greater Cincinatti),
6.40%, 12/1/02 $ 627,503
---------------
Total Tax-Exempt
Investments (identified
cost, $32,188,327) $ 32,862,128
===============
The Portfolio invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers
of the debt securities to meet their obligations may be affected by economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic developments, at March 31, 1996, 39.0%
of the securities in the portfolio of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies.The aggregate percentage by financial institution range from 10.8% to
18.5% of total investments.
See notes to financial statements
</TABLE>
Limited Maturity Municipals Portfolios
Financial Statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilites
March 31, 1996
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $58,558,528 $14,290,916 $122,087,493 $19,846,029
Unrealized appreciation 1,038,428 226,725 2,303,938 578,434
----------- ------------ ----------- -----------
Total investments, at value (Note 1A) $59,596,956 $14,517,641 $124,391,431 $20,424,463
Cash 84,450 249,527 130 274,947
Receivable for investments sold -- -- 805,225 30,000
Interest receivable 1,010,968 253,852 2,852,461 464,907
Deferred organization expenses
(Note 1D) 2,900 2,352 8,787 3,372
----------- ------------ ----------- -----------
Total assets $60,695,274 $15,023,372 $128,058,034 $21,197,689
----------- ------------ ----------- -----------
Liabilities:
Demand note payable (Note 6) $ -- $ -- $215,000 $ --
Payable for investments purchased 1,474,957 157,848 -- --
Payable for daily variation margin on open
financial futures contracts (Note 1E) -- 3,000 -- 4,500
Payable to affiliate --
Trustees' fees 1,693 41 2,189 41
Accrued expenses 2,544 957 5,834 1,742
----------- ------------ ----------- -----------
Total liabilities $1,479,194 $161,846 $223,023 $6,283
----------- ------------ ----------- -----------
Net Assets applicable to investors'
interest in Portfolio $59,216,080 $14,861,526 $127,835,011 $21,191,406
=========== =========== ============ ===========
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $58,177,652 $14,637,976 $125,531,073 $20,617,735
Unrealized appreciation of investments
and financial futures contracts
(computed on the basis of identified
cost) 1,038,428 223,550 2,303,938 573,671
----------- ------------ ----------- -----------
Total $59,216,080 $14,861,526 $127,835,011 $21,191,406
=========== =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Assets and Libilities
March 31, 1996
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
----------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments --
Identified cost $77,501,411 $135,090,306 $32,188,327
Unrealized appreciation 1,490,640 1,382,438 673,801
----------- ------------ -----------
Total investments, at value (Note 1A) $78,992,051 $136,472,744 $32,862,128
Cash 1,354,175 232 38,479
Receivable for investments sold 524,772 -- --
Interest receivable 1,308,117 2,440,493 627,909
Deferred organization expenses
(Note 1D) 3,682 5,359 2,549
----------- ------------ -----------
Total assets $82,182,797 $138,918,828 $33,531,065
----------- ------------ -----------
Liabilities:
Demand note payable (Note 6) $ -- $183,000 $ --
Payable for investments purchased 1,989,734 -- --
Payable for daily variation margin on open
financial futures contracts (Note 1E) 15,750 -- --
Payable to affiliate --
Trustees' fees 1,693 2,849 412
Accrued expenses 3,044 4,500 1,278
----------- ------------ -----------
Total liabilities $2,010,221 $190,349 $1,690
----------- ------------ -----------
Net Assets applicable to investors'
interest in Portfolio $80,172,576 $138,728,479 $33,529,375
=========== ============ ============
Sources of Net Assets:
Net proceeds from capital
contributions and withdrawals $78,695,325 $137,346,041 $32,855,574
Unrealized appreciation of investments
and financial futures contracts
(computed on the basis of identified
cost) 1,477,251 1,382,438 673,801
----------- ------------ -----------
Total $80,172,576 $138,728,479 $33,529,375
=========== ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $3,808,980 $851,625 $7,635,674 $1,512,575
---------- ---------- ---------- ----------
Expenses --
Investment adviser fee (Note 3) $327,056 $74,308 $664,262 $126,312
Compensation of Trustees not
members of the Investment
Adviser's organization 6,778 177 10,454 1,395
Custodian fees (Note 3) 39,911 12,186 76,701 16,987
Interest expense (Note 6) 14,843 -- -- 5,971
Printing and postage -- 1,002 -- --
Legal and accounting services 21,260 20,131 30,060 23,460
Amortization of organization
expenses (Note 1D) 1,765 2,576 4,217 3,122
Miscellaneous 7,943 7,017 25,639 4,818
---------- ---------- ---------- ----------
Total expenses $419,556 $117,397 $811,333 $182,065
---------- ---------- ---------- ----------
Deduct --
Reduction of investment
adviser fee (Note 3) $ -- $53,054 $ -- $ --
Reduction of custodian fee (Note 3) 26,628 8,076 25,064 10,680
---------- ---------- ---------- ----------
Total $26,628 $61,130 $25,064 $10,680
---------- ---------- ---------- ----------
Net expenses $392,928 $56,267 $786,269 $171,385
---------- ---------- ---------- ----------
Net investment income $3,416,052 $795,358 $6,849,405 $1,341,190
---------- ---------- ---------- ----------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) --
Investment transactions
(identified cost basis) $1,093,627 $104,858 $1,101,851 $483,781
Financial futures contracts (402,738) (88,087) (806,120) (169,851)
---------- ---------- ---------- ----------
Net realized gain $690,889 $16,771 $295,731 $313,930
---------- ---------- ---------- ----------
Change in unrealized appreciation --
Investments $430,606 $273,176 $1,447,454 $65,041
Financial futures contracts 69,703 10,425 142,806 22,438
---------- ---------- ---------- ----------
Net unrealized appreciation
of investments $500,309 $283,601 $1,590,260 $87,479
---------- ---------- ---------- ----------
Net realized and
unrealized gain $1,191,198 $300,372 $1,885,991 $401,409
---------- ---------- ---------- ----------
Net increase in net assets
from operations $4,607,250 $1,095,730 $8,735,396 $1,742,599
========== ========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
Year Ended March 31, 1996
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
---------------- ---------------- ----------------
<S> <C> <C> <C>
Investment Income:
Interest income $4,772,911 $8,226,792 $2,096,232
---------- ---------- ----------
Expenses --
Investment adviser fee (Note 3) $412,459 $722,493 $173,867
Compensation of Trustees not
members of the Investment
Adviser's organization 6,450 11,725 1,766
Custodian fees (Note 3) 48,622 82,786 22,509
Interest expense (Note 6) 7,460 -- 4,284
Legal and accounting services 25,860 30,360 23,460
Registration costs -- -- 250
Amortization of organization
expenses (Note 1D) 1,793 2,576 2,577
Miscellaneous 11,779 23,721 5,977
---------- ---------- ----------
Total expenses $514,423 $873,661 $234,690
Deduct --
Reduction of custodian fee (Note 3) 23,238 34,821 7,558
---------- ---------- ----------
Net expenses $491,185 $838,840 $227,132
---------- ---------- ----------
Net investment income $4,281,726 $7,387,952 $1,869,100
---------- ---------- ----------
Realized and Unrealized Gain
(Loss) on Investments:
Net realized gain (loss) --
Investment transactions
(identified cost basis) $588,158 $1,075,619 $453,529
Financial futures contracts (504,799) (857,703) (223,129)
---------- ---------- ----------
Net realized gain $83,359 $217,916 $230,400
---------- ---------- ----------
Change in unrealized appreciation --
Investments $807,472 $2,164,521 $146,955
Financial futures contracts 68,215 147,906 32,301
---------- ---------- ----------
Net unrealized appreciation
of investments $875,687 $2,312,427 $179,256
---------- ---------- ----------
Net realized and
unrealized gain $959,046 $2,530,343 $409,656
---------- ---------- ----------
Net increase in net assets
from operations $5,240,772 $9,918,295 $2,278,756
========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations -- $3,416,052 $795,358 $6,849,405 $1,341,190
Net investment income
Net realized gain 690,889 16,771 295,731 313,930
on investments
Change in unrealized 500,309 283,601 1,590,260 87,479
appreciation of investments ----------- ----------- ------------ -----------
Net increase in net assets $4,607,250 $1,095,730 $8,735,396 $1,742,599
from operations ----------- ----------- ------------ -----------
Capital transactions -- $2,502,298 $1,702,174 $10,648,982 $748,500
Contributions (30,237,193) (5,251,996) (56,128,282) (14,497,709)
Withdrawals ----------- ----------- ------------ -----------
Decrease in net assets resulting ($27,734,895) ($3,549,822) ($45,479,300) ($13,749,209)
from capital transactions ----------- ----------- ------------ -----------
($23,127,645) ($2,454,092) ($36,743,904) ($12,006,610)
Total decrease in net assets
Net Assets: 82,343,725 17,315,618 164,578,915 33,198,016
At beginning of year ----------- ----------- ------------ -----------
$59,216,080 $14,861,526 $127,835,011 $21,191,406
At end of year =========== =========== ============ ===========
See notes to financial statements
<?TABLE>
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
Year Ended March 31, 1995 New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
---------------- ---------------- ----------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations -- $4,281,726 $7,387,952 $1,869,100
Net investment income
Net realized gain 83,359 217,916 230,400
on investments
Change in unrealized 875,687 2,312,427 179,256
appreciation of investments ----------- ------------ -----------
Net increase in net assets $5,240,772 $9,918,295 $2,278,756
from operations ----------- ------------ -----------
Capital transactions -- $2,138,038 $7,273,143 $1,242,994
Contributions (24,485,909) (52,095,383) (9,427,749)
Withdrawals ----------- ------------ -----------
Decrease in net assets resulting ($22,347,871) ($44,822,240) ($8,184,755)
from capital transactions ----------- ------------ -----------
($17,107,099) ($34,903,945) ($5,905,999)
Total decrease in net assets
Net Assets: 97,279,675 173,632,424 39,435,374
At beginning of year ----------- ------------ -----------
$80,172,576 $138,728,479 $33,529,375
At end of year =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1996
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations -- $4,317,764 $874,089 $8,483,858 $1,731,146
Net investment income
Net realized loss (3,541,623) (562,025) (4,072,437) (1,889,732)
on investments
Change in unrealized 2,987,188 573,926 5,067,690 1,913,469
appreciation of investments ----------- ----------- ------------ -----------
Net increase in net assets $3,763,329 $885,990 $9,479,111 $1,754,883
from operations ----------- ----------- ------------ -----------
Capital transactions -- $14,449,584 $4,383,626 $29,535,670 $8,180,397
Contributions (31,573,058) (4,720,895) (60,412,518) (12,345,746)
Withdrawals ----------- ----------- ------------ -----------
Decrease in net assets ($17,123,474) ($337,269) ($30,876,848) ($4,165,349)
resulting from capital transactions ----------- ----------- ------------ -----------
($13,360,145) $548,721 ($21,397,737) ($2,410,466)
Total increase (decrease) in net assets
Net Assets: 95,703,870 16,766,897 185,976,652 35,608,482
At beginning of year ----------- ----------- ------------ -----------
$82,343,725 $17,315,618 $164,578,915 $33,198,016
At end of year =========== =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Year Ended March 31, 1995
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
---------------- ---------------- ----------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations -- $4,840,639 $8,821,606 $1,988,159
Net investment income
Net realized loss (2,432,985) (2,970,287) (1,848,899)
on investments
Change in unrealized 2,933,058 3,317,903 1,939,481
appreciation of investments ----------- ------------ -----------
Net increase in net assets $5,340,712 $9,169,222 $2,078,741
from operations ----------- ------------ -----------
Capital transactions -- $13,706,598 $23,864,886 $8,548,567
Contributions (24,715,358) (43,169,334) (9,169,484)
Withdrawals ----------- ------------ -----------
Decrease in net assets resulting ($11,008,760) ($19,304,448) ($620,917)
from capital transactions ----------- ------------ -----------
($5,668,048) ($10,135,226) $1,457,824
Total increase (decrease) in net assets
Net Assets: 102,947,723 183,767,650 37,977,550
At beginning of year ----------- ------------ -----------
$97,279,675 $173,632,424 $39,435,374
At end of year =========== ============ ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
California Limited Portfolio Connecticut Limited Portfolio
---------------------------------------- ----------------------------------------
Year Ended March 31, Year Ended March 31,
---------------------------------------- ----------------------------------------
1996 1995 1994** 1996 1995 1994*
------------ ------------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.58% 0.53% 0.46%+ 0.39% 0.17% 0.00%+
Net expenses after custodian fee reduction 0.55% -- -- 0.35% -- --
Net investment income 4.82% 4.72% 4.50%+ 4.91% 4.95% 4.53%+
Portfolio Turnover 36% 56% 6% 52% 73% 39%
Net Assets, end of period (000 omitted) $59,216 $82,344 $95,704 $14,862 $17,316 $16,767
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and/or an allocation of
expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.52%+ 0.72% 0.67% 0.62%+
Net investment income 4.44%+ 4.58% 4.45% 3.92%+
Florida Limited Portfolio Michigan Limited Portfolio
---------------------------------------- ----------------------------------------
Ended March 31, Year Ended March 31,
---------------------------------------- ----------------------------------------
1996 1995 1994** 1996 1995 1994*
------------ ------------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.55% 0.52% 0.49%+ 0.68% 0.48% 0.00%+
Net expense after custodian fee reduction 0.54% -- -- 0.64% -- --
Net investment income 4.73% 4.73% 4.53%+ 5.00% 4.88% 4.62%+
Portfolio Turnover 20% 44% 8% 40% 111% 30%
Net Assets, end of period (000 omitted) $127,835 $164,579 $185,977 $21,191 $33,198 $35,608
++ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee and/or an allocation of
expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.59% 0.54%+
Net investment income 4.77% 4.08%+
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any offset arrangements
with its service providers. The expense ratios for the periods ended March 31, 1995 and 1994 have not been adjusted to
reflect this change.
New Jersey Limited Portfolio New York Limited Portfolio
---------------------------------------- ----------------------------------------
Ended March 31, Year Ended March 31,
---------------------------------------- ----------------------------------------
1996 1995 1994** 1996 1995 1994**
------------ ------------ ---------- ------------ ------------ ------------
Ratios (As a percentage of average daily
net assets):
Net expenses (1) 0.57% 0.54% 0.54%+ 0.55% 0.52% 0.47%+
Net expenses after custodian fee reduction (1) 0.55% -- -- 0.53% -- --
Net investment income 4.78% 4.73% 4.53%+ 4.66% 4.79% 4.50%+
Portfolio Turnover 42% 44% 10% 32% 31% 5%
Net Assets, end of period (000 omitted) $80,173 $97,280 $102,948 $138,728 $173,632 $183,768
Ohio Limited Portfolio
------------------------------------------
Year Ended March 31,
------------------------------------------
1996 1995 1994*
------------------------------------------
Ratios (As a percentage of average daily
net assets)++:
Net expenses (1) 0.63% 0.46% 0.00%+
Net expenses after custodian fee reduction(1) 0.61% -- --
Net investment income 5.06% 4.96% 4.68%+
Portfolio Turnover 47% 120% 33%
Net Assets, end of period (000 omitted) $33,529 $39,435 $37,978
++ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee and an allocation
of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses (1) 0.58% 0.54%+
Net investment income 4.84% 4.14%+
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Portfolio to increase its expense ratio by the
effect of any offset arrangements with its service providers. The expense ratios for the periods ended
March 31, 1995 and 1994 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
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. Use of Estimates -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
H. Other -- Investment transactions are accounted for on a trade date
basis.
(2) Portfolio Name Changes
California Limited Maturity Tax Free Portfolio, Connecticut Limited
Maturity Tax Free Portfolio, Florida Limited Maturity Tax Free
Portfolio, Michigan Limited Maturity Tax Free Portfolio, New Jersey
Limited Maturity Tax Free Portfolio, New York Limited Maturity Tax Free
Portfolio, and Ohio Limited Maturity Tax Free Portfolio changed thier
respective names to California Limited Maturity Municipals Portfolio,
Connecticut Limited Maturity Municipals Portfolio, Florida Limited
Maturity Municipals Portfolio, Michigan Limited Maturity Municipals
Portfolio, New Jersey Limited Maturity Municipals Portfolio, New
York Limited Maturity Municipals Portfolio, and Ohio Limited Maturity
Municipals Portfolio.
(3) Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of gross income (i.e., income other than gains
from the sale of securities). For the year ended March 31, 1996, each
Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
- ---------- ---------- ------------------
California Limited $327,056 0.46%
Connecticut Limited 74,308 0.46%
Florida Limited 664,262 0.46%
Michigan Limited 126,312 0.47%
New Jersey Limited 412,459 0.46%
New York Limited 722,493 0.46%
Ohio Limited 173,867 0.47%
To enhance the net income of the Connecticut Limited Portfolio, BMR made
a reduction of its fee in the amount of $53,054 for the year ended March
31, 1996.
Investors Bank & Trust Company (IBT) serves as custodian of the
Portfolios. Prior to November 10, 1995, IBT was an affiliate of EVM and
BMR. Pursuant to the custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances
each Portfolio maintains with IBT. All significant credit balances used
to reduce the Portfolio's custody fees are reported as a reduction of
expenses in the Statement of Operations. Certain of the officers and
Trustees of the Portfolios are officers and directors/trustees of the
above organizations.
* Advisory fees paid as a percentage of average daily net assets
(annualized).
(4) Investments
Purchases and sales of investments, other than U.S. Government
securities and short-term obligations, for the year ended March 31, 1996
were as follows:
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
---------- ----------- --------- ----------
Purchases $24,877,015 $ 8,250,736 $28,911,796 $10,444,968
Sales 44,446,230 10,784,654 65,874,757 22,415,051
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
---------- ----------- ---------
Purchases $36,977,125 $48,785,957 $16,917,510
Sales 53,795,384 80,959,674 22,846,327
(5) Federal Income Tax Basis of Investments
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 1996, as computed on a
federal income tax basis, are as follows:
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
---------- ----------- --------- ----------
Aggregate cost $ 58,558,528 $ 14,290,916 $122,087,493 $19,846,029
=========== =========== =========== ===========
Gross unrealized
appreciation $1,382,191 $316,726 $3,356,253 $756,054
Gross unrealized
depreciation 343,763 90,001 1,052,315 177,620
----------- ---------- ----------- -----------
Net unrealized
appreciation $1,038,428 $ 226,725 $2,303,938 $ 578,434
=========== =========== =========== ===========
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
---------- ----------- ---------
Aggregate cost $ 77,501,411 $135,090,306 $ 32,188,327
=========== =========== ===========
Gross unrealized
appreciation $2,011,354 $2,402,137 $810,700
Gross unrealized
depreciation 520,714 1,019,699 136,899
----------- ---------- -----------
Net unrealized
appreciation $1,490,640 $1,382,438 $ 673,801
=========== =========== ===========
(6) Line of Credit
The Portfolios participate with other portfolios and funds managed by
BMR and EVM in a $120 million unsecured line of credit agreement with a
bank. The line of credit consists of a $20 million committed facility
and a $100 million discretionary facility. Each portfolio may
temporarily borrow up to 5% of its total assets to satisfy redemption
requests or settle transactions. Interest is charged to each portfolio
or fund based on its borrowings at an amount above either the bank's
adjusted certificate of deposit rate, a variable adjusted certificate of
deposit rate, or a federal funds effective rate.
In addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100
million discretionary facility is allocated among the participating
funds and portfolios at the end of each quarter. At March 31, 1996, the
Florida Limited Portfolio and New York Limited Portfolio had balances
outstanding pursuant to this line of credit of $215,000 and $183,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended March 31, 1996.
(7) Financial Instruments
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist
in managing exposure to various market risks. These financial
instruments include written options and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting
transactions are considered.
A summary of obligations under these financial instruments at March 31,
1996 is as follows:
Futures
Contracts Net
Expiration Unrealized
Portfolio Date Contracts Position Depreciation
- -------- -------- ------------------ -------- ------------
Connecticut
Limited 6/96 4 U.S. Treasury Bonds Short $ 3,175
Michigan
Limited 6/96 6 U.S. Treasury Bonds Short 4,763
New Jersey
Limited 6/96 21 U.S. Treasury Bonds Short 13,389
Independent Auditors' Report
To the Trustees and Investors of:
California Limited Maturity Municipals Portfolio
Connecticut Limited Maturity Municipals Portfolio
Florida Limited Maturity Municipals Portfolio
Michigan Limited Maturity Municipals Portfolio
New Jersey Limited Maturity Municipals Portfolio
New York Limited Maturity Municipals Portfolio
Ohio Limited Maturity Municipals Portfolio
We have audited the accompanying statements of assets and liabilities
including the portfolio of investments of California Limited Maturity
Municipals Portfolio, Connecticut Limited Maturity Municipals Portfolio,
Florida Limited Maturity Municipals Portfolio, Michigan Limited Maturity
Municipals Portfolio, New Jersey Limited Maturity Municipals Portfolio,
New York Limited Maturity Municipals Portfolio, and Ohio Limited
Maturity Municipals Portfolio (the Portfolios), as of March 31, 1996,
the related statements of operations for the year then ended, and the
statements of changes in net assets for the years ended March 31, 1996
and 1995 and the supplementary data for each of the years in the three
year period ended March 31, 1996. These financial statements and
supplementary data are the responsibility of the Trusts' management. Our
responsibility is to express an opinion on the financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. Our procedures
included confirmation of securities owned at March 31, 1996 by
correspondence with the custodian and brokers; where replies were not
received from brokers, we performed other audit procedures. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, such financial statements and supplementary data present
fairly, in all material respects, the financial position of the
aforementioned Portfolios, as of March 31, 1996, the results of their
operations, the changes in their net assets, and their supplementary
data for the respective stated periods in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 2, 1996
Investment Management
Funds
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President and Director, United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Portfolios
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
William H. Ahern, Jr.
Vice President and Portfolio Manager of Connecticut, Michigan, New
Jersey and Ohio Municipals Portfolios
Raymond E. Hender
Vice President and Portfolio Manager of California, Florida and New York
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 page intentionally left blank.]
This report must be preceded or accompanied by a current prospectus
which contains more complete information on the Funds, including
distribution plan, sales charges and expenses. Please read the
prospectus carefully before you invest or send money.
Eaton Vance Investment Trust
24 Federal Street
Boston, MA 02110
T-7CSRC-5/96
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