<PAGE>
[Eaton Vance Investing
Logo Omitted] for the
21st
Century
[Photo of Brickwall Omitted]
SEMIANNUAL REPORT SEPTEMBER 30, 1997
[Photo of Highway Omitted] EATON VANCE
LIMITED
MATURITY MUNICIPALS FUND
CLASSIC
GLOBAL MANAGEMENT-GLOBAL DISTRIBUTION
Florida
Massachusetts
New York
Pennsylvania
[Photo of Bridge Omitted]
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
- ---------------------------
[Photo of Thomas J. Fetter]
- ---------------------------
Thomas J. Fetter,
President
The municipal bond market continued to respond favorably in 1997 to an economic
climate of solid growth yet low inflation. Gross domestic product (GDP), a
widely-used measure of economic performance, grew 4.9% in the first quarter,
3.3% in the second, and 3.3% in the third. However, inflation remained in the
2-to-3% range due to higher productivity brought on by technology and an
increase in global competition. While the Federal Reserve elected to raise the
Fed Funds Rate - the primary short-term interest rate benchmark - 0.25% to 5.5%
in March, it has since maintained a stable interest rate policy in response to a
benign inflation outlook. Not surprisingly, municipal bonds have turned in solid
returns, with the Lehman Brothers Municipal Bond Index* - an unmanaged index of
municipal bonds - rising 9.0% during the year ended September 30, 1997.
The municipal bond market has been characterized by heavy issuance and strong
investor demand
According to Standard & Poor's, nearly $227 billion in municipal securities were
brought to market in 1996, a 14% increase from the prior year. Thus far in 1997,
municipal issuance has kept up that pace. Issuers have redeemed older bonds with
relatively high coupons and replaced them with new bonds bearing lower coupons.
This municipal refunding activity has been sparked in part by the strong market
rally of recent months that has seen yields for 30-year AAA-rated general
obligations decline to the 5.25% level at September 30. At that level, municipal
yields represent 82% of 30-year Treasury yields, making them an attractive
option for investors.
Amid Washington's newly found fiscal responsibility, the outlook for municipal
bonds appears bright
Municipal bonds yield 82% of Treasury yields
5.25% 8.20%
30-Year AAA-rated Taxable equivalent yield
General Obligations (GO) Bonds* in 36% tax bracket
6.40%
30-Year Treasury bond
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general obligations
and are not necessarily representative of the Fund's yield. Statistics as of
September 30, 1997.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
We believe the long-term outlook for municipal bonds has improved in the past
year for several reasons. First, Congress and the Clinton Administration agreed
to balance the budget by 2002. This would sharply reduce the government's
borrowing needs, leading to lower interest rates and channeling investments into
more productive areas of the economy. Second, the marginal tax rates of many
taxpayers remain high. For them, municipal bonds may still be the best vehicle
for tax relief. And finally, a balanced investment portfolio features equities,
bonds, and cash. The stock market has shown higher-than-normal volatility this
year, capped by steep price declines in late October. Following three years of
stock market outperformance, we believe investors should consider reallocating a
portion of their portfolios to bonds to maintain a prudent asset allocation. For
these reasons, we believe that the municipal market will continue to attract
tax-conscious investors. Eaton Vance will continue its leadership role in
seeking high, tax-free income.
Sincerely,
/s/ Thomas J. Fetter,
Thomas J. Fetter,
President
November 10, 1997
*It is not possible to invest directly in an Index.
- --------------------------------------------------------------------------------
Mutual fund shares are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are
subject to investment risks, including possible loss of principal invested.
- --------------------------------------------------------------------------------
<PAGE>
EV Classic Florida Limited Maturity Municipals Fund as of September 30, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
The Economy
- --------------------------------------------------------------------------------
- ---------------------------
[Photo of William H. Ahern]
- ---------------------------
William H. Ahern,
Portfolio Manager
o Florida has enjoyed a relatively strong employment picture. The state's
employment rolls grew by nearly 200,000 in the past year, accentuated by gains
in the retail, construction, and entertainment industries. Net income
continued to grow as wages rose 4.0% while property income grew 5.1%.
o The outlook is positive on the Florida tourism front. Room rates have
increased and resorts continue to enjoy strong occupancy rates, surpassing
previous records. The strong dollar, however, has negatively impacted European
travel to the state.
o Florida continues to merit a AA rating from major ratings agencies, reflecting
rapid population growth and a broadening economic base. Despite the demands
for increased infrastructure to match fast growth, the state has limited its
debt levels to 3.2% of personal income.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
3.9%.(1) This return resulted from an increase in net asset value per share to
$9.63 on September 30, 1997 from $9.44 on March 31, 1997, and the reinvestment
of $0.179 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.63 per
share, the Fund's distribution rate on September 30, 1997 was 3.72%.(3) The
Fund's SEC yield at September 30 was 3.17%.(4)
o To equal 3.72% in a taxable investment, a couple in the 39.44% combined
federal and state intangibles bracket would need a yield of 6.14%.
Management Update
- --------------------------------------------------------------------------------
o The Portfolio featured relatively few changes during the period, focusing on
structural adjustments. General obligations, insured hospitals, and electric
utilities represented the largest sector weightings in the Portfolio.
o As always, call protection remained an important structural consideration. As
interest rates have declined, more bonds have reached early redemption dates.
By improving the Fund's call protection, we have increased its capital
appreciation potential.
o Insured bonds represented a relatively high percentage of the Portfolio's
holdings, an important consideration for quality-conscious Florida investors.
Your Investment at Work
- --------------------------------------------------------------------------------
Polk County, FL Industrial Development Authority
IMC Fertilizer Corp.
[Graphic Omitted]
o IMC Fertilizer is one of the world's largest producers of potash, phosphate,
and phosphate fertilizer.
o The proceeds of this bond were used to finance a 415-acre containment basin
for the storage of phosphogypsom, a manufacturing by-product.
o The bonds provide a 7.53% coupon and give the Portfolio the opportunity to add
yield while investing in a valuable environmental project for an industry
leader.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal income tax and/or alternative minimum tax.(3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
net asset value at the end of the period and annualizing the result. (5)
Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns for one year
reflect 1% CDSC. (6) Sector weightings and Portfolio Overview are as of
9/30/97 only and may not be representative of the Portfolio's current or
future investments. *Private insurance does not remove the investment risks
associated with this investment.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
- --------------------------------------------------------------------------------
Fund Information
as of September 30, 1997
Performance(5)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 4.6%
Life of Fund (12/8/93) 2.9
SEC Average Annual Total Returns (including applicable CDSC)
- --------------------------------------------------------------------------------
One Year 3.6%
Life of Fund (12/8/93) 2.9
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
General Obligations (GO) 30.2%
Insured - Hospitals* 12.7%
Electric Utilities 11.8%
Escrowed/prerefunded 8.0%
Insured - Water & Sewer 6.6%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 43
Average Rating AA
Average Coupon 5.73%
Average Effective Maturity 9.9 Yrs.
Average Maturity 12.9 Yrs.
Average Duration 6.9 Yrs.
<PAGE>
EV Classic Massachusetts Limited Maturity Municipals Fund as of
September 30,1997
INVESTMENT UPDATE
- ---------------------------
[Photo of William H. Ahern]
- ---------------------------
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o The Massachusetts economy mirrored the strong growth at the national level.
Unemployment measured only 4.0% in September, again below that of the nation
as a whole. Technology, health care and financial services continued to
register the strongest job growth among industry sectors.
o The Massachusetts construction industry is likely to be among the state's
fastest-growing segments in coming years, according to DRI/McGraw-Hill.
Boston's Central Artery Project, expected to reach its employment peak in
1999, should provide a major boost, with 6,600 people employed on the project.
o Massachusetts remains one of the nation's leading purveyors of
technology-based products and services, including software, computer, and
Internet-based services. That strength should mitigate the continuing effects
of defense cutbacks, health care restructuring and banking consolidations.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
4.2%.(1) This return resulted from an increase in net asset value per share to
$9.79 on September 30, 1997 from $9.57 on March 31, 1997, and the reinvestment
of $0.183 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.79 per
share, the Fund's distribution rate on September 30, 1997 was 3.75%.(3) The
Fund's SEC yield at September 30 was 3.26%.(4)
o To equal 3.75% in a taxable investment, a couple in the 43.68% combined
federal and state intangibles bracket would need a yield of 6.66%.
Management Update
- --------------------------------------------------------------------------------
o In an increasingly generic market, quality spreads - the yield difference
between bonds of varying quality - narrowed appreciably. Therefore, we
redoubled our efforts to find special situations that would provide attractive
yield opportunities for the Fund.
o The Portfolio had a fairly large exposure to housing bonds. Amid relatively
large supply, the Massachusetts housing sector offered attractive
opportunities to add yield to the Portfolio.
o We added to the Portfolio's non-rated and lower-rated investment-grade bonds.
Eaton Vance's research resources provide us a valuable advantage in that
segment of the market.
Your Investment at Work
- --------------------------------------------------------------------------------
Massachusetts Health & Educational Finance Authority
Milford-Whitinsville Hospital
[Graphic Omitted]
o Milford-Whitinsville Regional Hospital is a teaching hospital that operates
facilities in three locations in central Massachusetts.
o The hospital provides a broad range of community health care services,
including surgery, obstetrics, gynecology, orthopedics and pediatrics.
o This 7.12% bond, rated Baa3/BB by Moody's and S&P, is representative of the
Portfolio's efforts to find value in lower-rated bonds in the growing life
care sector, which is playing an increasingly important role in the nation's
health care picture.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal income tax and/or alternative minimum tax.(3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
net asset value at the end of the period and annualizing the result. (5)
Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns for one year
reflect 1% CDSC. (6) Sector weightings and Portfolio Overview are as of
9/30/97 only and may not be representative of the Portfolio's current or
future investments. *Private insurance does not remove the investment risks
associated with this investment.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Fund Information
as of September 30, 1997
Performance(5)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 5.6%
Life of Fund (12/8/93) 3.4
SEC Average Annual Total Returns (including applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.6%
Life of Fund (12/8/93) 3.4
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Insured - Housing* 20.0%
Hospitals* 9.3%
Insured - Water & Sewer* 8.8%
Insured - GOs* 8.5%
General Obligations (GO) 7.4%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 37
Average Rating AA-
Average Coupon 5.88%
Average Effective Maturity 10.7 Yrs.
Average Maturity 12.6 Yrs.
Average Duration 7.4 Yrs.
<PAGE>
EV Classic New York Limited Maturity Municipals Fund as of September 30, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
- -------------------------
[Photo of Nicole Anderes]
- -------------------------
Nicole Anderes,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o New York has entered its fifth consecutive year of marginal growth, although
the state's 0.2% job growth continues to lag that of the nation as a whole,
ranking 38th among the states. New York has been especially affected by the
loss of manufacturing jobs. Despite lackluster overall growth, the single
engine of the securities industry has been able to improve the state's
financial health.
o Income growth in New York again outpaced the nation, boosted by the twin
effects of strong profits and increasing bonuses within the financial sector.
Four of the state's highest-paying sectors are in the financial services
sector, which benefited from a slow-growth economy and a low interest-rate
climate.
o New York ended fiscal 1997 with a surplus in excess of $1 billion, thanks to
the securities industry tax windfall and cost containments implemented by the
Pataki administration.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
5.3%.(1) This return resulted from an increase in net asset value per share to
$9.85 on September 30, 1997 from $9.53 on March 31, 1997, and the reinvestment
of $0.179 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.85 per
share, the Fund's distribution rate on September 30, 1997 was 3.63%.(3) The
Fund's SEC yield at September 30 was 3.55%.(4)
o To equal 3.63% in a taxable investment, a couple in the 40.38% combined
federal and state tax bracket would need a yield of 6.09%.
Management Update
- --------------------------------------------------------------------------------
o We restructured the Portfolio in late Spring, reducing holdings insured issues
while increasing our exposure to state-appropriated debt. State debt was
subsequently upgraded by S&P and has since outperformed.
o From the standpoint of maturity structure, we've followed a "barbell"
approach, while keeping portfolio maturities the same. At one end, we have
moved out of the 12-to-17 year maturity range and into longer-maturity,
performance-oriented bonds.
o At the other end of the barbell, we have emphasized shorter-maturity,
higher-yielding bonds with less price-sensitivity. This barbell approach has
provided upside potential as well as a measure of protection against a
possible market reversal.
Your Investment at Work
- --------------------------------------------------------------------------------
New York State Housing Finance Agency
Health Facilities Revenue Bonds
[Graphic Omitted]
o These bonds were issued in 1995 to refund outstanding bonds that financed the
construction and equipping of health facilities throughout New York City.
o The bonds are subject to annual appropriations by the New York State
legislature, and are therefore a "tried and true" debt financing structure
within the state.
o With its 6.38% coupon, the bond provides a significant advantage over
higher-quality New York municipals. However, given New York State's
involvement in the income stream, the issue provides better underlying credit
quality than its Baa/BBB+ ratings imply.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal income tax and/or alternative minimum tax.(3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
net asset value at the end of the period and annualizing the result. (5)
Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns for one year
reflect 1% CDSC. (6) Sector weightings and Portfolio Overview are as of
9/30/97 only and may not be representative of the Portfolio's current or
future investments. *Private insurance does not remove the investment risks
associated with this investment. Past performance is no guarantee of future
results. Investment return and principal value will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
- --------------------------------------------------------------------------------
Fund Information
as of September 30, 1997
Performance(5)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 6.7%
Life of Fund (12/8/93) 3.5
SEC Average Annual Total Returns (including applicable CDSC)
- --------------------------------------------------------------------------------
One Year 5.7%
Life of Fund (12/8/93) 3.5
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Transportation 14.3%
Lease Revenue/COP 14.0%
Housing 11.1%
Insured - Hospitals* 8.7%
Water & Sewer 7.7%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 38
Average Rating AA-
Average Coupon 5.9%
Average Effective Maturity 9.6 Yrs.
Average Maturity 13.2 Yrs.
Average Duration 6.7 Yrs.
<PAGE>
EV Classic Pennsylvania Limited Maturity Municipals Fund as of
September 30, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
- ----------------------------
[Photo of Timothy T. Browse]
- ----------------------------
Timothy T. Browse,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o The Pennsylvania economy generated further momentum during the past year,
keeping its growth trend intact, as job creation continued. While the
commonwealth's unemployment rate still hovered slightly above the national
rate, the economy was aided by a surge in construction, which rose about 5%
over the past year.
o The service sector was responsible for seven of every eight new jobs in
Pennsylvania. According to the Pennsylvania Department of Labor and Industry,
more than 70,000 new service jobs were created in the past year, led by
business services and health care.
o Pennsylvania is making fast progress in its transition from a
manufacturing-based economy. The commonwealth ranks 5th in the nation in
biotechnology firms, 4th in environmental technology, and 2nd in
biopharmaceutical companies.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
5.2%.(1) This return resulted from an increase in net asset value per share to
$9.88 on September 30, 1997 from $9.57 on March 31, 1997, and the reinvestment
of $0.183 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.88 per
share, the Fund's distribution rate on September 30, 1997 was 3.71%.(3) The
Fund's SEC yield at September 30 was 3.25%.(4)
o To equal 3.71% in a taxable investment, a couple in the 44.69% combined
federal and state tax bracket would need a yield of 6.71%.
Management Update
- --------------------------------------------------------------------------------
o In this volatile period, the Portfolio made relatively few changes, continuing
a relative-value approach and focusing on research-intensive, non-rated issues
to add yield to the Fund.
o The Portfolio maintained its fairly large exposure to hospitals. Although the
field is increasingly competitive, we were able to add yield to the Fund with
BBB rated hospital bonds.
o We were able to reduce the impact of market volatility on the Portfolio by
balancing higher-yielding bonds with higher-quality insured bonds. The
higher-yielding bonds possess defensive characteristics that provide a measure
of protection against a market reversal, while the lower-yielding bonds
provide upside protection.
Your Investment At Work
- --------------------------------------------------------------------------------
Pennsylvania EDA
Resource Recovery - Colver Project
[Graphic Omitted]
o These bonds were issued to finance the development of a 102-megawatt,
waste-coal-fired, power production facility.
o The project will generate electricity through the use of 552,000 tons per year
of bituminous coal refuse left over from decades of coal mining in the region.
The project is popular because it uses waste products to provide energy for
the surrounding populations.
o This bond, rated BBB- by S&P, represents the efforts of the Portfolio to add
value through lower-rated, investment-grade bonds that may have further
upgrade potential.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal income tax and/or alternative minimum tax.(3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
net asset value at the end of the period and annualizing the result. (5)
Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns for one year
reflect 1% CDSC. (6) Sector weightings and Portfolio Overview are as of
9/30/97 only and may not be representative of the Portfolio's current or
future investments. *Private insurance does not remove the investment risks
associated with this investment.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
- --------------------------------------------------------------------------------
Fund Information
as of September 30, 1997
Performance(5)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
One Year 6.8%
Life of Fund (12/8/93) 3.7
SEC Average Annual Total Returns (including applicable CDSC)
- --------------------------------------------------------------------------------
One Year 5.8%
Life of Fund (12/8/93) 3.7
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Hospitals 15.2%
Life Care 13.1%
Escrowed/prerefunded 9.5%
Insured - Electric Utilities** 7.5%
Transportation 7.5%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 51
Average Rating AA-
Average Coupon 5.87%
Average Effective Maturity 8.8 Yrs.
Average Maturity 11.2 Yrs.
Average Duration 6.7 Yrs.
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
As of September 30, 1997
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
- -----------------------------------------------------------------------------------------------------------------------------
Investment in Limited
Maturity Municipals
Portfolio --
Identified cost $ 5,570,152 $4,192,577 $2,949,088 $5,152,087
Unrealized appreciation 116,044 131,121 78,759 102,951
- -----------------------------------------------------------------------------------------------------------------------------
Total investment in Portfolio,
at value (Note 1A) $ 5,686,196 $4,323,698 $3,027,847 $5,255,038
- -----------------------------------------------------------------------------------------------------------------------------
Receivable from
Administrator (Note 4) 8,323 7,838 11,623 11,897
Deferred organization
expenses (Note 1D) 3,134 2,595 2,413 2,376
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $ 5,697,653 $4,334,131 $3,041,883 $5,269,311
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Dividends payable $ 4,661 $ 3,585 $ 2,426 $ 4,319
Payable for Fund shares
redeemed -- 20,000 3,004 22,644
Payable to affiliate for
Trustees' fees (Note 4) 41 -- -- 42
Accrued expenses 2,060 1,998 1,582 2,436
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 6,762 $ 25,583 $ 7,012 $ 29,441
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 5,690,891 $4,308,548 $3,034,871 $5,239,870
- -----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital $ 6,744,030 $4,411,424 $3,227,286 $5,637,429
Accumulated net realized
loss on investments from
Portfolio (computed on
the basis of identified
cost) (1,173,347) (234,870) (271,894) (508,196)
Accumulated undistributed
net investment income 4,164 873 720 7,686
Net unrealized appreciation
of investments from
Portfolio (computed on
the basis of identified cost) 116,044 131,121 78,759 102,951
- -----------------------------------------------------------------------------------------------------------------------------
Total $ 5,690,891 $4,308,548 $3,034,871 $5,239,870
- -----------------------------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- -----------------------------------------------------------------------------------------------------------------------------
590,956 439,878 308,005 530,596
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share (Note 6)
- -----------------------------------------------------------------------------------------------------------------------------
(net assets / shares of
beneficial interest
outstanding) $ 9.63 $ 9.79 $ 9.85 $ 9.88
- -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statements of Operations
For the Six Months Ended September 30, 1997
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B)
- -----------------------------------------------------------------------------------------------------------------------------
Interest income allocated from
Portfolio $156,989 $120,591 $ 79,361 $152,221
Expenses allocated from
Portfolio (16,641) (13,246) (8,889) (16,405)
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income from
Portfolio $140,348 $107,345 $ 70,472 $135,816
- -----------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Compensation of Trustees not
members of the Administrator's
organization (Note 4) $ 125 $ -- $ -- $ 84
Distribution fees (Note 5) 25,882 19,558 13,042 24,208
Transfer and dividend disbursing
agent fees 2,705 1,928 1,391 2,441
Printing and postage 4,974 4,170 4,551 5,625
Custodian fee 1,746 1,500 1.502 1,501
Legal and accounting services 5,544 5,251 5,942 8,476
Amortization of organization
expenses (Note 1D) 728 1,109 1,026 1,012
Miscellaneous 249 598 1,391 576
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses $ 41,954 $ 34,114 $ 28,845 $ 43,923
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Preliminary allocation of
expenses to the Administrator
(Note 4) $ 8,323 $ 7,838 $ 11,623 $ 11,897
- -----------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 8,323 $ 7,838 $ 11,623 $ 11,897
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses $ 33,631 $ 26,276 $ 17,222 32,026
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $106,717 $ 81,069 $ 53,250 $103,790
- -----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment tranactions
(identified cost basis) $ 31,096 $ 27,799 $ 21,208 $ 56,839
Financial futures contracts (77,099) (48,026) (1,893) (17,713)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments (46,003) (20,227) $ 19,315 $ 39,126
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investment transactions $178,522 $ 132,279 $ 92,178 $138,939
Financial futures contracts (14,524) (14,396) (15,228) (10,559)
- -----------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation of investments $163,998 117,883 $ 76,950 128,380
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments $117,995 $ 97,656 $ 96,265 $167,506
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $224,712 $ 178,725 $ 149,515 $271,296
- -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1997
Classic Classic Classic Classic
Increase (Decrease) Florida Massachusetts New York Pennsylvania
in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 106,717 $ 81,069 $ 53,250 $ 103,790
Net realized gain (loss)
on investments (46,003) (20,227) 19,315 39,126
Net change in unrealized
appreciation (depreciation) of
investments 163,998 117,883 76,950 128,380
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $ 224,712 $ 178,725 $ 149,515 $ 271,296
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders
(Note 2) --
From net investment income $ (107,565) $ (82,123) $ (53,375) $ (101,495)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders $ (107,565) $ (82,123) $ (53,375) $ (101,495)
- -----------------------------------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest (Note 3) --
Proceeds from sale of shares $ 86,264 $ 577,272 $ 528,156 $ 99,126
Net asset value of shares
issued to shareholders
in payment of distributions
declared 73,219 72,280 34,546 77,357
Cost of shares redeemed (372,452) (1,052,444) (611,290) (789,929)
- -----------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets
from Fund share transactions $ (212,969) $ (402,892) $ (48,588) $ (613,446)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets $ (95,822) $ (306,290) $ 47,552 $ (443,645)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of period $5,786,713 $4,614,838 $2,987,319 $5,683,515
- -----------------------------------------------------------------------------------------------------------------------------
At end of period $5,690,891 $4,308,548 $3,034,871 $5,239,870
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment
income included in net assets
- -----------------------------------------------------------------------------------------------------------------------------
At end of period $ 4,164 $ 873 $ 720 $ 7,686
- -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended March 31, 1997
Classic Classic Classic Classic
Increase (Decrease) Florida Massachusetts New York Pennsylvania
in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 260,641 $ 186,040 $ 143,360 $ 253,423
Net realized loss on
investments (144,972) (56,901) (59,746) (86,282)
Change in unrealized
appreciation (depreciation)
of investments 19,994 56 27,646 17,127
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $ 135,663 $ 129,195 $ 111,260 $ 184,268
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders
(Note 2) --
From net investment income $ (256,923) (181,633) $ (142,062) $ (247,481)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders $ (256,923) (181,633) $ (142,062) $ (247,481)
- -----------------------------------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest (Note 3) --
Proceeds from sale of shares $ 344,966 $ 389,285 1,372,700 $ 806,219
Net asset value of shares
issued to shareholders in
payment of distributions
declared 169,201 160,523 109,805 188,466
Cost of shares redeemed (2,904,733) (935,519) (2,528,853) (2,728,664)
- -----------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets
from Fund share transactions $(2,390,566) $ (385,711) $(1,046,348) $(1,733,979)
- -----------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(2,511,826) $ (438,149) $(1,077,150) $(1,797,192)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 8,298,539 $ 5,052,987 $ 4,064,469 $ 7,480,707
- -----------------------------------------------------------------------------------------------------------------------------
At end of year $ 5,786,713 $ 4,614,838 $ 2,987,319 $ 5,683,515
- -----------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment
income included in net assets
- -----------------------------------------------------------------------------------------------------------------------------
At end of year $ 5,012 $ 1,927 $ 845 $ 5,391
- -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
Financial Highlights
<TABLE>
<CAPTION>
Classic Florida Limited Fund Classic Massachusetts Limited Fund
--------------------------------------------------- ---------------------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March 31, September 30, Year Ended March 31,
1997 ----------------------------------- 1997 -------------------------------------
(Unaudited) 1997 1996 1995 1994* (Unaudited) 1997 1996 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
Beginning of period $ 9.440 $ 9.620 $ 9.520 $ 9.480 $10.000 $ 9.570 $ 9.680 $ 9.560 $ 9.520 $10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.178 $ 0.364 $ 0.359 $ 0.353 $ 0.103 $ 0.182 $ 0.376 $ 0.370 $ 0.359 $ 0.107
Net realized and unrealized
gain (loss) on investments 0.191 (0.187) 0.100 0.088 (0.495) 0.222 (0.119) 0.118 0.092 (0.451)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
operations $ 0.369 $ 0.177 $ 0.459 $ 0.441 $(0.392) $ 0.404 $ 0.257 $ 0.488 $ 0.451 $(0.344)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.179) $(0.357) $(0.359) $(0.353) $(0.103) $(0.184) $(0.367) $(0.368) $(0.359) $(0.107)
In excess of net investment
income -- -- -- (0.048) (0.025) -- -- -- (0.052) (0.029)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.179) $(0.357) $(0.359) $(0.401) $(0.128) $(0.184) $(0.367) $(0.368) $(0.411) $(0.136)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of
period $ 9.630 $ 9.440 $ 9.620 $ 9.520 $ 9.480 $ 9.790 $ 9.570 $ 9.680 $ 9.560 $ 9.520
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 3.93% 1.88% 4.84% 4.81% (4.07)% 4.24% 2.70% 5.16% 4.90% (3.67)%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 5,691 $ 5,787 $ 8,299 $13,771 $22,535 $ 4,309 $ 4,615 $ 5,053 $ 5,378 $ 4,967
Ratio of net expenses to
average daily net assets
(2)(3) 1.77%+ 1.70% 1.58% 1.50% 1.39%+ 1.84%+ 1.67% 1.47% 1.63% 1.49%+
Ratio of net expenses to
average daily net assets,
after custodian fee
reduction(2) 1.75%+ 1.68% 1.56% -- -- 1.82%+ 1.65% 1.46% -- --
Ratio of net investment
income to average daily
net assets 3.71%+ 3.80% 3.75% 3.81% 3.25%+ 3.73%+ 3.90% 3.80% 3.82% 3.12%+
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 2.06%+ 1.80% 1.78% 1.71% 1.65%+ 2.20%+ 1.96% 1.92% 2.00% 2.38%+
Expenses after custodian
fee reduction(2) 2.04%+ 1.78% 1.76% -- -- 2.18%+ 1.94% 1.91% -- --
Net investment income 3.42%+ 3.70% 3.55% 3.60% 2.99%+ 3.37%+ 3.61% 3.35% 3.45% 2.23%+
Net investment income per
share $ 0.164 $ 0.354 $ 0.340 $ 0.334 $ 0.095 $ 0.164 $ 0.348 $ 0.326 $ 0.324 $ 0.077
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
** For the period from the start of business, December 9, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the payable date. Total return is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter, have been adjusted to reflect a change in
reporting guidelines. The new reporting guidelines require each Fund to increase its expense ratio by the effect of any
expense offset arrangements with its service providers or those of its corresponding Portfolio. The expense ratios for each of
the prior periods have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Highlights
Classic New York Limited Fund Classic Pennsylvania Limited Fund
--------------------------------------------------- --------------------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March 31, September 30, Year Ended March 31,
1997 -------------------------------------1997 ------------------------------------
(Unaudited) 1997 1996 1995 1994* (Unaudited) 1997 1996 1995 1994*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
Beginning of period $ 9.530 $ 9.620 $ 9.490 $ 9.500 $10.000 $ 9.570 $ 9.660 $ 9.550 $ 9.520 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.179 $ 0.362 $ 0.359 $ 0.354 $ 0.100 $ 0.189 $ 0.377 $ 0.373 $ 0.359 $ 0.103
Net realized and unrealized
gain (loss) on
investments 0.320 (0.094) 0.130 0.037++ (0.473) 0.305 (0.100) 0.105++ 0.082 (0.453)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
operations $ 0.499 $ 0.268 $ 0.489 $ 0.391 $(0.373) $ 0.494 $ 0.277 $ 0.478 $ 0.441 $(0.350)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.179) $(0.358) $(0.359) $(0.354) $(0.100) $(0.184) $(0.367) $(0.368) $(0.359) $(0.103)
In excess of net investment
income -- -- -- (0.047) (0.027) -- -- -- (0.052) (0.027)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.179) $(0.358) $(0.359) $(0.401) $(0.127) $(0.184) $(0.367) $(0.368) $(0.411) $(0.130)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of
period $ 9.850 $ 9.530 $ 9.620 $ 9.490 $ 9.500 $ 9.880 $ 9.570 $ 9.660 $ 9.550 $ 9.520
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 5.27% 2.84% 5.19% 4.26% (3.88)% 5.19% 2.93% 5.05% 4.79% (3.65)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 3,035 $ 2,987 $ 4,064 $ 6,043 $ 6,325 $ 5,240 $ 5,684 $ 7,481 $ 9,753 $14,022
Ratio of net expenses to
average daily net assets
(2)(3) 1.80%+ 1.68% 1.48% 1.52% 1.61%+ 1.82%+ 1.81% 1.53% 1.47% 1.38%+
Ratio of net expenses to
average daily net assets,
after custodian fee
reduction(2) 1.80%+ 1.66% 1.46% -- -- 1.80%+ 1.79% 1.51% -- --
Ratio of net investment
income to average daily
net assets 3.67%+ 3.77% 3.75% 3.76% 3.17%+ 3.86%+ 3.92% 3.87% 3.83% 3.29%+
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 2.60%+ 2.04% 1.90% 1.90% 2.17%+ 2.26%+ 1.93% 1.85% 1.84% 1.82%+
Expenses after custodian
fee reduction(2) 2.60%+ 2.02% 1.88% -- -- 2.24%+ 1.91% 1.83% -- --
Net investment income 2.87%+ 3.41% 3.33% 3.38% 2.61%+ 3.42%+ 3.80% 3.55% 3.46% 2.85%+
Net investment income per
share $ 0.140 $ 0.327 $ 0.319 $ 0.318 $ 0.082 $ 0.168 $ 0.365 $ 0.342 $ 0.324 $ 0.089
- -----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
++ The per share amount is not in accordance with the net realized and unrealized gain (loss) for the period because of the
timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the payable date. Total return is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter, have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Fund to increase its expense ratio by the effect of any
expense offset arrangements with its service providers of those of its corresponding Portfolio. The expense ratios for each of
the prior periods have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
1 Significant Accounting Policies
- -------------------------------------------------------------------------------
Eaton Vance Investment Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end investment
management company. The Trust presently consists of twenty-three Funds, four
of which are included in these financial statements. They include EV Florida
Classic Limited Maturity Municipals Fund ("Classic Florida Limited Fund"),
EV Massachusetts Classic Limited Maturity Municipals Fund ("Classic
Massachusetts Limited Fund"), EV New York Classic Limited Maturity
Municipals Fund ("Classic New York Limited Fund"), and EV Pennsylvania
Classic Limited Maturity Municipals Fund ("Classic Pennsylvania Limited
Fund"). Each Fund invests all of its investable assets in interests in a
separate corresponding open-end management investment company (a
"Portfolio"), a New York Trust, having the same investment objective as its
corresponding Fund. The Classic Florida Limited Fund invests its assets in
the Florida Limited Maturity Municipals Portfolio, the Classic Massachusetts
Limited Fund invests its assets in the Massachusetts Limited Maturity
Municipals Portfolio, the Classic New York Limited Fund invests its assets
in the New York Limited Maturity Municipals Portfolio, and the Classic
Pennsylvania Limited Fund invests its assets in the Pennsylvania Limited
Maturity Municipals Portfolio. The value of each Fund's investment in its
corresponding Portfolio reflects the Fund's proportionate interest in the
net assets of that Portfolio (6.9%, 6.9%, 3.5%, and 8.6% at September 30,
1997 for the Classic Florida Limited Fund, Classic Massachusetts Limited
Fund, Classic New York Limited Fund, and Classic Pennsylvania Limited Fund,
respectively). The performance of each Fund is directly affected by the
performance of its corresponding Portfolio. The financial statements of each
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with each Fund's financial
statements. The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolios is
discussed in Note 1 of the Portfolios' Notes to Financial Statements which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro
rata share of the net investment income of its corresponding Portfolio, less
all actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At March 31, 1997,
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 the 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
------------------------------------------------------------------------
Classic Florida Limited Fund $ 47,151 March 31, 2005
560,185 March 31, 2004
175,896 March 31, 2003
Classic Massachusetts Limited Fund 30,086 March 31, 2005
98,981 March 31, 2004
35,341 March 31, 2003
58 March 31, 2002
Classic New York Limited Fund 20,866 March 31, 2005
151,250 March 31, 2004
42,307 March 31, 2003
195 March 31, 2002
Classic Pennsylvania Limited Fund 25,743 March 31, 2005
270,831 March 31, 2004
83,019 March 31, 2003
563 March 31, 2002
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not 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 tax-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 the Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years beginning on the date each Fund
commenced operations.
E Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian to the Funds and the Portfolios. Pursuant to the respective
custodian agreements, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Funds maintain with
IBT. All significant credit balances used to reduce each Fund's custodian
fees are reflected as a reduction of operating expenses on the Statement of
Operations.
G Other -- Investment transactions are accounted for on a trade date basis.
H Interim Financial Information -- The interim financial statements relating
to September 30, 1997 and for the six months then ended have not been
audited by independent certified public accountants, but in the opinion of
the Fund's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Distributions to Shareholders
- -------------------------------------------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest income and capital gain distributions in
additional shares of the Fund at the net asset value as of the ex-dividend
date. Distributions are paid in the form of additional shares or, at the
election of the shareholder, in cash. The Funds distinguish between
distributions on a tax basis and a financial reporting basis. Generally
accepted accounting principles require that only distributions in excess of
tax basis earnings and profits be reported in the financial statements as a
return of capital. Differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary over distributions for financial statement purposes only
are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
The tax treatment of distributions for the calendar year will be reported
prior to February 1, 1998 and will be based on tax accounting methods which
may differ from amounts determined for financial statement purposes.
3 Shares of Beneficial Interest
- --------------------------------------------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
Classic Florida Limited Fund
--------------------------------------
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
-----------------------------------------------------------------------------
Sales 9,089 35,995
Issued to shareholders electing to receive
payments of distributions in Fund shares 7,638 17,701
Redemptions (38,954) (303,371)
-----------------------------------------------------------------------------
Net decrease (22,227) (249,675)
-----------------------------------------------------------------------------
Classic Massachusetts Limited Fund
-----------------------------------
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
-----------------------------------------------------------------------------
Sales 59,550 40,444
Issued to shareholders electing to receive
payments of distributions in Fund shares 7,426 16,648
Redemptions (109,089) (97,183)
-----------------------------------------------------------------------------
Net decrease (42,113) (40,091)
-----------------------------------------------------------------------------
Classic New York Limited Fund
--------------------------------------
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
-----------------------------------------------------------------------------
Sales 53,884 142,963
Issued to shareholders electing to receive
payments of distributions in Fund shares 3,549 11,452
Redemptions (63,030) (263,184)
-----------------------------------------------------------------------------
Net decrease (5,597) (108,769)
-----------------------------------------------------------------------------
Classic Pennsylvania Limited Fund
--------------------------------------
Six Months Ended
September 30, 1997 Year Ended
(Unaudited) March 31, 1997
-----------------------------------------------------------------------------
Sales 10,212 84,241
Issued to shareholders electing to receive
payments of distributions in Fund shares 7,934 19,601
Redemptions (81,638) (284,505)
-----------------------------------------------------------------------------
Net decrease (63,492) (180,663)
-----------------------------------------------------------------------------
4 Transactions with Affiliates
- --------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of each Fund, but
receives no compensation. The Portfolios have engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolios' Notes to Financial Statements which are
included elsewhere in this report. To enhance the net income of the Funds,
$8,323, $7,838, $11,623, and $11,897, of expenses related to the operation
of the Classic Florida Limited Fund, Classic Massachusetts Limited Fund,
Classic New York Limited Fund, and Classic Pennsylvania Limited Fund,
respectively, were allocated on a preliminary basis to EVM. Except as to
Trustees of the Funds and Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to each Fund out of the the investment adviser fee earned by BMR. Certain of
the officers and Trustees of the Funds and Portfolios are officers and
directors/trustees of the above organizations (Note 5).
5 Distribution Plan
- --------------------------------------------------------------------------------
Each Fund has adopted a distribution plan (the Plans) pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plans require the Funds to pay
the principal underwriter, Eaton Vance Distributors, Inc. (EVD), amounts
equal to 1/365 of 0.75% of each Fund's daily net assets, for providing
ongoing distribution services and facilities to the respective Fund. A Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are
equivalent to the sum of (i) 6.25% of the aggregate amount received by the
Fund for shares sold plus (ii) distribution fees calculated by applying the
rate of 1% over the prevailing prime rate to the outstanding balance of
Uncovered Distribution Charges of EVD reduced by the aggregate amount of
contingent deferred sales charges (Note 6) and amounts theretofore paid to
EVD. The amount payable to EVD with respect to each day is accrued on such
day as a liability of each Fund and, accordingly, reduces the Fund's net
assets. For the six months ended September 30, 1997, Classic Florida Limited
Fund, Classic Massachusetts Limited Fund, Classic New York Limited Fund and
Classic Pennsylvania Limited Fund,paid or accrued $21,568, $16,298, $10,868
and $20,173, respectively, to or payable to EVD, representing 0.75% of
average daily net assets. At September 30, 1997, the amount of Uncovered
Distribution Charges of EVD calculated under the Plans for Classic Florida
Limited Fund, Classic Massachusetts Limited Fund, Classic New York Limited
Fund and Classic Pennsylvania Limited Fund were approximately $3,526,000,
$759,000, $913,000, and $1,686,000, respectively.
In addition, the Plans authorize the Funds to make payments of service fees
to the Principal Underwriter, Authorized Firms and other persons in amounts
not exceeding 0.25% of each Fund's average daily net assets for any fiscal
year. The Trustees have initially implemented the Plans by authorizing the
Funds to make quarterly service fee payments to the Principal Underwriter
and Authorized Firms in amounts not expected to exceed 0.20% per annum of
each Fund's average daily net assets based on the value of Fund shares sold
by such persons and remaining outstanding for at least one year. For the six
months ended September 30, 1997, Classic Florida Limited Fund, Classic
Massachusetts Limited Fund, Classic New York Limited Fund and Classic
Pennsylvania Limited Fund paid or accrued service fees to or payable to EVD
in the amount of $4,314, $3,260, $2,174, and $4,035, respectively. Service
fee payments are made for personal services and/or maintenance of
shareholder accounts. Service fees paid to EVD and Authorized Firms are
separate and distinct from the sales commissions and distribution fees
payable by each Fund to EVD, and as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD. Certain officers and Trustees of the Funds are officers or directors
of EVD.
6 Contingent Deferred Sales Charge
- --------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) of 1% is imposed on any redemption
of Fund shares made within one year of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of
dividends or capital gain 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 each Fund's Distribution Plans. CDSC
charges received when no Uncovered Distribution Charges exist will be
credited to the Funds. For the six months ended September 30, 1997, EVD
received $1, $509, $239, and $867, respectively, of CDSC paid by
shareholders of Classic Florida Limited Fund, Classic Massachusetts Limited
Fund, Classic New York Limited Fund and Classic Pennsylvania Limited Fund.
7 Investment Transactions
- --------------------------------------------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended September 30, 1997, were as follows:
Florida Limited Portfolio
---------------------------------------------------------------------------
Increases $ 115,853
Decreases 469,831
Massachusetts Limited Portfolio
---------------------------------------------------------------------------
Increases $ 622,806
Decreases 1,106,251
New York Limited Portfolio
---------------------------------------------------------------------------
Increases $ 549,642
Decreases 673,437
Pennsylvania Limited Portfolio
---------------------------------------------------------------------------
Increases $ 117,838
Decreases 889,082
<PAGE>
Florida Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited)
- ------------------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Electric Utilities -- 11.8%
- ------------------------------------------------------------------------------------------------------------
Aa AA- $ 2,000 City of Tallahassee, Electric Refunding
Bonds, 5.90%, 10/1/05 $ 2,159,940
Aa AA 1,000 Gainesville, FL, Electric Utility,
5.00%, 10/1/16 969,000
Aa AA 3,000 Gainesville, FL, Utility System Revenue,
5.00%, 10/1/15 2,920,140
Aa1 AA 1,000 Jacksonville Electric Authority,
(St. John's River Power Park), 5.25%, 10/1/20 977,800
Aa1 AA 2,500 Jacksonville, FL, Electric Authority, (Johns
River Power Park), 5.38%, 10/1/16 2,506,450
- ------------------------------------------------------------------------------------------------------------
$ 9,533,330
- ------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 8.0%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,015 Dade County, FL, Educational Facilities
Authority, (MBIA) Prerefunded to 10/1/01,
7.00%, 10/1/08 $ 1,138,099
Aaa AAA 1,500 Florida Department of Natural Resources,
Preservation 2000, (MBIA), Prerefunded to
7/1/98, 7.25%, 7/1/08 1,567,815
Aaa AA- 2,250 Orlando Utility Community Water and Electric,
Prerefunded to 10/1/01, 6.50%, 10/1/20 2,481,773
Baa1 AAA 1,250 Puerto Rico Aqueduct and Sewer Authority,
Prerefunded to 7/1/98, 7.88%, 7/1/17 1,313,363
- ------------------------------------------------------------------------------------------------------------
$ 6,501,050
- ------------------------------------------------------------------------------------------------------------
General Obligations -- 30.2%
- ------------------------------------------------------------------------------------------------------------
Aa2 AA+ $ 4,000 Florida State Board of Education, 5.00%, 6/1/14 $ 3,959,599
Aa2 AA+ 2,000 Florida State Board of Education, 5.00%, 6/1/15 1,942,740
Aa2 AA+ 3,000 Florida State Board of Education, 5.55%, 6/1/11 3,138,180
Aaa AAA 4,000 Manatee County, FL, (FGIC), 4.75%, 10/1/13 3,810,240
Aa/AA VMIG1/A1 1,000 Memphis, TN, Series 1995A, 4.15%, 8/1/07 1,002,915
Baa1 A- 2,000 Puerto Rico Municipal Finance Agency, 5.50%,
7/1/01 2,076,940
Baa1 A 1,000 Puerto Rico Public Building Authority, Gtd.
Public Education and Health Facilities,
6.50%, 7/1/03 $ 1,088,030
Aa AA+ 3,000 State of Florida, 5.00%, 7/1/11 3,017,130
Aa2 AA+ 3,000 State of Florida Board of Education, 4.75%,
6/1/17 2,789,340
NR NR 1,500 Virgin Islands Public Finance Authority,
(V.I. General Obligations/Matching Loan Fund
Notes), 6.80%, 10/1/00 1,593,300
- ------------------------------------------------------------------------------------------------------------
$24,418,414
- ------------------------------------------------------------------------------------------------------------
Hospitals -- 3.3%
- ------------------------------------------------------------------------------------------------------------
NR BBB+ $ 1,250 Escambia County, FL, Health Facilities
Authority, (Baptist Hospital, Inc. and
Baptist Manor, Inc.), 6.00%, 10/1/14 $ 1,283,763
Baa1 NR 425 Jacksonville Health Facilities Authority
(National Benevolent Association - Cypress
Village), 6.00%, 12/1/98 431,214
Baa1 NR 450 Jacksonville Health Facilities Authority,
(National Benevolent Association - Cypress
Village), 6.25%, 12/1/99 462,321
Baa1 NR 480 Jacksonville Health Facilities Authority,
(National Benevolent Association - Cypress
Village), 6.50%, 12/1/00 499,963
- ------------------------------------------------------------------------------------------------------------
$ 2,677,261
- ------------------------------------------------------------------------------------------------------------
Housing -- 0.7%
- ------------------------------------------------------------------------------------------------------------
Baa BBB $ 600 Puerto Rico Housing Bank and Finance Agency,
5.10%, 12/1/03 $ 602,256
- ------------------------------------------------------------------------------------------------------------
$ 602,256
- ------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 2.7%
- ------------------------------------------------------------------------------------------------------------
Baa2 BBB $ 2,000 Polk County, FL, Industrial Development
Authority, (IMC Fertilizer), (AMT), 7.53%, 1/
1/15 $ 2,167,860
- ------------------------------------------------------------------------------------------------------------
$ 2,167,860
- ------------------------------------------------------------------------------------------------------------
Insured - Cogeneration -- 2.6%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Dade County, FL, Resource Recovery
Facilities, (AMBAC) (AMT), 5.30%, 10/1/07 $ 2,090,020
- ------------------------------------------------------------------------------------------------------------
$ 2,090,020
- ------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 4.4%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Dade County Local School District, (FGIC),
Prerefunded to 8/1/01, 6.00%, 8/1/06 $ 1,597,650
Aaa AAA 2,000 Dade County Local School District, (MBIA),
5.00%, 2/15/15 1,970,220
- ------------------------------------------------------------------------------------------------------------
$ 3,567,870
- ------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 12.7%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 4,000 Jacksonville Health Facilities Authority,
(Baptist Medical Center), (MBIA),
7.25%, 6/1/05(1) $ 4,270,359
Aaa AAA 2,500 Naples, FL, (Naples Community Hospital Inc.),
(MBIA), 5.50%, 10/1/16 2,518,475
Aaa AAA 2,450 North Broward, FL, Hospital District, (MBIA),
5.25%, 1/15/17 2,403,205
Aaa AAA 1,000 Orange County Health Facilities Authority,
(Adventist Health System/Sunbelt Inc,),
(CGIC), 5.50%, 11/15/02 1,054,150
- ------------------------------------------------------------------------------------------------------------
$10,246,189
- ------------------------------------------------------------------------------------------------------------
Insured - Housing -- 3.1%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,240 Florida Housing Finance Agency, (Leigh
Meadows Apartments), (AMBAC), 5.85%, 9/1/10 $ 1,299,074
Aaa AAA 1,140 Florida Housing Finance Agency, (Stottert
Arms Apartments), (AMBAC), 5.90%, 9/1/10 1,198,995
- ------------------------------------------------------------------------------------------------------------
$ 2,498,069
- ------------------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue -- 1.9%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Pinellas County, FL, (MBIA), 5.13%, 10/1/04 $ 1,544,430
- ------------------------------------------------------------------------------------------------------------
$ 1,544,430
- ------------------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 1.3%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Palm Beach County, FL, Criminal Justice
Facilities, (FGIC), 5.38%, 6/1/10 $ 1,055,010
- ------------------------------------------------------------------------------------------------------------
$ 1,055,010
- ------------------------------------------------------------------------------------------------------------
Insured - Special Tax Revenue -- 2.9%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,345 Orange County, FL, Tourist Development Tax,
(MBIA), 5.00%, 10/1/14 $ 2,321,175
- ------------------------------------------------------------------------------------------------------------
$ 2,321,175
- ------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 6.6%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Dade County, FL, Seaport Revenue, (MBIA),
5.13%, 10/1/16 $ 1,974,420
Aaa AAA 3,120 Hillsborough County Aviation Authority,
(Tampa International Airport), (FGIC), 6.85%,
10/1/06 3,335,904
- ------------------------------------------------------------------------------------------------------------
$ 5,310,324
- ------------------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 6.6%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Dade County, FL, Water and Sewer Revenue,
(FGIC), 5.25%, 10/1/11 $ 2,046,540
Aaa AAA 2,000 Manatee County, FL, Public Utilities, (MBIA),
6.75%, 10/1/04 2,284,500
Aaa AAA 1,000 Pasco County, FL, Water and Sewer Revenue,
(FGIC), 5.40%, 10/1/03 1,057,650
- ------------------------------------------------------------------------------------------------------------
$ 5,388,690
- ------------------------------------------------------------------------------------------------------------
Nursing Homes -- 1.2%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 1,000 Volusia County, FL, (Beverly Enterprises),
5.88%, 7/1/07 $ 999,160
- ------------------------------------------------------------------------------------------------------------
$ 999,160
- ------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $77,729,712) $80,921,108
- ------------------------------------------------------------------------------------------------------------
The Portfolio invests primarily in debt securities issued by Florida municipalities. The ability of 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 September
30, 1997, 42.1% of the securities in the portfolio of investments are backed by bond insurance of various
financial institutions and financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 1.3% to 27.2% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Federal Alternative Minimum Tax.
See notes to financial statements
</TABLE>
<PAGE>
Massachusetts Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education -- 4.7%
- ------------------------------------------------------------------------------------------------------------
A1 A+ $ 1,200 Massachusetts Health and Education FInance
Authority, (Tufts University), 7.40%, 8/1/18 $ 1,255,836
A3 NR 1,030 Massachusetts Industrial Finance Agency,
(Park School), 5.50%, 9/1/16 1,041,752
Baa3 BBB- 500 Massachusetts State Industrial Finance
Agency, (Dana Hall), 5.90%, 7/1/27 509,805
- ------------------------------------------------------------------------------------------------------------
$ 2,807,393
- ------------------------------------------------------------------------------------------------------------
Electric Utilities -- 1.7%
- ------------------------------------------------------------------------------------------------------------
Baa2 BBB+ $ 1,000 Massachusetts Municipal Wholesale Electric
Co., 5.70%, 7/1/01 $ 1,042,860
- ------------------------------------------------------------------------------------------------------------
$ 1,042,860
- ------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 0.9%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Lynn, MA, Water and Sewer Commission, (MBIA),
Prerefunded to 12/1/00, 7.25%, 12/1/10 $ 552,990
- ------------------------------------------------------------------------------------------------------------
$ 552,990
- ------------------------------------------------------------------------------------------------------------
General Obligations -- 7.4%
- ------------------------------------------------------------------------------------------------------------
Baa1 A $ 1,000 Commonwealth of Puerto Rico Aqueduct and
Sewer Authority, 5.00%, 7/1/19 $ 945,420
A1 A+ 1,500 Massachusetts State, 5.40%, 11/1/06 1,585,950
A1 A+ 2,000 Massachusetts State, Consolidated Loan,
Series D, 5.00%, 11/1/14 1,952,780
- ------------------------------------------------------------------------------------------------------------
$ 4,484,150
- ------------------------------------------------------------------------------------------------------------
Hospitals -- 9.3%
- ------------------------------------------------------------------------------------------------------------
Aa2 AA+ $ 3,000 Massachusetts Health and Educational
Facilities Authority, (Daughters of Charity
Issue), 5.75%, 7/1/02 $ 3,163,200
NR BBB- 1,845 Massachusetts Health and Educational
Facilities Authority, (North Adams Regional
Hospital), 6.25%, 7/1/04 1,953,947
Baa2 BBB 500 Massachusetts Health and Educational
Facilities Authority, (Sisters of Providence
Hospital), 6.00%, 11/15/00 517,335
- ------------------------------------------------------------------------------------------------------------
$ 5,634,482
- ------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 3.7%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Massachusetts Municipal Wholesale Electric
Co., (AMBAC), 6.63%, 7/1/03(1) $ 2,222,240
- ------------------------------------------------------------------------------------------------------------
$ 2,222,240
- ------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 8.5%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Haverhill, MA, (FGIC), 5.00%, 6/15/17 $ 962,320
Aaa AAA 1,000 Massachusetts State, (AMBAC), 5.00%, 7/1/12 1,004,590
Aaa AAA 1,000 Puerto Rico Public Buildings Authority,
(MBIA), 5.00%, 7/1/16 983,200
Aaa AAA 1,000 The Commonwealth of Massachusetts, (FGIC),
6.50%, 6/1/01 1,078,450
Aaa AAA 1,000 Town of Rockport, MA, (AMBAC), 6.80%, 12/15/04 1,086,430
- ------------------------------------------------------------------------------------------------------------
$ 5,114,990
- ------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 2.4%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Massachusetts State Health and Educational
Facilities Authority, (Lowell General
Hospital), Series B, (FSA), 5.25%, 6/1/16 $ 1,475,355
- ------------------------------------------------------------------------------------------------------------
$ 1,475,355
- ------------------------------------------------------------------------------------------------------------
Insured - Housing -- 20.0%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,900 Massachusetts Housing Finance Agency,
(AMBAC), (AMT), 5.90%, 1/1/03 $ 1,982,517
Aaa AAA 4,800 Massachusetts Housing Finance Agency,
(Harborpoint Development), (AMBAC), (AMT),
6.20%, 12/1/10 5,091,936
Aaa AAA 4,730 Massachusetts Housing Finance Agency, (MBIA),
6.13%, 12/1/11 5,010,347
- ------------------------------------------------------------------------------------------------------------
$12,084,800
- ------------------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue /
Pollution Control Revenue -- 2.4%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,400 Massachusetts IFA, (Nantucket Electric),
(AMBAC), (AMT), 5.30%, 7/1/04 $ 1,450,890
- ------------------------------------------------------------------------------------------------------------
$ 1,450,890
- ------------------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 1.7%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,015 Massachusetts Industrial Finance Agency
Revenue, (Dexter School), (MBIA), 5.40%, 5/1/13 $ 1,028,743
- ------------------------------------------------------------------------------------------------------------
$ 1,028,743
- ------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 4.0%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Massachusetts Bay Transportation Authority,
Series B, (AMBAC), 5.25%, 3/1/11 $ 2,031,100
Aaa AAA 400 Massachusetts State Turnpike Authority,
(FGIC), 5.13%, 1/1/23 398,956
- ------------------------------------------------------------------------------------------------------------
$ 2,430,056
- ------------------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 8.8%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 5,480 Massachusetts Water and Sewer Authority,
(MBIA), 5.00%, 12/1/16(2) $ 5,308,859
- ------------------------------------------------------------------------------------------------------------
$ 5,308,859
- ------------------------------------------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation -- 2.8%
- ------------------------------------------------------------------------------------------------------------
NR BBB $ 1,650 Puerto Rico, (ITEM & EC - Guaynabo Lease
Program), 5.38%, 7/1/06 $ 1,700,375
- ------------------------------------------------------------------------------------------------------------
$ 1,700,375
- ------------------------------------------------------------------------------------------------------------
Life Care -- 1.7%
- ------------------------------------------------------------------------------------------------------------
Baa3 BB $ 960 Massachusetts Health and Educational Finance
Authority, (Milford-Whitinsville Hospital),
Series B, 7.12%, 7/15/02 $ 1,013,376
- ------------------------------------------------------------------------------------------------------------
$ 1,013,376
- ------------------------------------------------------------------------------------------------------------
Nursing Homes -- 3.6%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 970 Massachusetts Health and Educational
Facilities Authority, (1st Mortgage -
Fairview Extended Care), 10.13%, 1/1/11 $ 1,166,183
NR NR 1,000 Massachusetts Industrial Finance Agency,
Health Care Facilities, (Age Institute of
Massachusetts), 7.60%, 11/1/05 1,030,950
- ------------------------------------------------------------------------------------------------------------
$ 2,197,133
- ------------------------------------------------------------------------------------------------------------
Special Tax Revenue -- 3.8%
- ------------------------------------------------------------------------------------------------------------
Aa3 AA $ 500 Massachusetts State, Special Tax Obligation,
5.00%, 6/1/14(3) $ 494,675
NR NR 1,750 Virgin Islands Public Finance Authority,
(V.I. General Obligations/Matching Loan Fund
Notes), 6.70%, 10/1/99 1,826,353
- ------------------------------------------------------------------------------------------------------------
$ 2,321,028
- ------------------------------------------------------------------------------------------------------------
Transportation -- 6.8%
- ------------------------------------------------------------------------------------------------------------
A1 A+ $ 1,000 Massachusetts Bay Transportation Authority,
Series A, 5.75%, 3/1/18 $ 1,026,270
A1 A+ 2,000 Massachusetts State Turnpike Authority,
5.00%, 1/1/20 1,957,780
A1 A+ 1,000 Woods Hole, (Martha's Vineyard and Nantucket
Steamship Authority), 6.60%, 3/1/03 1,104,500
- ------------------------------------------------------------------------------------------------------------
$ 4,088,550
- ------------------------------------------------------------------------------------------------------------
Water and Sewer -- 5.8%
- ------------------------------------------------------------------------------------------------------------
Aa A+ $ 500 Massachusetts State Water Pollution Abatement
Trust, 5.00%, 8/1/15 $ 486,165
Aa A+ 1,000 Massachusetts State Water Pollution Abatement
Trust, 5.25%, 8/1/14 1,013,350
Aa3 AA+ 2,000 Massachusetts State Water Pollution Abatement
Trust, 5.25%, 8/1/14 2,006,420
- ------------------------------------------------------------------------------------------------------------
$ 3,505,935
- ------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $57,783,860) $60,464,205
- ------------------------------------------------------------------------------------------------------------
The Portfolio invests primarily in debt securities issued by Massachusetts municipalities. The ability of
issuers of debt 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 September 30, 1997,
51.5% 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 2.4% to 24.6% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
(2) Security has been segregated to cover when-issued securities.
(3) When-issued security.
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Federal Alternative Minimum Tax.
See notes to financial statements
</TABLE>
<PAGE>
New York Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Airlines -- 4.9%
- ------------------------------------------------------------------------------------------------------------
A A $ 4,000 New York, NY, IDA, (Terminal One Group),
6.00%, 1/1/07 $ 4,275,800
- ------------------------------------------------------------------------------------------------------------
$ 4,275,800
- ------------------------------------------------------------------------------------------------------------
Cogeneration -- 1.2%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 950 Port Authority of New York and New Jersey,
(KIAC Project), (AMT), 6.50%, 10/1/01 $ 1,008,178
- ------------------------------------------------------------------------------------------------------------
$ 1,008,178
- ------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.4%
- ------------------------------------------------------------------------------------------------------------
NR AA- $ 2,000 Power Authority of the State of New York,
Prerefunded to 1/1/98, 8.00%, 1/1/17 $ 2,061,080
- ------------------------------------------------------------------------------------------------------------
$ 2,061,080
- ------------------------------------------------------------------------------------------------------------
General Obligations -- 4.2%
- ------------------------------------------------------------------------------------------------------------
A2 A $ 2,000 State of New York, 5.25%,
7/15/09 $ 2,057,980
Baa1 BBB+ 1,500 The City of New York, 6.38%,
8/1/06 1,604,565
- ------------------------------------------------------------------------------------------------------------
$ 3,662,545
- ------------------------------------------------------------------------------------------------------------
Hospitals -- 4.7%
- --------------------------------------------------------------------------------
Baa1 BBB+ $ 2,000 Dormitory Authority of New York, Department
of Health, 5.38%, 7/1/08 $ 2,051,580
Baa1 A- 1,000 New York State Dormitory Authority, (Mental
Health), 5.30%, 2/15/04 1,032,110
Baa NR 1,000 New York State Dormitory Authority, (Nyack
Hospital), 6.00%, 7/1/06 1,061,730
- ------------------------------------------------------------------------------------------------------------
$ 4,145,420
- ------------------------------------------------------------------------------------------------------------
Housing -- 11.1%
- ------------------------------------------------------------------------------------------------------------
A1 AA $ 2,500 New York City Housing Development Corp.,
6.00%, 11/1/03 $ 2,664,725
Aa AA 4,000 New York City Housing Development Corp.,
(Multi-Family), 5.625%, 5/1/12 4,097,560
Aa2 NR 1,500 New York State Mortgage Agency Revenue,
6.45%, 10/1/21 1,599,300
Aa2 NR 1,300 New York State Mortgage Agency, Homeowner
Mtg. Bond Ser. 65, 5.20%, 10/1/08 $ 1,314,001
- ------------------------------------------------------------------------------------------------------------
$ 9,675,586
- ------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 2.1%
- ------------------------------------------------------------------------------------------------------------
Baa3 BBB- $ 1,700 Puerto Rico Port Authority (American
Airlines), 6.25%, 6/1/26 $ 1,819,442
- ------------------------------------------------------------------------------------------------------------
$ 1,819,442
- ------------------------------------------------------------------------------------------------------------
Insured - Education -- 3.7%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,075 Dormitory Authority of the State of New York,
(Mt. Sinai School of Medicine), (MBIA),
6.75%, 7/1/09 $ 1,180,071
Aaa AAA 2,000 Dormitory Authority of the State of New York,
(State University), (AMBAC), 5.25%, 5/15/10 2,076,680
- ------------------------------------------------------------------------------------------------------------
$ 3,256,751
- ------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 6.2%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 5,000 New York State Energy Research and
Development Authority, (Central Hudson Gas),
(FGIC), 7.38%, 10/1/14 $ 5,431,799
- ------------------------------------------------------------------------------------------------------------
$ 5,431,799
- ------------------------------------------------------------------------------------------------------------
Insured - Health Services -- 1.2%
- ------------------------------------------------------------------------------------------------------------
NR AAA $ 1,000 New York State Dormitory Authority, (Wesley
Health Nursing Home) (FHA), 5.85%, 8/1/26 $ 1,050,510
- ------------------------------------------------------------------------------------------------------------
$ 1,050,510
- ------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 8.7%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 4,450 New York State Medical Care Facilities
Finance Agency, (New York State Hospital),
(AMBAC), 6.10%, 2/15/04 $ 4,848,231
Aaa AAA 2,500 New York State Medical Care Facilities
Finance Agency, (New York State Hospital),
(AMBAC), 6.20%, 2/15/05 2,757,475
- ------------------------------------------------------------------------------------------------------------
$ 7,605,706
- ------------------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 0.6%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 City University of New York, (John Jay
College), (AMBAC), 5.00%, 8/15/08 $ 509,215
- ------------------------------------------------------------------------------------------------------------
$ 509,215
- ------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 5.5%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,240 Metropolitan Transportation Authority for the
City of New York, (FGIC), 5.70%, 7/1/10 $ 2,382,442
Aaa AAA 2,290 Triborough Bridge and Tunnel Authority,
(FGIC), 5.80%, 1/1/02 2,428,431
- ------------------------------------------------------------------------------------------------------------
$ 4,810,873
- ------------------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 1.2%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 New York City Municipal Water Finance
Authority, (AMBAC), 5.80%, 6/15/03 $ 1,069,400
- ------------------------------------------------------------------------------------------------------------
$ 1,069,400
- ------------------------------------------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation -- 14.0%
- ------------------------------------------------------------------------------------------------------------
Baa1 BBB+ $ 2,180 New York State Energy Research Development
Authority, (Western NY Nuclear Service Center
Project), 6.00%, 4/1/06 $ 2,345,135
Baa BBB+ 5,000 New York State Housing Finance Agency, 6.38%,
11/1/03 5,416,599
NR BBB 1,485 New York State Thruway Authority, 0.00%, 1/1/04 1,098,499
Baa1 BBB+ 1,000 New York State Urban Development Corp.,
(Youth Facilities), 5.75%, 4/1/10 1,047,170
Aaa AAA 2,250 New York Urban Development Corp., 5.50%, 7/1/16 2,297,430
- ------------------------------------------------------------------------------------------------------------
$ 12,204,833
- ------------------------------------------------------------------------------------------------------------
Life Care -- 1.2%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 500 Glen Cove, IDA (Regency at Glen Cove), 9.50%,
7/1/12 $ 500,000
NR NR 560 Glen Cove, IDA (Regency at Glen Cove) NY,
9.50%, 7/1/99 560,000
- ------------------------------------------------------------------------------------------------------------
$ 1,060,000
- ------------------------------------------------------------------------------------------------------------
Special Tax Revenue -- 5.1%
- ------------------------------------------------------------------------------------------------------------
A3 A+ $ 4,500 New York Local Government Assistance Corp.,
5.25%, 4/1/16 $ 4,494,690
- ------------------------------------------------------------------------------------------------------------
$ 4,494,690
- ------------------------------------------------------------------------------------------------------------
Transportation -- 14.3%
- ------------------------------------------------------------------------------------------------------------
Baa1 BBB+ $ 3,300 New York State Thruway Authority, Local
Highway and Bridge, 5.25%, 4/1/13 $ 3,251,853
Baa1 BBB+ 1,000 New York State Thruway Authority, Local
Highway and Bridge, (AMT), 5.75%, 4/1/16 1,021,340
A1 AA- 3,000 Port Authority of New York and New Jersey,
(AMT), 6.00%, 7/1/14 3,192,450
Baa3 BBB- 2,875 Port Authority of New York and New Jersey,
(Delta Airlines), 6.95%, 6/1/08 3,134,958
Aa A+ 2,000 Triborough Bridge and Tunnel Authority,
General Purpose Bonds, 5.20%, 1/1/27(1) 1,935,620
- ------------------------------------------------------------------------------------------------------------
$ 12,536,221
- ------------------------------------------------------------------------------------------------------------
Water and Sewer -- 7.7%
- ------------------------------------------------------------------------------------------------------------
A2 A- $ 5,000 New York City Municipal Water Finance
Authority, 5.125%, 6/15/21 $ 4,771,950
A2 A- 1,825 New York City Municipal Water Finance
Authority, 5.70%, 6/15/02 1,927,948
- ------------------------------------------------------------------------------------------------------------
$ 6,699,898
- ------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $84,164,940) $ 87,377,947
- ------------------------------------------------------------------------------------------------------------
The portfolio invests primarily in debt securities issued by New York municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a
specific industry or municipality. In order to reduce the risk associated with such economic developments, at
September 30, 1997, 27.1% 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 insured by
financial institution ranged from 1.4% to 12.9% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Federal Alternative Minimum Tax.
See notes to financial statements
</TABLE>
<PAGE>
Pennsylvania Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration -- 5.5%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 1,200 Pennsylvania Economic Development Financing
Authority, (Resource Recovery for
Northampton), 6.75%, 1/1/07 $ 1,267,404
NR BBB- 2,000 Pennsylvania Economic Development Financing
Authority, (Resources Recovery - Culver
Project), (AMT), 7.05%, 12/1/10(1) 2,197,020
- ------------------------------------------------------------------------------------------------------------
$ 3,464,424
- ------------------------------------------------------------------------------------------------------------
Education -- 1.2%
- ------------------------------------------------------------------------------------------------------------
NR AAA $ 700 Montgomery County, PA, Higher Education and
Health Authority, (Saint Joseph's
University), (CLEE), 6.00%, 12/15/02 $ 749,049
- ------------------------------------------------------------------------------------------------------------
$ 749,049
- ------------------------------------------------------------------------------------------------------------
Electric Utilities -- 1.6%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 960 Virgin Islands Water and Power Authority,
7.40%, 7/1/11 $ 1,038,000
- ------------------------------------------------------------------------------------------------------------
$ 1,038,000
- ------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.5%
- ------------------------------------------------------------------------------------------------------------
Baa AAA $ 500 Pennsylvania State Higher Education, (Medical
College of Pennsylvania), Prefunded to
3/1/01, 7.25%, 3/1/05 $ 556,890
Aaa N/R 1,500 Philadelphia, PA, Hospital and Higher
Education, (Children's Hospital), Prerefunded
to 2/15/02, 6.50%, 2/15/21 1,656,090
Aaa AAA 1,500 Somerset County, PA, General Authority,
(FGIC) Escrowed to Maturity, 6.50%, 10/15/01 1,627,860
Aaa AAA 7,000 Westmoreland County, PA, Municipal Authority,
(FGIC), 0.00%, 8/15/19 2,147,600
- ------------------------------------------------------------------------------------------------------------
$ 5,988,440
- ------------------------------------------------------------------------------------------------------------
Hospitals -- 15.2%
- ------------------------------------------------------------------------------------------------------------
NR BBB $ 1,000 Allentown, PA, (Sacred Heart Hospital),
6.50%, 11/15/08 $ 1,068,310
Baa3 BBB+ 650 Hazleton, PA, Health Services Authority,
5.85%, 7/1/06 669,942
NR AAA 1,030 Indiana County, PA, Hospital Authority,
(Indiana Hospital), (CLEE), 5.75%, 7/1/00 1,071,561
NR AAA 825 Indiana County, PA, Hospital Authority,
(Indiana Hospital), (CLEE), 5.875%, 7/1/01 870,697
A3 A 1,200 Lehigh County, PA, General Purpose Authority,
(Muhlenberg Hospital), 5.75%, 7/15/10 1,213,836
NR BBB- 200 Mckean County, PA, (Bradford Hospital),
5.375%, 10/1/03 205,098
Baa2 NR 1,030 Montgomery County, PA, Higher Education and
Health Authority, (Montgomery Hospital),
6.25%, 7/1/06 1,076,515
Baa2 NR 1,100 Montgomery County, PA, Higher Education and
Health Authority, (Montgomery Hospital),
6.375%, 7/1/07 1,144,077
A NR 500 New Castle Area Hospital Authority, (St.
Francis Hospital of New Castle), 5.90%, 11/15/00 520,685
NR BBB 380 Northhampton County Hospital Authority,
(Easton Hospital), 6.90%, 1/1/02 399,874
NR A- 1,350 South Fork, PA, Municipal Authority, (Lee
Hospital), 5.50%, 7/1/11 1,349,879
- ------------------------------------------------------------------------------------------------------------
$ 9,590,474
- ------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 5.1%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 885 Chester County, PA, Industrial Development
Authority, 8.00%, 9/1/05 $ 927,038
NR BB- 1,005 Clearfield, PA, (Kmart Corp.), 6.80%, 5/15/07 1,060,757
A3 A- 1,200 Erie, PA, Industrial Development Authority,
5.85%, 12/1/20 1,233,048
- ------------------------------------------------------------------------------------------------------------
$ 3,220,843
- ------------------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 5.3%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 3,450 Allegheny County, PA, Higher Education
Building Authority, (Dusquesne University),
(AMBAC), 5.00%, 3/1/16 $ 3,344,843
- ------------------------------------------------------------------------------------------------------------
$ 3,344,843
- ------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 7.5%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Cambria County, PA, Industrial Development
Pollution Control, (MBIA), 5.35%, 11/1/10 $ 2,095,960
Aaa AAA 2,500 Indiana County, PA, Industrial Development
Authority Pollution Control, (MBIA), 5.35%,
11/1/10 2,619,950
- ------------------------------------------------------------------------------------------------------------
$ 4,715,910
- ------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 4.2%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,355 McKeesport, PA, (FGIC), 0.00%, 10/1/11 $ 660,319
Aaa AAA 2,000 State of Pennsylvania, (AMBAC), 5.00%, 11/15/15 1,960,180
- ------------------------------------------------------------------------------------------------------------
$ 2,620,499
- ------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 6.8%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Allegheny County, PA, Hospital Development
Authority, (South Hills Health), (MBIA),
5.50%, 5/1/08 $ 1,058,370
Aaa AAA 1,000 Erie County, PA, Hospital Authority, (Hamot
Health System), (AMBAC), 7.10%, 2/15/10 1,095,700
Aaa AAA 2,050 Sayre Health Care Facilities Authority,
(Guthrie Medical Center), (AMBAC), 6.50%, 3/1/00 2,158,281
- ------------------------------------------------------------------------------------------------------------
$ 4,312,351
- ------------------------------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of
Participation -- 2.6%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Northumberland County Authority, PA, Lease
Revenue Bonds, (MBIA), 6.50%, 10/15/01 $ 1,085,240
Aaa AAA 500 The Harrisburg Authority (Dauphin County, PA)
Lease Revenue Bonds, (CGIC), 6.25%, 6/1/01 534,750
- ------------------------------------------------------------------------------------------------------------
$ 1,619,990
- ------------------------------------------------------------------------------------------------------------
Insured - School District -- 4.0%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 2,500 Pleasant Valley, PA, School District, (FGIC),
5.00%, 9/1/10 $ 2,501,875
- ------------------------------------------------------------------------------------------------------------
$ 2,501,875
- ------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 6.5%
- ------------------------------------------------------------------------------------------------------------
Aaa AAA $ 3,000 Philadelphia Airport Revenue, (FGIC), (AMT),
5.25%, 6/15/09(2) $ 3,059,549
Aaa AAA 1,000 Southeastern Pennsylvania Transportation
Authority, (FGIC), 5.55%, 3/1/14 1,027,730
- ------------------------------------------------------------------------------------------------------------
$ 4,087,279
- ------------------------------------------------------------------------------------------------------------
Life Care -- 13.1%
- ------------------------------------------------------------------------------------------------------------
NR BBB $ 2,355 Clearfield, PA, Hospital Authority,
(Clearfield Hospital), 6.875%, 6/1/16 $ 2,501,175
NR NR 245 Delaware County, PA, Authority, (White Horse
Village), 6.30%, 7/1/03 256,001
NR NR 505 Delaware County, PA, Authority, (White Horse
Village), 6.40%, 7/1/04 531,169
NR NR 1,120 Delaware County, PA, Industrial Development
Authority, (Glen Riddle), (AMT), 8.125%,
9/1/05(1) 1,197,616
Aa AA 2,000 Geisinger, PA, Health System, 7.375%, 7/1/02 2,148,000
Baa2 BBB+ 590 Hazleton, PA, Health Services Authority,
(Hazleton General Hospital), 5.50%, 7/1/07 601,092
A3 BBB+ 1,000 Monroeville, PA, Hospital Authority, 5.75%,
10/1/05 1,044,610
- ------------------------------------------------------------------------------------------------------------
$ 8,279,663
- ------------------------------------------------------------------------------------------------------------
Nursing Homes -- 1.0%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 500 Wilkins Area, PA, IDA, (Fairview Extended
Care), 10.25%, 1/1/21 $ 603,005
- ------------------------------------------------------------------------------------------------------------
$ 603,005
- ------------------------------------------------------------------------------------------------------------
Solid Waste -- 3.0%
- ------------------------------------------------------------------------------------------------------------
Baa A- $ 500 Greater Lebanon Refuse Authority of Lebanon
County, PA, 6.20%, 5/15/99 $ 514,965
Baa A- 500 Greater Lebanon Refuse Authority of Lebanon
County, PA, 6.20%, 11/15/99 519,065
Baa A- 300 Greater Lebanon Refuse Authority of Lebanon
County, PA, 6.40%, 5/15/00 314,247
Baa A- 500 Greater Lebanon Refuse Authority of Lebanon
County, PA, 6.40%, 11/15/00 527,970
- ------------------------------------------------------------------------------------------------------------
$ 1,876,247
- ------------------------------------------------------------------------------------------------------------
Special Tax Revenue -- 0.4%
- ------------------------------------------------------------------------------------------------------------
NR NR $ 250 Virgin Islands Public Finance Authority,
(V.I. General Obligations/Matching Loan Fund
Notes), 6.70%, 10/1/99 $ 260,908
- ------------------------------------------------------------------------------------------------------------
$ 260,908
- ------------------------------------------------------------------------------------------------------------
Transportation -- 7.5%
- ------------------------------------------------------------------------------------------------------------
A1 A $ 1,000 Pennsylvania State Turnpike Commission,
6.00%, 12/1/17 $ 1,000,370
Aa3 AA- 2,550 Southeastern Pennsylvania Transportation
Authority, LOC: Canadian Imperial Bank of
Commerce, 6.00%, 6/1/99(3) 2,631,395
Aa3 AA- 1,000 Southeastern Pennsylvania Transportation
Authority, LOC: Canadian Imperial Bank of
Commerce, 6.00%, 6/1/01 1,059,510
- ------------------------------------------------------------------------------------------------------------
$ 4,691,275
- ------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $60,582,610) $ 62,965,075
- ------------------------------------------------------------------------------------------------------------
The Portfolio invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a
specific industry or municipality. In order to reduce the risk associated with such economic developments, at
September 30, 1997, 36.9% of the securities in the portfolio of investments are backed by bond issuance of
various financial institutions and financial guaranty assurance agencies. The aggregate percentage by
financial institution range from 0.8% to 17.5% of total investments.
(1) Security has been segregated to cover when-issued securities.
(2) When-issued security.
(3) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Fedreral Alternative Minimum Tax.
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
<TABLE>
<CAPTION>
As of September 30, 1997
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investments --
Identified cost $ 77,729,712 $ 57,783,860 $ 84,164,940 $ 60,582,610
Unrealized appreciation 3,191,396 2,680,345 3,213,007 2,282,465
- ------------------------------------------------------------------------------------------------------------------------------
Investments, at value (Note 1A) $ 80,921,108 $ 60,464,205 $ 87,377,947 $ 62,965,075
- ------------------------------------------------------------------------------------------------------------------------------
Cash $ 572 $ 247 $ 633 $ 234
Receivable for investments sold -- 1,923,062 1,620,729 912,055
Interest receivable 605,665 144,037 1,693,674 974,678
Receivable for daily variation
margin on open financial
futures contracts (Note 1E) 8,938 14,094 17,531 17,188
Deferred organization expenses
(Note 1D) 2,474 2,392 1,501 1,572
- ------------------------------------------------------------------------------------------------------------------------------
Total assets $ 82,626,766 $ 63,378,678 $ 89,018,341 $ 64,103,573
- ------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------
Payable for when-issued
securities (Note 1F) $ -- $ 499,323 $ -- $ 2,927,610
Demand note payable (Note 5) 418,000 409,000 1,763,000 --
Payable to affiliate for
Trustees' fees (Note 2) 1,683 1,716 2,206 1,691
Accrued expenses 5,395 3,719 7,622 3,875
- ------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 425,078 $ 913,758 $ 1,772,828 $ 2,933,176
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to
investors' interest in Portfolio $ 82,201,688 $ 62,464,920 $ 87,245,513 $ 61,170,397
- ------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $ 79,051,573 $ 59,850,872 $ 84,188,980 $ 58,918,726
Net unrealized appreciation of
investments and financial
futures contracts (computed on
the basis of identified cost) 3,150,115 2,614,048 3,056,533 2,251,671
- ------------------------------------------------------------------------------------------------------------------------------
Total $ 82,201,688 $ 62,464,920 $ 87,245,513 $ 61,170,397
- ------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
<TABLE>
Statements of Operations
For the Six Months Ended September 30, 1997
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B)
- ------------------------------------------------------------------------------------------------------------------------------
Interest income $ 2,383,675 $ 1,845,464 $ 2,569,317 $ 1,821,218
- ------------------------------------------------------------------------------------------------------------------------------
Total income $ 2,383,675 $ 1,845,464 $ 2,569,317 $ 1,821,218
- ------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------
Investment Adviser fee (Note 2) $ 201,818 $ 154,370 $ 215,715 $ 150,665
Compensation of Trustees not
members of the Investment
Adviser's organization (Note 2) 5,582 3,331 4,348 3,305
Legal and accounting services 20,570 19,410 21,907 19,411
Custodian fee (Note 1G) 27,474 19,915 19,466 12,407
Amortization of organization
expenses (Note 1D) 2,108 2,050 1,288 1,340
Miscellaneous 852 10,599 22,301 8,577
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 258,404 $ 209,675 $ 285,025 $ 195,705
- ------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note
1G) $ 6,717 $ 8,100 -- --
Preliminary reduction of
investment adviser fee (Note 2) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 6,717 $ 8,100 $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 251,687 $ 201,575 $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 2,131,988 $ 1,643,889 $ 2,284,292 $ 1,625,513
- ------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 459,743 $ 411,976 $ 684,604 $ 673,906
Financial futures contracts (1,126,670) (713,733) (29,537) (213,153)
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments $ (666,927) $ (301,757) $ 655,067 $ 406,753
- ------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost
basis) $ 2,750,326 $ 2,091,851 $ 3,100,308 $ 1,697,940
Financial futures contracts (249,425) (246,688) (531,133) (130,794)
- ------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation of investments $ 2,500,901 $ 1,845,163 $ 2,569,175 $ 1,567,146
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments $ 1,833,974 $ 1,543,406 $ 3,224,242 $ 2,027,899
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $ 3,965,962 $ 3,187,295 $ 5,508,534 $ 3,653,412
- ------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
<TABLE>
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1997
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 2,131,988 $ 1,643,889 $ 2,284,292 $ 1,625,513
Net realized gain (loss) on
investments (666,927) (301,757) 655,067 460,753
Net change in unrealized
appreciation of investments 2,500,901 1,845,163 2,569,175 1,567,146
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $ 3,965,962 $ 3,187,295 $ 5,508,534 $ 3,653,412
- ------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 21,958,853 $ 18,608,886 $ 25,537,949 $ 13,928,412
Withdrawals (36,632,319) (29,301,197) (43,814,718) (24,287,034)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $(14,673,466) $(10,692,311) $(18,276,769) $(10,358,622)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(10,707,504) $ (7,505,016) $(12,768,235) $ (6,705,210)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 92,909,192 $ 69,969,936 $100,013,748 $ 67,875,607
- ------------------------------------------------------------------------------------------------------------------------------
At end of period $ 82,201,688 $ 62,464,920 $ 87,245,513 $ 61,170,397
- ------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- --------------------------------------------------------------------------------
<TABLE>
Statements of Changes in Net Assets
For the Year Ended March 31, 1997
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 5,368,154 $ 4,105,048 $ 5,864,808 $ 4,070,122
Net realized gain (loss) on
investments (345,920) (122,731) (287,142) 407,499
Change in unrealized appreciation
(depreciation) of investments (1,654,724) (861,173) (895,080) (1,218,041)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $ 3,367,510 $ 3,121,144 $ 4,682,586 $ 3,259,580
- ------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,859,506 $ 1,754,803 $ 3,989,610 $ 2,538,420
Withdrawals (43,152,835) (32,041,287) (47,386,927) (30,116,393)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $(38,293,329) $(30,286,484) $(43,397,317) $(27,577,973)
- ------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(34,925,819) $(27,165,340) $(38,714,731) $(24,318,393)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
At beginning of year $127,835,011 $ 97,135,276 $138,728,479 $ 92,194,000
- ------------------------------------------------------------------------------------------------------------------------------
At end of year $ 92,909,192 $ 69,969,936 $100,013,748 $ 67,875,607
- ------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Supplementary Data
Florida Limited Portfolio Massachusetts Limited Portfolio
------------------------------------------------------- ----------------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March 31, September 30, Year Ended March 31,
1997 ----------------------------------------- 1997 ------------------------------
(Unaudited) 1997 1996 1995 1994* (Unaudited) 1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.60%+ 0.59% 0.55% 0.52% 0.49%+ 0.63%+ 0.60% 0.57% 0.54% 0.52%+
Net expenses, after
custodian fee reduction 0.58%+ 0.57% 0.54% -- -- 0.61%+ 0.58% 0.55% -- --
Net investment income 4.88%+ 4.90% 4.73% 4.73% 4.53%+ 4.95%+ 4.97% 4.72% 4.90% 4.57%+
Portfolio Turnover 24% 66% 20% 44% 8% 26% 60% 27% 46% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000s omitted) $82,202 $92,909 $127,835 $164,579 $185,977 $62,465 $69,970 $97,135 $119,120 $119,772
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any
expense offset arrangements with its service providers. The expense ratios for each of the prior periods have not been
adjusted to reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Supplementary Data
New York Limited Portfolio Pennsylvania Limited Portfolio
-------------------------------------------------------- ---------------------------------------------
Six Months Six Months
Ended Ended
September 30, Year Ended March 31, September 30, Year Ended March 31,
1997 ----------------------------------------- 1997 ------------------------------
(Unaudited) 1997 1996 1995 1994* (Unaudited) 1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.62%+ 0.58% 0.55% 0.52% 0.47%+ 0.63%+ 0.61% 0.58% 0.53% 0.50%+
Net expenses, after
custodian fee reduction 0.61%+ 0.56% 0.53% -- -- 0.61%+ 0.59% 0.56% -- --
Net investment income 4.87%+ 4.87% 4.66% 4.79% 4.50%+ 5.05%+ 5.11% 4.81% 4.77% 4.59%+
Portfolio Turnover 31% 58% 32% 31% 5% 29% 51% 24% 39% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000s omitted) $87,246 $100,014 $138,728 $173,632 $183,768 $61,170 $67,876 $92,194 $113,606 $123,620
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Portfolio to increase its expense ratio by the effect of any
expense offset arrangements with its service providers. The expense ratios for each of the prior periods have not been
adjusted to reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
1 Significant Accounting Policies
- -------------------------------------------------------------------------------
Florida Limited Maturity Municipals Portfolio (Florida Limited Portfolio),
Massachusetts Limited Maturity Municipals Portfolio (Massachusetts Limited
Portfolio), New York Limited Maturity Municipals Portfolio (New York Limited
Portfolio), and Pennsylvania Limited Maturity Municipals Portfolio
(Pennsylvania Limited Portfolio), collectively the Portfolios, are
registered under the Investment Company Act of 1940 as non-diversified open-
end management investment companies which were organized as trusts under the
laws of the State of New York on May 1, 1992. The Declarations of Trust
permit the Trustees to issue interests in the Portfolios. The following is a
summary of significant accounting policies of the Portfolios. The policies
are in conformity with generally accepted accounting principles.
A Investment 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 Federal 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, including registration costs, are being
amortized on the straight-line basis over five years, beginning on the date
each Fund 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 payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by the credits which are determined
based on the average daily cash balances each Portfolio maintains with IBT.
All significant credit balances used to reduce the Portfolios' custodian
fees are reflected as a reduction of operating expense on the Statement of
Operations.
H Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
J Interim Financial Information -- The interim financial statements relating
to September 30, 1997 and for the six months then ended have not been
audited by independent certified public accountants, but in the opinion of
the Fund's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- --------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of gross income (i.e., income other than gains from
the sale of securities). For the six months ended September 30, 1997, each
Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
-------------------------------------------------------------------------
Florida Limited $201,818 0.46%
Massachusetts Limited $154,370 0.47%
New York Limited $215,715 0.46%
Pennsylvania Limited $150,665 0.47%
-------------------------------------------------------------------------
*Annualized
Except as to Trustees of the Portfolios who are not members of EVM's or
BMR's organization, officers and Trustees receive remuneration for their
services to the Portfolios out of such investment adviser fee. Trustees of
the Portfolios that are not affiliated with the Investment Adviser may elect
to defer receipt of all or a percentage of their annual fees in accordance
with the terms of the Trustees Deferred Compensation Plan. For the six
months ended September 30, 1997, no significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations.
3 Investments
- --------------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government securities
and short-term obligations, for the six months ended September 30, 1997 were
as follows:
Florida Limited Portfolio Massachusetts Limited Portfolio
----------------------------------------------------------------------------
Purchases $ 20,719,202 $ 16,563,082
Sales 34,916,974 26,189,363
New York Limited Portfolio Pennsylvania Limited Portfolio
----------------------------------------------------------------------------
Purchases $ 28,712,475 $ 18,408,086
Sales 42,802,297 23,690,089
4 Federal Income Tax Basis of Investments
- --------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at September 30, 1997, as computed on a
federal income tax basis, are as follows:
Florida Limited Massachusetts Limited
Portfolio Portfolio
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Aggregate Cost $ 77,729,712 $ 57,783,860
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Gross unrealized appreciation $ 3,199,266 $ 2,682,840
Gross unrealized depreciation (7,870) (2,495)
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Net unrealized appreciation $ 3,191,396 $ 2,680,345
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New York Limited Pennsylvania Limited
Portfolio Portfolio
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Aggregate Cost $ 84,164,940 $ 60,582,610
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Gross unrealized appreciation $ 3,213,007 $ 2,385,212
Gross unrealized depreciation -- (2,747)
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Net realized appreciation $ 3,213,007 $ 2,382,465
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5 Line of Credit
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The Portfolios participate with other portfolios and funds managed by BMR
and EVM and its affiliates in a $120 million unsecured line of credit
agreement with a group of banks. The portfolio may temporarily borrow from
the line of credit to satisfy redemption requests or settle transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above the banks' adjusted certificate of deposit rate, Eurodollar
rate or federal funds rate. In addition, a fee computed at an annual rate of
.15% on the daily unused portion of the line of credit is allocated among
the participating portfolios and funds at the end of each quarter. At
September 30, 1997 the Florida Limited Portfolio, Massachusetts Limited
Portfolio and New York Limited Portfolio had a balance outstanding pursuant
to this line of credit of $418,000, $409,000 and $1,763,000, respectively.
The Portfolios did not have any significant borrowings or allocated fees
during the six months ended September 30, 1997.
6 Financial Instruments
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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 futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at September 30,
1997, were as follows:
Limited Expiration Futures Net Unrealized
Portfolio Date Contracts Position Depreciation
------------------ ----------- ---------------- --------- --------------
26 U.S. Treasury
Florida 12/97 Bonds Short $ 41,281
41 U.S. Treasury
Massachusetts 12/97 Bonds Short $ 66,297
51 U.S. Treasury
New York 12/97 Bonds Short $156,474
50 U.S. Treasury
Pennsylvania 12/97 Bonds Short $130,794
<PAGE>
EV Classic Limited Maturity Municipals Funds as of September 30, 1997
INVESTMENT MANAGEMENT
EV Classic Limited Maturity Municipals Funds
Officers Independent Trustees
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
Chairman, Newspapers of New
JAMES B. HAWKES England, Inc.
Vice President and Trustee
SAMUEL L. HAYES, III
ROBERT B. MACINTOSH Jacob H. Schiff Professor of Investment
Vice President Banking, Harvard University Graduate
School of Business Administration
JAMES L. O'CONNOR
Treasurer NORTON H. REAMER
President and Director, United Asset
ALAN R. DYNNER Management Corporation
Secretary
JOHN L. THORNDIKE
Formerly Director, Fiduciary Company
Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
Limited Maturity Municipals Portfolios
Officers Independent Trustees
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
Chairman, Newspapers of New
JAMES B. HAWKES England, Inc.
Vice President and Trustee
ROBERT B. MACINTOSH SAMUEL L. HAYES, III
Vice President Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate
WILLIAM H. AHERN, JR. School of Business Administration
Vice President and Portfolio Manager
of Florida and Massachusetts Limited
Maturity Municipals Portfolio NORTON H. REAMER
President and Director, United Asset
NICOLE ANDERES Management Corporation
Vice President and Portfolio Manager
of New York Limited Maturity
Municipals Portfolio JOHN L. THORNDIKE
Formerly Director, Fiduciary Company
TIMOTHY T. BROWSE Incorporated
Vice President and Portfolio Manager
of Pennsylvania Limited Maturity
Municipals Portfolio JACK L. TREYNOR
Investment Adviser and Consultant
JAMES L. O'CONNOR
Treasurer
ALAN R. DYNNER
Secretary
<PAGE>
Investment Advisor of the Limited
Maturity Tax Free Portfolios
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of EV Classic Limited Maturity Tax Free Funds
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617)482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02110
Transfer Agent
First Data Investor Services Group, Inc.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
Eaton Vance Investment Trust
24 Federal Street
Boston, MA 02110
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
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C-4LTFSRC-11/97
