<PAGE>
[Eaton Vance Investing
Logo Omitted] for the
21st
Century
EDUCATION
[Photo of Brickwall Omitted]
SEMIANNUAL REPORT SEPTEMBER 30, 1997
[Photo of Highway Omitted] EATON VANCE
LIMITED
MATURITY MUNICIPALS FUND
TRADITIONAL
GLOBAL MANAGEMENT-GLOBAL DISTRIBUTION
California
Connecticut
Florida
Michigan
New Jersey
New York
Ohio
[Photo of Bridge Omitted]
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
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LETTER TO SHAREHOLDERS
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[Photo of Thomas J. Fetter]
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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
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.
Municipal bonds yield 82% of Treasury yields
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5.25% 8.20%
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30-Year AAA-rated Taxable equivalent yield
General Obligation (GO) Bonds* in 36% tax bracket
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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.
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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.
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<PAGE>
EV Traditional California Limited Maturity Municipals Fund as of
September 30,1997
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INVESTMENT UPDATE
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[Photo of Cynthia J. Clemson]
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Cynthia J. Clemson,
Portfolio Manager
The Economy
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o Robust economic growth should continue in California for the foreseeable
future, with job growth up for the fifth consecutive year. Primary strength
was in business services, software, and entertainment. Construction and real
estate also enjoyed good growth as home prices in Southern California reversed
a long downtrend.
o California exports continue to expand rapidly, growing 19% in the past year
despite a deep recession in Mexico, the state's fourth largest export
customer. Exports have grown at more than twice the rate of state gross
product over the past decade.
o The state's exodus appears to have slowed. According to vehicle registrations,
the number of people moving to California has increased, while an improving
economy has slowed the emigration to other states.
The Fund
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o During the six months ended September 30, 1997, the Fund had a total return of
4.9%.(1) This return resulted from an increase in net asset value per share to
$9.81 on September 30, 1997 from $9.56 on March 31, 1997, and the reinvestment
of $0.216 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.81 per
share, the Fund's distribution rate on September 30, 1997 was 4.38%.(3) The
Fund's SEC yield at September 30 was 3.92%.(4)
o To equal 5.10% in a taxable investment, a couple in the 41.95% combined
federal and state tax bracket would need a yield of 8.79%.
Management Update
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o There have been several shifts in the Portfolio in recent months. Adopting a
barbell approach, we have somewhat reduced our exposure to insured issues
while seeking select high-yield opportunities.
o The Portfolio focused on health care bonds, which had cheapened in the face of
health care reform proposals. We discovered especially good values among
smaller hospital issues. Elsewhere, we've found industrial development bonds
increasingly attractive with a strengthening California economy.
o We have increased the diversification of the Portfolio, and extended our
efforts to enhance liquidity.
Your Investment at Work
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California Statewide Communities
Development Corporation - Pacific Homes
o Pacific Homes was incorporated in 1929 by the United [Graphic Omitted]
Methodist Church to provide housing, nursing and social
services for seniors.
o The proceeds of these certificates of participation were used to fund the
construction and renovation of 16 new residential units at Pacific Homes Casa
de Manana facility in La Jolla.
o With its 5.9% coupon, the bond provides the Fund an investment from a quality
issuer and good potential for capital appreciation.
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(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. (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.
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Fund Information
as of September 30, 1997
Performance(5)
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Average Annual Total Returns (at net asset value)
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One Year 6.7%
Life of Fund (12/8/93) 3.8
SEC Average Annual Total Returns (including max. 2.25% sales charge)
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One Year 4.3%
Life of Fund (12/8/93) 3.1
5 Largest Sectors(6)
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By total investments
Insured - Hospitals* 19.9%
Insured - General Obligations* 12.5%
Insured - Special Tax* 8.5%
Escrowed/prerefunded 8.3%
Insured - Transportation 7.0%
Portfolio Overview(6)
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Number of Issues 32
Average Rating AA
Effective Coupon 5.84%
Average Effective Maturity 10.5 Yrs.
Average Maturity 8.1 Yrs.
Average Duration 6.7 Yrs.
<PAGE>
EV Traditional Connecticut Limited Maturity Municipals Fund
as of September 30, 1997
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INVESTMENT UPDATE
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[Photo of William H. Ahern]
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William H. Ahern,
Portfolio Manager
The Economy
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o Connecticut's recovery from the 1989-92 recession continued in 1997, although
the state continued to lag national trends. Most of the state's employment
gains have come in the business services area, including finance, software and
internet services, as well as health services. Retail and construction have
also been good job providers.
o Connecticut's labor force has grown by 1.1% in the past year, but at a slower
pace than the nation as a whole. The state's unemployment rate of 4.5% was
well below last year's 5.6% mark, and has now fallen below the national rate.
o By August, state tax receipts were roughly 8.8% higher than the same period
last year. Personal income tax and real estate tax revenues each showed
significant growth over 1996. Corporate tax receipts, in contrast, were more
than 13% below last year's levels.
The Fund
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o During the six months ended September 30, 1997, the Fund had a total return of
4.5%.(1) This return resulted from an increase in net asset value per share to
$9.75 on September 30, 1997 from $9.53 on March 31, 1997, and the reinvestment
of $0.208 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.75 per
share, the Fund's distribution rate on September 30, 1997 was 4.26%.(3) The
Fund's SEC yield at September 30 was 3.80%.(4)
o To equal 4.26% in a taxable investment, a couple in the 38.88% combined
federal and state tax bracket would need a yield of 6.97%.
Management Update
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o In a market characterized by increasing volatility, the Portfolio remained
generally neutrally positioned through the period, with little change in
duration.
o The Portfolio took advantage of Eaton Vance's extensive research resources to
find higher-yielding opportunities. Conversely, our research helped us avoid a
number of deteriorating situations.
o With insured bonds comprising an increasingly large percentage of municipal
bond issuance, it has become more challenging to find value in a generic
market. We have therefore turned to the lower-rated, investment grade sector
of the municipal market, where lesser-known issuers may represent interesting
values.
Your Investment at Work
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Connecticut Municipal Electric Cooperative
Power Supply Revenue Bonds
o The Connecticut Municipal Electric Energy Cooperative [Graphic Omitted]
finances, acquires, and builds generating resources to
provide cost-efficient and reliable power supplies to its
member communities.
o These bonds were issued in 1996 to refund a portion of an earlier issue of
outstanding Power Supply System bonds.
o The bonds, rated Aaa/AAA by Moody's and S&P, carry an attractive 6.00% coupon
from a very high-quality issuer, while providing ample call protection.
(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. 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.
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Fund Information
as of September 30, 1997
Performance(5)
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Average Annual Total Returns (at net asset value)
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One Year 6.2%
Life of Fund (12/27/93) 3.4
SEC Average Annual Total Returns (including max. 2.25% sales charge)
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One Year 3.8%
Life of Fund (12/27/93) 2.8
5 Largest Sectors(6)
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By total investments
Insured - General Obligations* 14.9%
General Obligations 14.4%
Education 12.0%
Insured - Transportation* 8.2%
Insured - Hospitals* 6.6%
Portfolio Overview(6)
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Number of Issues 30
Average Rating AA-
Average Coupon 5.86%
Average Effective Maturity 9.4 Yrs.
Average Maturity 12.5 Yrs.
Average Duration 6.8 Yrs.
<PAGE>
EV Traditional Florida Limited Maturity Municipals Fund as of September 30, 1997
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INVESTMENT UPDATE
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[Photo of William H. Ahern]
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William H. Ahern,
Portfolio Manager
The Economy
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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
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o During the six months ended September 30, 1997, the Fund had a total return of
4.4%.(1) This return resulted from an increase in net asset value per share to
$10.15 on September 30, 1997 from $9.95 on March 31, 1997, and the
reinvestment of $0.236 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $10.15 per
share, the Fund's distribution rate on September 30, 1997 was 4.63%.(3) The
Fund's SEC yield at September 30 was 4.28%.(4)
o To equal 4.63% in a taxable investment, a couple in the 38.76% combined
federal and state intangibles bracket would need a yield of 7.56%.
Management Update
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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
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Polk County, FL Industrial Development Authority
IMC Fertilizer Corp.
o IMC Fertilizer is one of the world's largest producers of [Graphic Omitted]
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.
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(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. 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 (7/5/94) 5.2
SEC Average Annual Total Returns (including max. 2.25% sales charge)
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One Year 3.2%
Life of Fund (7/5/94) 4.5
5 Largest Sectors(6)
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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 Traditional Michigan Limited Maturity Municipals Fund as of
September 30, 1997
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INVESTMENT UPDATE
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[Photo of William H. Ahern]
- ---------------------------
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o Michigan's economy rose in concert with the national trends, with employment
reaching new record highs. Once again, the service, trade and construction
sectors led the way in job creation. Meanwhile, Big Three auto makers, a
critical source of manufacturing employment, enjoyed strong sales of pickup
trucks and sport utility vehicles.
o Detroit continued its success story, aided by the strong auto sector and sharp
rise in commercial construction, boosted by the prospect of new downtown
stadiums for football and baseball, as well as pending casino developments.
Reflecting that growth, the city's residential property values have risen 13%
in the past year alone.
o The state remains in sound fiscal health. With its Budget Stabilization Fund
at more than 7.8% of general revenues, the state has a good measure of
financial flexibility. Through sound management and an improving economic
picture, Michigan continues to merit a Aa-rating from Moody's.
The Fund
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o During the six months ended September 30, 1997, the Fund had a total return of
4.4%.(1) This return resulted from an increase in net asset value per share to
$9.80 on September 30, 1997 from $9.60 on March 31, 1997, and the reinvestment
of $0.216 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.80 per
share, the Fund's distribution rate on September 30, 1997 was 4.39%.(3) The
Fund's SEC yield at September 30 was 4.02%.(4)
o To equal 4.39% in a taxable investment, a couple in the 40.02% combined
federal and state tax bracket would need a yield of 7.32%.
Management Update
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o There were relatively few changes to the Portfolio during the period. General
obligations and hospital revenue bonds were among the Portfolio's largest
sector weightings.
o The Portfolio had several bonds with exposure to the City of Detroit. The city
has made enormous strides economically in recent years and, as a result, its
general obligations have been among the Michigan market's stellar performers.
o We continued our efforts to upgrade the Fund's call protection. By improving
call protection, we are able to avoid untimely bond redemptions that would
require investment at unfavorable interest rate levels. In addition, ample
call protection increases the Fund's capital appreciation potential.
Your Investment at Work
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Pittsfield Township MI Economic Development Corp. - Arbor Hospice
o These bonds were issued to finance the purchase and [Graphic Omitted]
construction costs of Arbor Hospice, a facility near Ann
Arbor dedicated to the continuing care of critically ill
patients.
o The Arbor Hospice bond is a good example of a municipal bond investment used
to fund a novel solution to a major health care challenge.
o This 7.875% bond is representative of the Portfolio's efforts, in a market
dominated by local school district bonds, to find opportunities in smaller,
non-rated health care issues.
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(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. (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 7.0%
Life of Fund (12/8/93) 3.8
SEC Average Annual Total Returns (including max. 2.25% sales charge)
- --------------------------------------------------------------------------------
One Year 4.6%
Life of Fund (12/8/93) 3.1
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Insured - General Obligations 16.2%
Hospitals 16.0%
Special Tax Revenue 12.7%
General Obligations 10.0%
Escrowed/prerefunded 9.7%
Portfolio Overview(6)
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Number of Issues 26
Average Rating A+
Average Coupon 6.0%
Average Effective Maturity 10.1 Yrs.
Average Maturity 11.8 Yrs.
Average Duration 7.4 Yrs.
<PAGE>
EV Traditional New Jersey Limited Maturity Municipals Fund as of
September 30, 1997
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INVESTMENT UPDATE
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- ---------------------------
[Photo of William H. Ahern]
- ---------------------------
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
New Jersey's unemployment rate fell to 5.4% in August. The state's jobless
picture has improved significantly in the past year, having stood at 6.1% a
year ago. Nonetheless, the state measure remains somewhat higher than the
national rate.
o New Jersey's shore tourism industry set new records in 1997. Hot, sunny
weather produced strong demand for rental properties and increased activity
for water sport-related businesses. Areas such as Cape May and Atlantic City
were especially strong.
Gaming revenues ran significantly higher than a year ago.
o Trade and services continued to pace job creation in New Jersey, with health
and recreation services especially robust. The construction sector was also
very strong, paced by a 29% increase in highway and infrastructure spending.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
4.4%.(1) This return resulted from an increase in net asset value per share to
$9.83 on September 30, 1997 from $9.62 on March 31, 1997, and the reinvestment
of $0.213 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.83 per
share, the Fund's distribution rate on September 30, 1997 was 4.32%.(3) The
Fund's SEC yield at September 30 was 4.00%.(4)
o To equal 4.32% in a taxable investment, a couple in the 40.08% combined
federal and state tax bracket would need a yield of 7.21%.
Management Update
- --------------------------------------------------------------------------------
o There were relatively few changes made to the Portfolio during the period.
General obligations were the Portfolio's largest weightings.
o In a market characterized by narrow spreads and large insured issuance, we
increased our efforts to find undervalued, non-rated bonds that can improve
the Fund's yield. The growing life-care sector has presented an increasing
number of opportunities.
o The Portfolio continued to monitor closely the solid waste sector. Adverse
court rulings have cast doubt about the viability of some projects. The
Portfolio focused solely on those projects such as Union County that are
clearly financially feasible.
Your Investment at Work
- --------------------------------------------------------------------------------
New Jersey Economic [Graphic Omitted]
Development Authority
Vineland Cogeneration
o In 1988, the City of Vineland negotiated a power purchase agreement to provide
additional generating capacity for the City's future energy needs.
o These bonds financed the construction of a cogeneration facility to provide
thermal power for the cooking and canning operations of Progresso Foods
Company.
o In addition to providing an excellent example of municipal bonds benefiting
both corporate and community development, the bonds provide an attractive
7.88% coupon for the Portfolio.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. (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 6.4%
Life of Fund (12/8/93) 3.8
SEC Average Annual Total Returns (including max. 2.25% sales charge)
- --------------------------------------------------------------------------------
One Year 4.0%
Life of Fund (12/8/93) 3.1
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Insured - General Obligations* 25.8%
General Obligations 14.9%
Cogeneration 8.3%
Insured - Transportation* 7.9%
Insured - Hospitals* 7.1%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 48
Average Rating AA-
Average Coupon 5.96%
Average Effective Maturity 8.9 Yrs.
Average Maturity 10.9 Yrs.
Average Duration 6.6 Yrs.
<PAGE>
EV Traditional 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 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
5.7%.(1) This return resulted from an increase in net asset value per share to
$10.38 on September 30, 1997 from $10.05 on March 31, 1997, and the
reinvestment of $0.236 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $10.38 per
share, the Fund's distribution rate on September 30, 1997 was 4.53%.(3) The
Fund's SEC yield at September 30 was 3.94%.(4)
o To equal 4.53% in a taxable investment, a couple in the 40.38% combined
federal and state tax bracket would need a yield of 7.60%.
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 [Graphic Omitted]
Health Facilities Revenue Bonds
o These bonds were issued in 1995 to refund outstanding bonds that financed the
construction 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 maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. (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 7.5%
Life of Fund (7/6/94) 6.1
SEC Average Annual Total Returns (including max. 2.25% sales charge)
- --------------------------------------------------------------------------------
One Year 5.1%
Life of Fund (7/6/94) 5.4
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 Traditional Ohio Limited Maturity Municipals Fund as of September 30, 1997
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
- ---------------------------
[Photo of William H. Ahern]
- ---------------------------
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o Ohio's unemployment rate of 4.1% remained well below that of the U.S. as the
labor market remained strong. The state has enjoyed an increase of 127,000
jobs in the past 12 months, with continuing employment growth in the service
sector. The manufacturing area experienced some weakness. The UPS strike also
had a modestly negative impact.
o Ohio-based companies have benefited from a willingness to embrace innovative
approaches to new markets. Ohio has become the leading exporter of
manufactured goods in the U.S. More than two-thirds of all Ohio companies with
more than 100 employees now sell their products abroad.
o Tax revenues of $1.8 billion for fiscal year 1997 ran slightly ahead of
estimates. Income revenues and sales tax receipts were especially strong
income sources.
The Fund
- --------------------------------------------------------------------------------
o During the six months ended September 30, 1997, the Fund had a total return of
4.9%.(1) This return resulted from an increase in net asset value per share to
$9.84 on September 30, 1997 from $9.59 on March 31, 1997, and the reinvestment
of $0.213 per share in tax-free income.(2)
o Based on the Fund's most recent dividend, and a net asset value of $9.84 per
share, the Fund's distribution rate on September 30, 1997 was 4.32%.(3) The
Fund's SEC yield at September 30 was 3.84%.(4)
o To equal 4.32% in a taxable investment, a couple in the 40.80% combined
federal and state tax bracket would need a yield of 7.30%.
Management Update
- --------------------------------------------------------------------------------
o In light of a continuing narrowing of quality spreads, we have pursued a
relative-value approach, targeting sectors that have cheapened relative to the
overall Ohio market.
o The Portfolio was able to find some attractive, higher- yielding opportunities
in smaller issues, including some nursing homes and life care bonds.
o We continued to emphasize upgrading the Portfolio's call protection. That
helps to protect the Portfolio from untimely bond redemptions while also
preserving the Fund's capital appreciation potential.
Your Investment at Work
- --------------------------------------------------------------------------------
Wauseon, OH, [Graphic Omitted]
School District Bonds
o The Wauseon Exempted School District, located in Fulton County, serves around
2000 students and offers a wide range of courses in college preparatory,
vocational, and physical education.
o The proceeds of the bonds were used to retire earlier bond issues that
financed projects to furnish, equip and remodel school facilities as well as
to enlarge and renovate the Wauseon Public Library.
o This bond, rated A3 by Moody's, carries an attractive 7.25% coupon, and is a
good example of the Port-folio's efforts to find yield and value in smaller
issues.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's maximum 2.25% sales charge. (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. (4) The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price 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 reflect maximum sales charge as noted. (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 6.6%
Life of Fund (12/8/93) 3.8
SEC Average Annual Total Returns (including max. 2.25% sales charge)
- --------------------------------------------------------------------------------
One Year 4.2%
Life of Fund (12/8/93) 3.2
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total investments
Insured - General Obligations* 30.6%
Hospitals 13.3%
Industrial/Devel./pollution cont. 10.3%
General Obligations 10.2%
Escrowed/prerefunded 7.8%
Portfolio Overview(6)
- --------------------------------------------------------------------------------
Number of Issues 42
Average Rating A+
Average Coupon 6.5%
Average Effective Maturity 9.1 Yrs.
Average Maturity 12.7 Yrs.
Average Duration 6.3 Yrs.
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
- ---------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------
Investment in Limited Maturity Municipals
Portfolio --
<S> <C> <C> <C> <C>
Identified cost $ 2,544,825 $ 992,450 $ 4,352,707 $ 849,772
Unrealized appreciation 106,793 39,508 50,236 111,781
- ---------------------------------------------------------------------------------------------------------
Total investment in
Portfolio, at value (Note 1A) $ 2,651,618 $ 1,031,958 $ 4,402,943 $ 961,553
- ---------------------------------------------------------------------------------------------------------
Receivable from Administrator (Note 4) 11,414 7,765 6,065 10,735
Deferred organization expenses (Note 1D) 2,531 2,706 1,632 2,500
- ---------------------------------------------------------------------------------------------------------
Total assets $ 2,665,563 $ 1,042,429 $ 4,410,640 $ 974,788
- ---------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------
Dividends payable $ 5,591 $ 2,019 $ 9,018 $ 1,863
Payable for Fund shares redeemed -- -- -- 692
Accrued expenses 4,279 3,253 3,314 1,719
- ---------------------------------------------------------------------------------------------------------
Total liabilities $ 9,870 $ 5,272 $ 12,332 $ 4,274
- ---------------------------------------------------------------------------------------------------------
Net Assets $ 2,655,693 $ 1,037,157 $ 4,398,308 $ 970,514
- ---------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $ 3,152,763 $ 1,112,239 $ 4,431,077 $ 1,325,719
Accumulated net realized loss on
investments from Portfolio (computed
on the basis of identified cost) (603,377) (113,373) (81,948) (466,242)
Accumulated distributions in excess of
net investment income (486) (1,217) (1,057) (744)
Net unrealized appreciation of investments
from Portfolio (computed on the basis of
identified cost) 106,793 39,508 50,236 111,781
- ---------------------------------------------------------------------------------------------------------
Total $ 2,655,693 $ 1,037,157 $ 4,398,308 $ 970,514
- ---------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- ---------------------------------------------------------------------------------------------------------
270,750 106,342 433,158 99,069
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, and Redemption
Price Per Share
- ---------------------------------------------------------------------------------------------------------
(net assets / shares of
beneficial interest outstanding) $ 9.81 $ 9.75 $ 10.15 $ 9.80
- ---------------------------------------------------------------------------------------------------------
Computation of Offering Price
- ---------------------------------------------------------------------------------------------------------
(100 / 97.75 of net asset
value per share) $ 10.04 $ 9.97 $ 10.38 $ 10.03
- ---------------------------------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price is reduced.
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) Cont'd.
- -------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
NEW JERSEY NEW YORK OHIO
LIMITED FUND LIMITED FUND LIMITED FUND
- ----------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------
Investment in Limited Maturity Municipals Portfolio --
<S> <C> <C> <C>
Identified cost $1,010,401 $ 481,218 $ 2,557,702
Unrealized appreciation 53,724 18,993 119,311
- ---------------------------------------------------------------------------------------------------------
Total investment in Portfolio, at value (Note 1A) $1,064,125 $ 500,211 $ 2,677,013
- ---------------------------------------------------------------------------------------------------------
Receivable from Administrator (Note 4) 9,565 9,624 3,673
Deferred organization expenses (Note 1D) 2,520 2,994 2,445
- ---------------------------------------------------------------------------------------------------------
Total assets $1,076,210 $ 512,829 $ 2,683,131
- ---------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------
Dividends payable $ 1,876 $ 1,302 $ 6,684
Accrued expenses 1,363 1,022 1,764
- ---------------------------------------------------------------------------------------------------------
Total liabilities $ 3,239 $ 2,324 $ 8,448
- ---------------------------------------------------------------------------------------------------------
Net Assets $1,072,971 $ 510,505 $ 2,674,683
- ---------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $1,143,618 $ 481,959 $ 2,830,489
Accumulated net realized gain (loss) on investments
from Portfolio (computed on the basis of identified cost) (124,129) 11,082 (274,598)
Accumulated distributions in excess of net
investment income (242) (1,529) (519)
Net unrealized appreciation of investments from Portfolio
(computed on the basis of identified cost) 53,724 18,993 119,311
- ---------------------------------------------------------------------------------------------------------
Total $ 1,072,971 $ 510,505 $ 2,674,683
- ---------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- ---------------------------------------------------------------------------------------------------------
109,120 49,177 271,708
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, and Redemption Price Per Share
- ---------------------------------------------------------------------------------------------------------
(net assets / shares of beneficial interest outstanding) $ 9.83 $ 10.38 $ 9.84
- ---------------------------------------------------------------------------------------------------------
Computation of Offering Price
- ---------------------------------------------------------------------------------------------------------
(100 / 97.75 of net asset value per share) $ 10.06 $ 10.62 $ 10.07
- ---------------------------------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price is reduced.
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income allocated from Portfolio $ 69,193 $ 33,028 $ 93,383 $ 28,609
Expenses allocated from Portfolio (8,008) (3,600) (10,042) (3,831)
- ---------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $ 61,185 $ 29,428 $ 83,341 $ 24,778
- ---------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------
Service fees (Note 5) $ 1,892 $ 898 $ 1,715 $ 754
Legal and accounting services 6,154 4,983 726 4,102
Printing and postage 4,725 2,729 2,652 3,890
Custodian fee 1,503 1,508 1,747 1,501
Transfer and dividend disbursing agent fee 1,373 571 1,678 743
Registration fees -- -- -- 1,250
Amortization of organization expenses
(Note 1D) 1,076 1,151 963 1,067
Miscellaneous 589 520 2,457 502
- ---------------------------------------------------------------------------------------------------------
Total expenses $ 17,312 $ 12,360 $ 11,938 $ 13,809
- ---------------------------------------------------------------------------------------------------------
Deduct --
Preliminary allocation of expenses to the
Administrator (Note 4) $ 11,414 $ 7,765 $ 6,065 $ 10,735
- ---------------------------------------------------------------------------------------------------------
Total expense reductions $ 11,414 $ 7,765 $ 6,065 $ 10,735
- ---------------------------------------------------------------------------------------------------------
Net expenses $ 5,898 $ 4,595 $ 5,873 $ 3,074
- ---------------------------------------------------------------------------------------------------------
Net investment income $ 55,287 $ 24,833 $ 77,468 $ 21,704
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 24,721 $ 7,402 $ 17,793 $ 7,483
Financial futures contracts (20,206) (11,269) (44,202) (16,990)
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments $ 4,515 $ (3,867) $(26,409) $ (9,507)
- ---------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investment transactions $ 70,614 $ 33,077 $ 99,115 $ 31,414
Financial futures contracts (10,621) (203) (7,503) (699)
- ---------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of
investments $ 59,993 $ 32,874 $ 91,612 $ 30,715
- ---------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on
investments $ 64,508 $ 29,007 $ 65,203 $ 21,208
- ---------------------------------------------------------------------------------------------------------
Net increase in net
assets from operations $119,795 $ 53,840 $142,671 $ 42,912
- ---------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
NEW JERSEY NEW YORK OHIO
LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income allocated from Portfolio $ 29,333 $ 15,283 $ 77,718
Expenses allocated from Portfolio (3,375) (1,693) (9,303)
- --------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $ 25,958 $ 13,590 $ 68,415
- --------------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------------
Service fees (Note 5) $ 797 $ 344 $ 2,028
Custodian fee 1,501 1,503 1,495
Transfer and dividend disbursing agent fees 586 303 1,383
Printing and postage 3,495 2,613 3,786
Legal and accounting services 4,347 3,935 4,447
Amortization of organization expenses (Note 1D) 1,070 1,080 1,045
Miscellaneous 607 611 490
- --------------------------------------------------------------------------------------------------------
Total expenses $ 12,403 $ 10,389 $ 14,674
- --------------------------------------------------------------------------------------------------------
Deduct --
Preliminary allocation of expenses to
the Administrator (Note 4) $ 9,565 $ 9,624 $ 3,673
- --------------------------------------------------------------------------------------------------------
Total expense reductions $ 9,565 $ 9,624 $ 3,673
- --------------------------------------------------------------------------------------------------------
Net expenses $ 2,838 $ 765 $ 11,001
- --------------------------------------------------------------------------------------------------------
Net investment income $ 23,120 $ 12,825 $ 57,414
- --------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 7,781 $ 4,141 $ 11,932
Financial futures contracts (12,514) (282) (13,910)
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments $ (4,733) $ 3,859 $ (1,978)
- --------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investment transactions $ 27,557 $ 18,589 $ 74,592
Financial futures contracts 58 (2,986) (302)
- --------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments $ 27,615 $ 15,603 $ 74,290
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 22,882 $ 19,462 $ 72,312
- --------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 46,002 $ 32,287 $ 129,726
- --------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
INCREASE (DECREASE) IN NET ASSETS FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
From operations --
<S> <C> <C> <C> <C>
Net investment income $ 55,287 $ 24,833 $ 77,468 $ 21,704
Net realized gain (loss) on investments 4,515 (3,867) (26,409) (9,507)
Net change in unrealized appreciation
of investments 59,993 32,874 91,612 30,715
- -------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 119,795 $ 53,840 $ 142,671 $ 42,912
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (55,401) $ (24,833) $ (78,924) $ (21,704)
In excess of net investment income (486) (925) (1,057) (538)
- -------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (55,887) $ (25,758) $ (79,981) $ (22,242)
- -------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares $ 259,284 $ 178,613 $ 1,273,838 $ 1,712
Net asset value of shares issued to
shareholders in payment of distributions
declared 35,659 14,816 29,422 18,008
Cost of shares redeemed (533,910) (523,120) (757,671) (104,139)
- -------------------------------------------------------------------------------------------------------
Net decrease in net assets from
Fund share transactions $ (238,967) $ (329,691) $ 545,589 $ (84,419)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets $ (175,059) $ (301,609) $ 608,279 $ (63,749)
- -------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------
At beginning of period $ 2,830,752 $ 1,338,766 $ 3,790,029 $ 1,034,263
- -------------------------------------------------------------------------------------------------------
At end of period $ 2,655,693 $ 1,037,157 $ 4,398,308 $ 970,514
- -------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------
At end of period $ (486) $ (1,217) $ (1,057) $ (744)
- -------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
NEW JERSEY NEW YORK OHIO
LIMITED LIMITED LIMITED
INCREASE (DECREASE) IN NET ASSETS FUND FUND FUND
- --------------------------------------------------------------------------------------------------------
From operations --
<S> <C> <C> <C>
Net investment income $ 23,120 $ 12,825 $ 57,414
Net realized gain (loss) on investments (4,733) 3,859 (1,978)
Net change in unrealized appreciation of investments 27,615 15,603 74,290
- --------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 46,002 $ 32,287 $ 129,726
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (23,120) $ (12,825) $ (58,500)
In excess of net investment income (44) (332) (519)
- --------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (23,164) $ (13,157) $ (59,019)
- --------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares $ 2,710 $ 3,070 $ 643
Net asset value of shares issued to
shareholders in payment of distributions
declared 16,611 6,318 21,998
Cost of shares redeemed (18,346) (106,943) (159,002)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $ 975 $ (97,555) $ (136,361)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 23,813 $ (78,425) $ (65,654)
- --------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------
At beginning of period $ 1,049,158 $ 588,930 $ 2,740,337
- --------------------------------------------------------------------------------------------------------
At end of period $ 1,072,971 $ 510,505 $ 2,674,683
- --------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in net assets
- --------------------------------------------------------------------------------------------------------
At end of period $ (242) $ (1,529) $ (519)
- --------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1997
TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
INCREASE (DECREASE) IN NET ASSETS LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------------------------------
From operations --
<S> <C> <C> <C> <C>
Net investment income $ 152,810 $ 65,733 $ 144,286 $ 68,818
Net realized gain (loss) on investments (41,130) (3,645) (56,054) 50,521
Net change in unrealized appreciation
of investments 525 (7,769) (5,999) (47,884)
- --------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 112,205 $ 54,319 $ 82,233 $ 71,455
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (152,964) $ (65,733) $ (141,200) $ (69,863)
In excess of net investment income -- (217) -- --
- --------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (152,964) $ (65,950) $ (141,200) $ (69,863)
- --------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares $ 62,614 $ 149,595 $ 2,027,379 $ 59,200
Net asset value of shares issued
to shareholders in payment of
distributions declared 92,031 50,892 61,784 53,615
Cost of shares redeemed (2,083,220) (578,017) (565,599) (1,420,338)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $(1,928,575) $ (377,530) $ 1,523,564 $(1,307,523)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(1,969,334) $ (389,161) $ 1,464,597 $(1,305,931)
- --------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------
At beginning of year $ 4,800,086 $ 1,727,927 $ 2,325,432 $ 2,340,194
- --------------------------------------------------------------------------------------------------------
At end of year $ 2,830,752 $ 1,338,766 $ 3,790,029 $ 1,034,263
- --------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions
in excess of) net investment income
included in net assets
- --------------------------------------------------------------------------------------------------------
At end of year $ 114 $ (292) $ 1,456 $ (206)
- --------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
TRADITIONAL TRADITIONAL TRADITIONAL
INCREASE (DECREASE) NEW JERSEY NEW YORK OHIO
IN NET ASSETS LIMITED FUND LIMITED FUND LIMITED FUND
- -------------------------------------------------------------------------------------------------------------
From operations --
<S> <C> <C> <C>
Net investment income $ 70,257 $ 22,728 $ 132,008
Net realized gain on investments 1,218 5,754 23,387
Net change in unrealized appreciation of investments (5,598) (10,883) (33,065)
- -------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 65,877 $ 17,599 $ 122,330
- -------------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (70,257) $ (22,728) $ (132,600)
In excess of net investment income (36) (564) --
From net realized gain -- (3,179) --
- -------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (70,293) $ (26,471) $ (132,600)
- -------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest (Note 3) --
Proceeds from sale of shares $ 82,125 $ 162,377 $ 33,472
Net asset value of shares issued to
shareholders in payment of distributions
declared 58,751 11,914 53,618
Cost of shares redeemed (994,022) (1,126) (879,609)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Fund share transactions $ (853,146) $ 173,165 $ (792,519)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (857,562) $ 164,293 $ (802,789)
- -------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------
At beginning of year $ 1,906,720 $ 424,637 $ 3,543,126
- -------------------------------------------------------------------------------------------------------------
At end of year $ 1,049,158 $ 588,930 $ 2,740,337
- -------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of)
net investment income included in net assets
- -------------------------------------------------------------------------------------------------------------
At end of year $ (198) $ (1,197) $ 1,086
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TRADITIONAL CALIFORNIA LIMITED FUND TRADITIONAL CONNECTICUT LIMITED FUND
-------------------------------------------------- ------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31, SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 ----------------------------- SEPTEMBER 30, 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 $ 9.560 $ 9.650 $ 9.520 $ 9.570 $10.000 $ 9.530 $ 9.610 $ 9.460 $ 9.500 $10.000
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.214 $ 0.430 $ 0.376 $ 0.348 $ 0.098 $ 0.199 $ 0.414 $ 0.350 $ 0.344 $ 0.072
Net realized and unrealized
gain (loss) on investments 0.252 (0.090) 0.124 0.003++ (0.400) 0.229 (0.079) 0.156 0.002++ (0.475)
- ---------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from
operations $ 0.466 $ 0.340 $ 0.500 $ 0.351 $(0.302) $ 0.428 $ 0.335 $ 0.506 $ 0.346 $(0.403)
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.214) $(0.430) $(0.370) $(0.348) $(0.098) $(0.201) $(0.414) $0.350)$ (0.344) $(0.072)
In excess of net investment
income (0.002) -- -- (0.053) (0.030) (0.007) (0.001) (0.006) (0.042) (0.025)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.216) $(0.430) $(0.370) $(0.401) $(0.128) $(0.208) $(0.415) $(0.356)$(0.386) $(0.097)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of
period $ 9.810 $ 9.560 $ 9.650 $ 9.520 $ 9.570 $ 9.750 $ 9.530 $ 9.610 $ 9.460 $ 9.500
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 4.91% 3.58% 5.39% 3.80% (3.16)% 4.52% 3.54% 5.49% 3.78% (4.14)%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
period (000 omitted) $ 2,656 $ 2,831 $ 4,800 $ 7,970 $14,479 $ 1,037 $ 1,339 $ 1,728 $ 1,583 $ 2,051
Ratio of net expenses to
average daily net assets(2)(3) 1.12%+ 1.14% 1.54% 1.51% 1.48%+ 1.39%+ 1.27% 1.62% 1.37% 1.38%+
Ratio of net expenses to
average daily net assets,
after custodian fee
reduction(2) 1.10%+ 1.13% 1.50% -- -- 1.37%+ 1.23% 1.58% -- --
Ratio of net investment income
to average daily net assets 4.38%+ 4.49% 3.90% 3.75% 2.91%+ 4.15%+ 4.32% 3.62% 3.70% 2.70%+
+ 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) 2.03%+ 1.52% 1.81% 1.81% 1.98%+ 2.92%+ 2.32% 2.88% 3.01% 2.78%+
Expenses after custodian
fee reduction(2) 2.01%+ 1.51% 1.77% -- -- 2.90%+ 2.28% 2.84% -- --
Net investment income 3.48%+ 4.11% 3.63% 3.45% 2.41%+ 2.63%+ 3.27% 2.36% 2.06% 1.30%+
Net investment income
per share $ 0.170 $ 0.394 $ 0.350 $ 0.320 $ 0.081 $ 0.126 $ 0.313 $ 0.228 $ 0.192 $ 0.035
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares
and the amount of per share realized and unrealized gains and losses at
such time.
* For the period from the start of business, December 8, 1993, to March 31,
1994.
** For the period from the start of business, December 27, 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 each 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
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TRADITIONAL FLORIDA LIMITED FUND TRADITIONAL MICHIGAN LIMITED FUND
------------------------------------------- -----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31, SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 ----------------------- SEPTEMBER 30, 1997 ----------------------------------
(UNAUDITED) 1997 1996 1995* (UNAUDITED) 1997 1996 1995 1994**
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
Beginning of period $ 9.560 $10.120 $10.070 $10.000 $ 9.600 $ 9.580 $ 9.480 $ 9.490 $10.000
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.230 $ 0.480 $ 0.451 $ 0.321 $ 0.210 $ 0.425 $ 0.376 $ 0.352 $ 0.100
Net realized and unrealized
gain (loss) on investments 0.206 (0.181) 0.070++ 0.088 0.206 0.025 0.095 0.039++ (0.484)
- ----------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.436 $ 0.299 $ 0.521 $ 0.409 $ 0.416 $ 0.450 $ 0.471 $ 0.391 $(0.384)
- ----------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.233) $(0.469) $(0.451) $(0.321) $(0.211) $(0.430) $(0.371) $(0.352) $(0.100)
In excess of net investment
income (0.003) -- (0.020) (0.018) (0.005) -- -- (0.049) (0.026)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.236) $(0.469) $(0.471) $(0.339) $(0.216) $(0.430) $(0.371) $(0.401) $(0.126)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value -- End
of period $10.150 $ 9.950 $10.120 $10.070 $ 9.800 $ 9.600 $ 9.580 $ 9.480 $ 9.490
- ----------------------------------------------------------------------------------------------------------------------------
Total Return(1) 4.41% 2.90% 5.33% 4.19% 4.36% 4.78% 5.10% 4.26% (3.99)%
- -------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted $ 4,398 $ 3,790 $ 2,325 $ 241 $ 971 $ 1,034 $ 2,340 $ 6,904 $ 8,874
Ratio of net expenses to
average daily net
assets(2)(3) 0.95%+ 0.76% 0.89% 0.74%+ 1.40%+ 1.42% 1.83% 1.56% 1.15%+
Ratio of net expenses to
average daily net assets,
after custodian fee
reduction(2) 0.93%+ 0.74% 0.87% -- 1.37%+ 1.39% 1.79% -- --
Ratio of net investment
income to average daily
net assets 4.51%+ 4.73% 4.26% 4.52%+ 4.32%+ 4.45% 3.94% 3.80% 3.07%+
+ 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
(loss) per share would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 1.30%+ 1.35% 2.48% 12.20%+ 3.54%+ 2.36% 2.15% 1.99% 2.35%+
Expenses after custodian fee
reduction(2) 1.28%+ 1.33% 2.46% -- 3.51%+ 2.33% -- -- --
Net investment income (loss) 4.16%+ 4.14% 2.67% (6.94)%+ 2.18%+ 3.51% 3.62% 3.37% 1.87%+
Net investment income (loss)
per share $ 0.212 $ 0.420 $ 0.283 $(0.506) $ 0.106 $ 0.335 $ 0.345 $ 0.312 $ 0.061
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized
gain (loss) for the period because of the timing of sales of Fund shares
and the amount of per share realized and unrealized gains and losses at
such time.
* For the period from the start of business, July 5, 1994, to March 31, 1995.
** 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 each 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
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
TRADITIONAL NEW JERSEY LIMITED FUND TRADITIONAL NEW YORK LIMITED FUND
--------------------------------------------------------------------- -------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, YEAR ENDED MARCH 31, SEPTEMBER 30, YEAR ENDED MARCH 31,
1997 ----------------------------------- 1997 ----------------------------------
(UNAUDITED) 1997 1996 1995 1994* (UNAUDITED) 1997 1996 1995**
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value
- -- Beginning of period $ 9.620 $ 9.670 $ 9.590 $ 9.570 $10.000 $ 10.050 $10.220 $ 10.030 $ 10.000
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.213 $ 0.425 $ 0.368 $ 0.345 $ 0.099 $ 0.225 $ 0.459 $ 0.465 $ 0.325
Net realized and
unrealized gain
(loss) on
investments 0.210 (0.050) 0.077 0.071 (0.404) 0.341 (0.099) 0.196 0.051
- ----------------------------------------------------------------------------------------------------------------------------------
Total income
(loss) from
operations $ 0.423 $ 0.375 $ 0.445 $ 0.416 $(0.305) $ 0.566 $ 0.360 $ 0.661 $ 0.376
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $ (0.213) $ (0.425) $ (0.365) $(0.345) $(0.099) $ (0.230) $(0.459) $ (0.465) $ (0.325)
In excess of net
investment income -- -- -- (0.051) (0.026) (0.006) (0.011) (0.006) (0.021)
From net
realized gain
on investments -- -- -- -- -- -- (0.060) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL
DISTRIBUTIONS $ (0.213) $ (0.425) $ (0.365) $(0.396) $(0.125) $ (0.236) $(0.530) $ (0.471) $ (0.346)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
-- END OF PERIOD $ 9.830 $ 9.620 $ 9.670 $ 9.590 $ 9.570 $ 10.380 $10.050 $ 10.220 $ 10.030
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 4.43% 3.94% 4.77% 4.49% (3.20)% 5.68% 3.58% 6.68% 3.87%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
period (000 omitted) $ 1,073 $ 1,049 $ 1,907 $ 3,306 $ 3,148 $ 511 $ 589 $ 425 $ 180
Ratio of net expenses
to average daily
net assets(2)(3) 1.17%+ 1.13% 1.54% 1.61% 1.57%+ 0.86%+ 0.82% 0.61% 0.98%+
Ratio of net expenses to
average daily net
assets, after custodian
fee reduction(2) 1.17%+ 1.10% 1.52% -- -- 0.86%+ 0.80% 0.58% --
Ratio of net investment
income to average
daily net assets 4.35%+ 4.40% 3.78% 3.62% 3.08%+ 4.48%+ 4.50% 4.52% 5.96%+
+ 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 (loss) per share
would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 2.97%+ 1.89% 2.30% 2.16% 2.88%+ 4.22%+ 4.29% 2.87% 28.54%+
Expenses after
custodian fee
reduction(2) 2.97%+ 1.86% 2.28% -- -- 4.22%+ 4.27% 2.84% --
Net investment
income (loss) 2.55%+ 3.64% 3.02% 3.07% 1.77%+ 1.12%+ 1.04% 2.26% (21.60)%+
Net investment
income (loss)
per share $ 0.125 $ 0.351 $ 0.291 $ 0.293 $ 0.057 $ 0.056 $ 0.107 $ 0.233 $ (1.178)
- ----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
** For the period from the start of business, July 6, 1994, to March 31, 1995.
(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 each 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.
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
TRADITIONAL OHIO LIMITED FUND
-------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 --------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $ 9.590 $ 9.610 $ 9.530 $ 9.500 $ 10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.207 $ 0.424 $ 0.358 $ 0.358 $ 0.095
Net realized and unrealized gain (loss)
on investments 0.256 (0.019) 0.088 0.068 (0.473)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.463 $ 0.405 $ 0.446 $ 0.426 $ (0.378)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.211) $ (0.425) $ (0.358) $ (0.358) $ (0.095)
In excess of net investment income (0.002) -- (0.008) (0.038) (0.027)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.213) $ (0.425) $ (0.366) $ (0.396) $ (0.122)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.840 $ 9.590 $ 9.610 $ 9.530 $ 9.500
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 4.86% 4.27% 4.81% 4.63% (3.91)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 2,675 $ 2,740 $ 3,543 $ 5,090 $ 5,795
Ratio of net expenses to average daily
net assets(2)(3) 1.50%+ 1.49% 2.01% 1.60% 1.27%+
Ratio of net expenses to average daily
net assets, after custodian fee
reduction(2) 1.50%+ 1.46% 1.99% -- --
Ratio of net investment income to
average daily net assets 4.25%+ 4.40% 3.70% 3.81% 3.04%+
+ The operating expenses of the Fund and the Portfolio 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) 1.77%+ 1.58% 2.10% 1.95%+
Expenses after custodian fee reduction(2) 1.77%+ 1.55% -- --
Net investment income 3.97%+ 4.31% 3.32% 2.36%+
Net investment income per share $ 0.193 $ 0.415 $ 0.311 $ 0.074
- -----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* 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 each 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.
</TABLE>
See notes to financial statements
<PAGE>
EV Traditional 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, seven of which are
included in these financial statements. They include EV Traditional California
Limited Maturity Municipals Fund ("Traditional California Limited Fund"), EV
Traditional Connecticut Limited Maturity Municipals Fund ("Traditional
Connecticut Limited Fund"), EV Traditional Florida Limited Maturity Municipals
Fund ("Traditional Florida Limited Fund"), EV Traditional Michigan Limited
Maturity Municipals Fund ("Traditional Michigan Limited Fund"), EV Traditional
New Jersey Limited Maturity Municipals Fund ("Traditional New Jersey Limited
Fund"), EV Traditional New York Limited Maturity Municipals Fund ("Traditional
New York Limited Fund"), and EV Traditional Ohio Limited Maturity Municipals
Fund ("Traditional Ohio Limited Fund"). Each Fund invests all of its
investable assets in interests in a separate corresponding open-end management
investment company (a "Portfolio"), a New York Trust, having the same
investment objective as its corresponding Fund. The Traditional California
Limited Fund invests its assets in the California Limited Maturity Municipals
Portfolio, the Traditional Connecticut Limited Fund invests its assets in the
Connecticut Limited Maturity Municipals Portfolio, the Traditional Florida
Limited Fund invests its assets in the Florida Limited Maturity Municipals
Portfolio, the Traditional Michigan Limited Fund invests its assets in the
Michigan Limited Maturity Municipals Portfolio, the Traditional New Jersey
Limited Fund invests its assets in the New Jersey Limited Maturity Municipals
Portfolio, the Traditional New York Limited Fund invests its assets in the New
York Limited Maturity Municipals Portfolio, and the Traditional Ohio Limited
Fund invests its assets in the Ohio Limited Maturity Municipals Portfolio. The
value of each Fund's investments in its corresponding Portfolio reflects the
Fund's proportionate interest in the net assets of that Portfolio (6.9%, 9.7%,
5.4%, 7.4%, 2.1%, 0.6%, and 9.9% at September 30, 1997 for the Traditional
California Limited Fund, Traditional Connecticut Limited Fund, Traditional
Florida Limited Fund, Traditional Michigan Limited Fund, Traditional New
Jersey Limited Fund, Traditional New York Limited Fund, and Traditional Ohio
Limited Fund, respectively). The performance of each Fund is directly affected
by the performance of its corresponding Portfolio. The financial statements of
each Portfolio, including the portfolio of investments, are included elsewhere
in this report and should be read in conjunction with each Fund's financial
statements. The 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 1A 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
------------------------------------------------------------------------------
Traditional California Limited Fund $ 19,388 March 31, 2005
373,739 March 31, 2004
116,865 March 31, 2003
Traditional Connecticut Limited Fund 2,392 March 31, 2005
49,875 March 31, 2004
37,427 March 31, 2003
6,885 March 31, 2002
Traditional Florida Limited Fund 32,164 March 31, 2005
Traditional Michigan Limited Fund 280,688 March 31, 2004
164,025 March 31, 2003
Traditional New Jersey Limited Fund 81,999 March 31, 2004
17,690 March 31, 2003
Traditional Ohio Limited Fund 134,780 March 31, 2004
144,732 March 31, 2003
13,519 March 31, 2002
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay 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 or the
Portfolios maintain with IBT. All significant credit balances used to reduce
each Fund's custodian fees are reported as a reduction of 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 are classified as
distributions in excess of net investment income or accumulated net realized
gains. The tax treatment of distributions for the calendar year will be
reported to shareholders 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:
<TABLE>
<CAPTION>
TRADITIONAL CALIFORNIA LIMITED FUND
------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 26,495 6,491
Issued to shareholders electing to receive
payments of distributions in Fund shares 3,670 9,563
Redemptions (55,628) (217,252)
-------------------------------------------------------------------------------------------------
NET DECREASE (25,463) (201,198)
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL CONNECTICUT LIMITED FUND
------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 18,347 15,533
Issued to shareholders electing to receive
payments of distributions in Fund shares 1,532 5,314
Redemptions (53,963) (60,149)
-------------------------------------------------------------------------------------------------
NET DECREASE (34,084) (39,302)
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL FLORIDA LIMITED FUND
-------------------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 125,486 201,090
Issued to shareholders electing to receive
payments of distributions in Fund shares 2,912 6,139
Redemptions (75,992) (56,181)
-------------------------------------------------------------------------------------------------
NET INCREASE 52,406 151,048
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL MICHIGAN LIMITED FUND
-------------------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 176 6,136
Issued to shareholders electing to receive
payments of distributions in Fund shares 1,851 5,594
Redemptions (10,733) (148,234)
-------------------------------------------------------------------------------------------------
NET DECREASE (8,706) (136,504)
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL NEW JERSEY LIMITED FUND
-------------------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 278 8,460
Issued to shareholders electing to receive payment
of distributions in Fund shares 1,702 6,091
Redemptions (1,890) (102,694)
-------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 90 (88,143)
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL NEW YORK LIMITED FUND
-------------------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 300 15,975
Issued to shareholders electing to receive
payments of distributions in Fund shares 616 1,173
Redemptions (10,339) (111)
-------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (9,423) 17,037
-------------------------------------------------------------------------------------------------
<CAPTION>
TRADITIONAL OHIO LIMITED FUND
-------------------------------------------------
SIX MONTHS ENDED
SEPTEMBER 30, 1997 YEAR ENDED
(UNAUDITED) MARCH 31, 1997
-------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales 67 3,456
Issued to shareholders electing to receive
payments of distributions in Fund shares 2,255 5,570
Redemptions (16,348) (92,004)
-------------------------------------------------------------------------------------------------
NET DECREASE (14,026) (82,978)
-------------------------------------------------------------------------------------------------
</TABLE>
4 Transactions with Affiliates
------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios have engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial Statements
which are included elsewhere in this report. To enhance the net income of the
Funds for the six months ended September 30, 1997, $11,414, $7,765, $6,065,
$10,735, $9,565, $9,624, and $3,673 of expenses related to the operation of
the Traditional California Limited Fund, Traditional Connecticut Limited Fund,
Traditional Florida Limited Fund, Traditional Michigan Limited Fund,
Traditional New Jersey Limited Fund, Traditional New York Limited Fund, and
Traditional Ohio Limited Fund, respectively, were allocated on a preliminary
basis to EVM. Certain officers and Trustees receive remuneration for their
services to each Fund out of the investment adviser fee earned by BMR.
5 Service Plan
------------------------------------------------------------------------------
Each Fund has adopted a Service Plan designed to meet the service fee
requirements of the sales charge rule of the National Association of
Securities Dealers, Inc. The Service Plans provide that each Fund may make
service fee payments to the Principal Underwriter, Eaton Vance Distributors,
Inc. (EVD), Authorized Firms, and other persons in amounts not exceeding 0.25%
of each Fund's average daily net assets for any fiscal year which is
attributable to shares of a Fund sold by such persons and remaining
outstanding for at least one year. Service fee payments are made for personal
services and/or the maintenance of shareholder accounts. For the six months
ended September 30, 1997, Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Florida Limited Fund, Traditional
Michigan Limited Fund, Traditional New Jersey Limited Fund, Traditional New
York Limited Fund, and Traditional Ohio Limited Fund paid or accrued service
fees of $1,892, $898, $1,715, $754, $797, $344, and $2,028, respectively.
Certain officers and Trustees of the Funds are officers or directors of EVD.
6 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:
TRADITIONAL CALIFORNIA LIMITED FUND
---------------------------------------------------------------------------
Increases $ 287,447
Decreases 587,184
TRADITIONAL CONNECTICUT LIMITED FUND
---------------------------------------------------------------------------
Increases $ 193,015
Decreases 546,501
TRADITIONAL FLORIDA LIMITED FUND
---------------------------------------------------------------------------
Increases $1,294,143
Decreases 822,743
TRADITIONAL MICHIGAN LIMITED FUND
---------------------------------------------------------------------------
Increases $ 23,728
Decreases 128,234
TRADITIONAL NEW JERSEY LIMITED FUND
---------------------------------------------------------------------------
Increases $ 19,529
Decreases 40,692
TRADITIONAL NEW YORK LIMITED FUND
---------------------------------------------------------------------------
Increases $ 23,574
Decreases 125,908
TRADITIONAL OHIO LIMITED FUND
---------------------------------------------------------------------------
Increases $ 6,720
Decreases 214,505
<PAGE>
California 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>
Cogeneration -- 3.9%
- --------------------------------------------------------------------------------------------------------------
NR BBB $ 1,500 Central Valley Financing Authority,
Cogeneration, 5.20%, 7/1/99 $ 1,527,795
- --------------------------------------------------------------------------------------------------------------
$ 1,527,795
- --------------------------------------------------------------------------------------------------------------
Electric Utilities -- 4.6%
- --------------------------------------------------------------------------------------------------------------
A2 A+ $ 1,000 California Pollution Control Financing
Authority, (Southern California Edison Co.),
Series D, 6.85%,
12/1/08 $ 1,061,250
Baa1 BBB+ 750 Puerto Rico Electric Power Authority, 5.50%,
7/1/14 759,533
- --------------------------------------------------------------------------------------------------------------
$ 1,820,783
- --------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 8.3%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 1,400 California Health Facilities, (Sisters of
Providence), Prerefunded to
10/1/00, 7.50%, 10/1/10 $ 1,559,040
NR AAA 1,500 San Bernadino, CA, Certificates of
Participation Prerefunded to
8/1/01, 7.00%, 8/1/28 1,685,085
- --------------------------------------------------------------------------------------------------------------
$ 3,244,125
- --------------------------------------------------------------------------------------------------------------
General Obligations -- 0.6%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 225 Eastern Plumas, CA, Health Care, (District
Hospital), 7.50%, 8/1/07 $ 226,006
- --------------------------------------------------------------------------------------------------------------
$ 226,006
- --------------------------------------------------------------------------------------------------------------
Hospitals -- 1.0%
- --------------------------------------------------------------------------------------------------------------
NR BBB+ $ 400 Stockton, CA, Health Facilities, (Dameron
Hospital), 5.70%,
12/1/14 $ 402,232
- --------------------------------------------------------------------------------------------------------------
$ 402,232
- --------------------------------------------------------------------------------------------------------------
Housing -- 4.0%
- --------------------------------------------------------------------------------------------------------------
Aaa NR $ 1,500 Corona, CA, Single Family Mortgage, 6.05%, 5/
1/27 $ 1,558,875
- --------------------------------------------------------------------------------------------------------------
$ 1,558,875
- --------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 5.2%
- --------------------------------------------------------------------------------------------------------------
A3 A $ 2,000 California Pollution Control Financing
Authority, (Browning Ferris Industry, Inc.),
Series A, 5.80%, 12/1/16 $ 2,040,200
- --------------------------------------------------------------------------------------------------------------
$ 2,040,200
- --------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 6.4%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Sacramento Municipal Utility District,
(AMBAC), 5.60%, 8/15/16 $ 1,543,485
Aaa AAA 1,000 Southern California Public Power Authority
Project, (AMBAC), 5.00%, 7/1/17 963,460
- --------------------------------------------------------------------------------------------------------------
$ 2,506,945
- --------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 12.5%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,080 Fillmore, CA, Unified School District,
(FGIC), 0.00%, 7/1/15 $ 423,025
Aaa AAA 2,000 Mt. Diablo, CA, School District (AMBAC),
5.70%, 8/1/14 2,094,599
Aaa AAA 2,000 San Mateo County, CA, Transportation
District, (MBIA), 5.00%, 6/1/13 2,011,760
Aaa AAA 705 Ukiah, CA, Unified School District, (FGIC),
0.00%, 8/1/10 369,357
- --------------------------------------------------------------------------------------------------------------
$ 4,898,741
- --------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 19.9%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 ABAG Finance Authority Certificate of
Participation, (Stanford University
Hospital), (MBIA), 5.13%,
11/1/05 $ 1,046,760
Aaa AAA 1,500 ABAG Finance Authority Certificates of
Participation, (Stanford University
Hospital), (MBIA), 4.90%,
11/1/03 1,551,750
Aaa AAA 1,250 California Health Facilities Financing
Authority, (Catholic Health West), (AMBAC),
5.00%, 7/1/14 1,223,538
Aaa AAA 1,500 Loma Linda, CA, Hospital Revenue, (MBIA),
5.00%, 12/1/13 1,478,640
Aaa AAA 1,900 Riverside County, CA, (Riverside County
Hospital Project), (MBIA), 0.00%, 6/1/21 523,013
Aaa AAA 1,000 Riverside County, CA, (Riverside County
Hospital Project), (MBIA], 5.00%, 6/1/19 955,340
Aaa AAA 1,000 Tri City, CA, Hospital District, (MBIA),
5.63%, 2/15/17 1,022,410
- --------------------------------------------------------------------------------------------------------------
$ 7,801,451
- --------------------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 6.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,355 California State Public Works Board -
Department of Corrections (AMBAC), 5.25%, 12/
1/13 $ 1,395,962
Aaa AAA 1,000 San Francisco, CA, State Building Authority,
Civic Center Complex, Lease Revenue Bonds,
(AMBAC), 5.25%, 12/1/16 998,730
- --------------------------------------------------------------------------------------------------------------
$ 2,394,692
- --------------------------------------------------------------------------------------------------------------
Insured - Special Tax Revenue -- 3.4%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,250 Los Angeles Metropolitan Transportation
Authority Sales Tax, (AMBAC), 5.70%, 7/1/12 $ 1,316,975
- --------------------------------------------------------------------------------------------------------------
$ 1,316,975
- --------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 7.0%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 750 San Francisco, CA, City and County Airports,
(AMBAC), (AMT), 5.00%, 1/1/12(1) $ 737,565
Aaa AAA 1,500 San Francisco, CA, City and County Airports,
(MBIA), 5.60%, 5/1/13 1,545,345
Aaa AAA 1,000 San Joaquin Hills, CA, Transportation
Corridor Agency Bridge & Toll Road, (MBIA),
0.00%, 1/15/12(1) 476,810
- --------------------------------------------------------------------------------------------------------------
$ 2,759,720
- --------------------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 2.5%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Central Coast Water Authority, (AMBAC),
5.00%, 10/1/13 $ 990,230
- --------------------------------------------------------------------------------------------------------------
$ 990,230
- --------------------------------------------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation -- 3.9%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 1,500 California State Public Works, (California
Community College), (AMBAC), 5.63%, 3/1/16 $ 1,545,840
- --------------------------------------------------------------------------------------------------------------
$ 1,545,840
- --------------------------------------------------------------------------------------------------------------
Nursing Homes -- 5.3%
- --------------------------------------------------------------------------------------------------------------
NR A $ 2,000 California Statewide Communities Development
Corporation, (Pacific Homes), 5.90%, 4/1/09 $ 2,084,800
- --------------------------------------------------------------------------------------------------------------
$ 2,084,800
- --------------------------------------------------------------------------------------------------------------
Water and Sewer -- 5.4%
- --------------------------------------------------------------------------------------------------------------
A1 A $ 2,000 The City of Los Angeles Wastewater System,
6.90%, 6/1/08(2)(3) $ 2,124,019
- --------------------------------------------------------------------------------------------------------------
$ 2,124,019
- --------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $37,438,471) $ 39,243,429
- --------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
(1) When-issued security.
(2) Security has been segregated to cover when-issued securities.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by California
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, 57.8% 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 2.0% to 30.8% of total investments.
</TABLE>
<PAGE>
Connecticut Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
<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>
- --------------------------------------------------------------------------------------------------------------
Colleges and Universities -- 1.4%
- --------------------------------------------------------------------------------------------------------------
Baa3 BBB- $140 Connecticut State Health and Educational
Facilities, (Sacred Heart University),
6.00%, 7/1/08 $ 146,945
- --------------------------------------------------------------------------------------------------------------
$ 146,945
- --------------------------------------------------------------------------------------------------------------
Education -- 12.0%
- --------------------------------------------------------------------------------------------------------------
Baa1 BBB+ $750 State of Connecticut Health and Education
Facilities Authority (HEFA), (Fairfield
University), 6.90%, 7/1/14(1) $ 778,949
NR BBB- 500 State of Connecticut HEFA, (Quinnipiac
College), 6.00%,
7/1/13 506,745
- --------------------------------------------------------------------------------------------------------------
$ 1,285,694
- --------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.6%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $250 South Central Connecticut Regional Water
Authority (AMBAC), Prerefunded to 8/1/01,
6.50%, 8/1/07 $ 274,563
- --------------------------------------------------------------------------------------------------------------
$ 274,563
- --------------------------------------------------------------------------------------------------------------
General Obligations -- 14.4%
- --------------------------------------------------------------------------------------------------------------
Baa1 A $500 Commonwealth of Puerto Rico Aqueduct and
Sewer Authority, 5.00%, 7/1/19 $ 472,710
Aa2 AA 250 Danbury, CT, 5.00%, 8/1/17 245,663
Aa3 NR 200 North Haven, CT, 5.00%, 9/1/16 195,682
Aa NR 190 Norwich, CT, 5.00%, 8/1/14 188,070
Aa NR 190 Norwich, CT, 5.00%, 8/1/15 187,123
Aa3 AA 190 State of Connecticut, 0.00%,
11/15/10 99,944
Aa3 AA- 150 State of Connecticut, 5.125%,
8/15/11 151,109
- --------------------------------------------------------------------------------------------------------------
$ 1,540,301
- --------------------------------------------------------------------------------------------------------------
Hospitals -- 5.7%
- --------------------------------------------------------------------------------------------------------------
NR BBB- $555 Connecticut HEFA, (New Britain Hospital),
7.50%, 7/1/06 $ 604,511
- --------------------------------------------------------------------------------------------------------------
$ 604,511
- --------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 8.4%
- --------------------------------------------------------------------------------------------------------------
A1 NR $625 Connecticut Development Authority, (Frito
Lay), 6.375%, 7/1/04 $ 635,199
Baa3 BBB- 250 Puerto Rico Port Authority (American
Airlines), 6.25%, 6/1/26 267,565
- --------------------------------------------------------------------------------------------------------------
$ 902,764
- --------------------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 2.2%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $240 University of Connecticut, (FGIC), 5.00%,
2/1/15 $ 236,429
- --------------------------------------------------------------------------------------------------------------
$ 236,429
- --------------------------------------------------------------------------------------------------------------
Insured - Education -- 3.7%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $400 Connecticut State Health and Educational
Facilities, (Choate Rosemary Hall),
(MBIA), 5.00%,
7/1/14 $ 394,172
- --------------------------------------------------------------------------------------------------------------
$ 394,172
- --------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 2.6%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $250 Connecticut Municipal Electric Authority,
(MBIA), 6.00%, 1/1/07 $ 276,313
- --------------------------------------------------------------------------------------------------------------
$ 276,313
- --------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 14.9%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $250 Brandford, CT (FGIC), 5.40%,
2/15/14 $ 253,988
Aaa AAA 500 Bridgeport, CT (AMBAC), 6.00%,
9/1/06 551,490
Aaa AAA 300 Connecticut Regional School District,
(MBIA), 5.00%, 6/15/16 294,969
Aaa AAA 500 Old Saybrook, CT (AMBAC), 4.10%, 8/15/01 498,635
- --------------------------------------------------------------------------------------------------------------
$ 1,599,082
- --------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 6.6%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $150 Connecticut HEFA, (Greenwich Hospital),
(MBIA), 5.75%,
7/1/06 $ 162,527
Aaa AAA 250 Connecticut HEFA, (MBIA), 5.25%,
7/1/11 252,230
Aaa AAA 300 Connecticut State Health and Educational
Facilities, (Middlesex Health Services),
(MBIA), 5.125%, 7/1/17(2) 290,739
- --------------------------------------------------------------------------------------------------------------
$ 705,496
- --------------------------------------------------------------------------------------------------------------
Insured - Life Care -- 7.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $470 Connecticut HEFA, (St. Raphael Hospital),
(AMBAC), 5.10%,
7/1/07 $ 486,398
Aaa AAA 250 Connecticut HEFA, (Stamford Hospital),
(MBIA), 6.50%,
7/1/06 271,843
- --------------------------------------------------------------------------------------------------------------
$ 758,241
- --------------------------------------------------------------------------------------------------------------
Insured - Miscellaneous -- 5.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $500 Woodstock, CT Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 544,340
- --------------------------------------------------------------------------------------------------------------
$ 544,340
- --------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 8.2%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $750 Connecticut State Airport Bonds, (Bradley
International Airport), (FGIC), 7.40%,
10/1/04 $ 878,917
- --------------------------------------------------------------------------------------------------------------
$ 878,917
- --------------------------------------------------------------------------------------------------------------
Solid Waste -- 2.3%
- --------------------------------------------------------------------------------------------------------------
NR A- $250 Eastern Connecticut Resources Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.00%, 1/1/03 $ 249,330
- --------------------------------------------------------------------------------------------------------------
$ 249,330
- --------------------------------------------------------------------------------------------------------------
Water and Sewer -- 2.8%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $300 Connecticut State Clean Water Revenue,
4.875%, 5/1/09 $ 300,558
- --------------------------------------------------------------------------------------------------------------
$ 300,558
- --------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $10,272,445) $10,697,656
- --------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
(1) Security has been segregated to cover when-issued securities.
(2) When-issued security.
The Portfolio invests primarily in debt securitites issued by Connecticut
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, 50.4% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 12.8% to 22.0% of total investments.
</TABLE>
<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
- ------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Federal Alternative Minimum Tax.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
The Portfolio invests primarily in debt securities issued by Florida municipalities. The ability of 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.
See notes to financial statements
</TABLE>
<PAGE>
Michigan 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>
- --------------------------------------------------------------------------------------------------------------
Economic Development Revenue -- 1.2%
- --------------------------------------------------------------------------------------------------------------
NR BB- $ 150 Michigan State Strategic Fund, 6.25%, 8/1/12 $ 150,894
- --------------------------------------------------------------------------------------------------------------
$ 150,894
- --------------------------------------------------------------------------------------------------------------
Education -- 1.9%
- --------------------------------------------------------------------------------------------------------------
Aa2 NR $ 250 Oakland County, MI, (Cranbrook Educational
Community Project), 5.00%, 11/1/17 $ 238,115
- --------------------------------------------------------------------------------------------------------------
$ 238,115
- --------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.7%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Grand Ledge, MI, Public School District,
(MBIA), Prerefunded to
5/1/04, 7.875%, 5/1/11 $ 1,211,660
- --------------------------------------------------------------------------------------------------------------
$ 1,211,660
- --------------------------------------------------------------------------------------------------------------
General Obligations -- 10.0%
- --------------------------------------------------------------------------------------------------------------
Baa2 BBB $ 650 Detroit, MI, 6.25%, 4/1/05 $ 704,964
Baa2 BBB 495 Detroit, MI, 6.40%, 4/1/05 541,476
- --------------------------------------------------------------------------------------------------------------
$ 1,246,440
- --------------------------------------------------------------------------------------------------------------
Hospitals -- 16.0%
- --------------------------------------------------------------------------------------------------------------
Baa1 NR $ 525 Flint, MI Hospital Authority, (Hurley Medical
Center), 6.00%, 7/1/05 $ 541,637
A2 A+ 470 Marquette Michigan Hospital Finance
Authority, 6.625%, 4/1/07 470,823
NR BBB 100 Michigan Hospital Finance Authority, (Central
MI Community Hospital), 6.00%, 10/1/05 106,394
NR BBB 100 Michigan Hospital Finance Authority, (Central
MI Community Hospital), 6.10%, 10/1/06 107,222
NR BBB 225 Michigan Hospital Finance Authority, (Central
MI Community Hospital), 6.20%, 10/1/07 243,106
NR BBB 500 Michigan State Hospital (Gratiot Community
Hospital), 6.10%,
10/1/07 524,650
- --------------------------------------------------------------------------------------------------------------
$ 1,993,832
- --------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 5.6%
- --------------------------------------------------------------------------------------------------------------
Baa3 BBB- $ 500 Puerto Rico Port Authority (American
Airlines), 6.25%, 6/1/26 $ 535,130
NR BB- 170 Richmond, MI Economic Development Corp., (K-
MART), 6.30%, 1/1/99 171,005
- --------------------------------------------------------------------------------------------------------------
$ 706,135
- --------------------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 3.5%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 450 Michigan State University, Agriculture and
Applied Sciences, (AMBAC), 5.125%, 2/15/16 $ 442,769
- --------------------------------------------------------------------------------------------------------------
$ 442,769
- --------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 16.2%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Detroit, MI, School District, (AMBAC), 6.50%,
5/1/10 $ 574,970
Aaa AAA 500 Hartland, MI, School District, (FGIC),
5.125%, 5/1/17 490,465
Aaa AAA 1,000 Wixom MI, (AMBAC), 4.75%,
5/1/11(1) 965,000
- --------------------------------------------------------------------------------------------------------------
$ 2,030,435
- --------------------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue /
Pollution Control Revenue -- 4.4%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Monroe County, MI, (The Detroit Edison Co.),
(AMBAC), (AMT), 6.35%, 12/1/04 $ 551,120
- --------------------------------------------------------------------------------------------------------------
$ 551,120
- --------------------------------------------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation -- 4.3%
- --------------------------------------------------------------------------------------------------------------
A1 AA- $ 500 State of Michigan Building Authority, 6.10%,
10/1/01 $ 533,910
- --------------------------------------------------------------------------------------------------------------
$ 533,910
- --------------------------------------------------------------------------------------------------------------
Life Care -- 2.5%
- --------------------------------------------------------------------------------------------------------------
NR BBB $ 300 Kalamazoo, MI, (Friendship Village), 6.125%,
5/15/17 $ 308,649
- --------------------------------------------------------------------------------------------------------------
$ 308,649
- --------------------------------------------------------------------------------------------------------------
Miscellaneous -- 1.2%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 150 Pittsfield Township, MI, EDC, (Arbor Hospice
Project), 7.875%,
8/15/27 $ 147,459
- --------------------------------------------------------------------------------------------------------------
$ 147,459
- --------------------------------------------------------------------------------------------------------------
Nursing Homes -- 3.3%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 395 Michigan Hospital Finance Authority,
(Presbyterian Villages), 6.20%,
1/1/06 $ 417,934
- --------------------------------------------------------------------------------------------------------------
$ 417,934
- --------------------------------------------------------------------------------------------------------------
Solid Waste -- 3.0%
- --------------------------------------------------------------------------------------------------------------
Ba1 BBB- $ 350 Central Wayne, MI, Sanitation Authority,
6.40%, 7/1/06 $ 369,625
- --------------------------------------------------------------------------------------------------------------
$ 369,625
- --------------------------------------------------------------------------------------------------------------
Special Tax Revenue -- 12.7%
- --------------------------------------------------------------------------------------------------------------
NR BBB+ $1,000 Battle Creek, MI Downtown Development
Authority, 6.65%,
5/1/02 $ 1,082,557
NR A- 2,000 Detroit, MI, Downtown Development Authority
Tax Increment, 0.00%,
7/1/21 503,740
- --------------------------------------------------------------------------------------------------------------
$ 1,586,297
- --------------------------------------------------------------------------------------------------------------
Water and Sewer -- 4.5%
- --------------------------------------------------------------------------------------------------------------
Aa1 AA+ $ 500 Michigan Municipal Bond Authority, 7.00%, 10/
1/02 $ 561,025
- --------------------------------------------------------------------------------------------------------------
$ 561,025
- --------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $11,663,301) $12,496,299
- --------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1997, 24.1% of such securities in the portfolio
of investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 3.9% to 20.3% of total investments.
</TABLE>
<PAGE>
New Jersey 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>
- --------------------------------------------------------------------------------------------------------------
Assisted Living -- 1.3%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 650 New Jersey Economic Development Authority,
8.00%, 10/1/07 $ 667,667
- --------------------------------------------------------------------------------------------------------------
$ 667,667
- --------------------------------------------------------------------------------------------------------------
Cogeneration -- 8.3%
- --------------------------------------------------------------------------------------------------------------
NR BBB- $2,250 New Jersey Economic Development Authority,
Heating and Cooling, (Trigen-Trenton), (AMT),
6.10%, 12/1/05 $ 2,397,398
NR BB+ 1,135 New Jersey EDA, (Vineland Cogeneration)
(AMT), 7.88%,
6/1/19 1,244,198
NR NR 550 Port Authority of New York and New Jersey,
(KIAC Project), (AMT), 6.50%, 10/1/01 583,682
- --------------------------------------------------------------------------------------------------------------
$ 4,225,278
- --------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.4%
- --------------------------------------------------------------------------------------------------------------
Aaa NR $2,030 New Jersey Economic Development Authority,
0.00%, 12/15/12 $ 923,711
Baa1 AAA 1,735 Puerto Rico Aqueduct and Sewer Authority,
Prerefunded to 7/1/98, 7.88%, 7/1/17 1,822,947
- --------------------------------------------------------------------------------------------------------------
$ 2,746,658
- --------------------------------------------------------------------------------------------------------------
General Obligations -- 14.9%
- --------------------------------------------------------------------------------------------------------------
A3 AA $2,195 Jersey City, NJ, School District, 6.25%,
10/1/10 $ 2,491,083
Baa1 A 3,000 Puerto Rico Public Buildings Authority,
5.25%, 7/1/21 2,924,249
Aa3 AA- 1,000 South Brunswick, NJ, 7.12%,
7/15/02 1,123,090
Aaa AA+ 1,000 Union County, NJ, 5.00%, 2/1/10 1,024,010
- --------------------------------------------------------------------------------------------------------------
$ 7,562,432
- --------------------------------------------------------------------------------------------------------------
Hospitals -- 4.4%
- --------------------------------------------------------------------------------------------------------------
A3 A- $ 340 New Jersey Health Care Facilities Financing
Authority (Atlantic City Medical Care
Center), 6.25%,
7/1/00 $ 356,878
A3 A- 1,000 New Jersey Health Care Facilities Financing
Authority, (Atlantic City Medical Care
Center), 6.45%,
7/1/02 1,079,190
A3 A- 750 New Jersey Health Care Facilities Financing
Authority, (Atlantic City Medical Care
Center), 6.55%,
7/1/03 $ 820,943
- --------------------------------------------------------------------------------------------------------------
$ 2,257,011
- --------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 2.3%
- --------------------------------------------------------------------------------------------------------------
Aa3 NR $ 610 New Jersey Economic Development Authority,
LOC: Bank of Paris, (AMT), 6.00%, 12/1/02 $ 637,298
NR NR 500 New Jersey EDA, Holt Hauling and Warehousing
System, Inc., 7.90%, 3/1/27 552,410
- --------------------------------------------------------------------------------------------------------------
$ 1,189,708
- --------------------------------------------------------------------------------------------------------------
Insured - Education -- 2.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 New Jersey State Educational Facilities,
(Seton Hall University) (FGIC), 6.10%, 7/1/01 $ 1,065,610
- --------------------------------------------------------------------------------------------------------------
$ 1,065,610
- --------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 2.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Middlesex County, NJ, Utility Authority,
(FGIC), 6.10%, 12/1/01 $ 1,073,890
- --------------------------------------------------------------------------------------------------------------
$ 1,073,890
- --------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 25.8%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Atlantic City, NJ, Board of Education,
(AMBAC), 6.00%, 12/1/02(1) $ 1,085,210
Aaa AAA 500 City of Elizabeth, Union County, NJ, (MBIA),
6.10%, 11/15/99 521,990
Aaa AAA 500 City of Elizabeth, Union County, NJ, (MBIA),
6.20%, 11/15/02 536,990
Aaa AAA 1,175 Edison, NJ, (AMBAC), 4.70%,
1/1/04 1,194,012
Aaa AAA 1,200 Kearney, NJ, (FSA), 6.50%,
2/1/04 1,318,776
Aaa AAA 725 Monroe Township, NJ, Board of Education,
(FGIC), 5.20%, 8/1/11 749,425
Aaa AAA 825 Monroe Township, NJ, Board of Education,
(FGIC), 5.20%, 8/1/14 841,970
Aaa AAA 850 Roselle, NJ, (MBIA), 4.65%,
10/15/03 865,215
Aaa AAA 1,000 South Brunswick Township, NJ, Board of
Education, (FGIC), 6.40%, 8/1/03 $ 1,106,760
Aaa AAA 1,100 South River, NJ, School District, (FGIC),
5.00%, 12/1/09 1,129,227
Aaa AAA 2,000 Washington Township, NJ, Board of Education,
5.13%, 2/1/15 2,001,620
Aaa AAA 1,585 West Deptford Township, NJ, (AMBAC), 5.90%,
3/1/09 1,750,062
- --------------------------------------------------------------------------------------------------------------
$13,101,257
- --------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 7.1%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,910 New Jersey Health Care Facilities Financing
Authority, (Dover General Hospital and
Medical Center), (MBIA), 7.00%, 7/1/04 $ 2,188,822
Aaa AAA 1,300 New Jersey Health Care Facilities, (AHS
Hospital Corp.), (AMBAC), 6.00%, 7/1/12 1,429,402
- --------------------------------------------------------------------------------------------------------------
$ 3,618,224
- --------------------------------------------------------------------------------------------------------------
Insured - Solid Waste -- 0.5%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 250 The Bergen County Utilities Authority, Solid
Waste System, (FGIC), 6.00%, 6/15/02 $ 268,143
- --------------------------------------------------------------------------------------------------------------
$ 268,143
- --------------------------------------------------------------------------------------------------------------
Insured - Transportation -- 7.9%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 New Jersey Turnpike Authority, (FSA), 5.90%,
1/1/03 $ 1,070,560
Aaa AAA 895 New Jersey Turnpike Authority, (FSA), 6.40%,
1/1/02 966,904
Aaa AAA 2,000 Port Authority of New York and New Jersey,
(AMBAC), 5.13%, 7/15/14 2,001,900
- --------------------------------------------------------------------------------------------------------------
$ 4,039,364
- --------------------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 1.2%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 565 Pennsville, NJ, (MBIA), 0.00%,
11/1/16 $ 209,349
Aaa AAA 565 Pennsville, NJ, (MBIA), 0.00%,
11/1/17 198,739
Aaa AAA 565 Pennsville, NJ, (MBIA), 0.00%,
11/1/18 187,507
- --------------------------------------------------------------------------------------------------------------
$ 595,595
- --------------------------------------------------------------------------------------------------------------
Life Care -- 4.5%
- --------------------------------------------------------------------------------------------------------------
Baa2 NR $ 500 Camden County, NJ, 5.60%,
2/15/07 $ 511,490
NR NR 310 New Jersey EDA, (Cadbury Corp.), 8.00%,
7/1/15 332,856
Baa2 BBB 1,380 New Jersey Health Care Facilities Financing
Authority, 5.75%,
7/1/08 1,435,448
- --------------------------------------------------------------------------------------------------------------
$ 2,279,794
- --------------------------------------------------------------------------------------------------------------
Solid Waste -- 5.7%
- --------------------------------------------------------------------------------------------------------------
A1 AA- $ 500 Gloucester County Improvement Authority of
New Jersey (Landfill), 5.40%, 9/1/00 $ 517,835
B1 NR 300 The Atlantic County Utilities Authority (New
Jersey), Solid Waste System, 7.00%, 3/1/08 306,849
A1 NR 300 The Passaic County Utilities Authority (New
Jersey), Solid Waste Disposal, 5.70%, 3/1/98 302,382
NR BB 1,700 Union County, NJ, Utilities Authority, (AMT),
7.20%, 6/15/14 1,753,771
- --------------------------------------------------------------------------------------------------------------
$ 2,880,837
- --------------------------------------------------------------------------------------------------------------
Transportation -- 6.5%
- --------------------------------------------------------------------------------------------------------------
A1 AA- $1,000 Port Authority of New York and New Jersey,
5.38%, 10/15/16 $ 994,670
A1 AA- 500 Port Authority of New York and New Jersey,
5.50%, 7/1/06 530,235
Baa3 BBB- 1,625 Port Authority of New York and New Jersey,
(Delta Airlines), 6.95%,
6/1/08 1,771,933
- --------------------------------------------------------------------------------------------------------------
$ 3,296,838
- --------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $48,296,307) $50,868,306
- --------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
The Portfolio invests primarily in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1997, 46.7% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 6.6% to 14.7% of total investments.
</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
- ------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax preference item for purposes of the
Federal Alternative Minimum Tax.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial
futures contracts.
The portfolio invests primarily in debt securities issued by New York municipalities. The ability of the
issuers of the debt securities to meet their obligations may be affected by economic developments in a
specific industry or municipality. In order to reduce the risk associated with such economic developments, at
September 30, 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.
See notes to financial statements
</TABLE>
<PAGE>
Ohio 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>
- --------------------------------------------------------------------------------------------------------------
Colleges and Universities -- 1.1%
- --------------------------------------------------------------------------------------------------------------
A2 NR $ 300 Ohio State Higher Educational Facility, (John
Carroll University), 5.50%, 4/1/10 $ 311,139
- --------------------------------------------------------------------------------------------------------------
$ 311,139
- --------------------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.8%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 650 Clermont County, OH, Water Works, (AMBAC),
Prerefunded to
12/1/01, 6.625%, 12/1/16 $ 720,993
NR NR 350 Cuyahoga County, OH, (Judson Retirement
Community), 8.875%, 11/15/19 392,970
Baa1 AAA 1,000 Puerto Rico Aqueduct and Sewer Authority,
Prerefunded to 7/1/98, 7.875%, 7/1/17 1,050,690
- --------------------------------------------------------------------------------------------------------------
$ 2,164,653
- --------------------------------------------------------------------------------------------------------------
General Obligations -- 10.2%
- --------------------------------------------------------------------------------------------------------------
Aa2 NR $ 500 Hamilton County, OH, 5.00%,
12/1/16 $ 493,295
NR NR 300 Kings County, OH, Local School District,
7.60%, 12/1/10 346,488
Aa3 NR 250 Oak Hills, OH, 5.60%, 12/1/17 254,973
A3 NR 1,000 Wauseon, OH, School District, 7.25%, 12/1/10
(1) 1,111,030
NR NR 595 Youngstown, OH, County School District,
6.40%, 7/1/00 615,188
- --------------------------------------------------------------------------------------------------------------
$ 2,820,974
- --------------------------------------------------------------------------------------------------------------
Hospitals -- 13.3%
- --------------------------------------------------------------------------------------------------------------
A A $1,000 Erie County Hospital Improvement (Fireland
Community Hospital Project), 6.75%, 1/1/08 $ 1,086,830
Baa1 BBB 500 Hamilton County, OH Health System (Providence
Hospital Project), 6.00%, 7/1/01 518,430
NR NR 955 Mt. Vernon Ohio Hospital, (Knox Community
Hospital), 7.875%,
6/1/12 981,014
Aa2 NR 1,000 Warren County, OH, Hospital Facilities,
(Otterbein Homes Project), 7.20%, 7/1/11 1,092,380
- --------------------------------------------------------------------------------------------------------------
$ 3,678,654
- --------------------------------------------------------------------------------------------------------------
Housing -- 6.0%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 300 Cuyahoga County, OH, (Rolling Hills Apts.),
8.00%, 1/1/28 $ 297,240
NR AAA 1,000 Cuyahoga County, OH, Multifamily Housing,
(National Terminal Apts. Project), 6.40%,
7/1/16 1,060,540
NR NR 300 Lucas County, OH, Economic Development
Multifamily Housing (County Creek Project
(AMT), 8.00%, 7/1/26 293,673
- --------------------------------------------------------------------------------------------------------------
$ 1,651,453
- --------------------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 10.3%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 500 Cuyahoga County, OH, (Rock and Roll Hall of
Fame), 5.45%,
12/1/05 $ 515,915
NR NR 250 Cuyahoga County, OH, (Rock and Roll Hall of
Fame), 5.85%,
12/1/08 264,095
NR A- 1,020 Ohio Economic Development Commission, (ABS
Industries) (AMT), 6.00%, 6/1/04 1,100,835
NR A- 645 Ohio Economic Development Commission, (Ohio
Enterprise Bond Fund - Progress Plastics
Products), (AMT), 6.80%, 12/1/01 687,402
NR NR 250 Ohio Solid Waste Revenue, Republic Engineered
Steels Inc., (AMT), 9.00%, 6/1/21 259,938
- --------------------------------------------------------------------------------------------------------------
$ 2,828,185
- --------------------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 1.8%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 University of Cincinnati, (MBIA), 5.00%,
6/1/17 $ 483,555
- --------------------------------------------------------------------------------------------------------------
$ 483,555
- --------------------------------------------------------------------------------------------------------------
Insured - Education -- 3.5%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Ohio State Public Facilities Commission,
(Higher Educational Facilities), (AMBAC),
4.30%, 12/1/08 $ 951,450
- --------------------------------------------------------------------------------------------------------------
$ 951,450
- --------------------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 1.8%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland, OH, Public Power System, (MBIA),
5.125%, 11/15/18 $ 490,170
- --------------------------------------------------------------------------------------------------------------
$ 490,170
- --------------------------------------------------------------------------------------------------------------
Insured - General Obligations -- 30.6%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Cleveland, OH, (MBIA), 6.50%, 11/15/01(1) $ 1,086,620
Aaa AAA 500 Cleveland, OH, (MBIA), 5.00%,
8/1/18 480,570
Aaa AAA 500 Commonwealth of Puerto Rico, (MBIA), 5.375%,
7/1/21 499,620
Aaa AAA 225 Finneytown, OH, Local School District,
(FGIC), 6.15%, 12/1/11 254,707
Aaa AAA 500 Forest Hills, OH, Local School District,
(MBIA), 6.00%, 12/1/09 556,440
Aaa AAA 1,000 North Olmsted, OH (AMBAC), 5.00%, 12/1/16 978,220
Aaa AAA 1,500 Southwest Licking Ohio School Facilities
Improvement, (FGIC), 7.10%, 12/1/16 1,752,225
Aaa AAA 500 Strongsville, OH, City School District,
(MBIA), 5.375%, 12/1/12 523,810
Aaa AAA 1,500 West Clermont, OH, School District, (AMBAC),
6.90%, 12/1/12(2) 1,732,153
Aaa AAA 500 West Clermont, OH, School District, (AMBAC),
7.125%, 12/1/19 578,120
- --------------------------------------------------------------------------------------------------------------
$ 8,442,485
- --------------------------------------------------------------------------------------------------------------
Insured - Hospitals -- 1.9%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Cuyahoga County, OH, (Metrohealth System),
(MBIA), 5.50%,
2/15/12(3) $ 523,030
- --------------------------------------------------------------------------------------------------------------
$ 523,030
- --------------------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 3.4%
- --------------------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland, OH, (Cleveland Stadium Project),
(AMBAC), 5.25%,
11/15/17 $ 496,285
Aaa AAA 400 Cleveland, OH, (Cleveland Stadium Project),
(AMBAC), 6.00%,
11/15/08 442,796
- --------------------------------------------------------------------------------------------------------------
$ 939,081
- --------------------------------------------------------------------------------------------------------------
Life Care -- 4.3%
- --------------------------------------------------------------------------------------------------------------
VMIG-1 NR $ 500 Hamilton County, OH, Hospital Facilities
Revenue, (Retirement Homes), 5.00%, 7/1/15 $ 507,995
NR BBB- 680 Marion County, OH, Health Care Facilities,
(United Church Homes Project), 5.25%,
11/15/98 684,182
- --------------------------------------------------------------------------------------------------------------
$ 1,192,177
- --------------------------------------------------------------------------------------------------------------
Nursing Homes -- 2.5%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 300 Fairfield, OH, Economic Development Revenue,
(Beverly Enterprises Project), 8.50%, 1/1/03 $ 328,221
NR NR 295 Greene County, OH, First Mortgage, (Fairview
Extended Care), 10.125%, 1/1/11 354,664
- --------------------------------------------------------------------------------------------------------------
$ 682,885
- --------------------------------------------------------------------------------------------------------------
Special Tax Revenue -- 1.5%
- --------------------------------------------------------------------------------------------------------------
NR NR $ 403 Columbus, OH, Special Assessment, 6.05%,
9/15/05 $ 415,766
- --------------------------------------------------------------------------------------------------------------
$ 415,766
- --------------------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $26,423,054) $27,575,657
- --------------------------------------------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
(1) Security has been segregated to cover when-issued securities.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) When-issued security.
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1997, 43.0% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 7.3% to 21.4% of total investments.
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investments --
Identified cost $37,438,471 $10,272,445 $77,729,712 $11,663,301
Unrealized appreciation 1,804,958 425,211 3,191,396 832,998
- -----------------------------------------------------------------------------------------------------------------------------------
Investments, at value (Note 1A) $39,243,429 $10,697,656 $80,921,108 $12,496,299
- -----------------------------------------------------------------------------------------------------------------------------------
Cash $ 93 $ 106,895 $ 572 $ 215
Receivable for investments sold -- -- -- 495,092
Interest receivable 605,665 144,037 1,693,674 275,605
Receivable for daily variation
margin on open financial
futures contracts (Note 1E) 8,250 -- 8,938 2,750
Deferred organization expenses
(Note 1D) 890 462 2,474 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $39,858,327 $10,949,050 $82,626,766 $13,269,961
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payable for when-issued
securities (Note 1F)
$1,213,685 $ 292,542 $ -- $ --
Demand note payable (Note 5) 167,000 -- 418,000 313,000
Payable to affiliate for
Trustees' fees (Note 2) 416 -- 1,683 41
Accrued expenses 2,854 931 5,395 2,145
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities $1,383,955 $ 293,473 $ 425,078 $ 315,186
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to
investors' interest in
Portfolio $38,474,372 $10,655,577 $82,201,688 $12,954,775
- -----------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $36,743,049 $10,230,366 $79,051,573 $12,134,703
Net unrealized appreciation of
investments and financial
futures contracts
(computed on the basis of
identified cost) 1,731,323 425,211 3,150,115 820,072
- -----------------------------------------------------------------------------------------------------------------------------------
Total $38,474,372 $10,655,577 $82,201,688 $12,954,775
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Muncipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STAEMENTS (Unaudted) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO
LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investments --
Identified cost $48,296,307 $84,164,940 $26,423,054
Unrealized appreciation 2,571,999 3,213,007 1,152,603
- -----------------------------------------------------------------------------------------------------------------------------------
Investments, at value (Note 1A) $50,868,306 $87,377,947 $27,575,657
- -----------------------------------------------------------------------------------------------------------------------------------
Cash $ 511 $ 633 $ 234
Interest receivable 780,351 1,620,729 498,299
Receivable for daily variation margin on open financial futures
contracts (Note 1E) 5,500 17,531 688
Deferred organization expenses (Note 1D) 996 1,501 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $51,655,664 $89,018,341 $28,074,878
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities (Note 1F) $ -- $ -- $ 516,285
Demand note payable (Note 5) 479,000 1,763,000 463,000
Payable to affiliate for Trustees' fees (Note 2) 1,632 2,206 474
Accrued expenses 4,386 7,622 4,141
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 485,018 $1,772,828 $ 983,900
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $51,170,646 $87,245,513 $27,090,978
- -----------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $48,631,778 $84,188,980 $25,940,262
Net unrealized appreciation of investments and financial futures contracts
(computed on the basis of identified cost) 2,538,868 3,056,533 1,150,716
- -----------------------------------------------------------------------------------------------------------------------------------
Total $51,170,646 $87,245,513 $27,090,978
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Muncipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STAEMENTS (Unaudted) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $1,124,251 $ 316,081 $2,383,675 $ 400,654
- -----------------------------------------------------------------------------------------------------------------------------------
Total income $1,124,251 $ 316,081 $2,383,675 $ 400,654
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Adviser fee (Note 2) $ 94,735 $ 26,589 $ 201,818 $ 32,856
Compensation of Trustees not members of the Investment Adviser's
organization (Note 2) 834 25 5,582 84
Legal and accounting services 19,515 15,066 20,570 14,413
Custodian fee (Note 1G) 13,936 5,285 27,474 6,827
Amortization of organization expenses (Note 1D) 757 1,281 2,108 259
Miscellaneous 3,538 1,190 852 1,181
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 133,315 $ 49,436 $ 258,404 $ 55,620
- -----------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1G) $ 4,370 $ 859 $ 6,717 $ 2,303
Preliminary reduction of investment adviser fee (Note 2) -- 13,203 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 4,370 $ 14,062 $ 6,717 $ 2,303
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 128,945 $ 35,374 $ 251,687 $ 53,317
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 995,306 $ 280,707 $2,131,988 $ 347,337
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 406,166 $ 76,554 $ 459,743 $ 105,373
Financial futures contracts (329,542) (113,393) (1,126,670) (232,398)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments $ 76,624 $ (36,839) $ (666,927) $ (127,025)
- -----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $1,190,079 $ 316,332 $2,750,326 $ 439,774
Financial futures contracts (170,770) -- (249,425) (12,926)
- -----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments $1,019,309 $ 316,332 $2,500,901 $ 426,848
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $1,095,933 $ 279,493 $1,833,974 $ 299,823
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,091,239 $ 560,200 $3,965,962 $ 647,160
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO
LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income $1,529,782 $2,569,317 $ 803,077
- -------------------------------------------------------------------------------------------------------------------------------
Total income $1,529,782 $2,569,317 $ 803,077
- -------------------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 127,697 $ 215,715 $ 65,786
Compensation of Trustees not members of the Investment Adviser's
organization (Note 2) 3,246 4,348 914
Custodian fee (Note 1G) 12,425 19,466 9,055
Legal and accounting services 18,800 21,907 17,864
Amortization of organization expenses (Note 1D) 897 1,288 --
Miscellaneous 11,933 22,301 2,232
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 174,998 $ 285,025 $ 95,851
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income $1,354,784 $2,284,292 $ 707,226
- -------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 413,119 $ 684,604 $ 123,726
Financial futures contracts (632,175) (29,537) (143,002)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments $ (219,056) $ 655,067 $ (19,276)
- -------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $1,464,797 $3,100,308 $ 767,315
Financial futures contracts (33,131) (531,133) (1,887)
- -------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments $1,431,666 $2,569,175 $ 765,428
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $1,212,610 $3,224,242 $ 746,152
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,567,394 $5,508,534 $1,453,378
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 995,306 $ 280,707 $2,131,988 $ 347,337
Net realized gain (loss) on investments 76,624 (36,839) (666,927) (127,025)
Net change in unrealized appreciation of investments 1,019,309 316,332 2,500,901 426,848
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,091,239 $ 560,200 $3,965,962 $ 647,160
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $10,035,694 $3,806,131 $21,958,853 $6,338,402
Withdrawals (16,847,002) (5,984,721) (36,632,319) (9,027,219)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $(6,811,308) $(2,178,590) $(14,673,466) $(2,688,817)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(4,720,069) $(1,618,390) $(10,707,504) $(2,041,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of period $43,194,441 $12,273,967 $92,909,192 $14,996,432
- ---------------------------------------------------------------------------------------------------------------------------------
At end of period $38,474,372 $10,655,577 $82,201,688 $12,954,775
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO
LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
<S> <C> <C> <C>
Net investment income $1,354,784 $2,284,292 $ 707,226
Net realized gain (loss) on investments (219,056) 655,067 (19,276)
Net change in unrealized appreciation of investments 1,431,666 2,569,175 765,428
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,567,394 $5,508,534 $1,453,378
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $14,795,412 $25,537,949 $11,400,618
Withdrawals (24,458,099) (43,814,718) (14,232,870)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from captial transactions $(9,662,687) $(18,276,769) $(2,832,252)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(7,095,293) $(12,768,235) $(1,378,874)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of period $58,265,939 $100,013,748 $28,469,852
- ---------------------------------------------------------------------------------------------------------------------------------
At end of period $51,170,646 $87,245,513 $27,090,978
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $2,546,209 $ 701,646 $5,368,154 $ 895,654
Net realized gain (loss) on investments (146,427) 11,718 (345,920) 196,256
Change in unrealized appreciation (depreciation) of investments (326,414) (114,671) (1,654,724) (180,447)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,073,368 $ 598,693 $3,367,510 $ 911,463
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 890,101 $ 868,089 $4,859,506 $ 727,519
Withdrawals (18,985,108) (4,054,341) (43,152,835) (7,833,956)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $(18,095,007) $(3,186,252) $(38,293,329) $(7,106,437)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(16,021,639) $(2,587,559) $(34,925,819) $(6,194,974)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $59,216,080 $14,861,526 $127,835,011 $21,191,406
- ---------------------------------------------------------------------------------------------------------------------------------
At end of year $43,194,441 $12,273,967 $92,909,192 $14,996,432
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS (Unaudited) CONT'D
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO
LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
From operations --
Net investment income $3,451,147 $5,864,808 $1,601,381
Net realized gain (loss) on investments 72,466 (287,142) 226,637
Net Change in unrealized appreciation (depreciation) of investments (370,049) (895,080) (288,513)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $3,153,564 $4,682,586 $1,539,505
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $1,862,282 $3,989,610 $1,294,856
Withdrawals (26,922,483) (47,386,927) (7,893,884)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $(25,060,201) $(43,397,317) $(6,599,028)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(21,906,637) $(38,714,731) $(5,059,523)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $80,172,576 $138,728,479 $33,529,375
- ---------------------------------------------------------------------------------------------------------------------------------
At end of year $58,265,939 $100,013,748 $28,469,852
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA LIMITED PORTFOLIO CONNECTICUT 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**
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.65%+ 0.63% 0.58% 0.53% 0.46%+ 0.64%+ 0.54% 0.39% 0.17% 0.00%+
Net expenses,
after custodian
fee reduction 0.63%+ 0.61% 0.55% -- -- 0.62%+ 0.50% 0.35% -- --
Net investment income 4.87%+ 4.98% 4.82% 4.72% 4.50%+ 4.91%+ 5.09% 4.91% 4.95% 4.53%+
Portfolio Turnover 28% 57% 36% 56% 6% 16% 46% 52% 73% 39%
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
period (000s
omitted) $38,474 $43,194 $59,216 $82,344 $95,704 $10,656 $12,274 $14,862 $17,316 $16,767
- ----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolios may reflect a reduction of the Investment Adviser fee, and/or an allocation of expenses
to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Expenses(1) 0.52%+ 0.87%+ 0.78% 0.72% 0.67% 0.62%+
Expenses after
custodian fee
reduction -- 0.85%+ 0.74% 0.68% -- --
Net investment
income 4.44%+ 4.68%+ 4.85% 4.58% 4.45% 3.92%+
- ----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
** For the period from the start of business, April 16, 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.
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA LIMITED PORTFOLIO
-------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1997 --------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994*
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.60%+ 0.59% 0.55% 0.52% 0.49%+
Net expenses, after custodian fee
reduction 0.58%+ 0.57% 0.54% -- --
Net investment income 4.88%+ 4.90% 4.73% 4.73% 4.53%+
Portfolio Turnover 24% 66% 20% 44% 8%
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000s omitted) $82,202 $92,909 $127,835 $164,579 $185,977
- ----------------------------------------------------------------------------------------------------------------------------------
+ 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 the 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.
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN LIMITED PORTFOLIO NWE JERSEY 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**
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.80%+ 0.79% 0.68% 0.48% 0.00%+ 0.65%+ 0.61% 0.57% 0.54% 0.54%+
Net expenses,
after custodian
fee reduction 0.77%+ 0.76% 0.64% -- -- 0.64%+ 0.58% 0.55% -- --
Net investment income 4.99%+ 5.09% 5.00% 4.88% 4.62%+ 4.94%+ 4.96% 4.78% 4.73% 4.53%+
Portfolio Turnover 12% 28% 40% 111% 30% 15% 37% 42% 44% 10%
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end
of period (000s
omitted) $12,955 $14,996 $21,191 $33,198 $35,608 $51,171 $58,266 $80,173 $97,280 $102,948
- ----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolios may reflect a reduction of the Investment Adviser fee and/or an allocation of expenses
to the Investment Adviser. Had such actions not been taken, the ratios (as a percentage of average daily net assets) would have
been as follows:
Expenses(1) 0.59% 0.54%+
Net investment income 4.77% 4.08%+
- ----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 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.
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
- -------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- -------------------------------------------------------------------------------
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK LIMITED PORTFOLIO OHIO LIMITED PORTFOLIO
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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**
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Ratios to average daily net assets+
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.62%+ 0.58% 0.55% 0.52% 0.47%+ 0.70%+ 0.68% 0.63% 0.46% 0.00%+
Net expenses,
after custodian
fee reduction 0.61%+ 0.56% 0.53% -- -- 0.69%+ 0.65% 0.61% -- --
Net investment income 4.87%+ 4.87% 4.66% 4.79% 4.50%+ 5.06%+ 5.20% 5.06% 4.96% 4.68%+
Portfolio Turnover 31% 58% 32% 31% 5% 17% 34% 47% 120% 33%
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Net assets, end
of period (000s
omitted) $87,246 $100,014 $138,728 $173,632 $183,768 $27,091 $28,470 $33,529 $39,435 $37,978
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+ The operating expenses of the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of expenses to
the Investment Adviser, or both. Had such actions not been taken, the ratios (as a percentage of average net assets) and net
investment income per share would have been as follows:
Expenses(1) 0.58% 0.54%+
Net investment income 4.84% 4.14%+
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+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
** For the period from the start of business, April 16, 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.
</TABLE>
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolio as of September 30, 1997
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NOTES TO FINANCIAL STATEMENTS (Unaudited)
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1 Significant Accounting Policies
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California Limited Maturity Municipals Portfolio (California Limited
Portfolio), Connecticut Limited Maturity Municipals Portfolio (Connecticut
Limited Portfolio), Florida Limited Maturity Municipals Portfolio (Florida
Limited Portfolio), Michigan Limited Maturity Municipals Portfolio (Michigan
Limited Portfolio), New Jersey Limited Maturity Municipals Portfolio (New
Jersey Limited Portfolio), New York Limited Maturity Municipals Portfolio (New
York Limited Portfolio), and Ohio Limited Maturity Municipals Portfolio (Ohio
Limited Portfolio), collectively the Portfolios, are registered under the
Investment Company Act of 1940 as non-diversified open-end management
investment companies which were organized as trusts under the laws of the
State of New York on May 1, 1992. The Declarations of Trust permit the
Trustees to issue interests in the Portfolios. The following is a summary of
significant accounting policies of the Portfolios. The policies are in
conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on commodity
exchanges are valued at closing settlement prices. Short-term obligations,
maturing in sixty days or less, are valued at amortized cost, which
approximates value. Investments for which valuations or market quotations are
unavailable are valued at fair value using methods determined in good faith by
or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C 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
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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*
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California Limited $ 94,735 0.46%
Connecticut Limited $ 26,589 0.47%
Florida Limited $ 201,818 0.46%
Michigan Limited $ 32,856 0.47%
New Jersey Limited $ 127,697 0.47%
New York Limited $ 215,715 0.46%
Ohio Limited $ 65,786 0.47%
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*Annualized
To enhance the net income of the Connecticut Limited Portfolio, BMR made a
reduction of its fee in the amount of $13,203.
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
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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:
California Limited Portfolio Connecticut Limited Portfolio
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Purchases $ 11,322,089 $ 1,833,663
Sales 16,081,768 3,588,554
Florida Limited Portfolio Michigan Limited Portfolio
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Purchases $ 20,719,202 $ 1,598,564
Sales 34,916,974 4,157,778
New Jersey Limited Portfolio New York Limited Portfolio
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Purchases $ 8,298,261 $ 28,712,475
Sales 16,907,242 42,802,297
Ohio Limited Portfolio
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Purchases $ 4,621,017
Sales 5,551,996
4 Federal Income Tax Basis of Investments
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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:
CALIFORNIA LIMITED CONNECTICUT LIMITED
PORTFOLIO PORTFOLIO
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Aggregate cost $ 37,438,471 $ 10,272,445
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Gross unrealized appreciation $ 1,813,648 $ 426,306
Gross unrealized depreciation (8,690) (1,096)
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Net unrealized appreciation $ 1,804,958 $ 425,211
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Florida Limited Michigan Limited
Portfolio Portfolio
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Aggregate cost $ 77,729,712 $ 11,663,301
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Gross unrealized appreciation $ 3,199,266 $ 832,998
Gross unrealized depreciation (7,870) --
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Net unrealized appreciation $ 3,191,396 $ 832,998
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NEW JERSEY LIMITED NEW YORK LIMITED
PORTFOLIO PORTFOLIO
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Aggregate cost $ 48,296,307 $ 84,164,940
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Gross unrealized appreciation $ 2,593,712 $ 3,213,007
Gross unrealized depreciation (21,713) --
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Net unrealized appreciation $ 2,571,999 $ 3,213,007
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OHIO LIMITED
PORTFOLIO
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Aggregate cost $ 26,423,054
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Gross unrealized appreciation $ 1,152,603
Gross unrealized depreciation --
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Net realized appreciation $ 1,152,603
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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
California Limited Portfolio, Florida Limited Portfolio, Michigan Limited
Portfolio, New Jersey Limited Portfolio, New York Limited Portfolio and Ohio
Limited Portfolio had a balance outstanding pursuant to this line of credit of
$167,000, $418,000, $313,000, $479,000, $1,763,000 and $463,000, 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
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California 12/97 24 U.S. Treasury Bonds Short $ 73,635
Florida 12/97 26 U.S. Treasury Bonds Short $ 41,281
Michigan 12/97 8 U.S. Treasury Bonds Short $ 12,926
New Jersey 12/97 16 U.S. Treasury Bonds Short $ 33,131
New York 12/97 51 U.S. Treasury Bonds Short $156,474
Ohio 12/97 2 U.S. Treasury Bonds Short $ 1,887
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of September 30, 1997
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INVESTMENT MANAGEMENT
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EV TRADITIONAL LIMITED MATURITY MUNICIPALS FUNDS
Officers Independent Trustees
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
Chairman, Newspapers of New England,
JAMES B. HAWKES Inc.
Vice President and Trustee
SAMUEL L. HAYES, III
ROBERT B. MACINTOSH Jacob H. Schiff Professor of
Vice President Investment Banking, Harvard University
Graduate School of Business
JAMES L. O'CONNOR Administration
Treasurer
NORTON H. REAMER
ALAN R. DYNNER President and Director, United Asset
Secretary Management Corporation
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
JAMES B. HAWKES New England, Inc.
Vice President and Trustee
SAMUEL L. HAYES, III
ROBERT B. MACINTOSH Jacob H. Schiff Professor of
Vice President Investment Banking, Harvard University
Graduate School of Business
WILLIAM H. AHERN, JR. Administration
Vice President and Portfolio
Manager of Connecticut, Florida NORTON H. REAMER
Michigan, New Jersey, and President and Director, United Asset
Ohio Limited Maturity Management Corporation
Municipals Portfolios
JOHN L. THORNDIKE
NICOLE ANDERES Formerly Director, Fiduciary Company
Vice President and Portfolio Incorporated
Manager of New York Limited
Maturity Municipals Portfolio JACK L. TREYNOR
Investment Adviser and Consultant
CYNTHIA CLEMSON
Vice President and Portfolio
Manager of California Limited
Maturity Municipals Portfolio
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 Traditional 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, MA02110
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, MA02110
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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T-7LTFSRC-11/97
